The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1918-08-28
Phone Hearing
Held Here Monday
COMMISSIONERS PUTNAM HEARS
AIRING OF DIFFERENCES BE-
TWEEN PUBLIC AND LO-
CAL COMPANY
DECISION AWAITED
COMPANY ASKS INCREASED
RATES; PUBLIC ASKS BET
TER SERVICE AND MOD
ERN PLANT.


Fred w. Putnam of the Minnesota
and Railroad Warehouse Commission
held a public hearing at the CONNER
cial Club Rooms Monday afternoon.
that both sides Of the question Of n
creased rates, suggested by the Red
wood Falls Electric Telephone Com
pany, might be heard before the
commission decided what was to be
done in the matter, The company
is DESTROYS of increasing the private
line residence rate rs cents a month.
The private lines business rates will
be billed at 1925 per month and the
two-party business rate at $500
month, but both will be subject to
a discount of rs cents month if
payment is made by the 18th of the
month in which service is rendered.
The residence rates proposed are re-
spectively: Single party $3.50 a
month; Two party SIPS; Three party
$1O0 all subject to the % cents sis-
count. Rural switching rs cents per
month net.
Mr.. Gold Speaks.
At the opening of the meeting, w.
H. Gold, representing the Board of
Directors of the Telephone Company
presented the view of these directors
in statement practically as follows.
Eve did not take the initiative in
the matter Of increasing the rates
and had no intention Of increasing
them. We were instructed by the
Commission to file schedule of rates
so as to make difference in the
party lines rates.
Eve first filed a schedule making
a nominal change of ten cents per
phone on party lines. This was not
satisfactory and the present sched-
l1le was then filed
f 1T makes no change in "individu-
ap business phones, reduces party"
business phones twenty-five cents,
increases individual residence phol .es
twenty five cents and reduces three
party residence phones twenty five
cents.
"The maximum increase for the
Company could not exceed $3.50 per
month. The change of less than 100
phones from individual service to par
ty line service would decrease the
Company's income. We believe in
creased operating expenses would
more than use up any gain in income.
eve contend the service given is
above the average and less in cost
than that given in the majority. of
towns around us. Our wages to Cp-
orators, raging from fifty dollars to
thirty-five dollars per month COM
pare favorably with other towns. We
have increased the service from two
hundred city phones to four hundred
and fifty city and three hundred and
fifty rural connections, free service
to North Redwood and some rural
service in Renville County without
increasing rates.
"Our company was organized to
lower the rates made by the North
western Company Of $3.50 and $3.50
Ito $1.00 and $500 This we have ac-
complished, saving our city over ST.
600 annually or $4,000 in the nine
years. In addition we have earned
and paid to our own citizens, forty
| six of whom own this stock, good
dividends. s
"We built modern plant nine
years ago, what we thought ample
for years to come. In six years it
began to be over crowded. To have
increased the capacity Of the trunk
cables and central equipment would
have meant sacrifice of nearly the
whole plant, costing over $4,000.
This would have meant much higher
rates than those now proposed. 1t
seemed advisable to us to use the
present plant few years longer, add
to its maximum capacity-which
meant party lines and then rebuild
the whole plant, placing trunk cables
underground and building our own
building.
"That is the present intention Of
the Company. War conditions have
interfered and delayed our plans.
Meantime we are giving good service
and will continue to do the same with
inconvenience to a few on party lines
which we very much regret.
"Our earnings have been good, due
to the good judgment used by the
Company in making it's contracts for
original plant construction for use Of
telephone poles belonging to the Tri-
State Company, for rental Of office
rooms and in the integrity of our
officers and directors, none Of whom
have received a nominal sum Of $50
annually. There has been no water
ed stock and no stock ENTHUSIASTICALLY
2 home company Of home people,
honestly and carefully managed, all
in the open daylight, giving to it's pa
irons excellent service at low rates.
II any other company or number Of
citizens can render better service at
as low rates and give more satisfac-
ton to the community we believe our
stockholders are willing to sell their
interest to them.
Mr.. Aune Testifies.
Following Mr.. Colds statement III.
"a. Aune, secretary-treasu Of tie
Company was sworn and gave testi-
mony concerning the finances md
management Of the Company. Mr..
Aune's statement showed that with
Continued On last page)