
- During the last two months many of the subscribers have asked me if we were going to lower the telephone rates. That, since everything else has come down in price, the rates for hone service is due for a reduction also. This may seem plausible at first thought, but after a careful analysis of the situation, I think you will agree that it is not a wise thing to do.
- You no doubt know that the board of directors cannot change the fixed charges for telephone service without the approval or order of the Public Service Commission. To lower our rates we would have to make application to this commission and have a date set for a hearing and at this hearing we would have to show by our books and accounts that our income was more than enough to pay our operating expenses, taxes, for depreciation and pay the stockholders a reasonable rate of interest on their money invested. Our finances will not warrant such a hearing and I doubt if the commission would consent to a hearing, and I am quite sure that we could not prove to them that we should be allowed a reduction in rates.
- The commission's task of formulating just rates for the hundreds of Public Service utilities operating in Kansas is not so easy, for they must be fair to the utility as well as to the people the utility serves.
- Let us use reason and be fair about this. In years gone by when the prices of all commodities were from two to five times higher than now, the telephone rates remained the same as now, for the rates on the telephone, telegraph, railroads and mail service, cannot fluctuate as do the prices on commodities.
- Are our telephone rates too high? If so, how much should they be lowered? As we are a mutual company, the Public Service Commission has set our rates at a figure that should pay the expenses above the numerated, and not make any profit to the stockholders above a reasonable rate of interest, and our annual reports show no large balance at the close of the year except an emergency fund that we carry to take care of a fire or severe wind storm which might ruin our lines.
- Now, to reduce rates we would have to reduce our service. Should we dispense with our night service and lock up at 9 p.m. and open at 6 a.m.? Should we stop paying the interest due the owners of the plant and cause the dissatisfied stockholders to put us in receivership, or should we charge for all messages outside our own exchange? If you will investigate the rates and service of the surrounding exchanges, and compare them with ours, you will in all fairness decide that our rates are fair and our service adequate and that we are giving you more for the dollar than you could get elsewhere. For approximately four cents a day, we keep you in touch with your neighbors, and friends, also with the stores and business men of Fairview, and extend this service to eight other towns and communities radiating around our own exchange.
- While I was at the Telephone Convention, there was very much complaint of losses of subscribers and in some cases the loss was a third or more, but I found that their rates were higher than ours and no free service outside their own exchange. Statistics from our own government reports show that from the average family's expenses, but 1% is paid for telephone service. Let us all boost for the telephone company and keep the subscribers list intact. You need the telephone and the Company needs you. You may need I VERY much the day you have it disconnected.
- Cheerfully give it not only your financial support, but also your moral support. Urge your neighbors to stay on the line for every time one stops using it, its value is lessened that much to the remaining subscribers.
Fairview Telephone Company,
By C.F. Mellenbruch