Mower County transcript., 1908-06-17
FURNISH SOME
PHONE FIGURES
Northwestern Company Furnish
Figures When Reduced Rates
Are Asked For.

The question of lower telephone
rates is being strongly agitated by
the people Of st. Cloud in which city
the Northwestern company has a
monopoly. \ reduction in the pres
ent rates has been asked for through
the st. Cloud Commercial club and
unless this is granted by the North
western company an independent
company is to be organized. \ COM.
mittee of St. Cloud business men re-
Gently visited the officials of the
Northwestern company in Minneap-.
Oils and the arguments and figures
they presented as to the cost of their.
plant, the operation of the same, etc.s
to show that they can't do business
at less rates in St. Cloud will be Of
interest to our peoples. The st. Cloud
Journal-Press of Wednesday says:
whether or notS the telephone
rates in this city aSare,tp lowered
will be determined SaAmeeting of
the board of directors,nof the North
western company swhich is to be held
on June 16. j
&c. D. Grinols, chairman of the
committee, reported that he and Mr..
Ladner had been in Minneapolis,
where they conferred with the Of
ficials of the company. In the first
place the officials stated that the cost
of equipping the system in this city
was much larger than in other cities
because the town is SO spread out.
Cables have been run to Waite Park,
the East Side, Sank Rapids, the re-
formatory and to the paper mill at
great cost. 1t is claimed by them that
the cost of equipment in this city
amounts to about $12O telephone,
while in other cities the cost was
from $31 to $45 a telephone. The
entire amount of money expended
in this city is $S5, 900. The following
are the exact figures presented by
the company:
"Cost of equipment $S5,91O;
number Of stations, 1922; cost per
telephone, $118.97; revenue for year
ending March 8, 1908, $20,332; toll
revenue, S1,534; total revenue, $22,-
S66.
MISUNDERSTANDING expen-,
ses, S5,946; current repair, $2,764;
3 per cent tax to- state, S671; stamps
and stationery, $500; general ex-
pense $2O7; instrument rental, 800.
This shows a profit Of $4,000, or
about II per cent on the investment
on the face of things. It is claimed,
however, that other expenses bring
the profits down to four or five per
cent
after talking with some OF the
officials in the office the members of
the committee visited the vice presi-
dent Of the company. He would not
admit that higher rates were being
charged here, considering the SER
vice. 1t is claimed that in the cities
where the rates are low the system
is old, the same as it was here years
ago. He admitted, however, that in
one city where competition was
heavy both companies were operat-
ing at loss.
'*The president states, however,
that a reduction may be given St.
Cloud He asserts that the business
phones may be given for SO; resi-
dence and business phones in party
$3.50; private residence phones
$1.75, and party residence $3.50 a
month. This is a so cent reduction
on all except the residence party
lines. The vice president did not
promise this reduction and did not
even say that he would recommend
it at the directors meeting, but as
serted that the question would prob
ably be taken up at that time.''
1t will be seen that the figures
given above are based on 72O tele-
phones in use.
At the present time the people of
st. Cloud have to pay 81 for a busi-
ness phone and $3.50 for a residence
phone or so cents month more
than double what the Interstate
charges in Austin.