The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1916-10-05
Anent Telephone Companies.

Anent Telephone Companies.
The Minnesota Railroad and Ware
house commission is face to face with
a somewhat puzzling situation in the
rural telephone field. Of late there
has been brought to the attention of
the commission from various parts of
the state condition that requires i'm
mediate remedy and which the per-
sons involved look to the state for
aid.
The condition arises from the fall
ure of the companies in the first in
stance to adopt schedule of rates
that would carry their burdens. The
situation is very similar to the one
that the fraternal insurance orders
were called upon to face some years
ago and which all but disrupted some
of them. In order to make their in
surance departments attractive GER
tain orders adopted a set of rates
which later proved inadequate. The
inevitable result was that they were
compelled to raise their rates not only
high enough to meet the obligations
Of the order but to cover the defcien-
cies of the period of low rates. The
only other alternative was dissolu-
ton of the order and the partition of
the assets among the members of good
standing. The majority raised the
rates and gradually are getting on
their feet again.
In like manner scores of rural tele-
phone companies in Minnesota and of
course elsewhere fixed their rates
without regard to the day of reckoning
No provision was made for deprecia-
ton or to meet obligations. The sub
scribers obtained of course telephone
service at very moderate figure and
were pleased accordingly. But the fu-
ture is not so bright judging from
many Of the communications received
by the Railroad & Warehouse commits
sion.
An instance is furnished by tele-
phone concern with a plant valued at
about 100000 and serving $50 sub.
scribers in one Of the best known
farming sections of the state. The
secretary Of the company writes that
the plant has about outlived it's use
fulness and unless reconstructed the
cost of maintenance will be in excess
of the earnings. It is suggested that
the commission make an investigation
of the entire situation, including an
examination of the books and an in
spection of the plant, and propose a
table of charges that will be fair to
all concerned. Otherwise, writes the
secretary, the company will be
wrecked, the subscribers deprived of
their telephone service and the stock
holders liable for assessments to liqui-
date the obligations of the company.
''This is an unfortunate condition, u
said a member of the Railroad and
Warehouse commission, "but we are
quite helpless. We can send men out
to make Investigations with view of
ascertaining the reasonableness of
rates, but hardly to advise local COM
panies what rates to charge. Such a
duty was not contemplated by the leg
islature and the amount of the legis-
lative appropriation for the mainten-
ance Of the newly created telephone
department would preclude any such
action"
"Telephone companies should obtain
rates to cover operating expenses,
taxes and the maintenance of the
property in serviceable condition. It
is the duty of the officers to see that
this is done. The duty Of the state is
to see that excessive rates are not
charged, that no discrimination OF
other unlawful practices are engaged
in and that reasonable service is
provided. We are advised that there
are numerous instances of similar
nature. The plants that were installed
ten and twelve years ago, in many