New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-03-08
TELEPHONE MONOPOLIES.
TWO BILLS TO REGULATE CHARGES.
REPORT or THE COMMITTEE APPOINTED TO IN
yKaIInArK LIE COMPANIES IN THE STATE.

REPORT or THE COMMITTEE APPOINTED TO IN
yKsrIuArR THE COMPANIES IN THIS STATE.
ALBANY, March 7.-On April ~, 1887, tho Assembly
passed resolution directing the appointment OF COM
ttec charged with tho duty Of &sccrtaninS tho names
of all companies doing telephone business within the
state OF New-York the amount OF tho capital stock OF
each the cost OF the plant end operations, tho amount
of tho earnings OF each OF said companies, and tho
dividends paid ly them. Subsequently tho Speaker
appointed such committee Messrs Ainsworth OF
Oswego, HALEY OF Franklin, Saxt"D OF Wayne,
Dckcy Of Rotkland, and Conovcr OF Wcstchester.
Tho meetings Of tho committee were held In tho sum-
Inor at Utica Troy Saratoga, Buffalo, Rochester and
New York, and tho affairs OF all tho telephone com
pancs within the state OF New-Y0rk were Investigated
Tho report, which was submitted 10 tho Legislature
to-day contains volumnous and detailed statement
OF the capitalization cost OF construction, operating
expenses net earnings and dividends paid BY each If
the companies in this state.
Tho total number of subscribers to telephone OK
changes Throughout the state Is 2s,24O. Tho total
capital stock OF the companies doing business In tho
State is $e,395,o00 The total coat OF construction
OF the plants Of the various companies throughout tho
state is S5,7s0,07s 43. Tho total not earnings for
the past fiscal year Sl.O2s233. Tho average
cap aiizution per subscriber Is 1919 3d. Tho aver
ago capitalization throughout the United Sates Is
1851 per subscriber.
"iERATI Ms OF THE METROPOLITAN COMPANY
Inc organization doing the largest business In tho
hiaic Is the Metropolitan Telephone and Telegraph
company. The committees review the conflict between
the Western Union Telegraph Company. as owners Of
the Eiisoh patent, and the Bell Company a. owners
Of the Graham Bel patents, out OF tho settlement OF
which grew tho Metropolitan Company OF Ncw-York.
This company was organized in May, 1850, with a
capital stock of S1,OOU,OOO, owned respectively by
tho American I.c Conn OF Boston, and tho West
erl Union Telegraph Company In tho proportions Of
Sixty AID forty per cent.
It operates Manhattan Island only although the
territory operated by tho Westminster Company, tho
Staten Island Company, and tbs Ncw-York and New
jersey Company was origin: = embraced In lts fran
chso The royalty paid by IN, Metropola an Company
per It's cost construction 81 81 1I6 "a.
s4oG.7-9 OF iI. having been expended In the erection
OF tho companys new building No. Is Cort and-st
his tho committee have dsresardo in baslng Its per-
csniagcs upon the ground that it had not been occupied
during tho timo embraced I'm ITS receipts and dlsbusc
moni~, ana thus had not contributed towards Its net
earnings.
It's net earnings for It's first fiscal year were
a5,eo5c 50 showing percentage o. net earnings TO
cost cost, OF soss per cent It pad no dividends In
was - per cont Its earnings for III, year ending
March 81 1885, were private limos, sIs7.737 81 dis
2I2 20; to.ls, $50 54s 40; miscellaneous sources,
s15222 O. Total sl.171,703 90. Its expenses wero
operation G15S, 15l II reconstruction, rfS,G-4 AZ
instrument rental. American Bel Telephone Company,
fl6,75s ~ rental Manhattan plant 10000 rebates,
SiIoO 10; root rentals, s6,745 30; taxes $l2 600;
Insurance. $50 o: legal expcn-ca sl35OO: msccl-
lanecus. .S23l5 10 Total. S72s,a76 81. Their
ego number OF Subscribers for the past year WAS 6.1O
AT an average annual charg, o; si4e 90
STATE RIGHT TO REGULATE CuARGYs.
The committee deal at length with the problem of
underground construction. which they have met in the
clues OF Brooklyn, Buffalo and NcwYork The com
mittce present extensive brief summarizing tho
Federal and state decisions in large number of States
upon the right OF the Legislature to regulate the
changes Of local companies, and find that they have
such right also upon tho right OF the Legislature 10
regulate the royalties charged by the American Bell
Company, OF BOsOn. and find that they have not tho
right 10 regulate them
HOW TO DEFEAT THE BTLL MONOPOLY.
Tho committee conclude that the only remedy TO do
feat tho Bell monopoly VIII be tho invention by another
person Of telephone which shall render commnnlcs-
ton possible by Of what Is known tho Make
and Break system, which, electricians say, is
tremcy doubtful The committee think there IS but
one Circumstance which In their Judgment would ustl
~ legislative Interference that circumstance Is tho
imposition OF charge largo that II shall be burden
10 those who use It, and which shall produce reye
nue. diSprOi"rOnac to that return to which lts In
was an anlovc5 rrSdm n' a ,1s cnsd That S"nm
stance il found In The cites Of New York and Troy In
that legislation is recommended for that city Thsy
believe the returns OF the metropolitan COMPANY are
larger than they have moral right to demand.
TWO BILLS TO CONTROL GGAsPING COMPANIES
Investigating COMMITTEES. The first limits tie issue
OF stock and the creation Of liens By incorporated
panics, and says:
Any officer or Other person who shall Issue
sumo to Issue any share, stock certificate OF stock,
who shall make any bond or mortgage,
or causc any Indebtedness whereby any lien Is or Is
assumed to bc created contrary to tho provisions Of
This act is guilty of mlsdemcanor and, upon convic
ton liable TO a fno OF not moro than tho par value
Of the stock shares issued lien created
sumed to be created. or by Imprisonment In he county
Jail for not than ono year or by both such no
and Imprisonment"
Tho second bill says that every telephone company
in the state in cities having population OF 900 900
10 lis subscribers at charge not exceeding GO 30
month for the OF tho instrument, and further
charge Of - a month for each additional half mile OF
fractional part thereof that the place in which the tcc
phone placed Is from the central office Of the COM
Iany. Each and violation of tho provisions
Of this act shall be deemed misdemeanor.