The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-06-05
Home Telephone Company
Announces So a Year Ad-
vance in All Glasses of Its
Telephones.
lOFFICERS SAY THIS
MOVE WAS REQUIRED
President Lontz Says Com
pany Operated at a Loss
Makes Advance as Provid-
ed in the Contract.


morning by Manager William Bailey
of the Richmond Home Telephone
company that in accordance with the
terms of it's franchise the company
would raise its rates three dollars
year on each class of telephones from
June 1st.
For some time we have had over
$500 telephones in service. We might
have raised the rates some time ago
when we reached 5000 subscribers. but
we have put it off as long as possible.
The principle is we'll recognized in the
telephone business that the greater the
number of extensions the greater the
cost Of maintenance; so that if this
company desires to improve its serv-
ice and continue to extend its lines
it must increase it's rates." said Man
ager Bailey this morning.
Statement BY Lontz.
81 wish to make the statement"
said President Lontz, that this COM
pany has been running at loss-if
the cost of replacement and insurance
are taken into account. l am certain
that it is only human nature for citi-
zens to resent any increase in rates
and to forget that they were very anx-
ious and eager to get the franchise in
the present form. Up to this time the
rates have been very much lower than
the former Bell rates-about half.
They are now about third. Consider
ing the number of persons who can
now be reached by our telephone sys-
tenn and comparing it with the policy
of the Bell company. which called
this company into existence, 1 can not
but remind the public that we are do
ing no more than we announced in our
franchise itself that we would do and
what we are fairly entitled to.
1--WE have incurred heavy expenses
on account of storms. 1t was no more
than our duty to replace the damage
and to do it as promptly as possible,
but it is evident that unless there is
sufficient revenue to put this into ef-
feet Immediately that the public will
suffer.
in the matter of putting our sys-
tenn underground we have expended
hundreds of thousands of dollars which
is a guarantee of our good faith. can
conscientiously say that we shall con-
tinue our policy of extending our lines
and of keeping down our rates. Every
cent of the increase will go for better
ment of service. I repeat again that
only the necessity for paying our fix
ed insurance and replacement charges,
which represent a loss, makes us
take this step at this time-we have
put it off as long as possible.
How Contract Reads.
The Home Telephone company has
made it's increase in rates under the
section of it's contract with the city,
which reads as follows:
ANY such company shall furnish to
the city service twelve phones in its
public offices free of charge.
And further providing that any
such telephone company after it
should construct. re-equip or substan-
it should be allowed to charge its pat
rons for the service at the following
rates, to-wit.'
For party line phones in residence,
not to exceed four parties on the line,
not more than $500 per annum. For
| individual lines lines in residence, not
to exceed $500 per annum. Party
line phones in business places or pub
lie offices, not to exceed four parties
on a line, not more than 10000 per an.
mum. For individual lines in business
places or public offices, not to exceed
$500 per annum. The above rates
to be based on 1000 phones or less and
for such additional 500 phones over
1000 phones. no such company shall
be allowed to charge to exceed 121ac
per phone per month additional to the
above rates"