Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1902-02-13
From Review of Reviews.

middle west can have failed to notice
the recent progress of what is known
as the independent telephone move
ment," by which the advantages of
cheap and efficient telephone service
have been extended to hundreds of
cities. villages. and even farming COM
munities, which until a very few
years ago We're deprived of them by
the extortionate tariffs exacted by thu
great corporation in control of the bus
mess. Many of the stock companies
through which this rapid expansion OF
the telephone service has been pro-
NOTED were organized on the so-called
mutual plan, having genuine COOP
erative features; but in one way or am
other, whether by accident or design.
these companies have been brought
under control of small groups of stock
holders, and have thus become, to all
intents and purposes, ordinary private
corporations managed for the profit of
indiy iduals. In many cases this has
probably been anything but a calamity
to the patrons of the service The
management has remained in the
hands of LEGAL residents who have
looked well after the common inter-
ests, and in the absence of an alert
public spirit on the part of the citi-
zenship it may well be that such pr
vate ownership and control of public
utility is the most practicable solution.
But it is not always the most desir-
able solution. Putting aside, for the
present, the proposition of municipal
ownership (Which is apparently sue
cessful in many European cities, but
which has not yet been tried in this
country. there is much to be said for
a cooperative telephone system, opar-
ated, not for profit, but with view
single to the best service of the COM
munity. Such cooperative undertake
inss have actually been begun in Ger.
tain American towns, and some have
succeeded. In this article, one such
experiment will be described
Grand Rapids, Wis, is one of a
series of enterprising urban centers
which within little more than a third
of century have been developed along
the Wisconsin river, quite transform
ing the valley of the wild, rushing
river" as the Indians called it, into
the peaceful abode of industry, wealth
and general prosperity. The history
of these Wisconsin valley communities
was not unlike that of hundreds OF
other settlements in the middle west
The railroad and. the telegraph pion
eered for civilization, and in theiI
wake. came the daily newspaper and
some years later, the telephone
The Wisconsin valley people re
oeived the telephone, just as most
Americans received it, at the hands of
a great monopoly. They welcomed
the product of American inventive
genius, and for some years they paid
tribute in the form of rentals which
made the telephone monopoly an ex-
ceedingly profitable business Ten
years ago, the customary rates for
telephone service in this country, for
the smaller cities and villages, were
$43 year for stores and offices and
$36 for private houses. These are still
the prevailing rates in many places
These were the rates maintained foi
the Grand Rapids exchange. which in
cluded only about seventy instruments
In 1894, some of the Grand Rapids sub.
scribers, believing that the charges
were exorbitant in view of the service
rendered, pettioned for a reduction
Their request was denied. The sub
scribers investigated the subject OF
telephone service, and decided that an
exchange could be operated with profit
at materially lower rates. The next
step was the forming of cooperative
company to Get up an independent
telephone exchange for Grand Rapids
and vicinity.
To organize a cooperative telephone
exchange did not prove to be so diff
cult task; the thing has been done
more than once. In the case of Grand
Rapids, the real test of the anti-mo
nopolists came after the new company
was in full operation, offering service
to its membership at lower rates than
had ever before been thought practic
able. The company was organized 81
this basis: a capitalization of $4,000
divided into 100 shares, each repre-
senting the cost of installation of a
single telephone $3.50; each stock
holder to be permitted to hold one
share of stock for each telephone reno
ed by him, and no more; ownership Of
the stock to be absolutely confined tc
renters of telephones; dividends Of a!
least per cent. per month to be paid
on the stock
Rates Based on Cost
The estimates of expenses made by
the promoters of the new. exchange
were verified by experience; for at the
monthly rates tablished-s2 fol
stores and Offices and 81 for residences
the company was not only able tc
give good service, but increased III
dividends from the i per cent.
month required by its charter to IL