Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1907-02-21

Advance and improvements of switch
boards and telephones often compels
the Company to discard lot of good
material for something more modern
an1 convenient. This alone is an i'm
pertant item to be taken into con-
in the matter of deprecia-
ton. We understand the Bell Com
/ any figure on 10 percent depreciation.
AS do many other companies.
We have one share of stock less this
year than last year. We still have
Two hundred and two shares of stock
out among the business men of our
city. The item of the accounts re-
ceivable appears quite large but this |
fact is due not because there are many |
persons who have not paid up their |
rentals but because it includes S169.75 |
which we are to receive from The |
Vote-Berger Company of Lacrosse Of
whom we purchased guaranteed |
board for NekoOSa and which has been |
returned to them few days ago.
They promised to remit as soon as the
board arrived and is inspected by
them.
The taxes for the year amount to
1920. SO, this is q percent OF the gross
receipts of the Company. A few years
ago this money was all turned over to
the state Treasurer but under the pro-
visions of the new law only Is percent
of this amount goes to the state and
the balance goes into our City Treas
ury and small portion TO the village
| of NekOOSa.
The gross earnings for this Company
| for the year amounts to Sl0752. As, this
amount is received mostly from rentals
paid in, which amounted to nearly
S10400.0O. Out Of these earnings we
allowed Sl22300 dividends. All ma
terials purchased during the year are
taken out of the earnings and amount
| to s1783.68. Our freight and drayage
cost Us S89.72. Printing. S69.10 and
the general expenses including interest,
taxes, rent, ETC., amounts to Sl161,72.
The total cost of running the plant
during the year including the items
of dividends was $8623.5l. This leaves
balance OfS2l2S. 81 as the earnings
of the Company for the year 1906.
Most telephone users and stock
holders of the Company are of course
interested in the item Of rentals. A
year ago it was reported to you that it
would be possible to continue making
considerable improvement and still
reduce the rate for telephone service.
1t was the sense of the stockholders
last year that the rate be kept as it is
and that we had better get out Of debt
| first, You will readily see from. this
statement of earnings, and it is con-
sentative one, that the rates can be
reduced. The item of interest is
getting smaller and Smallerj as the
principle decreases, also be the item
of taxes, as will then be smaller as
these are figured on the gross receipts
If The rates are kept up to where they
are now it ought to be but question
of very short time when our Com
pany ought to be out of debt entirely
and have surplus Of Eight to Ten
! Thousand dollars. The directors hest
tated long time but it was a wise
move that we did raise the rates be-
cause | am sure that our Company
would be in very unstable condition,
both financially and materially at this
time, if we had't done so. COopera.
tive or mutual telephone system was
born in Grand Rapids. We are proud
that it is a success.
1t will be a proper matter for the
stockholders or for your new Board of
Directors to decide if the present rates
should be reduced or if they are to
continue as they are. In taking up
the matter l wish to make suggeS-
tion to you, which will aid you or the
new Board in fixing a proper charge.
From my experiences in connection
with this Company | find that it is a
safe guide to figure that each tele-
phone installed as costing the Com
pany $1,000 year. In looking over
the report of this years business and
deducting the dividend you will find
that it has cost us a little over $1,000
per telephone. This estimate cost for
exchanges includes of course all repairs
as they should be kept up from year to
year, all operating expenses as we'll as
proper amount for depreciation. l
find this not only tue of our exchange
but it is true Of other exchanges vary
ing in size of from five hundred to one
thousand subscribers. OF course there
must necessarily be variation owing
to local conditions. At this rate of
course you will understand you cannot
expect to make extraordinary repairs
or expect to work off Indebtedness.
You can therefore see, if these facts
are true, that it is not safe to make a
rate on lower basis than that which
l have just stated. You will also
notice that the money made in the
telephone business is made on the
business telephones.
The old question of connecting up
with the Bell Telephone Company is
liable to come up at this meeting as we'll
as it has at prior meetings. For my,
self | do not think that the people in
this community have to the present
time suffered great deal from want
of connection with this Company. OF
Lao, l,a palI ~
have us think so.
A few persons have called the atten-
ton of the directors to this matter of
long distance connection but only
after they had long interview and
session with the Bell representative.
| Do they come to us and see the nee
ceSSity.
Now why are the Bell people so
anxious to connect with US? Why are
their concessions becoming more and
more liberal year after year? The
reason is two-fold, the first is that the
| independent are crowding hard for
this field of Wisconsin, the other is
| that they can increase their toll bust
ness. The Tri-State Telephone Com
| pany of Minneapolis had repreSen-
| tatiye through here short time ago
who was looking over the field, view
ing the prospects of doing long dis
lance business through this part of
the state. You will also remember
that the Independents have tried for
long time to get franchise in Mil
waukee. After innumerable delays
the franchise passed with vote of As
TO l. The Milwaukee Independent
Telephone Company are not only going
to build an exchange but are going to
build comprehensive system of long
distance line in Wisconsin. The work
begins early next spring. This is an
assured fact as is stated in circular
letter from the president of this CON-
pany. The day is not far distant
then when the Independent Telephone
exchanges of this part of the state are
going TO get long distance connections
in the directions of Milwaukee as well
as Minneapolis.
The Bell people wish to keep pos
session of this field and are doing