Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-09-10
LOCAL INTELLIGENCE.
-HE TELEPHONE EXCHANGE BUSINESS.

Nearly two years ago Mr.. Gill established il
tl;s Sly Teispnvas Exchange. &c was Tn'
authorized agent of the Bell Telephone Com.
pany, and used their instruments in estab
fishing his Exchange. The convenience
afforded By the use of these instruments was
such that large patronage was very readily
obtained. The rate charged was S5f per
company or station for the use of the instru.
ments. and % cents for each call of the mes
senger. Nj charge was made for switching.
The lines constructed were economically
managed by placing two. three or four iustru-
ments upon a line. While this resulted in
some inconvenience to subscribers, the
service in the main was well rendered
and satisfactory. Mr.. Gill collected
rentals for his telephones in advance.
In one instance single individual was q
subscriber to three telephones. About the
middle of last March this person paid Mr..
Gill sos for the use OF two of these instru-
nents, to run year. Less than two months
ago the same person paid Mr.. Gill S54, TOR
the rent in advance for the third instrument.
This case is cited for the value Of its illustrs-
ton. In the meantime the American Speak
ing Telephone Company consolidated, by
k'AANu@SIi HAbI bi4S Iva SkIohS OOAAB ahf'
Representatives and agents of the consoli-
dated concern came to Sacramento to estab-
fish new Telephone Exchange. The sub
scribers at once apprehended that the little
system IN use here, and which had proven
Of 50 much convenience to the business
community, was about to be disrupted but
they did not know the extent of the injustice
about to be done. MIR. ellis subscribers had
paid him in good faith, but the establishing
OF the new lines was about to freeze him out
So after some waiting and much more ne
gotiation-to which, by the way, his sub.
scribers were not parties-it was arranged
between the two concerns that the new Iele-
phone Exchange would take Mr.. ellis con-
tracts off from his hands, agreeing to duly
complete the unexpired terms where rentals
had been paid, but the new telephone COM
pany proposed that each subscriber OF the
old Exchange should pay $50 to be attached
to the new line. Some improvement III the
service. indeed, was promised-as, Tor
example, each subscriber was to have
line Of his own; each subscriber
would be furnished with a double
electrical bell but $50 was to be paid IN ad-
vance before these benefits could be awaited
of. and afterwards the further cost of two
cents per switch was to be charged. MIR.
Gill, having received the money in advance
for his rents, his subscribers naturally felt
that the new charge of 800 and of two cents
per switch was in no sense fulfilling Mr..
ellis contracts, full service under which had
already been paid for. They felt that to deal
fairly and Justly by the people who had paid
him their money. he should either continue
the old Exchange with its u=ual efficiency
or in turning over his prepaid subscribers,
he should attach them to the new
system free of additional cost. The
only honest course really for Mr.. Gill
to persae would be to pay back to the sub
scribers the unearned rentals which be had
collected. But his plea is that he was not
able TO do this; that he had expended the
money, and that the new concern was about
to freeze him out. The result has been that
the subscribers to the old Exchange have been
cut of from all telephone connection, the
batteries have not been replenished and the
instruments will not work.
It is now stated that twenty-five firms have
already combined for the purpose OF form
ing an Exchange Of their own, and have sent
East for telephones not of the Bell or Ameri-
can Speaking Telephone patents We sin
cerely regret to be Obliged TO note in this case
the fact that the rights and interests of the
public have not been guarded nor respected.
The affair isnotcreditable any Of the parties,
and unless senle better explanation eau begiven
in reference to it than has been thus far youch-
safed to the victims of the quarrel-to which
the public is not in any sense party-the
transaction will bear very shaded COM
plexior. IN justice to Mr.. Gill it should be
stated that in all reasonable probability he
would have given the service for which he
was paid, if he had been permitted to do so,
and the new company would have deserved
better at the hands OF the public if it had en-
tered into and kept the agreements that
would not have operated as hardship upon
old subscribers who had paid their money III
good faith, and would not have incurred the
hostility which this transaction is now likely
TO eupender,