The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1920-06-11
HEARING PHONE RATES.
FRIDAY IS THE TIME. CITY
HALL PLACE
Statement Made BY P. M. Fer
guson, Manager Citizens
Company

p. NJ. Ferguson, manager of the
Mankato Citizens Telephone COM
pany, speaking OF the coming meet
ing Of the state railway and ware
house commission in this city Friday
morning at the city hall, for the pur-
pose OF considering proposed increase
Of rates of local telephones, had the
following to say:
"In connection with the increased
rates which the local company is
asking for, the statement has been
heard that there is no reason for the
raise, particularly when the prices OF
material and LABOR is about to come
down. If such is the case, the man
agement of the local telephone COM
pany is not aware Of it. There has
not been any decline in any of the
prices that go into the making of a
telephone. In fact, 1t has been just
the contrary. Effective the first Of
the month the telephone on your wall
or desk will cost this telephone COLE
a month ago. Taking effect on May
l, the local company was obliged to
grant an increase to it's employees of
the plant department which will
mean a still greater increase Of prac-
tically $4,000 a year. The salaries
paid the employees of the local COM
pany are now $4,000 more than they
were this time last year. This is AMI
other indication of the labor costs.
We might site the following to illus
trate this. In 1915 the total pay roll
stations: in 1915 $4,000 with 800
stations; 1917 $4,000 with 1000 sta
tons; 1918 $29 900 with 1000 stations
and 1919 $40,500 with 4,300 stations.
which shows that the salary has
doubled in the past five years, while
the stations have increased less than
rs percent.
at is a peculiar fact that very lit
tie consideration is given to the tele-
phone industry when materials are
soaring. AS an instance Of this
might state, that when one hears of
the rise of price in platinum, he nat
elry will increase. The average per-
son does not know that there is as
much platinum used in the telephone
business as in the jewelry business.
One does not realize that in every
day conversation over the phone you
are bringing into use the talking
through at least three dozen platinum
contacts.
Likewise when steel goes up, one
jumps to the conclusion that railway
rates will go UP, but steel goes into
every phase of the telephone bust
ness. When one takes into consider
alton that the present telephone rates
have been in effect for the past
twelve years, some people should
wonder how the officers of the COM
Dany have been enabled to keep these
rates in effect in the face OF tncreas-
ed cost, and still be able to do bust
ness. The increase asked for is
moderate and reasonable. and Is only
asked for now that the company can
no longer continue the old rates and
pay the return on its investment.
Local rates in Mankato are only in
creased so cents per month for bus
mess telephones and % cents per
month for residence telephones. The
rural phones, company owned, are
not increased. If the bills sent out
each month are paid on or before the
18th of each month, there will be a
discount of 25 cents made on the bill.
The increases asked for the sub ex-
changes, such as Mapleton, Good
Thunder. Madison Lake and Eagle
Lake are reasonable. The mini
mum wage commission by enforcing
its rates at these small exchanges
has made it necessary that more rev.
enue be derived in order to pay the
additional operating expenses re-
quired by the order. The increase
will not meet that increased expense.