The morning times., 1896-01-22

The District Commissioners have to a
| certain extent receded from their summary
| and rather ill-adyiscd position In anita gon-
| izing, without hearing, the bill intro
! duced at this session OF Congress to authorize
and permit an opposition telephone COM
| pany To maintain plant in this city.
| Such has been Tie outburst OF popular
disapprovai OF their action that the Com
missioners will TINS morning give a formal
| hearing to one OF the proposed companies.
This company, before applying toCongress
| for a charter, made a thorough canvass of
| the city and secured four thousand fiye-year
| contracts from business men and citizens
desiring the new service at a rate per year
much below the charges now made.
AS an Indication oil ihe respect which the
| Bell people exhibit toward competit ion.
| the rates of that company were yesterday
| reduced in Alexandria from $50 to S24
| per year. The reason for tiiis heavy drop
| in charges was that another company
| began the WORK of erecting poles, stringing
wires ana making active preparations for
| the establishment of a plant.
MISLEADING TABuLATION.
The recent letter OF the Commissioners
I to the Senate District Committee is severe
| ly criticised by those interested in the
new companies. Inthis accommodations Was
| a table comparing the rates charged in
niue leading cities, and calculated TO show
that Washington enjoyed comparatively
cheap service.
THIS tabuiation is shown to be not only
misleading, but erroneous. In Canada,
where, Immediately upon tie expiration OF
the Bell patents, opposition companies were
chartered and permitted 10 begin business,
the rates for service have fallen TO u
surprisingly low figure.
In Toronto, Il city of the same size as
Washington, the present rate is but $40
per year Tor business houses. The charges
in other Canadian cities, where there is
competition, is rs foliow.' Brockville,
So per year; Halifax, SIC. -. John, $50;
Montreal, 500, and two tel.ihones are al
lowed to the same place OF business
COMPETITION DID IT.
Prior TO the establishment of a compet-
ing company The rates charged Were the
same as i'll this country. The reason for
these beneficial results is found in the fact
that opposition companies were allowed
10 begin business immediately upon the
expiration of the Bell patents.
1t is ii curious but important fact that
throughout the entire South the charge by
the Bell Company for telephone service has
been only half of what has been collected
in the North. The Southern business men
would not p.x in excess of certain figures
and their demands were granted rather than
suffer the lossof business.
But these half price rates have been still
further cut in two wherever an opposition
company has begun preparing for the in
stitution of plant AT Lynchburg, for in
stance, the rates have been reduced from
$50 to $50 per year, and at Petersburg,
Va, the prevailing price is $50 per year.
But rece rdess OF The benefits OF competi-
tiun the Commissioners table is shown by
actual figures Ia he inaccurate. The fol-
lowing are the rates charged the business
men n.af these Cities: 60
Atlanta, $50 per year; San Francisco,
$50: Detroit, S72 TO S102; Indianapolis,
SEQ Ia $50; Peoria, S1S; Cincinnati, $50
to S1Go; Cleveland, ST2 to $40; Colum-
bus. Ohio, see: Toledo. 500; PittSbnrg, $S4;
Charleston, $50; Knoxville. $50; Memphis.
$50; Nashville, $50 10 S72; Richmond,
$50. IN Knoxville there is competition.
In all these cities, as in those of Canada,
there is a commensurate II tduction made
for service to private residences. In To-
ruuto residences are served for S25 per
year, aud in ST. John but SO is charged.
BELL COMPANY DIVIDENDS.
The claim of the Commissioners that the
Bell Company pays bit 3 per cent dividends
on their stock is also said 10 be erroneous,
and the figures are said TO approximate
I 200 per cent.
1t is pointed out that the establishment
of any competing telephone company here
would melna saving 20 the District govern
ment alone Of $3.50 out of $4,000 per
year. The United States government Will
save four-fifths of the sums now annually
appropriated for such service. The saving
TO the present number of subscribers would
be at the least calculation $3.50, 600 year.