The Detroit times., 1916-03-14
Net Increase In Reven-
lie In 1915 Is S475,8OO,
Says Statement
DETROIT SERVICE
is BIG PROBLEM
en- t Discusses
Reasonable Relief"
Now Sought

day. for the year ended Dec. 81. 1919,
reports that the total net operating
income was sl.279.sSl.3s. compared
with $76e. 405.2l in 1914. The more
favorable operating conditions which
prevailed during 1915 were OF ad'
vantage 10 the company. and the
financial showing is somewhat bet
ter than for 1914
Revenue in 1915 increased s415,-
500. whereas in 1914 the increase
was s4No, 000. Expenses were about
stationary as compared with the pre-.
,ious year.
At he beginning of 1915 a serious
business depression prevailed
throughout the country, affecting all
lines of trade.
This was emphasized by the gem
eral generalization growing out OF
the European war" says b. +. sun
ny. president OF the company. iii u
statement 10 the stockholders.
The expenditures for current
maintenance were about 100000
less than for 1914, due TO retrench-
ments. and 10 the improved condi-
ton OF the property, which iesscned
the demand for maintenance sXpen-
ditures. For the current year con
strrction and expenditures viii be
substantially on a normal basis. and
therefore will calhfor a larger out
lay than during 1915.
While the gain in telephones for
the year was 1880, the cost OF
handling the traffic was only slightly
more than for the previous year be
cause OF the marked falling of In
the number OF telephone calls fer
the first six months. during which
period we operated for less than Tor
the same months OF the previous
year. However. from July 10 De
cember. inclusive, as the business
situation improved, the traffic in
creased, until ar the close OF The
year il vas above normal with a
corresponding increase in expenses
which absorbed the savings OF the
earlier months.
Thus far in 1916 the traffic has
been very heavy. and the indication
are that this condition will continue
indefinitely. so that We can scarcely
hope 10 avoid considerable in
crease in the expenses for the cur
rem, year.
Our greatest problem is with ref.
erence TO Detroit. That city now
has lO2. 900 telephones. The present
schedule OF classes OF service and
rates was adopted more than 10
year ago, when there were only IS
900 telephones in the exchange. II
is well understood that the number
OF messages per telephone increases
with the number OF teipephones m
the exchange: also that as the trst
&c grows. there is corresponding
increase in expenses. Add 10 this
the present higher cost for salaries.
wages, material. etc. than prevailed
10 years ago. and IL will he apparent
10 everyone that the company IL fair
ly entieled 10. and indeed must be
accorded. reasonable relief.
For more than two years We
have had an application before the
railroad commission OF the state for
a new schedule OF rates for Detroit.
which contemplates that business
service shall be graduated and paid
for on an equitable basis OF use IN
stead Of on the prestnt unbalanced
fiat rate plan. The city OF Detroit
has interviewed before the commit
sion, and its experts and account
ants are making inventories. apprai-
| sails and Investigations. and while
We had hoped for 4 conclusion 81
| our efforts before the commits ION
during 1915. II may be some months
more before final hearing ana O.
cision are had
- plan which enabled employe.
10 purchase shares Of stock Of the
American Telephone 4 Telegraph
co. vas adopted Ian J. 1918 The
price OF the stock 20 employees ra-
sllO per share tibe pre- sent martc,
price is abou tlg7-50 per sharci
aud the payments are IN install
menis " - pr SHIRE per mouth
There wcrc 5Gi employees. - Dcj
cent being Humen who prTcha I'd
9s5 EaT,6. The took paws pigh'
pcs ceri div.dosds while th inter
! 80; cfargcd c-.p'9y,s on uHfsid m
! ria'imcsts 60 fur per cent pr an
J Err.
Tho p!9n for cGp.oye. pensions
! disability benefits and dpaih benefits
! which tccamo effective Jan. I 1913
'ca 1'ics sG-co sui ard grow ir
tvsTC, 20 rmp'oyca and r. TAO scr
! wee Tae record for thrr wears =,
| - accident ease 81 sickness
cases, and 20 deaths, where pay