The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1897-12-07
G. D Hanchette Gives
His Views on the
Matter.
Meeting Called for Tomorrow
To Decide whether 20 60 Ahead Any
Further with the scheme
or Not.

EfcuiHG A'cHs.
DEAR SIR-In response TO your request
and in reply TO your editorials in refer
enee to telephones and insurance compan-
les. beg leave to MORN you that some
years back we had under consideration
the formation Of an insurance company,
and even went so far as to see Mr.. Peter
White at Marquette about it.
The project vas abandoned because it
would require a very large capital to
take care OF even small proportion OF
the bush, 80 OF thiseommunity, and there
being very little collateral available in
this district, which the State Law allows
an iasura1c &C company to invest in, much
loss would be caused by the capital lying
idle.
We have been in favor OF reduction OF
rates ever since we have been 10 the bust
ness, and you can count on us to assist
in any movement that will have that
end in view. We should pay no more for
insurance, teleDhones or other commodi-
ties here than the difference in the cost OF
handling and transportation,
At meeting OF those interested in the
organic alton OF local telephone COM
pany last month, CT m nittee was ap
pointed to investigate and report TO the
adjourned meeting TO be held on Deem
Der 9Th. as to the ACCESSIBILITY OF going
ahead with the corporation.
That committee, through it's secretary,
has been gathering data as to the cost OF
construction, running expenses and man
agenent. We feel much gratifed with
the result accomplished thus far, having
obtained, temporarily at least, a 20 per
cent reduction 10 rates. IL was a per-
maDent reduction. we do not zee WHY the
Bell com pauy have not assured you to
that effect without causing you to repeat
your reques. that.they would guarantee
not TO rise the rates.
We are, however, not satisfied with the
amount of the reduction. Now that we
have started, we are disposed to have
all we are entitled to. For years Mr..
Dee's friends have complained OF the high
rates aud urged a reduction, but their
requests have ayalled nothing, and this
movement was the only argument he
and his company would listen to.
Yes, there have been failures OF tele-
phone companies who have dared to op.
pose the gigantic Bell monopoly. But
there are others. We have heard OF
merchants, manuiacturers and even
mining companies, whose ventures have
not proved "Klondikes," who have
failed, and whose losses amounted to
considerably more than the $4,000,
mentioned in yours OF the 4th. Why the
report OF r. g. Dunn & 90, shows that
there were failures with defaulted liabili-
ties OF eleven million six hundred thous
and dollars for the month of November
just past.
We believe we had better investigate
fully before organizing, and so run no
chance o'failure. The writer personally
investigated the local company at Mar.
quette, where the Bell company simply
maintains an existence, and has, we are
told, not to exceed twelve phones in the
two cities OF Ishpeming and Negaunee.
We have heard from other towns and
counties where they connect all the
towns without extra toll charge, where
the companies are making money at a
$15 rate for phones.
IL ia easy enough to figure out what we
can expect. The single wire system can
be built for about $45 per phone, the
return wire or m tallic service for about
40 per cent additional.
plant for 500 phones could be easily
established for $50, 900. with the most
approved instruments. The cost OF main
tenanee can be readily ascertained. three
exchanges, nine girls and two boys, two
linemen, a manager and a bookkeeper
and collector; this ought not to exceed
s15 per phone per annum.
A number OF companies operate and
maintain their plant for $40 and less per
phone. II thsaverage receipts are $24,
it gives 30 per phone for profit and snr-
plus.
When We placed the rates at $18 and
$40, we believed it would be a profitable
investment Immediately, and as the users
are stock h olders, they would be getting
their service at cost, and the users who
are not stockholders, would derive the
additional benefit coming from home
company.
The Bell company realizes this 10 choice
territory and don't want to lose theprof-
it's which you can figure are enormous.
They need en- ormous profits to help pay
the interest on tie mortgage lately filed
with the Register o. Deeds. They have
lost their foothold In Detroit. Grand
Rapids, Ann Arbor and many other
towns In the Lower Peninsula. They
may have few paying towns thsre. but
they are very few. They will make us
pay this interest 90 long - they can. No