Rock Island Argus., 1898-09-20
TELEPHONE PLANTS COST.
Enormous Expense of Constructing Ex.
changes in Various Cities.

changes in Various Cities.
1t is interesting to read the expert
ences of other towns with the tele-
phone, the enormous cost of construct
ing plants and the high rates that
have been imposed. A. R. Bennett,
an old London telephone engineer, has
said: The capital outlay for (estab-
fishing a telephone exchange i'm a
small or medium sized town, where
one switchroom suffices, is from f12
to f14 (S60 to 500 per subscriber;
but in larger towns where several
switchrooms (sub-exchanges) con-
nected by junction (trunk) lines are
required, the cost in the absence of
special obstacles should range from
cepting in London, where L will esti-
mate the cost would be ESQ ($1S0) per
line.h
Let us see how these statements are
borne out by the experiences of Mr..
BENEFITS followers in the United
States, says Electrical Engineering:
I'm Erie, Penn, shareholders in an
opposition (mutuaD telephone COM
pany understood that the cost would
be 500, 900 at the outside. Already
800. 1000 has been expended for less
than 600-subscriber capacity, or an
outlay of nearly $3.50 per subscriber.
This is nearly equivalent to Mr.. Ben
netts estimated cost for London with
10, 900 telephones. In Pittsburg,
Penn, over $4,000 was invested in
cash, in addition to other securities,
and the plant in an embryotic state
was sold at sheriff's sale for less than
$500. In Detroit, Mich, it was under
stood that 5000, 900 would build
plant having capacity of 5000 sub
scribers, or at the rate of 800 per
subscriber. Already stock and bonds
having face value of over 81 900, 900
has been disposed of. and the plant is
not a profitable one. Many of these
bonds were disposed of in England and
Scotland through the Union bank of
Scotland.
In Toledo, Ohio. $4,000 was
deemed sum amply sufficient to
build telephone plant to accommo-
date 200 subscribers. Over $780,
600 is said to have been invested to
take care of 700 subscribers, or at the
rate of $133 per subscriber. Then,
after two years experience with a
ruinous rate of $50, the company
was unable to meet its obligations.
and the sheriff sold the plant for
So, 100.
I'm Topeka, Kas., $4,000 was re-
ported to be ample to build a plant
that would drive the Bell company
out of business. After $4S,0 had
been invested, the plant was sold at
sheriff's sale for about $4,000, and
the Bell company has doubled the
of subscribers it formerly
had.
I'm San Jose, Cal, S40.0OO was all
the money needed to build a compet-
ing telephone exchange After $59,-
900 had been invested sheriff's sale
followed.
More than hundred other cases
similar to the preceding could be de
tailed to prove that it is almost i'm
possible to give a correct estimate of
the cost of constructing a telephone
plant in any city, unless every factor
entering into the problem is clearly
specified. Even in city like St.
Louis, and with the strongest bust
ness men in the country on the board
Of directors $500, 900 was deemed too
liberal an appropriation to complete
the plant. Yet the latest report gives
the actual or contracted expenditure
as exceeding 81, 100, 900, and tiie plant
is not vet in operation"