The Hood River glacier. (Hood River, Or.) 1889-1933, 1910-06-02
HOME PHONE CO.
RAISES RATES

With the monthly telephone bills
sent out yesterday by the Home Tele-
phone Company was the announcement
to subscribers Of the increase in rates,
which has been expected here for the
past few months. The statement to
subscribers says that the action of the
board of directors in raising the rates
is the result of the resolution at the
annual stockholders meeting in Janu'
ary which asked the directors TO in
yes tigate the possibility of putting the
company on a dividend-paying basis.
The raises in the rates to take effect
July !, are as follows: Main line
business phone, $3.50 to 1925; party
line business phone, $l.75 10 1926
main line residence phone, $l.75 to
81. 25; party line residence phone, city,
.25 to $l.5O; party line, rural, l.5C
to $1.75. The raises are from rs cents
a month on party line residence phones
to rs cents month on main line busi-
ness phones.
The telephone company also cOntem
plates the increasing Of its revenue by
the installa tion of pay stations in the
hotels and in Plath's drug store.
Manager Charles Hall said in regard to
the reason for the raising of the rates
that the circular to the subscribers ex'
planned the action Of the board. He
said that the company had not been
operating on paying basis and while,
according to the books of the company,
| the stock, which has never received
any dividends, was worth more than
par, it is really not worth much more
than the par value because nothing has
ever been deducted for depreciation in
the plant. He says that about SIS, ,0O0
has been invested in the plant in stock
subscribed and money borrowed to-
gether with the profits of the concern
during its two years of existence. The
profits invested in the new plant are
balanced by the depreciation accord
ing to the manager, who says the
raise was necessary to put the company
in shape to pay dividends on the
capital invested.
Manager Hall said yesterday after
noon that he expected the raise would
result in the removal of possibly 100
phones and that one had already been
ordered out but that the great in
crease of the past few months has
made it impossible for the plant to
carry the large business. There are
now 1920 phones in Hood River town
and valley, the rate of increase having
been about % month during this
year. With the removal of the phones
the management hopes to get its lines
in hattar ahane Tn pivp better sarvice
and at the same time enlarge its plant
to take care of the business which is
coming to it. Manager Hall stated
that during the past four months more
work had been done to increase the
plant than at any time since the origi-
nal plant was finished. He says the
company is making every effort to give
adequate service and that he believes
no city the size of Hood River is enjoy
ing better service than is afforded here
The company has lately employed a
chief operator who has supervision of
the work at the switch board.
In anwser TO the remark that the in
creases in the rates seemed large
Manager Hall replied that the main
line business phones really should
bring A and that the party lines were
taxed to pay for the single line opera
tion. He said that the income to the
company was alway greater from
party lines than main lines and that
many of the main lines were operated
at loss while the party lines repre-
senting not much more investment
enabled the company to make profit.