Jasper County Democrat, Volume 16, Number 96, Rensselaer, Jasper County, 4 March 1914 — TELEPHONE HEARING ENDED [ARTICLE]

TELEPHONE HEARING ENDED

But Decision Probably Will Not Be Rendered for a Few Weeks. The hearing of the proposed increase in rates for phone service of the Jasper County Telephone Company was completed Friday evening before C. J. Murphy, a member of the public service commission, and a transcript of the .evidence, together with the briefs of the attorneys for the telephone company and the remanstrators will be filed with the commission, where all of the five members will go over the matter and render a decision. Mr. Murphy intimated that his understanding of the law was that the company should go ahead and make the improvement in their plant that they stated they wished to make, at an expense of about $20,000, before it should come before the commission asking for any increase in rates. But the company contends that it cannot secure the money to make the proposed improvements, as no one will buy the bonds, unless the company can secure an increased rental for the phone service, because of the fact that the plant has only paid an average of 3 per cent dividends the last five years and has laid up no sinking fund whatever for depreciation. Of course no increased rate co.ild possibly be put in force until the plant was put in the shape contemplated, which would take several months at least.

According to the sworn testimony of officers of the company the total receipts from all sources of both the Rensselaer and Wolcott plants, for the past five years, tolls and every item received, was $88,242.79, and the expenses $81,106.53, leaving a net balance of $7,136.26, which was paid out in dividends, making the 3 per cent average for the five years. The report submitted in the evidence showed that the receipts and, expenditures from the Wolcott plant, except tolls, were as follows, for the past live years:

Receipts Expenses l»09 • $3,643.20 $5,018.77 1910 3,676.05 4,500.27 191 1 ...... 4,299.45 3,178.99 1912 ...... 4,690.86 5,057,47 1913 4,286.70 5,582.69 The above figures show a net loss each year except in 1911, when there was a net gain of $1,120.46. The total receipts of the Rensse-

laer exchange for the past five years was as follows, less toll receipts: ,Receipts Expenses 19A9 • * 18,565.92 $13,107,33 1910 9,818.73 9,736.44 1911 10,514.75 9,602.01 1912 11,461.26 12,120.74 1913 .12,043.41 13,201.82 The Rensselaer exchange showed a net loss each year except in 1910, when there was a net gain of $82.29. The above figures include the country phones at each exchange. The amounts received from tolls at Rensselaer, Wolcott and all stations for the past five years were given as follows: Receipts Expense Net 1909 $3,898.44 $1,068.44 $2,830 00 1910 4,772.48 1,615.36 3,157.12 1911 4,867.89 1,612.43 3,255 46 1912 5,260.68 2,096.34 3,164.34 ,1913 4.905.74 2,070.20 2,835.54

The expense in the tolls is the amount going to the Central Union Telephone Comj>any and other companies. It will be seen from the above that while there was a net loss of several thousand dollars on the phone rentals, during the five years covered by these figures, there was a net gain of $15,237.46 on tolls, which left a net balance over all expenditures of $7,136.26, from which the 3 per cent dividends were paid. In other words, the total receipts for the five years from all sources was $88,242.79 and the total expenditures $81,106.53.

Of course in the expense is included the new phones put in and extensions of lines made, etc. The number of phones at the Wolcott exchange have Increased from 299 in 1909 to 365 in 1913, while the expense of operators there was increased from $660 in 1909 to $720 in 1913. In Rensselaer the number of phones have increased from 620 in 1909 to 777 in 1913 and the cost for operators from $2,112.24 in 1909 to $3,514.40 in 1913. The net unit of cost per telephone for 1913 at Wolcott was $15.24 while the receipts were but $15.06, making a net loss pbr phone of 18 cents. The unit of cost per phone for the Rensselaer exchange was $17.19 while the unit of receipts was $17.35, making a net gain per phone of 16 cents. The evidence also showed that the salaries of the officers were as fol-

lows: Delos Thompson, president and general manager, SSO per month. (From this amount Mr. Thompson pays Miss Gertrude Hopkins $35 per month for keeping the accounts of the company at the bank); Howard Mills, secretary, S4O per month; J. J. Montgomery, superintendent, SIOO per month.