Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1896-03-19
Wood County Telephone Co.

The Wood County Telephone Co.
after being in existence more than a
year, upon careful deliberation, and
after it has had the benefit of the
experience of neighboring cities in a
similar undertaking, has resolved to
construct its own local exchange.
When the agitation of this project
was begun our people were paying to
the Wisconsin Telephone Company 81
a month for business places and s. a
month for residence telephones. Dele
gates from Merrill, Wausau, Stevens
Point, Marshfeld and the Twin Cities
met at Wausau to consider how these
rates might be reduced and how the
service, which was then very poor,
could be improved. They met there
the general manager of the Wisconsin
Telephone Company and told him they
would insist on an improvement of the
service, and a reduction of the rates to
81 per month for business telephones
and 81 for residences. In response to
our demands the service was recon-
structed and very much improved, and
the rates were reduced % per cent,
being, under the new rates, S3 for busi-
ness places and 81 for residences.
We always believed and at last became
fully satisfied that even these reduced
rates were double what it would cost US
to maintain our own local exchange
including as part of the cost liberal
Interest on the capital invested. So a
meeting of the subscribers to the home
company was called and a resolution
passed in favor of going Oh with the
work of construction. Soon thereafter
the Wisconsin Telephone Company
reduced its rates to 81 for business
places and $3.50 for residences, a
reduction of nearly 335 per cent.
This reduction was SO nearly what we
first demanded that it caused some of
The original m overs to hesitate about
going ahead, for after all it is purely a
question of dollars and cents, and if
our people can purchase from the
Wisconsin Telephone Company good
telephone service cheaper than they
can furnish it to themselves it would
not be wise to make the proposed
change.
On careful examination of all the
items of expense including dividend
OF II per cent. per annum Oh the
capital stock we find that we can furnish
telephone service to ourselves at rate
more than % per cent. less than we are
now paying to the Wisconsin Telephone
Company. We are further confirmed
in this by the annual report of the
Wausau Telephone Company which is
now before us. Every agent of the
Wisconsin Telephone Co. that we have
talked with on the matter of rates,
admits that a local company can
operate the local exchange at less cost
than the Wisconsin Telephone Company
could operate it. And they assign this as
the reason for not giving us lower rates.
We know the Wisconsin Telephone
Company will not give us telephone
service at cost. We know We can
furnish it to ourselves at cost and at
less cost than it could be furnished by
any outside company. If we accepted
the rates now offered by the Wisconsin
Telephone Co. and disbanded, how long
would it be before we would find them
charging us as high rates as they are
now charging in other cities where
} they have no organized opposition?
Our telephone users are united now. If
, we allowed this movement to fail could
we secure as united a movement in
the second attempt as we have now?
. Would it not be positively mischievous
to move in this matter unless we move
all together?
There is no room in this or in any
other town for two competing lines.
The telephone service is, and should be
a monopoly, competition is positively
baneful and should not be tolerated.
With our people divided up between
the home company and the Wisconsin
Telephone Company, the service of
each would not only be less valuable
and more expensive but the Wisconsin
Telephone Company would use one part
of our people to lash and crush out the
other part. 1t would be war
that could only end in the extermina-
ton of one Of the combatants, and the
expense of the war would in the end
have to be borne by our own people.
We have made our first assessment on
stock, but we have not yet spent a
dollar for material, and if we thought
there were even small part of our
people who would refuse to unite with
US, and with us exclusively, on the
local exchange we would be in favor of
disbanding and disbanding forever.
But so far we have found no such
person and hope and rely on finding
none such hereafter.
Our plan is to issue one, and only one
share of stock to the renter of one
telephone and each telephone renter
shall have the right 10 purchase one
: share of stock for each telephone rented
by him. If all who take telephone
service from the home company would
; purchase stock the plan would be
perfectly mutual and cooperative. As
it is about four-fifths of them have sub
ScrIbn6 for stock The cost Of