Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-07-03
PRICES OF PHONES
The Present High Rates and the
Causes for Them.
CONVENTIONS OF THE COMPANY
An Interesting Chapter Of Inside
Telephone History.
CHARGES IN OTHER CITIES

The deep-seated conviction long ago
found place in the bosom of every man
whose business enterprise demanded that
he should have a telephone in his estab-
lishment that the annual rental charged
for such Instruments and their use was
altogether unfair and eXtravagant. This
sentiment found vent in the shape or
general chorus of thankfulness some
months ago when the announcement was
made that the Berliner patents, upon
which the Bell Telephone Company upheld
its monopoly, were void. Almost coin
cidently with this declaration came the
heralding of the formation of new tele-
phone corporations. whose glowing pros
pectuses promised that the new associa-
lions would give an improved telephone
service in each populous community at
largely reduced charges from the present
rates.
In Washington no less than three branches
of three prospective companies, each being
represented to have unlimited capital, We're
inaugurated, and energetic agents We're
hurried around among subscribers to the
present telephone exchange to secure their
promises to patroniZe the new systems
wh-n they Were started. Many business
men who have suffered for years from what
they have regarded as imposition by the
Chesapeake and Potomac Telephone Com
pany willingly signed the first paper pre-
scented, and before they were aware of it
found that two others were being circulated
for the same purpose.
Representative of each of the three pros
pectve companies state positively that
they have a sufficient number of signatures
to their respective agreements to guarantee
their inaugurating their telephone systems
IN the District.
A Monopoly of Necessity.
1t is a self-evident proposition that any
iph 10 tn1a
phone commuri cation between the business
houses Oh between residences in thickly
populated community must be monopoly.
Two OR more telephone systems in Wash
ington, for instance, would lead to inter-
mnable confusion and never-ceasing vexa-
ton and misunderstanding. The business
man would, for instance, be a subscriber to
enc system, while half a dozen of his best
customers might patronize a rival COM
Tany. 1t is easy for any one who cares to
follow out ard elaborate on this Illustration
to see where the neutrality-suspicious. arrange
ment would lead to. The only way a care
full business man could act in such an
emergency would be to subscribe to each of
the different companies and have his estab-
lishment equipped with their various in
struments, and such course would bring
him back to where he is at this moment
confronted with an altogether unjust eX-
pense, when the service he secures in re-
turn is taken into consideration.
The Washington business man wants one,
tenn i'll the District Of Columbia, but he
wants from that monopoly the best serv-
ice at the cheapest rates which the bust
ness men in other cites of similar popu-
lation and conditions are able TO obtain.
The Chesapeake and Potomac Telephone
Company conducts business in the Dis
trict and large portion of Maryland. Its
rates regarded as entirely too high
for the service 1t gives. The company
claims that it is managed with rigid econ
omy and yet carnot pay its stockholders
more than 1 per cent per annum despite
the high charges for its telephones.
SoHlc Interesting History.
The telephone was first introduced in
Washington in 1873. There was no Bell
Telephone Company organized then and
Mr.. Gardiner G. Hubbard was the trus-
tee of all the patents and managed all
business in connection with them. The in
struments were first used On private wires,
and the general business public would have
lone Of them. The agent whom MIR. Hub
bard engaged to solicit customers for tele
phones had a disappointing time of It.
Business men said they might be of use to
q doctor. grocer or Il livery stable keeper,
hut would be of no advantage to others.
Bankers wanted to know how in the world
ttey could transact financial business over
a wire How would they be able to recog-
nize the voice of some one asking the
amc unit of a depositors account as the
voice of that depositor, they asked, and
when grocers, liverymer and doctors were
approached. on the subject of having tele-
phone placed in their establishments they
objected to it on the same ground; that
it would be impossible for them to tell
WI ether orders given over phones We're
real or sent by practical jokers. Major
Ben: Perley Poore, who was at that time
clerk CT the Senate committee on printing,
V as persuaded to establish system be-
tween the Senate wing of the Capitol and
the government printing office, and this
worked exceedingly we'll The instruments
r.. tryiy ea1r DIV
erected, which were placed at the dis
posal of Mr.. Hubbard and his associates.
The Evenin. Star Exchange.
The first exchange in Washington was a
single switch in the office of Mr.. George c.
MAYNARD, by which the office Of The Even
ing Star was connected with the Senate
wing of the Capitol. The instrument had
been placed in The Star office at the sug-
gestion of Mr.. Maynard, ana connected
with his office, whence another connection
reached the Capitol. Mr.. Nevius, the pres
ent superintendent of the Chesapeake and
Potomac Telephone Exchange In this city,
was then an office boy in Mr.. Maynard's
employ, and in the afternoon when some
thing important would occur at the Capitol,
The Star reporter would call up Mr.. May
nard's office and young Nevius would
switch him on to the wire leading to the
editorial rooms.
1t was not long however, before the
eminent practicability of the telephone was
to be demonstrated. The gentlemen who
had pushed the introduction of the inStru-
ments here made strenuous efforts to in
augurate an exchange system. 1t is inter-
esting to note the prices then asked by the
originators of the telephone system in
Washington. They agreed to establish an
exchange if they could secure 200 sub
scribers who would pay rental of 81 per
month each. In 1879 the National Tele-
phone Exchange was established, with a
capital of about S1oO,OUO. There was not
as much known in those days about the
expansion of stock by such associations as
there is nov. The capital of 100000, or
Whereabouts, not only represented the
actual plant, such as the wires and poles
of the company, but also what it consider
ed its franchise to be worth. and included
residue necessary to extend business.
The National Telephone Exchange was sue
ceeded about 1880 by the National Capital
Telephone Company, and a still further
ca ptalization was made necessary by the
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