The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1909-05-11

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.
:. :. I:
Zone of the most important, one
of the essential requisites, for the
continued success of any telephone
company is its power to extend, in
creasing the number of it's subscribers
as the community grows and the citi-
zens are educated TO the use of the
telephone. No company can perma-
nently succeed which cannot accom-
modate all who wish telephones.
The life Of a switchboard is in
Vestment of new capital which can be
secured only by the use of the earn
ings 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 cap
ital invested as to induce new capital
to seek investment in securities.
In our judgment it is not possible
for any company which has over one
hundred telephones to maintain its
plant as it should be, and as it must
be maintained if good service is to be
given and to pay fair return on the
capital invested at rates less than
$1.5O for residence, and $3.50 for
business telephones; it is impossible
for any company with over five hun
dred telephones to be successful at
rates less than $1.75 for residence
phones and $500 for business phones,
or for a company with over two thou
sand telehones to provide for mainten-
ance, extensions and improvements
at rates less than $500 for residence
phones and $500 for business phones.
:. :. {.
Even at the increased rates the
various companies are putting In
force, there is no form of public OF
private service as cheap or which
makes as great return for the cost as
does the telephone. At the rate o
one dollar and a half month for {
telephone it costs less than five cents
a day. The average number of calls
over a telephone in an exchange will
five hundred subscribers, is between
five and seven, making each call aver
age in cost less than a cent. In al
| exchange of two thousand telephone
| the average number of calls over tele
phone is between fifteen and twenty
/ making the cost of each call average
! less than one-third of a cent.
:. :: :.
There is invested in independen
! telephone plants in Central Kentucli
over $1,500000. We doubt if thos
who invested in this amount have re
ceived an average of two per cent
on their investment up to this time
We presume that there are held il
Lexington and Lafayette county telG
phone securities of the par value of a
least 100000, the salable value c
which at the present market price i
between s325,OOO and $4,000.
ITO meet the demands for telt
, phones in Central Kentucky and i
Eastern Kentucky in the next fiy
years will require the investment c
at least $1,00O,O0O more, probably 81
100000. Unless the capital investe
can secure sufficient returns to Undue
others to invest in such securities
will be impossible to meet the d
mand and many companies now ope
| ating will either be bankrupt or so
| to the competing companies. Tho'
who are opposing the increase in rat
for the various companies in Il
5 smaller towns of Kentucky ought
= give careful consideration to the
5 facts.
Some are prone to criticize us I
/ our policy of publicity so far as
+ concerns the so-called "indepndent'
e We are working in complete harmo
e with many of the Independents who
d systems, for practical purposes, a
e a part of ours and ours form a part
o theirs. There is another class
S so-called independents" which rea
should be called Opposition" and
n is usually by these latter that we Z
e called agonistic-because in
l. protection of our interests We Try
d expose and correct the misleadi
d statements and impossible promii
It put out by promoters and organiz'
d whose sole aim is to make big lot
d money out of franchise vending .
Of promotion.
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