The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-01-06
Manager Bailey States This
Matter Will Be Brought
Before Annual Meeting of
Stockholders.
ALLEGES FRANCHISE
PERMITS THE RAISE
Manager States Company
Now Has Over 5000 Pa
irons and Can Increase
Rental IS Cents Month.

The telephone rates of the Rich
mond Home Telephone company may
be increased three dollars n year in
the near future, it being announced
on Friday by Manager William Bailey
that this question probably would be
one considered at the annual meeting
of the stockholders on January 25.
If the increases are made rental OF
S2l "A year will be exacted for resi-
dence phones and $50 year for
phones in business houses.
Reasons assigned for consideration
of the proposed increase were that
the company claims it has not been
making a fair dividend on its invest
ment, and can not so long as the pres
ent rates are maintained; furthermore
that the company, now having 3l00
subscribers. has the right under its
franchise with the city to increase the
rates on both classes of phones TWEEN.
ty-five cents a month.
Many Complaints Made.
Patrons generally have complained
considerably about the present condi-
ton of the. service. However. 1t is
because of these complaints that the
company in way feels it would be
justified in making the increase. It
is preparing to re-equip the system
and the revenue from the present
rates is insufficient to meet or even
justify the expenditure, Manager
Bailey declares
Even though it was made known
that the stockholders would consider
the question at their annual meeting,
lit s%ss stated by Manager. Bailey that
the increases would not be maAe 1n-
til It was absolutely necessary. II
the stockholders are not entirely sat
isfied conditions do not justify an in
crease this year, Manager Bailey said
he did not believe the increase would
be made. No official attention has
been given the matter as yet by the
officers and directors insofar as he is
informed
During 1910 the company made big
gains in it's patron list, principally be-
cause the Bell Telephone company
had withdrawn all opposition in the
local field by entering into an agree
ment with the independent company
whereby all local business was turned
over to it and the older company given
preference in long distance business.
During the first seven months in 1910
more than 500 phones were added to
the Home company list and since Au-
gust many more new subscribers have
been taken on, until now the company
claims approximately thirty-one hun
dred subscribers.
Terms Of Franchise.
The franchise under which the COM
pany operates, according to Manager
Bailey, permits the proposed raise
and establishes the rate of charge So
| long as the company had less than
three thousand subscribers, he said,
/ the franchise fixed the annual rates
at s18 for residence phones and $36
| for business phones. In one section
of the franchise he said there was a
clause, the sense of which was that
| the company had the right to charge
twenty-five cents month more for
both residence and business phones
| for each additional thousand new SUBJ
! scribers. This section means that
| when the company can show 1000 or
more bona fide patrons, it will have
rentals at s21 for residence phones
and s39 for business phones. Then
another rental increase may be made
, by the company when it acquires a
total of 1000 or more patrons. When
| this number of subscribers are on the
book the company may fix its annual
rates at s24 for residence phones and
| s42 for business phones and so on for
each additional thousand new sub
scribers, Manager Bailey says.