Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1920-04-15
April "a, 1920
TO OUR PATRONS: Continued

To OUR PATRONS: (Cont1nued
The history of the Mineral Point Telephone
Company may be divided into three financial periods
of seven years each.
The first period was one of hard work, persever-
and enthusiasm, especially the part OF the
employees, due to whose energies, the Company owed
its popularity and growth.
1t was during this period that the number of
telephones increased from beginning OF eighty up
to three hundred.
This was also period of low expenses and good
rates which enabled the Company to pay average
of six per the investment besides laying aside
liberal allowances for additions and extensions.
During the second seven year period, however, it
realized that business taken at much
greater costs The business growth for short nearby
places like business houses paying the highest rate
had been nearly all supplied and the new business
taken at a much greater cost on account OF
distance and at lower average rate.
Added to this was the inevitable reconstruction
periods when construction, MATERIAL labor and other
costs were higher than originally that nearly all
the income for this period had to be put back into the
property with the result that less than four per cent
upon the cost of the property paid out as d1v1-
dends to stockholders.
It was realized during this period that contrary to
other lines of business the Company could not turn
down business which Improbable but must keep
on supplying the demand and providing money to
meet this demand whether the business
profitable or otherwise.
Up to this time telephones had increased making
the total up to about five hundred.
The beginning of the third period was made
more discouraging owing to the increasing demand
for telephones and the narrowing margin OF profit
leaving barely enough to pay three per cent d1v-
dends; and the unfortunate misunderstanding, which
should have been only temporary, in holding up
application for necessary increase of rates.
Other telephone companies had proceeded with the
increased rates we'll increased improvements to
keen demand. the public
have generally become accustomed to paying more
the range and the value of the service constantly in
creased; However in Mineral Point this increased
cost had been born by the Telephone Company until
it began to result in 1mpa1r1ng the service SO that
after the beginning of the were obliged
to stop all dividends in hopes Of tiding over until
normal times again and have devoted every available
dollar to the improvement of the plant and service IN
order to provide adequate service Justlfylng suit
able rates
On August /, 1918 all telephone properties were
taken under Federal control with corresponding
regulations and orders, thus blocking plans.
Even after being released on August l, 1919, we
found prices almost prohbitive for needed supplies
and they are still going higher
On August 1, 1919, the Wisconsin Minimum
Wage Law went into effect increasing operating
wages one hundred per cent higher than during 1917
We will publish list showing the per cent of
increase of all various items of our expenses.
After stopping dividends, able to
show little profit for 1917. In 1913 our losses
amounted to three hundred dollars and during 1919,
with the increased cost of nearly everything,
losses amounted to $4,000 and for 1920
have hope of lessen1ng costs but rather must
be prepared for increases. While we believe
have claim under law for little compensation
similar treatment accorded railroads. at pres
ent the status of that matter is about certain
rather uncertain the peace treaty proposition and
for that reason look forward to the time in the
future when shall be obliged to file appli
cation with the Railroad Commission of Wisconsin
asking for a revision of our rates which will enable
to meet all expenses and fair rate of interest
the property used and useful in conducting the
business. (To be
MINERAL POINT TELEPHONE co.