Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-07-03

Telephone rates are being discussed quite
generally throughout the country at this
time. TIE popular conclusion being that in
most cities considerable reduction In
rental is possible without unfa.rness to
the companies who operate the various
plants. So far as the city of Washington
is concerned 1t is felt by the business COM
munity that the sum annually required of
each subscriber to the Chesapeake and
Potomac Telephone Company is much in
excess of that which could fairly be de-
manded In return for the service rendered.
Representatives of the corporation insist
that present profits are much too small
and that reduced rates would SO cripple
the busiress that investors would be dis
couraged and driven into other lines of
money making industry. The company
states that last years profits were only 4
Per cent on the capital tied up in the en-
terprise. but any statement which deals
merely with the gross capital and the
money it has earned is misleading. It is
unfair to ask-practically. to compel-the
telephore-renting public to repay to the
local company the large sums which have
1t is alleged, been foolishly invested, and
from which the telephcne-renting public
has not received and never can receive any
benefit Deduct from the stated capital
the money thus thrown away and there
will be. it is thought, profit enough to make
the investment a sound one and at the
same time to permit a material reduction
of the rates. 1t is vain to argue that the
telephone business cannot be conducted
any more cheaply than it is at this time,
and by the Bell Company. in the United
States. From every country in Europe
comes testimony which instantly over
throws such unsupported contention as is
made by representatives of American tele-
phone companies. Switzerland has an area
of 15.9S1 square miles. yet telephone priv
ileges over practically the whole of that
territory may be secured by the payment
of a sum less than one-half the amount
demanded for telephone service in the Dis
trict of Columbia alone. The ordinary rate
permitting telephone conversation in ten
or a dozen towns and vllages-is s24 for
the first year, $50 for the second, and a
little more than SIG for the third year and
fer succeeding years. 1t is, therefore, plain
ly understanding all reasonable allowance
for varying industrial conditions, American
conduit requirements in cities etc.-that
the corporate demands upon subscribers in
the United States are unreasonably great
II the Chesapeake and Potomac Telephone
Company, which is alleged to be owned and
controlled by the Bell Telephone Company
is wise in its day and generation and de-
sires to maintain here a monopoly which
can hardly be otherwise than lucrative, it
will place itself in touch with the popular
movement. Any considerable delay in the
cutting of rates may result in competition
such as will transfer the monopoly to an
other corporation. Since the purpose of
having telephone is to be placed in COM
munication with all other telephone users,
a single comprehensive system connecting
everybody with everybody else, is what is
needed in every community. If in one COM
munity there were three four companies
there would be great confusion and to those
who desired all available means of COM
mi nication and consequently subscribed to
all the companies there would be, as now,
Unreasonably great expense. The business
must from its nature be conducted as a
monopoly, but every community will nat
urally confer this morepol!stic privilege
upon the individual or corporation which
will supply the best service at the cheapest
rates.