The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1908-12-09
WANT A HOME
TELEPHONE co.
Redwood Falls Citizens Object to a
Promised Advance in Rates
for Phones.
Order Phones Teken Out and Sub
scribe Money for Holue
Control of Lines.

Redwood Falls citizens are practi-
cally unit in their dissatisfaction
with the announced raise in the tel
ephone rates so cents per phone, to
take effect next month. A consid-
cradle number of business men
served notice that they would not
pay the new schedule after January
first, very soon after the notices
were received. Friday evening a
large majority of the business men
of the city met at the council rooms
and discussed the matter in detail.
A. C. Dolliff was elected chairman
and Recorder Smith secretary.
The talk from start to finish was
kept along business lines. The fact
was brought out that the officials of
the Minnesota Central had made
their decision on the ground that
the company is not making a profit
at present rental rates. The man.
ager of the company had been called
up by Mr.. Gold and had assured him
that if the company owned their
present lines January 1st the rates
required would be in accordance
with notices sent out. Compromise
or concession appeared to be out of
the question.
In order to put the matter in a
tangible shape, several were called
upon for opinions as to the cost of
putting in a new system in case it
was impossible to buy out the Min
nesota Central at reasonable rate.
Mr.. Gold had inquired of an official
of rival company, who had told
him that the minimum cost of du-
plicating our present local telephone
system would be ten or eleven thous-
and dollars. Henry Jaehning, who
formerly owned a local telephone
system in New Richland, gave an
estimate on the basis of the number
of phones used, which practically
corroborated the first statement.
Following these conclusions, a
test was made of the matter of sub
scribing stock for the local company
and over $1,000 was subscribed in
the meeting, subsequently increased
to $4,000 without any general can
vass being attempted.
The problem so far has been treat
ed as business question. 1t APP
pears that the company has no fran
chise which prevents the citizens of
Redwood Falls from operating a
telephone system here, and present
indications are that they propose to
do this. Since the meeting at the
council room some inquiries have
been made at neighboring independ-
ent exchanges. At Springfield the
Minnesota Central was crowded out
by a spontaneous local uprising, and
in response to a phone inquiry, VIM.
G. Frank, one of the leading spirits
in the Springfield enterprise, stated
that their company charges the same
rates as Redwood Falls one and two
dollars per phone-and that with
184 phones, about SO of them paying
the So rate, the company has sue
ceeded in earning about 80 per cent
on their investment. We do not
suppose that this statement made
any allowance for depreciation of
plant-probably not-but the mar
gin is large enough to allow this de-
duction to be made and insure good
earnings in addition.
Mr.. Williams. the representative
here of the Minnesota Central, in
sists that the proposed increase is
necessary for the profitable opera
ton of the company's lines. He
calls attention to the fact that un-
der the new schedule there would
be no Is cents per phone extra for
rural connections. either to town OF