The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1920-06-18
FOR HIGHER RATE.
CITIZENS PHONE COMPANY
GIVEN ITS HEARING
WAS SOUGHT
Manager PM. Ferguson Quizzed
BY Attorneys; Objections
Offered

Application for an increase Of so
cents per month on business phones
and rs cents per month on residence
4 telephones, and an increase OF 20
cents for connecting farmers lines
with Mankato was formerly made
this forenoon by the Citizens Tele-
phone company before friedrich w.
Putnam, one of the members of the
state railway and warehouse commits
sion, who came to this city purposely
for granting the hearing. Present
with Mr.. Putnam was his official
stenographer, M. V. Solberg.
At the hearing, which was quite
largely attended by representatives of
rural phone lines. Attorney 5. b.
Wilson of this city appeared as at
torney for the Citizens company, n
William F.. Hughes, city attorney, APP
peared on behalf of the city. P: M.
Ferguson, local manager of the Citi-
lens company was the first witness
sworn. He was questioned at con-
| siderable length by Attorney Wilson,
for the sake of making a record in
the hearing. The to the
J questions put to Mr.. Ferguson showed
that, while the service of the Citizens
Telephone company has greatly in
creased. the expenses of the company
have become greatly out of proportion
to the profits of the institution. MIR.
Ferguson stated that the expenses of
! 1919 over those of 1918 vas at least
$11, 600, which is due to the rapid raise
in the cost Of material and labor, and
the fact that the local company had
to comply with the state minimum
wage law. Material alone, Mr.. Fergu-
son said, increased all the way from
thirty to 800 per cent from 1917 up
to the present time. 1t costs $1.25 per
instrument more at the present time
| than it did less than a rear ago.. MI.
Ferguson stated that the local COM
pany recently o over h tri- state
company at a cost Of $4,000 thus
eliminating 700 double telephones,
200 phones. This move alone, MI.
Ferguson said, was a saving to the
Mankato public of $18, 900 a year, by
doing away with the use of two
phones in their places of business.
Meets the Wage Law.
Owing to the fact that the company
had to meet the requirements of the
minimum wage law. it must receive
additional revenue on its rural lines,
Mr.. Ferguson stated. The increase in
salary from 1915 to 1919 had jumped
lloul pAOylCO.CS pOi yCol ~ v
$40. 900 in 1919, and there is a prob
ability of that climbing still higher,
Owing to this it is anticipated by the
officers of the company that if the
increase asked for from the state
railway and warehouse commission
is not granted the business next year.
will run at a deficit. The fact that
the Citizens compa,ly is a growing
one, adds to the operating expense.
This is contrary to all other lines OF
business, but is true nevertheless. In
ed at the local station have increased
from p 1000 to 31,427 per day. This
means that the company must furnish
an increased number of operators.
There is every indication that the
company will soon have to extend its
lines and enlarge it's switch boards.
All of this necessitated the request
for an increase in rates.
Few Questions Asked.
City Attorney William F. Hughes
asked a few questions to verify fig
ures submitted by Mr.. Ferguson. At
torne Ivan Bowen, also asked a num-
Der of questions of Mr.. Ferguson. to
make himself clear on certain phases
of the situation.
Following the testimony of Mr.. Fer
guson, J. r. Guyons. expert account
ant, with Mellis Prize e. Company,
chartered accountants. testified as to
the correctness of the figures pre-
scented.
X. M. Stokes and R. c.. Dalton of
Eagle Lake objected to paying toll,
unless that village received better
service. These gentlemen stated that
at the present time they get no night
service except in emergency cases.
They would not object to higher rates
If better service were provided. J. c.
Wells of Madison Lake spoke along
the se,me lines of the two preceding
speakers.
Attorney Ivan Bowen speaking again
said that if the company saw that it
was going to operate with a loss, he
would not object to paying increased
rates.
Regan Was There.
J.. E. Regain was very o%utspoken in
stating hat since the Citizens tele-
phone took over the service in this
city, the service has been poor. Com
missioner Putnam smiled when this
statement was made, and called Mr..
Regan's attention to the fact that
Mankato is now giving better tele-
phone service than st. Paul and Min
neapolis. He said that the reason for
lack of service is due to the scarcity
of labor.
Robert IIaedt had no objections to
the increased rates if they were prop
erly distributed.
DR.. j. II. James went into the his
tory of the company, stating that the
Citizens company had done more to-
wards bringing down rates in this
city than any other organization. It's
business had grown 10 such an extent
now hat it must increase it's rates.
A. fhD alonD of fLo ho.xfn- H..
sioner Putnam said that he would
take the case under a~dvisement.
indictments Are Returned.
Owatonna, June 1.-THE Steele
county grand jury returned two in