Rensselaer Semi-Weekly Republican, Volume 41, Number 92, Rensselaer, Jasper County, 6 August 1909 — THE OTHER SIDE OF THE PHONE QUESTION. [ARTICLE]

THE OTHER SIDE OF THE PHONE QUESTION.

President of the Lebanon Telephone Company Corrects Statements , of a Local Paper. < Mr. Thad E. Hanaway, Secy. & Mgr. Monticello Telephone Company. Monticello, Indiana. > My Dear Mr. Hanaway: —My attention has been called to a statement in the White County Democrat of Friday, July 23rd, copied from the Jasper County Democrat, concerning our telephone company at Lebanon, Indiana, which I cannot let pass without correction, as it not only does an injustice to us but is detrimental to the Independent interest in general. As I have no personal acquaintance with the editor of the Democrat, I am sending this to you in order that you may prevail upon him to make the correction, as I am quite sure that' he has no desire to intentionally be unjust to that telephone system that has made it possible for the telephone to be in reach of everyone. Had the editor of the Democrat asked either myself, the manager, the vice-president or the secretary of the Lebanon Telephone Company he would have gotten entirely different information from that which he seems to have obtained from a source which he does not disclose. Instead of 700 telephones, the company had at the close of business June 30th, 1,269 telephones in service. Instead of the company having been established fifteen to eighteen years ago, it began business in 1895 and was rebuilt in 1904 at an expense of $30,000, all of which was paid in by the stockholders. Instead of having only $500.00 put into the property “and not another dollar has ever been invested except the earnings,” the company has outstanding $45,000.00 in six per cent bonds which were sold at par, and all the proceeds invested in the company, in addition to $30,000.00 of capital stock which also brought par. Although the company has accumulated about $10,000.00 in surplus, which has gone into construction, the company has paid no dividend in nine years. It does not take much of a financier to figure that nine years dividend at six per cent on $30,000.00, which, if the surplus had not been used in extensions and had been usee for paying dividends, the stockholders would still be short over $6,000.00 on their investment. Instead of a switchboard that is adequate and efficient, we have a transfer magneto board that within twelve months must be replaced. This means an expense for replacing of switchboard and telephones of about thirty to thirty-five thousand dollars. Everyone recognizes the fact that the company must have a better rate. Even the City Council recognizes this fact, for only two years ago, with eight years remaining of obr old franchise, the city council, upon our request, changed our franchise and extended it twenty-five years, without fixing any rate limitations in it whatever. We have not advanced rates under the new ordinance and do not intend to until our new equipment is in. In all probability our rate then will be $30.00 per year for business service; SIB.OO per year for residence service, with a gradually increasing rate as the number of our subscribers increases. It is true the county in general has free service, but not over the Lebanon Telephone Company lines. Outride mutual and co-operative companies have built their lines to Lebanon, over which the Lebanon Company gots service throughout the county. The Lebanon Company would no more think of spending thousands of dollars in county lines and turning them over free to the use of its patrons and the public in general than its stockholders, who are business men, would think of establishing stores and banks and then opening the doors of their business houses and say to everybody, come In and help yourselves; it is preposterous and absurd to think a telephone company can put thousands of dollars in telephone lines and equipment and then operate them gratuitiously without sinking every dollar they have invested. I trust the editor of the Democrat will see fit, in the spirit of fairness

and truth, to give this the same pub; Holty which he gave* the article in his paper of July 24th. Your very truly, 9 f CHAS. S. NORTON, President Lebanon Telephone Co.