The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-08-25
Commercial Telephone Com
pany to Compete With Bell
System in Oakland.
WILL BE A PUBLIC BENEFIT.
The Granting of the Franchise to
Be Considered at the Next
Meeting of the Council.


should be well borne IN the mind indi-
vidually and collectively of the City Coun-
Gil of Oakland at its next session.
A franchise has been asked of that body
by corporation known as ''The CONNER
cial Telephone Company of Alameda
County" to construct and operate strict
ly frst-class telephone system in Oakland.
A short time ago franchise was applied
for and passed to print. When the proper
time came for bidding, in accordance with
the requirement of the Council, the COM
pany sent certified check on the Taylor
Bank of Oakland for $4,000 and bid $50 in
cash and half of l per cent of the gross in
come for rentals and business in Oakland,
to be paid semi-annually.
This bid, considering the present status
of affairs and the positive knowledge that
the Bell Telephone Company pays abso-
lutely nothing for its franchise, was deemed
liberal enough.
The bid was referred to the Judiciary
Committee to be acted upon at their dis
cretion. This committee met last Thurs
day night and agreed to report the bid
back to the Council with no recommends
tons. The company had not anticipated
the slightest trouble in obtaining fran
chise and the summary action of the COM
mittee was source of extreme surprise to
the projectors, and now they being at the
mercy of the Council earnestly hope that
it may see the beneficial result of such an
enterprise to the public.
1t is limited that material prejudice
exists among members of the committee
toward project of this kind.
Pc hat re RI
citizens of Oakland arising on the advent
OF a high-class competing telephone COM
| pany is thoroughly apparent.
The Commercial Telephone Company of
Alameda County was incorporated June /,
1895, with a capital of 100000.
It's officers are:
John W. Butler, president; J. D. John
rotary; California Safe Deposit and Trust
Company, treasurer; Ernest R. Smith,
general MANAGER; w. It. Shelby, superin-
tendent; William H. H. Hart, attorney.
The directors are: John w. Butler, Sec
rotary California Guarantee and Invest
ment Company; ]. D. johnson. with Red
ington e. Co., wholesale druggists; Albert
L. Stetson of Holbrook, Merrill & Stetson,
wholesale hardware; E: R. Smith, CAPT
talist; S. P. Lunt, president and manager
Interior Development Company.
1t is the purpose of the company to oper-
ate first-class telephone system in and
between all the towns and villages from
Sacramento to San Jose.
A fiat rate of So so month is offered
subscribers, and no extra charge will be
made for switches. There is nothing in
the patent to conflict with the Bell tele-
phone, but it possesses all the merits of
that system.
The company is in communication with
the Standard Telephone Company OF New
I'll &c n. nb =.
the president. The object of that COM
pany is to fight the Bell Telephone. 1t
has capital OF $15, 900, 900.
The Commercial Telephone Company
will introduce device for the convenience
of subscribers, hitherto unused on this
coast, known as the Clark automatic
switchboard.
means of dial may, by turning a needle,
switch himself to any name on the face of
the dial. Underneath the dial is wheel
with a contact point for every name
thereon. After the dial is turned, this
wheel follows the dial by means of simple
retarding machinery.
A projection on the wheel makes and
breaks the circuit for each name on the
dial.
Between fifty and sixty names can be
written on the dial.
A telephone with the dial addition may
also be in direct communication with the
central office.
Not only one name but any number may
be connected simultaneously so that a
over the wires. With such an arrange
ment, absolute secrecy for those conversing
is obtainable.
The formidabiity of the new corporation
is manifesting itself already.
The old company now in Oakland has
cut down its rates, and over 300 subscribers
with contracts for three years have been
secured by the Commercial Company. All
this has been accomplished without
stretching wire or putting pole into the
ground.
The offer of the new telephone company
for q franchise to erect their plant in Oak
land will probably come up before the
Council on Monday evening. When con-
sidered by the Ordinance and Judiciary
committees of the City Council, the general
opinion prevailed that the offer of the
company was too small for the franchise.
II cannot express any opinion on any
matter that may come up before me
officially said Mayor Davie of Oakland
Yesterday, "but as to the value of COM
petition in Oakland, it is too apparent to
need any repetition. know something of
it, and wherever competition has arisen
the public have greatly benefited. Three
years ago We had railroad monopoly of
the ferries, water monopoly and tele-
phone monopoly. l started a ferry and cut
rates one-half. That is if you take ride
by the creek route and one by the train.
That will make an average of IA cents
ride. Before then single trip was Is
cents.
"Then we had new water company
commence operations ON a large scale
about a year ago. What is the resultp
People have enjoyed reduction of IS per
cent in their water rates.
"As to telephoning I noticed that as
soon as the new company applied for a
franchise the old company Immediately
lowered its rates materially. That is
good sign. The more capital we get here
in competition the better. The more
plant that is erected by the companies
the greater is the city's income by taxes.
I presume that when franchises become
valuable they will be taxed. In matters of
competition no company shall be required
to run race on unequal TERMS"
The fact that the Judiciary Committee
returned the ordinance without recon-
mendation is not equivalent to its rejec-
ton by the Council. The Non-Partisan
majority Of the present Oakland Council
has shown no love for monopolies during
their three years of office, and there is no
reason to suppose they will do SO in the
ooca Of thu faIaphone YnapopoIy