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Some time near the turn of the century, 1900, a one wire telephone line was built connecting the village, of Lake Ariel, Georgetown (Gravity), and South Canaan. Those who had telephones on this line could be connected to each other and to subscribers of the Lake Ariel telephone Company by means of a, switch board at the E.W. Simons' Store at Lake Ariel (Bell System), Subscribers on this telephone line were: Dr. A.B, Stevens, Eugene Swingle, Frank Shaffer's store, W. J. Bone, W, R. Shaffer's store, Georgetown Railroad Station, George Dershimer, C. A. Masters, South Canaan Hotel (Bentham) W. W. Kizer. The rental of the telephone was $12 a year. Mr. Simmons charged 76 cents a year for switching charges.

Six men, William R. Shaffer, John Bentham, William J. Bone, George Dershimer, Frank Shaffer and Eugene Swingle met on May 25, 1906 at the home of George Dershimer to consider the organization of a more modern telephone system. John Bentham was elected president, George Derschimer was elected secretary and W.R. Shaffer was elected treasurer for one year. The men discussed the probability of obtaining a charter to organize a telephone company. W. R. Shaffer was appointed to obtain information about getting such a charter.

June 6, 1906 the same men met again and decided to accept the report of W. R. Shaffer on the cost and manner of obtaining a charter for the company they wanted to form. The cost of the charter was $77.92. Fifty dollars was deposited by each member of the organization to start the fund to finance the company. It was decided to name the new company "The South Canaan Telephone Company". Eugene Swingle and John Bentham were appointed to be in charge of building the new telephone line.

The new telephone line was built under Eugene Swingle's supervision and Merel Shaffer, Carl Shaffer and Blair Shaffer dug the holes for the poles. Swingle did surveying work and used many surveyor characteristics to see that poles were set, plumb like a cant hook for a plumb bob to sight poles, etc. The wages on line building were $1.35 for ten hours work. Each man was supposed to dig six holes each day. The equipment for hole digging was a standard long handled shovel. The holes were dug deep enough so a standard long handled shovel handle extended above ground when the hole was finished. The poles used were made of native chestnut wood.

On Sept.11, 1906 a rate of the following amounts was levied on calls: Between South Canaan and Lake Ariel, 10 cents. Between South Canaan and Georgetown, 5 cents. Between Georgetown and Lake Ariel, 5 cents. At this meeting the decision was made to build a line to Waymart. The new charter was obtained September, 1906.

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