The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1915-03-17
Announcement Made
By President In
Annual Report
APPLICATION TO
BE MADE SHORTLY
Concern Claims Condi-
tons Warrant Boost
In Charges

heQutAl IOT ptIullnHloI W 49,
its rates will again be made b. et
Michigan State Telephone CO.. &C
cording to a signed statement issued
by Presldeat B. +. Sunny, in connec-
ton with the annual report for the
,.ear ending Dec. 81. 1914.
AT the hearing in the spring OF
1914. the railroad commission ruled
that the company furnish an tnyen-
tory and appraisal Of all OF its prop
eity in Detroit, pending which the
application for increased rates was
dismissed without prejudice" writes
Mr. sunny "The complete inventory
and apprassal costing about $4,000.
rcQuiring ten months to prepafe. Is
now about finished, and we shall
shortly renew the application for
new rates.
"The present schedule OF rates II
for unlimited service on all tele-
phones. and the increasing burden
on the company from year 10 year
will be appreciated in view OF the
fact that the use OF each telephone
Increases with the increase In the
number OF telephones connected.
and In ton years. during which there
hiss been no change In rates. the
number OF telephones has grown
from 1926 to s9,066.
In the Detroit experience we
found that as the traffic per tele-
phone increased. the number OF tcle-
phones that would be satisfactorily
answered by each operator decreas-
ed. so that a constantly increasing
number OF operators had TO he pro
vided without any corresponding In
crease In revenue per telephone.
Furthermore, 10 secure and retain
tho services OF the best operators In
competition with other employers OF
young women. salaries have had TO
be greatly increased In 1910. the
number ri telephones was 56.sla
and in 1914, s9.066. an increase OF
IS per cent. The exchange revenue
in the Sane time increased from ST.
5sa SEQ 10 s2.977, 700. or 6S per cent.
Operators wages increased from
s367 4so 20 s923.OOO. On increase Of
151 per cent
"Heavier trafic per telephone
Plus fewer telephones handled per
operator plus higher wages per oper
ator. is costing the company for
operators ayroll in xcess OF 100000
per annum more than In 1910, With
out any corresponding increase In
revenue. Other operating expenses
have also increased. as they have In
all lines Of business. because OF In.
creased salaries, wages. shorter
working hours and the cost OF mate
riafs.
The operating statement for 1914
rejects the severe conditions under
which the company IL operating
The gross revenue Increased $3s7
1s2.0s, while the expenses increased
ss04.271.43. Some Of this increase Is
for depreciation reserve very prop
erly required by the rules OF the
Interstate Commerce commission,
and. II anything. is scane to take
care OF the wear and obsolencence
OF the property.
'srhe net earnings for the year
we're si54.4is56. Tho prererec
stock dividend OF 6 per cent on -,
coo, 1000, requires $4,000 and the
common stock dividend at 6 pei
cent requires saso.ooO per annum
The dividends were paid quarterly
throughout ths year texcept on the
common stock for the last qnarter)
and charged against tho surplus ac
cumulated over period Of years
which Ii now reduced to s3Os'
35s.27."
The statement for 1914 shows
operating revenues Of $j.95s.Ssi7O
an increase of about 100000 over
1919: expenses OF s4,S21.1ss.37 ar
Increase OF sS0s.OCo. and net oper
atIng revenue Of s1,is2.Soi.35. q de
crease OF 100000 The total gross
income was soos,sgesi. a decreas'