The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1912-08-03
ATTENDANCE AT REPUBLICAN
WARD MEETINGS VERY SMALL
SAYS PHONE RATE
INCREASE IS JUST
Telephone Official Says that
the Committee Will
Find 1t So.

The pending investigation OF the
City Council Telephone committee,
will undoubtedly develop just reasons
why the Richmond Home Telephone
company has the power to increase the
rates, according to a statement made
by Supt- VIM Bailey. II is purely a
business proposition on the part of the
telephone company said Mr.. Bailey,
and is merely the carrying out of the
contract which was made with the
city several years ago when il accept
ed the franchise which was turned
down by the Bell Telephone company.
At the present time Richmond has
cheaper phone service than the small
town of Greensboro and also as cheap
in proportion as that offered by the
Indianapolis. Cincinnati and Chicago
companies. In Greensboro the rate is
$12 per year. The Greensboro company
has 800 subscribers.
In Richmond five years ago the cost
of the single line phone was SIS per
year. At this time there were 2200
phones. At the present time, the rate
since the increase is s21 and there are
$500 phones, the superintendent said.
This makes the rate six mills per an
mum for each subscriber, for the cost
of each call. In Indianapolis, there are
Is, 900 and the rate is s4s. This makes
rate of three mills per annum for
each call.
The rate here since the increase is
s21 for straight line and the party
lines varying as to the number of each
line. The increase amounts to twenty
FIVE cents a month. With this increase
the subscribers may call 3499 other
phones. The contract with the city pro-
vided an increase in rates when the
company secured three thousand SUBJ
scribers. The agreement first was that
the company accept the franchise
turned down by the Bell company.
THE Home Telephone company put
in underground conduits and a new
automatic exchange costing $275, 900" /"
said Mr.. Bailey.
THE committee from the council
met with the officers of the telephone
company last week. The committee
stated they had been informed that
certain subscribers were being permit
ted to use their phones at the old rate.
The party making such statement is in
error.
THE average cost of installing the
phone and connecting it with the sta
ton is SIPS, while in smaller places
the cost is only S35 or less. When
there are on an average fourteen calls
per day from each phone, or some So
900 during the day the expenses of
keeping men with training to keep
iphones in repair, the battery. consump-
ton, and other wear of machinery. the
cost of the up-keep of such plant rap
idly multiplies.
Five or six years ago the city de-
sired to do away with the overhead
wires. The city made a proposition to
the Bell company which was rejected.
They then made up the same PROPOSE.
ton. we accepted. We have went to
the expense of s275,000 in making
Richmond one of the most complete
and upto-date exchanges in this part
, of the country. The company has car.
ried out it's part of the contract TO
the letter, and we now have above the
required number of phones, and have
raised our rates.
'Since the increase in rates We have
lost about seventy-five subscribers, but
many of these have asked to have
their phones replaced and in addition
we had received a number of new sub
scribers."
The council committee has asked for
a list of subscribers and the investi.
cation will probably be ended within
the next two weeks. when a complete
report will be filed with council by
Mat Won Pein, chairman of this com.
mittee.