The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1920-04-30

operation, for The Mt. Vernon Tele-
phone Company has been recognized
throughout the state as q. pioneer and
leader in the development of the vii
lage exchanges and rural service. 1t
has provided Knox county with one
of the best developed telephone plants
in the state, providing excellent SER
vice at the lowest possible rates.
Question (2) Did not the people,
especially in the rural sections, do.
nate thousands of dollars worth of
poles, wire, and labor, to have the
lines extended to all parts of the
county,.
Answer (2)-No. In some instances
the furnishing of poles and labor by
certain subscribers was made part
of their rate and conditions for get
ting service.
Question CD Have not subscrib-
ers, in the very recent past, built ex-
tensions in order to get service?
Answer (3)-No.
Question (4) Have not all these
lines been appropriated by the Mt.
Vernon Telephone Co.?
Answer (D-NO. Such lines never
belonged to anyone except The Mt.
Vernon Telephone Company.
Question (5) Have not the rates
charged always made the company
money?
Answer 5)-Yes, so on the actual
capital invested.
Question (6) Is 1t not fact that
the year 1919 was one of the most
prosperous, financially, that the com
pany ever had?
Answer (6)--No.
Question 60
Answer CO--I do not find any ques.
tion No Z.
Question (S) Is it not fact that
the company, after paying all ex-
penses, labor, material, salaries, etc,
had more than 20 per cent of the
gross receipts of 1919 left undivided?
Answer (S)-No. After paying ex-
penses and per cent dividend on the
capital invested, less than per cent
on the value of the property was set
aside for depreciation. Both state and
federal laws require that the ex-
penses include an amount for deprec-
iation, to be set aside for the replace.
ment of property destroyed by age
wear, or accident such as storms
etc. This fund cannot be distributed
or used for any other purpose as long
as the company operates.
Question t9) Would not any farmer
or business man of Knox county be
tickled to death to be able to pay all!
labor, material charges, etc, to allow
himself good salary, and six per
cent on his investment and then be
able to put 20 per cent Of his gross
receipts away for a rainy day?
Answer (9)-Yes, and we would be
satisfied with great deal less than
this in the telephone business. No
telephone company that know of
shows any such earning power as you
refer to. ~
Question uO Why was the prop.
erty of the Mt. Vernon Telephone Co.
worth, for taxation, only $277,320, in
the spring of 1919, and six months
later. for rate making purposes,
worth, according to the manager
$52c 900?
Answer G0-Your figures are in
error The value of property of The
Mt. Vernon Telephone Company was
fixed for taxation purposes, In March
1919, at $320,340, and at that time the
The law provides hat the tax value
of the property of telephone cOmpan
les shall be determined by the ia,
cOmmiss 'on of the state and that
"the commission shall be guided b,
the value of the property as deter
mined by the value of the entire cap
ital stock of the companies etc" Tht
stock of this company has never hat
a value of more than par, so the ta,
value was greater than its selling val
, ne.
While on this subject of taxes, de
. sire to call your attention to the fac
that in the year 1909 the taxes pai,
, by this company amounted to S2.016
80 and, with only proportiontel.
, small addition to the physical pror
| erty, the taxes for the year 1911
| amounted to $9,90373, being an In
. crease, in this item alone, of approx
+ imately $4,000. Nearly ten cents on
of every dollar of income received b.
$ The Mt. Vernon Telephone Compan
!. Is paid over to either the federal o
state government In taxes.
{ Question UD II the actual capt.;
}. invested Is around $33d.O00. wh
Il should the people be expected to pa
II dividends on 100000 of air and WI
& ter?
y Answer uD-No dividends are g,