Phone Users Protest Rates

Simcoe, 30 Aug 1921 -- Delegates of dissatisfied patrons of the Norfolk County Telephone Company met here to the number of 50 or 60 yesterday morning, and drafted a resolution which was subsequently read and passed over to representatives of the directorate.

The company was represented by Messrs. J. B. Jackson and W. L. Innes of Simcoe, who could give no guarantee as to how soon the directorate could make a reply. It appears the tariff recently awarded by the Board is in the opinion of many of the subscribers, excessive. The farmers have been compelled to take big cuts and they expect others including the Company to do likewise.

On the other hand, the five cent long distance charge within the county is said by the directorate to be of no avail, as it will cost its equivalent in postage, stationary and clerical work to collect. They point out that the Board has required them to set aside $5,750 annually for depreciation, to put in new plant at Dover costing at least $4,000 and they have other unusual expenditures: their agreement with the Bell Telephone company in Simcoe expires 1 Nov 1921, and  they do not know what the new status will be.

Taken altogether, the company appears to have its back against the wall. Already about 70 phones have been ordered out.

Signed by chairman R. M. Taylor, the resolution was as follows:

"Moved by S. C. Kitchen and seconded by F. L. Ryerson, that the delegates appointed at meetings held at the various centres through the district where the Norfolk County Telephone Company operates, protest against the 1 Jul 1921 increase in telephone rates, and assembled at a special meeting held in Simcoe on 29 Aug 1921, hereby approve of the same, and resolve that the Company be requested to give:

• A rate of $15 per annum to all subscribers of the telephone company connection at centrals other than Simcoe
• A rate of $16 per annum to any subscriber on any central other than Simcoe who wishes to connect with Simcoe service.
• A flat rate of $16 per annum to all subscribers on Simcoe central.
• A corresponding reduction be made and refunded to subscribers who had already paid.
• A like reduction be made in regard to rural individual phones.
• The Company replace free of charge all phones  that have been removed since 1 Jul 1921 when requested to do so by the original subscribers.
• These rates take effect from 1 July 1921.
• The Company abide by these rates for a period of at least three years.

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                                                                   Waterford, 31 Aug 1921
To Phone holders of the Norfolk County Telephone Co.:

You will kindly note rates requested are to continue for three years from 1 Jul 1921, while the phone holder may continue or discontinue as he chooses. It was also stated an answer must be forthcoming by 3 Sep 1921 and unless answer was given by such date and the above resolution accepted by our Company, 700 telephones would be discontinued. 

The Company wishes to advise that the Ontario Railway and Municipal Board, in giving their award provided for a reasonable dividend to shareholders, for operation and maintenance expenses, and for a reserve of five per cent of investment. No profits are provided for in the award. If the Company accepted the proposition of the delegates and sold their telephone service at less than the award, loss would sustained and financial disaster would result. 

The present directors feel they cannot honestly use the subscribed and paid up capital of the Company to carry on a business that would only result in failure. The Company does not have the authority to accept the proposed rates of your delegates. The Ontario Railway and Municipal Board has full jurisdiction, and after very careful deliberation, have fixed the rates of the Company.

The Ontario Railway and Municipal Board has full control  of all Provincial Independent Telephone Companies numbering 860 with 90,000 phones, and capital investment of $6,000,000, as to all their operations, including their finances, rates, etc. and that this Board is in a position to compare one company with another in question of rates, etc. It is the duty of the Railway Board to see that satisfactory service at the lowest cost is given to the public. For these reasons it is difficult to understand why the present rates are not accepted by our rural subscribers, or at least tried for a short period of time.

Our Company on the other hand, has reason to find the Board's award insufficient. 
  An estimate is placed on receipts from local tolls, but no provision is made for the additional costs for collections on this business. 
  We are ordered to establish and operate a separate exchange at Port Dover without provision for covering those costs.
Our agreement with Bell which provides for switching at Simcoe expires this year and we have every reason to expect increased costs in the new agreement.

The Norfolk system is one of the largest, if not the largest in the province. You are invited to compare our rates and service to that of any other. But if the opposition continues and 700 phones are removed, the Company will be crippled and the only resource left for our directors will be to withdraw shareholders' money from the plant, and clean up the Company as best they can by forced sale.

As a last appeal, the Company asks phone holders to continue the service until such time as the present award has proven satisfactory or unsatisfactory, when the whole question of rates can again be brought before the Ontario Railway and Municipal Board. 

If any subscriber feels they cannot afford to keep their phone, of course we suggest you have it taken out. But for goodness sake do not have the phone you need removed because someone else asked you to do so.

-- The Norfolk County Telephone Co. Ltd.

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The Star cannot understand why the Norfolk Telephone County Telephone Co. should be expected to carry on at a loss. 

The financial condition was put fairly and squarely before the Commission and in all the hearings that have been held we know of no case where they handed the Company anything they could possibly avoid. 

Telephone subscribers have the present directors and manager to thank for having the best rural telephone system in Canada. It is no secret that the Company was on its last legs when J. R. Forbes assumed the management. 

Our offer of stock at par still holds good to any who still think it looks like a gold mine.