The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1896-07-28
LOCAL TELEPHONE COMPANIES.
Results of an Investigation by Sec.
rotary Hopkins of the Saginaw
Board of Trada.

The following extracts are from the re-
port of Secretary E. NJ. Hopkins. sub
mfoted to the Saginaw, Mich. Board OF
Trade, and ernbody the results obtained
by him during the course Of an investiga-
ton which he made for them to deter
mine from the experience Of other towns
and cities in the matter Of local teie-
phone service, whether or not it was
desirable for them to start a system Of
their W in Saginaw at the present
time. TIL full report occupies some three
or four columns of closely printed mat
ter giving the experiences of different
companies at various points in great de-
tai, as printed in the Erie 'HeraLd'' of
July II. 1t touches on many matters Of
interest to those towns which may wish
TO operate local systems Of their own.
The following extracts from this report
contain much interesting and timely in
formation
Saginaw, July /. 1896.
To the Board Of Directors. Saginaw
Board Of Trade
GeRtlemen-In obedience to your re-
the past few weeks, the question of the
establishment of a competing telephone
system in this city. the cost Of eonstruc-
ton, operating, maintenance and other
Win GtAI lSI6pilUflE
business.
I regret exceedingly to say that I have
not ii. many Instances found things so
favorable to the idea Of a Connecting
company as / had hoped. and as i Whole
the report I lave to make is as dlsap-
pointing 70 myself as II VIII doubtless be
70 many who sincerely hoped for cheaper
and better service.
As you frst approach the telephone
question IT strikes You as being an ex-
ceedingiy simple and easy one to solve,
ann EEn1JE GadTtN- oRrV - ~
that over rates are possible and al the
same time profitable. But. as you go
further into the subject. ascertain the
different prices named for cost Of con-
~Struction and operating. and learn more
OF the details of the business. Won be-
cone ~entangied in a network Of figures
and are oubtfu as to where you are
at There is one conclusion you quickly
reach. and that is, that some one has
been lying about the telephone business.
You cannot. by any possible reasoning,
pnone company promoters and the BSli
Telephone Company people. They are
as Tar apart As daylight n darkness.
The Bell people say that theirs are based
on eighteen years actual experience and
the others on theory which will be sadly
disappointing to those who put their
money into the business. However this
may be, there is certainly not much doubt
as TO which claim is correct. which time
only will Demonstrate. The telephone
business is not easily understood and
t41SiS dIE Il1GL4 pTODi6mS connected WITH
1t yet remaining to be solved. Improve
menrs are continually being made that
today destroy the value Of something that
was considered absolutely essential yes
terday. In other words. l mean to say
that 1t is yet In its infancy and has not
reached that stage where 1t may be term
ed an exact science.
The matter OF patent infringement Is
one worthy of serious consideration. The
question Is by no means settled. although
there are numbers. of telephone manu-
IA q4frrGrZ t4rGN call r1aA I, rr-, -, ~ y
giving a satisfactory guarantee bond TO
defend against any suits for infringe
ments. This is good 50 far as It gees.
but 1t does not go far enough. in that
1t you'd not. in case OF an adverse de-
cision. in any way individ-
uass who have u their money into the
building of the plant.
The Bell people confidently claim that
the opposition c~onpanyss cost of opera
ton per subscr Der VIII exceed It's gross
income per subscriber. to say nothing
tingeneias, the fund estimated TO take
care Of which will be 50 totally made
quata as to astonish the investors after
This statement simply confirms what /
stated at the outset, that the difference
of opinion as to cost Of operating and
totally confuse any one ana that time
only will show Us the real truth.
n conclusion ! desire g call youv at
teation 20 the opinion of Judge Gage
furnished you at your request, in which
he states that each individual sub
scr5ber 20 the stock q telephone. COM
teriaI ard labor used. M il seems 70
me. in view of the fact that we ought
to be very sure that whoever Is to man
man OF known re,iabflitv Sui that ne
or whoever shall be associated With him
IN the matter of promotion. should have
AMY to show 4 substantial interest II
its proper construction and good man.