The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-04-09
TIE TELEP8oNE BILL.

II Is understood that the telephone mo
popoly, through its lobbyists and agents. is
threatening the Senate that should the bill
passed by the House for reducing the rentals
Of telephone stations become law all tele-
phones will be Withdrawn from the State.
We assert this threat to be the veriest bun
combe. The plea that the reduction will pre-
vent any possibility of profit for the tele-
phone investment discounts any Of the wild
est snake stories extant.
II our Senators will bat take the pains to
90 east the lobbyists and agents of the tele-
phone company for information, they will
find it TO be a voracious monopoly
enjoying rights of way for which 1t pays
nothing. with considerable property in the
State upon which it pays no taxes and get
takes from the people OF Indiana about
100000 per year in rentals for the use of
telephones, IL which sum the larger part is
net profit.
The reduction proposed by this bill will
take not lees than $4,000 per wear from
the profits of the monopoly.
To save this nice plum it is not
surprising that 1t has employed men to come
from Chicago Cincinnati, Louisville, New
Albany and other plsces to work for the de-
feat of the bill. The Superintendent here Of
the Western Union Telegraph Company, a
part OF the American Bell Telephone con-
Gem, is bestirring himself to continue iaI-
tened upon the people the outrageous extOr-
ton of from SIS to $50 per year for the
use Of an instrument which does not
cost at the outside over $40 per year to main
tain. The telephone company can not afford
a reduction of tolls and live, forsooth Such
was the cry of Its twin the Western Union
Telegraph, until its rival, the Baltimore and
Ohio, established stations in the West, when
it was prompt to meet the reduced tariff of
the latter and anxious for business at the
lowered rates.
Let as submit few facts concerning the
claims Of the telephone people operating in
Indiana. They claim TO pay to the Amer
icsD.Bell Telephone Company, the parent
concern, q royalty of $40 upon each
station. This is simply false. The royalty
paid does not exceed Sl5 per station, and is
probably less than that sum. But who is it
10 whom this royalty is psid2 1t is
largely to the very men who are taxing the
public $4S 10 $50 per station; for the larger
stockholders and many OF the officers
Of the sub-companies scattered over the
country and renting instruments from the
American-Bell Telephone Company, are
also the stockholders in and officers OF the
American-Bell Telephone Company The
various local or State organizations
are only wheels within wheels
OF gigantic corporate monopoly, coming
millions from the people. There is IN the
outer and inner workings Of the concern
much to suggest Of the subcontracts of di-
rectors of the Union Pacific Company dur
ing the construction OF that road, and out of
which the Credit No oilier scandal arose.
An estimate OF 1000 telephone stations in
Indiana at an average of $50 rental each
shows 5000, coo collected yearly in the State.
Allow SIS royalty each paid by the stock
holders Of the sub telephone companies to
themselves for the instruments, which, as
stockholders in the American Bell Telephone
Company they own; allow them 81 expenses
per annum "a large allowance) per station
for operation and maintenance, AID
We have SIC 0OO expenses in
Cured by the telephone owners, leaving
for them profit of Sl2lO00. Nor is this all,
for to this profit from rentals is to be added
the considerable income for paid telephone
conversations between different towns,
amounting TO not less than $50 600 per an
mum more, every cent of which Is net. 1t is
doubtful if there is to-day in Indiana any
enterprise, large or small, respiDg such enor-
nous dividends. And yet the monopoly has
the effrontery to threaten the State Legisls-
ture that If small reduction from it's exhor-
bitant charges be required, it will remove Its
plants from the State.
We trust the Senate will come down fat.
footed upon the false representa- lions of this
monopoly, and give the people OF the State
the relief to which they are entitled from
its cormorant exactions. II it can show the
taxpayers of Indiana why it should have
free right OF way and immunity from taxa
ton, and at the same time the right to exact
13S per cent. profit per year from them, then
should the Legislature not pass the reduction
bill. But unless the monopoly can demon
strste such prerogative the people should
be allowed share of the dividends they
have heretofore and are now being made TO
pay.