The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1897-11-12
Mr.. NATE EXPLAINS
Addresses the Telephone Meet
ing Last Night.
Tells of the Tactics of the Bell Company
and the Profits of Independent
Local Exchanges.

Another meeting of the members
of the proposed local telephone COM
pany, was held at The Saulpaugh last
evening, Chairman Plymat pTesid-
ing. President Haight, Of the Blue
Earth Valley company, Supt. George,
of the Western Electric Co., Of Britt,
Iowa, and Secretary j. J. Nate, of the
Standard Telephone and Electric Co.,
of Madison, Wis, were invited in
after a preliminary talk, and Mr..
Nate was called on for any informa-
tion which he had to Impart.
Mr. Nate spoke at much length.
He said that Mankato is now center
where several independent telephone
companies have met, preliminary to
being extended to the twin cities.
The companies would first enter Min
neapolis and would not require fran
chise. The ex ension will be made if
the companies put up the money,
which they nave promised to do.
Speaking of the local independent
systems, Mr.. Nate said that there had
never been a failure of one Of these
where the people have closely identi-
fled themselves with the interests of
the companies. In two and half
years of financial depression, only "a
of these companies had failed, out of
$500 rival exchanges of the Bell COM
pany, which he considered something
remarkable. There were good reasons
for failure in each case.
1t is the policy of the Bell COM
pany, said the speaker, to fight new
independent companies even to fur
nish telephones free, and after the
new mpany is believed to be driven
out to put up rates again. The COM
pany does it everywhere and will do
it in Mankato. The Bell company re-
ceives monthly royalty Of 55 to 60
cents on each instrument in it's local
companies, and also owns the control
ling amount of stock so that 1T takes
little over half the profit to use in
it's own interests. If the Bell COM
pany loses it's Berliner patent it
loses the royalty. In order not to
lose the patent, it's plan is to hold it
as threat before the public as long
as possible, and as plaintiffs it can re-
call it's suits before they come to trial.
When the answers are made,
the suits are quietly dropped,
so that no decision is made on the
patent. Mr.. Nate said that his COM
pany had been sued on three expired
patents by the Bell company. Justice
Brewer has said that the Bell mono
poly has ceased by reason Of the eX.
piration of the patents. The field is
open to all telephone companies, the
same as the field on any manutactur
ed article upon which the patent has
expired is open, and there is S20,0O0,.
900 to S25,000,000 invested in the
United States in rival exchanges to
the Bell company, and bringing 10 to
35 per cent profits. In Marquette
Mich, the Bel company today has
400 free telephones, and every user is
pointed 10 as pauper subscriber
The Bell company is never fair at any
stage Of the game. The Standard
Oil monopoly has used its vast re-
sources to the reduction in the price
of oil, but the Bell company has held
up its prices so that the earnings
are II to per cent month on the
money invested. The Bell company
can use it's profits in the city OF
Milwaukee and give free service tC
every other subscriber in Wisconsin
which shows how hard financial
fight it's opponents have.
A local plant can be safely count
ed upon to pay II to Is per cent, sale
innate, and this allows for deprecia
tion. provided it is carefully put il
and managed. At Madison, Wis, {
7OO-'phone plant was put in for $4,000
and is paying dividends on slOO,OOt
capitalization. The Bell company
recently bought rival plants in two
Indiana and Wisconsin towns.
To succeed here, means concerted
effort and a determined one. The
business is simple and not much O.
an outlay is required beyond the cost
of construction. A good man will bt
needed to run it. The Bell company
will do everything that it can to op