The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-08-01
The Bell Telephone Company
Says They Are.
INTERSTATE SAYS NOT
RAILROAD COMMISSION ASKED
TO PUT THEM UP.
SENATOR DANIELS ELOQUENT SPEECH
Further Hearing Of the Case Postponed Until
the September Meeting When Other
Witnesses Will Be
Heard

Witnesses VIII Oc
Heard.
A mighty effort was made yestefda!
TO have the old telephone rates restored
But it was not done and probably
never will be. 1t is to be hoped that II
will not. but it will be decided the first OF
September.
Jpon petition of the Southern Bel
Telephone Company rehearlng OF the
matter of rates was yesterday accorded
by the Railroad Commission. Two
telephone companies appeared before the
Commission to protest against the re-
duction in rates recently made by the
Commission, and one company-the In
terstate-asked that the new rate be
maintained Mr.. Robert Strong, of this
CITY. represented the Southern Bell Tele-
phone and Telegraph Company. and
Senator John w. Daniel, Of Virginia,
and Mr.. C. E. Young appeared for the
American Long-Distance Telegraph and
Telephone Company-both asking a
restoration of old rates. Mr.. w. w.
Shaw, of Durham, appeared for the
Interstate Telephone Company, which
asked that the new rate be maintained
and opposed restoration of the old rate.
In making their protest the telephone
people selected the best mana man
with big brain, eloquent tongue and
powerful personal infiuence-to present
their side of the question. II they fail
with John w. Daniel as their advocate
they richly deserve to fail-and fail they
must. 1t was a powerful speech that
he made yesterday. He spoke for more
than two hours The first part of his
speech was devoted to an analytical
statement of the nature of the investiga-
ton and the powers of the Commission.
The nature of this tribunal, Senator
Daniel said, was a peculiar one, being
a court Of inquiry and legislative body
at the same time, and the exercise OF
these powers involved some grave con-
stitutional questions. The Legislature
has confded to this body the power:
/. To investigate complaints as to
rates.
2. TO fix and maintain rates.
3. To attach fines and penalties for
violation of any judgment.
This gives the Commission most seri-
Gus relation to the property interests of
the State. he continued. The law con-
stitutes it court of record and gives
it all the powers of a court of general
jurisdiction.
Then the Senator discussed, in most
entertaining manner, the rate question
IN all its phases.
He said that the old rates were not I'M
reasonable; that the more subscribers
a telephone company had beyond GER
tain number the less money it made.
He contended that the rates would regu-
late themselves; that the only constitu-
tional monopoly in this country is the
monopoly of invention; the government
puts a premium on genius by granting
a man a monopoly on his invention-bCt
at worst this monopoly can last but for
twenty years.
1.-THE multiple of service is EN- -mously
increased with the increase of subscrib-
ers. AS you multiply the thing that is
to be done you exaggerate the genius
of the hand that is to do it.
''Most people look upon a telephone
company as a company that is armed
with a cigar-box and wire. The
switchboard in New York costs more
than the building in which it is situated
Look at the mighty system-an infinite
plexus of wires, climbing mountains and
spanning rivers, and men talking from
city to city. seacoast to seacoast. The
underground system now being put in
in New York will cost S7,00O,OOO.
Il don't believe the people of North
Carolina want to be unjust to corpora
tions. / am not here to defend them
Many of them have deserved harsh treat
ment, but it would be a mistake to too
much curb any development that is Civ
ing on in this country. Scientific in
yention is the only monopoly that our
constitution recognizes, and IN nerishing
multiplies and replenishes the earth with
its children. Since Bells invention OF
the telephone a hundred other telephones
have been invented. 1t is by evolution
and not by arbitrary judgment that this
country is developed. Human progress
is the repeating of old time statutes and
making human thought and human &C
ton freer."
Senator Daniels argured that the tele
phone and the railroads were not gov
~erned by the same rules. The railroads, HI
said had been built and fostered by sub
sides from the PEI pie. Telephones ar
not. Further, railroads depend large
ly upon governmental patronage, thu
telephone upon the private citizens vol
unCdfy patronage. AuQ DtlWecu III
telephone and the telegraph compan.
even, there is difference. The tele
phone company makes each man his owl
postmaster, each man his own lette
carrier and his house his own postoffice
In fixing the maximum charge that tn
man may make upon the company 20
must also take into consideration the ser
vice that the patron may demand of tn
company. AS you do not limit the mum
Der of messages, neither do you limi
the number of hours the company sha
toll.
"Now in the case of the railroad con
pany You say so many passengers, S
many miles. In the telephone compan
there is no element of considerable
whatever of the number of message,
the distance they shall be sent or th
time at which they shall be TRANSMIT
ted. You take no notice of the poles, tn
wires, the instruments or the quality {
the service"
speaker Seaed. that II the raj
were reduced the burden of\~it woul
fall on the poor man and not ON thos
who are most able to pay it. Use grad
ed system, he thought the most equits
ble-such a system as is used on th
railroad. In sending telegraph me-
sage the same is not charged for a shol
message as for long one. But with
telephone it is different. A man ma
Ia., q 4 IL.