The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1897-03-04
COST OF TELEPHONES
THE EXPERIENCE OF A LOCAL
COMPANY AT WAUSAU
WHAT THE DIRECTORS SAY.
Good Facts and Arguments in Favor of a
Local Telephone Service.-oppo-
sition From the wisconsin Tele
phone Trust Overcome.

To Our Patrons and Friends: We
hope you have read our published re.
port submitted az the annual stock
holders meeting February2. 1t is not
a /" whitewash. 1t gives the exact
facts as to the cost and profit of the
business, and clearly proves that the
statement made to our citizens two
years ago by representatives OF the
| telephone trust, represented IN WlscOn-
sin by the Wisconsin Telephone COM
pany, that the investment of that COM
pany in Wausau did not Yield to exceed
per cent. profit, was utterly false. 1t
must convince you also that the conf
dence of our citizens in constructing an
independent telephone here was not
misplaced. We have, at greatly re-
duced cost, furnished our patrons a
much more efficient service than was
ever given them by the trust, and
We Are Going to Reduce the Rate.
Our recent report shows that on an
investment of $3.50 we have paid all
our running expenses, and in addition
thereto have made net profit OF
50, 1875, or Is per cent. profit on our
capital stock in one year and four
months. Our company was organized
for the purpose of furnishing the best
service at the least cost. This large
profit on its face appears to show that
while we have kept our promise as to
efficient service, we have not kept 1T IN
regard to cost.
Why Have We Not Reduced the Rate Before?
Our form of organization explains
this. Ours is a unique corporation.
Since the value of the service to patrons
largely depends on the number of tele-
phones in use in the system, to furnish
the best service to a community, tele-
phone exchange must have monopoly
of the business there. History has
proved that any company organized for
mere gain is selfish, and to give such a
company a monopoly is dangerous.
Our corporation is the first antl-hog
corporation, so far as we know, organ
lied for a business monopoly purpose
1t is in the best sense of the wood mu-
tual and public spirited in its pur-
poses, and to insure our patrons against
the perversion of the aims of its pro-
moters, no one is permitted to sub
scribe for more shares of capital stock
than he has telephones rented from the
company for his own personal use.
This has necessarily very much linn
tied the amount of stock issued by the
company, and while we have 1Ol stock
holders, we have sold only III shares
of stock, all at $50 per share, or $3.50
in all. But the cost of our plant to
February l, as shown by our report of
February 2, is $9,32623, or $3,476.23
more than the amount received from
stock sold. In other words, this rep
resents the debt which the company
has been compelled to incur because OF
this restriction in the sale OF It's stock
S3.111. 20 of this Indebtedness has been
earned by the company to February l.,
in excess of operating expenses, ana a
cash dividend of Is per cent. per an
mum paid to it's stockholders, and the
net indebtedness of the company at the
date of the stockholders meeting was
l'only. S364.53. OF course, this shows
that the capital stock of our company is
actually worth $1,000 per share, for we
think the plant is worth all it has cost.
But in order that allOf our citizens may
have the opportunity to share in the
benefits gand earnings of the company,
and in recognition of the tact that the
cash dividend received has heen fair
| income on their Investment, our stock
holders have directed that the treasury
stock of the company be sold TO any
one applying for it at 500 per share,
provided that no one can SO purchase
more shares of stock than he has tee-
phones leased from the company for his
own personal use. The reason we have
not reduced the rental charge sooner,
| therefore, is because of this debt, and
/ The Reason Make the Reduction
now is because the present condition OF
the company justifies it.
! How best to make this reduction has
been the interesting, but very agree
able problem for the directors to solve
After careful study and consultation
with our patrons, we have concluded
/ that it is desirable to make much
larger proportionate reduction for tele-
phones in residences than in business
! houses and Offices. The larger resi-
dence connection we have with oul