The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-03-17

7 phones These statistics show palmer
4 than any lengthy discussion, the great
success the company is making, not al
leaps and bounds, but gradually it is
/ growing, and in its growing it is doing
something for the community, some
| thing which may save lives, which
means life and death to isolated farm
| ers and in many instances which
I brings news of great happiness.
| Enjoyed Prosperous Year
| That the Mankato Citizens Tele-
business during the year 1921 is evil
denced by the annual report of Man
ager p, NJ. Ferguson, which was made
| to the meeting of the stockholders OF
1 the company last night. .
J In making his report Mr.. Ferguson
| expressed himself as well pleased
with the results of last years bust
| ness. A gain of thirtythrae phones
! had been made during the year, which
Mr.. Ferguson said that the great
| trouble with telephone companies in
the past had been that they were re
/ luctant to take the public into their
confidence. 1t is up to the Citizens
Telephone company to not make that
mistake. The treatment OF Mankato
/ people toward the company has been
| Fair, but the speaker would like to i'm
press upon the stockholders that any
| unjust prosecution Of any public util-
| ity indirectly effects their invest
ments. With regulations by the state
and federal government, the day OF
| the unscrupulous promoter is past,
and at present the telephone business
is clean and above board.
Last Rate Increase
| The last rate increase the first in
thirteen years was granted Septem-
Der /, 1920. SO that tn, new rates
have bseen in effect a little more
than a year. We did not receive the
rate we petitioned for but were al
| lowed a straight twenty five cent in
| crease on each class of service. So
| that in effect the subscribers in Man
kato were asked to pay SIS, 1000 more
| year for a unified service with only
| one telephone. and a greater area OF
| phone, which was costing them $685.
900 per year with very limited area
| OF service.
4 ITO the credit OF the majority OF
the telephone users of Mankato and
| vicinity 1t may be said that there was
very little objection to the unitication
on rate increase, and think they dis
| played good judgment considering the
saving effected. When it is considered
ludl IIlG lOCdL COulpduy Ohly 1uSICooO0
/ its rate twenty-fiV cents in thirteen
years and delivered a satisfactory
| service to its patrons you could hard
| ly say that the subscribers had been
| illtreated.
"The Mankato Citizens Telephone
company has at all times been econ
omically managed. Your officers and
directors have been men of the high
est caliber and business ability, and
Il hox o1x 10 no M
| time and business judgment with
practically no pay in return. Unlike
many companies of my knowledge
where the officers drew large salaries
| out of the business for their services.
| Practically all extensions in the
| last few years has been financed out
of the earnings of the company, very
| little new money having gone into the
plant. AS result Of this wise policy
the rates for service have been main
tanned at a very low level In Mankato
and vicinity.
| underground Cables To Be Installed
That is practically all Of its avail :
able cable facilities are used up, ana
4 in order to meet the demand for ser
vice in all parts of the system, addi-
| tional underground cables will have
to be installed from the central ONCE
| to the outlying pole lines and addi-
Il
company is to continue to develop.
A new building is also needed. The
present building being far too small
and in crowded condition. To move
| to q new location will likewise entail
q large expenditure.
So that the Company will have to
do some real financing and new
money viii be needed to complete the
plans we have outlined.
4 he i'm invest
ment we must of necessity have an
increase in rates. Many will wonder
at this, particularly, when every one
| is expecting rates to come down, but
when it is considered that the rates
| for service are lower in Manksto than
any city of it's size in the State, and
even some smaller cities, as for in
stance, Faribault, Owatonna, Roches-
ter, Austin, and Window, 1t does not
seem so unreasonable.
1t Is a well known fact that costs
of operation do not decrease with vol
ume in the telephone business as in
other lines, but on the other hand
they increase.
This increase does not occur in
general or supervisory costs, but IN
interest on increased capital invest
ment, maintenance of lines and traffic
costs. IL this were not true cities like
Chicago, and New York would have
the lowest rates, and villages like
Eagle Lake and Madison Lake the
highest.
To Give Good Service
Our patrons should be assured that
we are in the business not to main
tain high rates, but to furnish good
telephone service at prices which will
earn reasonable and fair wages both
for the employees and the money in
vested In the property, which makes
the service possible.
Surely no one will contend that
eight percent is an unreasonable div
idend 10 pay for money in the tele-
phone business, certainly not, when
you consider the hazards, and the risk
taken by the investor. ..
practically eighty five per cent or
a telephone plant is out of doors IN
the open where the elements are con-
stantly taking toll, causing heavy
maintenance and reconstruction ex-
pense each year.
"The recent sleet storm from which
we have hardly recovered is very
good example of what telephone com
panies have to contend with and en-
phasizes the risks taken by the lnVaS-
tor in telephone stocks.
"The actual out lay in money to
restore service will possibly not ex-
coed $4,000 but it is difficult to esti-
mate the ultimate expense on account
of the general weaking of the whole
outside plant due to the severe strain