Evening star., 1898-10-14
RATES FOR PHONES
Public Printers Question Answered
by Controller Tracewell.
CHARGES WERE FIXED BY CONGRESS
Benefits Should Be Shared by the
Government.
DECISION IN The CASE

DECISION IN The CASE
Controller Trac ewel of the treasury to-
day rendered decision of the highest i'm
pCrtance and interest to the people of the
District of Columbia. The decision is that
the Chesapeake and Potomac Telephone
Company ..is creature of the law, is pro-
tected by the law, and must obey the law"
The controller has given much study to the
subject, and every word of his decision will
be closely read.
While the decision of Controller Trace
well is directed to the public printer, it
applies to all government departments
using the telephones of the company
named. Mr.. Tracewell had recently re-
Ceived inquiries from the disbursing Off
GERS of the Treasury and War Departments.
The decision cuts by about two-thirds tn.
amount which the telephone company has
been receiving from the government. The
amount is considerable one.
The decision of Mr.. Tracewell is, of
course, based on the law, but Mr.. Tracewell
personally has considerable knowledge of
the telephone business. He owns a large
interest in the telephone system at his
hCme in Indiana, and has familiariZed
himself for many years with the workings
of tie business. He was able, consequent
ly, to bring experience and common sense
into his summary of the laws.
Treasury officials are satisfied with the
decision. Some of them were asked today
what would be done should the telephone
company refuse to serve the government at
the price fixed by the decision. They
promptly answered that the Attorney Gen
eral would inaugurate injunction proceed
irgs without loss of time. They felt con-
fldent, too, that such proceedings would
result IN final and full decision against
the company. Nobody knows what the
telephone company may do but the Off
cials are confident that Mr. Tracewells de-
clsion will be sustained if it is ever passed
upon by the courts.
The decision is as follows:
The DecisiOn.
To the Public Printer, Washington, D. c.:
Sir-In your communication of the 23th
of August last you requested my decision
whether the provision in the act of June
80. 1888, fixing the amounts which may be
paid for the of telephones in the Dis
trict of Columbia GO Stat, 53S, invalidates
the contract entered into by you with the
Chesapeake and Potomac Telephone Com
pany August 1G, 1897 for the installation
in the government printing office of a twen-
ty-five-station switchboard telephone serV-
ice and its maintenance from year to year
for period of ten years.
The delay in answering your communica-
ton arose from the Importance of the sub
ject submitted, and my desire for thorough
deliberaton and all obtainable information
before rendering a decision upon the ques-
tionS involved.
the contracting parties. The contract
made consists of estimates specifying the
equipments to be furnished and the prices
to be charged. which were submitted by
the company as a proposal and accepted
by the public printer. No fixed time was
specified in this acceptance during which
the contract should continue in force. 1t
appears to have been understood by the
contracting parties that it should continue
in force from year to year at the option of
the public printer for period of ten years
Printing Office Sw itch Board.
The contract thus cOnsummated provides
for the installation and maintenance of a
telephone system consisting of a switch
board in the building occupied by the gov
ernment printing office, with twenty-eight
stations telephones located in said build
ing, each directly connected herewith by a
single wire. together with ten other sta
tions or telephones located outside of this
building, but each directly connected with
such switch board by a single wire; and
also three additional stations or telephones
connecting the record clerk at the Capitol.
the foreman of printing at the government
printing office and the foreman of the
bindery at the government printing Office,
which latter telephones do not connect with
the switch board above referred to or the
switch board of the company at its CEN
trail Office. In fact, it is independent
line of telephones, connecting these several
points, and these three latter telephones
are on wire upon which there are two
other telephones.
The switch board in the government
printing office building is connected with
the switch board of the company at its cen
tral or main exchange by four trunk lines
wires. The prices stipula ted for the install
lation and maintenance of the telephones
except the latter three, are graduated ac-
cording to the period of annual service, as
follows: The first year. twenty-five sta
tions, sI2 per annum; additional stations
$40; the second year, twenty-five stations,
$50 per annum; additional stations, s36; the
third year, twenty-five stations, $40 per
annKn; additional stations. So: the fourth
to tenth year, s32 per annum additional
stations. $50.
The prices stipulated for installation and
maintenance of lines are follows: For
trunk lines to main exchange, for distance
of one mile, 500 per annum; for greater
distance. $l25 per annum for trunk lines
to the departments and for outside lines,
$40 for each quarter mile.
1t is understood that the four trunk lines
running from the switch board in the
building of the government printing office
to the main exchange of the company at
its building are charged for, under the
terms of the contract. at the rate of $500
per annum. and for the nine outside lines
the three latter stations on the independent
lire, including wire rental, is $40 per an
mum.
| am not certainly advised as to whether
this independent line was installed under
the contract above referred to, or was In
use and operation under contract before the
date of this proposal and its acceptance
1t is not a matter of consequence, however
considering the conclusion | have arrived
at, as to when this independent line was
installed.
The Congressional Provision.
The provision in the act of June 30, 1898
is as follows:
From and after the passage of this act
it shall be unlawful for any person or
any telephone company doing business in
the District of Columbia to charge or re-
ceive more than $50 per annum for the use
of telephone on a separate wire; $40 for
each telephone, there being not more than
two on a wire; $50 for each telephone
there being not more than three on a wire
and $50 for each telephone. there being
four or more on the same wire
~ ,tc tot L.,