Okolona messenger. (Okolona, Miss.) 1900-current, 1909-05-12

change OF two hundred is not over
half, if half. the cost Of operation per
telephone in an exchange OF one thous-
and, nor one-fourth the cost Of opera
ton in an exchange with two thousand
subscribers.
The number of calls made through
the switchboard Of an exchange OF
two thousand telephones is much more
than twenty times the number OF calls
made through an exchange OF one
hundred telephones nearer one hum
bred and twenty times as many. so that
those who organized telephone compa-
MES and based their rates upon the
number of telephones in use ten years
ago, find it necessary to increase their
rates or to go gu: OF business.
Another cost which was accurately
estimated by few Of the companies was
the cost OF maintenance. Iron wire
strung in the air over railroad track,
where it comes in direct contact with
the smoke Of engines, has to be re-
newed every two or three years. Iron
wire strung along railroad tracks has
to be renewed every four or FIVE years,
as it does in such a city as Lexington,
where there is the amount OF coal
smoke there is here. Even in the coun-
try where there is comparatively little
coal smoke, the life Of iron wire is not
over ten years. The life of chestnut
poles. which are used principally in
the construction Of pole line. in Ken
lucky. is not over eight to twelve years,
and of cedar poles twcive to fifteen
years.
The life of switchboard is from
seven to twelve years. The Fayette
Home Telephone Company is now in
Sailing new switchboard. the old
one, which cost between $4,000 and
$4,000 being so nearly worn out that
in purchasing a new switchboard the
company could secure for the old
board only $4,000. The experience
of smaller plants is the same as that Of
the Fayeae Home Telephone Compa-
ny-that to give good service switch
board cannot be used for a longer
period than somewhere between seven
and twelve years.
This means practically that tele-
phone plant must be entirely rebuilt
every twelve years--new wire. new
poles and new switchboard and the
rates charged must be sufficient to
maintain the plant by practically re-
building it during that time.
One Of the most important, one of
the most essential requisites, for the
continued success OF any telephone
company is its power to extend, in
creasing the number Of its subscribers
as the community grows and the citi-
zens are educated to the use of the
No company can perma-
nentIy succeed which cannot accom-
modate all who wish telephones.
THE life of switchboard is invest
ment of new capital which can be Sc
cured only by the use Of the earnings
of the company, or by the sale of
securities. The rates, therefore, must
be large enough either to make such
extensions from the net earnings or
to make such returns upon the capital
invested as to induce new capital to
seek investment in securities.
In our judgment it is not possible
for any company which has enc hun
dred telephones to maintain its plant
as it should be, ana as it must be
maintained if good service is to be
given and to pay fair retsrn on the
capital invested at rates less than $3.50
for residence, and $3.50 for business
telephones; it is impossible for any
company with over FIVE hundred teIe-
phones to be successful at rates less
than $1.75 for residence phones and
$500 for business phones. or for a !
with over two thousand tele-
phones to provide for maintenance,
extension and improvements at rates
less than $500 for residence phones