Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-09-30
good business conduct" And in a

fairly recent case In one OF the 1ed
eral courts, it was held that the
rates chargeable by telephone com
pany were dependent to a large ex
tent on the character of service rem
dered. All of which merely confirms
the suggestion already made, that II
addition to good equipment and sub
stantial construction, must be added
competent management with heces
sary maintenance and operating
forces of equal competence. Wher
you have secured these, you are as.
sured of patronage proportional tc
the population of the zone within
which you operate.
| The question then confronting you
| is that Of holding your subscribers
To do this, requires constant atten
ton on the part of the employe, the
manager, cashier, or by whatever title
known, whose business it is to meet
the public and attend to business
affairs as between the company and
the consumer.
Again quoting from Telephony, OF
August 10, We find an account Of one
manager with large number OF
| orders for take outs on the first OF
the month, who by a personal inter.
| view saved half, which was unques-
tionably good work on the part OF
that manager, and his work that
month must have netted the company
goo0 profit, in that item alone.
Such managers, such employees, are
the ones who can be obtained and
retained by payment of reasonable
salaries and in the end they save to
the company many times the difference
in salary between a cheap man and
a good man. But of course, the main
question in holdin subscribers is to
maintain your service and equipment
at high degree of efficiency, which
brings us again to the money ques-
ton involved in the telephone bust
ness. Good equipment, competent
employees, maintenance of service at
a high standard can not be, except
the company obtains for it's service
compensation adequate in amount to
pay it's fixed charge, current repairs,
and interest account, to lay aside a
depreciation fund and the have suffi.
cient to pay its stockholders rea-
sonable dividend. And there is no
reason, why a charge should not be
made for the service furnished suffi-
silent to do this. And there is no
question, but that it is much easier
to collect a high rate for service,
If good service is given, than to COL
lect low rate when poor service is
given. So that we have another rea-
son for the furnishing of satisfactory
service to the public.
There is one item that is not al
ways taken into account in telephone
business, but which in this state
should at least for some few years
to come, be taken into account, and
that Is, surplus fund over and above
the charges heretofore spoken of, to
take care of emergency expenses,
such as when the extraordinary
growth Of new communities, necessi-
tate an entire change Of equipment
within very short space Of time.
As to storms, all who have lived in
this state for a few years, realize
fully the liability of every telephone
line to be practically wiped out Of
existence within few hours, during
certain portions Of the year. And
we all know that many communities
in this rapidly growing state have de-
veloped so that a demand for en-
larged telephone equipment has arisen
before the first equipment had be.
com we'll installed. These extra
ordinary expenses call for the laying
up of a surplus, which may be created
by the setting aside of a small per
cent from time to time.
There Is another item that should
be taken into account by telephone
companies in making rates, and one
that has been approved by TIE Wis
consin commission. To quote: where
reasonable care has been exercised
in all the phases of its management,
but the owners have not received
fair return during the earlier years
of the operation Of the plant, in
which the property is used for the
convenience Of the public, the deficit
thus incurred must be made up out
of later earnings in so far Is this is
commercially possible and expe-
dent"
I'm other words. every effort hon.
estly put forth, every dollar properly
expended, and every obligation legi-
timately incurred. in the establish
ment Of an efficient public utility
BUSINESS, must be taken into consid.
Grafton in the making Of rates for
such business" In fixing rates there
should be taken into consideration as
the basic sum used as an earning pow
er, not only the value OF the physical
not only the value of the physical
property, but the added intangible
value that attacks to a going con-
Germ, for there is no question but
that as matter of moral, ethical
and legal right, every man Is entitled
to earn a reasonable profit upon his
investment, and established business,
Is often times in itself an investment
Of more value than the intrinsic val.
ue Of the property involved.
I find as I write that I am very
apt to exceed the time allowed me,
If proceed further along the lines
already Travelled, but there are q
few other matters which I desire to
mention, and so will leave the ques-
ton Of equipment, construction and
operation, for a time, at least.
I have referred In my address thus
far at times to the Wisconsin COM