The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-05-19

sioners would postpone action indefinitely
he would ask the executive board to fur
nish such data as might be desired. He
hoped that either this course would be
taken or the whole case dismissed, as not
worthy of the serious consideration of
the Commission.
Commissioner Ohio Wilson wanted to
know, if the Bell Telephone Company
was losing money at the present rate
why they were giving and maintaining
a service free of cost at Durham and
other places.
Mr.. X. G. Strong, who appeared before
the Commission as attorney for the Bell
Company argued that this had nothing to
do with the case-all the Commission had
to do with the matter, was to consider
whether or not the rate was reasonable.
MIR. Shaw, representing the Inter
State Telephone Company, at Durham,
said his company had been in business
about two years and a half, and they
have exchanges at Durham. Winston,
Goldsboro and Wilmington. The regular
rates Of his company, he said were S24
and $34 and they had lost money-$$3,7 700
last year.
In Durham this company had 1SO
phones, but they there charge nothing for
service. In Goldsboro there are Al
phones and the rate is $40 and $50. In
Winston there are $50 phones and the
rate is Sc and So. At Wilmington there
are $50 phones; the rate there is $50 and
$40. These are the only towns in the
State where the company has phones.
To make a general rate of $50 and $50,
Mr.. Shaw thought, woul keep out of
many small towns that now have no
phones, companies that would go there
and establish them. He said it cost more
per phone to operate large exchange
than a small one, and the net revenue
would be less than it would on a small
one
Mr.. Shaw said he thought the rate
charged by the Bell Company at Ashe-
vile was low enough, and he thought
the Commission would be doing wrong to
reduce the telephone rate in the State.
well, what are you fighting them
fers" asked Chairman J. w. Wilson.
why don't you pool issues%'
I'VE are just trying to convince the
people that our phones are the best and
run the Bell Company out"
Suppose you dc run them OUT" ask
ed Commissioner Abbott. "Wllat ARE
you going to do then? You Say YOU are
losing money now, and the more isnbserib.
ers you have, the more money YOU viii
lose" i'i<8 IS
1t was, Mr.. Straw said, because of cor.
poration pride 1t is impossible, he sad
go increase the rate in his company as the
maximum rate is stipulated in the fran
aehise of the company.
Mr.. Bridgers represented the HeRder-
son company, and said their rate was
$40 and $50. This company operates
in three towns-Henderson. Oxford and
Louisburg.
Mr.. McCluer explained how the ex-
pense was Increased as the number oil
subscribers increased. The largest rate
in the country Is charged in New York
the next largest in Chicago.
Then" said Major Wilson, dryly. "a
imam will only have to go into the tele-
phone business and get a large number OF
patrons TO lose millions. Then the con
verse ought ta he true with only one or
two or three patrons he ought to- get
rich
Mr.. Perrin BUsbee. representing the
city of Raleigh. said he thought Mr.
Shaw's statement touching the loss by
his company ought to be taken with a
degree of allowance. The Interstate
Company has a capital stock of only
100000. and 1T is bucking against the
BELL Telephone Company with millions
OF capital The only question. he ,said,
was as To whether the company was
making only a reasonable profit.
: At this point, son motion of Mr.. s. Otho
Wilson, the Commission decided TO post
ftone action ON the petition till the meet
ang on June LIST. at which time they hepe
10 have some data as to the va111e of the
property in Asheville. the expenses earn
ln;.s and the ESe.