The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1917-02-23
STOCKHOLDERS MEET
IN ANNUAL SESSION
Hear Reports Of Various Of
ficers And Elect Old
Directors

stockholders of the Mt. Vernon Tele-
phone Co. was held Tuesday after
noon in the Offices on East Gambler
street.
The meeting was called to order by
President Frank L. Beam who, In a
few remarks, contrasted conditions
of today with those of 1885 when the
first telephones were installed in the
county. At that time there were
only So telephones in the county and
the rates were $4S per annum for
business phones and s35 for resi-
dence.
Secretary H. G. Devin read the an
nual statement of the company to its
stockholders. This showed assets of
$315,709.02 in real estate, plant, tools,
accounts, cash, etc. The liabilities of
the company are $275,O00 in capital
stock, S17, ,313.62 in reserve, $19,S55.47
in Indebtedness and S3,599.93 in in
debtedness accrued but not due. The
income of the company the past year
from subscribers, toll and miscellan-
eous revenue amounts to SS1, 1851.
The sum of $5,O4662 was placed in
the reserve for depreciation after all
regular expenses had been met.
There was a net gain of 247 sub
scribers during the past year. At
present, there are 5,35S subscribers
from the eight exchanges in the
county-Mt. Vernon, Fredericktown.
Centerburg, Gambler, Danville, Bran
don, Bladensburg and North Liberty.
The report of the auditing commit
tee. of which William l.. Robinson
was chairman, was read and ap-
proved.
The following communication, with
a copy of the financial statement, was
presented to each stockholder pres
ent and will be mailed to those alb
sent:
To the Stockholders of
The Mt Vernon Telephone Co.
Comparing figures for the years
past we find that, Notwithstanding the
increased number of telephones and
the consequent increased revenue, we
are confronted with a greater per
cent of increase in the costs. The
cost of material has advanced during
the past year, some kinds to three
rr-hak fhnxy fnrDnarIN-
cost. Labor is costing more. female
labor nearly double what it did few
years ago.
Although your management studies
and practices economy in every di-
rection, it has felt the need of more
money than has been available during
the past year or more, to maintain
good service.
If your property is to always have
q value equal to the amount invest
ed, 1t is necessary that the earnings
be enough to not only provide good
service. but also to provide a fund
to replace parts as they wear out or
become obsolete.
One of two plans must inevitably
be adopted before long. Either the
cost of operating must be reduced,
OF the rates for service must be in
creased. Either plan requires careful
consideration and the one adopted
must be the one that will receive the
approval and support of our patrons.
but we believe We may always assume
that the large majority of our patrons
want GOOD SERVICE.
Considering first the plan to re
duce the cost of operating. and refer
ring to the items in the statement un
der Disbursements, it seems obvious
that no reduction can be made in the
three items, Taxes" "ohlce Rents
and Insurance"
The amount for Dividends and In
terest," some OF you may think al
ready too low, and there are few, 4
any, who would think We could gel
capital for the creation Of our prop
erty and the conduct Of our busines:
for a less return than the rate OF
per cent now paid.
The Reserve for Depreciation h
the safety valve both for you and fol
the patrons; unless there Is some
4hing for this fund each year, th'