Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1920-04-08
April s, 1920.
TO OUR PATRONS (Continued)

The Mineral Point Telephone Company had it's or
gin in a small of mutual system for limited
few, and like all mutual organizations of that character
limited in scope and life for the that all
could not be mutual equal basis because of the
various needs and demands for general service.
So the original organization gave way a regular
commercial company incorporated by several of the
leading citizens OF that day.
While many of them have passed away, enough of
these pioneers remain to tell of the many trials and
dscouragements of those charge first in their efforts
to get the first hundred subscribers then to get
the to meet the growth and later the inev-
table reconstruction periods when the original plant
repeatedly wore out or outgrown and inadequate
to meet the Increased demands
At four different times in the companys history,
outside money was needed meet this urgent need,
although the directors had always followed conser-
vatve policy of taking out very small annual return
for profit and turned the balance if any, back into
tensions and improvements.
During the early days, all additions and also con-
nections with other systems other arrangements
that would extend and increase the usefulness of the
exchange welcomed, without due regard to
the added costs of plant and running expenses all for
the benefit of the patrons and the community.
Rural systems assisted to organize and build
and connected with the exchange free of all
vice charges
The original system had been built upon grounded
circuit plan; that is, only wire used for each
line and the earth served return for all telephones
However, with the advent OF electric lighting and
power, which also the EARTH the telephone COM
pany was obliged to disconnect from the earth and
double the number of its wires and run second one
to each subscriber. This meant just double the in
vestment for the wire plant.
1t was not long then before it was that the
iginal rates wholly inadequate to meet proper
return upon the capital invested and must be raised
from time to time the system expanded and cost
more to operate
1t was during these times that the telephone people
learned what seems to Others very contrary to any
other line of business, that is the grows greater
per telephone added to the system. This
used to be properly explained to the public and
was little understood, yet have all noticed that
rates always higher in larger towns
prom 1905 to 1910, the returns the stockholders
on this companys invested capital steadily declined to
less than per cent and then ceased altogether for
years. (Another reconstruction period) Since then
they have again ranged from per cent down to moth
ing. The average return as dividends paid by this
company during the twenty and one-haf years of its
existence has averaged less than IL per cent on its
invested capital Any surplus earnings during good
years have been put back into improvements of the
property for the general good.
These facts have perhaps never been given out in
this way In fact the early records and accounts, while
very accurately and carefully kept, not made
with view of public statements. This not
particular fault, but very common to nearly
all public utilities at that time Their business had
outgrown the old system of accounting, based other
lines of business.
When public utilities under the authority OF the
Railroad Commission of Wisconsin, that body very
properly realized the need of standard system of
counting and put in force of its first acts
1t is only by such system that either companies or
the commission get correct view OF their busl-
ness affairs To this accounting system many com
pany owes its rescue from bankruptcy
AS the year 1914 approached it became very evil
dent that something must be done good service was
to be continued and any profits whatever were to be
derived from the business and the company then ap-
piled the commission for relief but the latter upon
investigation, learned that service had already deter
iorated, provision had been made for depreciation
of property and the system of accounting had been
delayed too long We quote from the decision of the
commission of September II, 1914: "When its rec
ords are kept in such that the information
needed for passing upon an increase of be
procured, the matter may again be submitted The
application is dismissed"
By this time of the older and original stock
MIA inf