The times. [volume] (Washington [D.C.]) 1897-1901, 1898-03-12
THE TELEPHONE HEARING
Mr.. Birney Continues TO En-
Tighten the House Committee.
MR.. HEMPHILL'S TESTIMONY
Saws the Chesapeake and Ohio Conn
pany is tie Only One on Earth
That Never Reduces, But Confirm
ally increases Charges-Methods
OF the Bel Company.

The Chesapeake and Potomac Telephone
Company was under fire at the Capitol
again yesterday. Evidence was taken be-
fore the subcommittee of the Appropria-
tions Committee of the House showing
that the company's charges were not only
excessive, but that the restrictions placed
On the use Of the phone We're unreasora-
bic and tended TO greatly curtail its
value 10 business men.
Mr.. A A Birney was again put on the
stand. The first question taken up was
the cost of constructing overhead and
underground telephone plants. He pre-
scented estimates which were submitted
by the Standard Underground Cable
Company.
These figures were submitted at the re-
quest OF the committee because it had
been claimed by Mr.. Bryan, president of
the telephone company, that the high rate
charged by the company was made neces-
sary because OF the costliness of the IN
derground system.
According 10 these figures, the cost
Of a 200-wire lire upon sixty-foot poles
would be Sc 70S64 mile. while for a 200
wire line laid in cement-lined pipe in I'M
derground conduits the cost would be
$S,9O7GO mile. The cost of maintenance
of an overhead line would be 10 per cent
Of the cost, while for an underground
system the maintenance would be one
half Of per cent.
Therefore" said Mr.. Birney. 'it is
shown that it costs but 500 a mile more
for an underground system and the cost
Of maintenance OF an overhead system is
twenty times as much as the other.
Mr.. BiTney then took up the question of
restricted service He said that the high
rates charged We're only n part Of the
grievances Of the subscribers association,
and that complaint Of almost equal i'm
portance was the restrictions placed upon
the use Of the telephone
He gave many instances in which il
was claimed that subscribers were not
allowed TO call up their own place of
business when they happened TO he in
another part Of the city without pay
ing 10 cents, or having 1t charged to
them 70 be paid in their regular bill
Mr. Pitney requested that the com
mittee be given all the legal points in
regard 10 forming legislation in regard
10 both restriction of service and secre-
cy of communication, the lack OF which
latter had also been complained Of by
the subscribers.
Mr.. John ]. Hemphill. who represents
1nE EADScrlNefE aSSOCAdliOD. Was the next
witness. In speaking Of this association
Mr.. Hemphill said ii was less than a
month old. but 50 great was the indigna-
tion against the telephone monopoly in
this CITY that twelve hundred members
had been enrolled TO secure relief in some
way.
This telephone compny' said Mr.
Hemphill, lis the only one on top of the
earth which has the record Of never re-
oucing its charges, but continually in
creasing them"
THE question in this city seems to be,
How much viii the subscribers stand
Fqueezing?' interjected Col. o. G. Sta
pies.
Mr. Hemphin then submitted state
rnents showing that the Bell Telephone
Company which owns 50 per cent of the
capital stock Of the Chesapeake and Po-
ronac Company. was capitalized for sos
100, coo. and that since 1854 il had been de-
claring dividends TO the amount Of j. per
cent on an average on that stock THE
original patents Of the Bell Telephone
Company have expired, Mr.. Hemphin de-
ciared. 1.-THE only patent which that
company now owns is what is known
she Berliner patent, which is patent on
= trausmitter and receiver combined"
Mr.. Hemphill explained that the appli-
cation for a patent on this device was
hung up in the Patent Office for fourteen
gears, and taken out just as the other
patents Of the Bell Company were about
20 expire which on its face was illegal.
although the courts had decided that the
law had been complied with. But there are
over 2,e00 telephone exchanges in opera
ton in the United States which do not use
the Bel patents. and there are from thir-
ty 10 forty construction companies in this
country manufacturing instruments Just
as good as the Bell Company has and
which do not infringe in the least on their
patents.
There was a representative of the au-
tomato telephone present 81 the hearing,
and said that his company was prepared
to give q good bond not only as a guaran-
tee that the streets would be returned to
good condition. but also that the service
would be satisfactory, If permission were
granted 10 his company to establish
plant IN this city He said that he al
ready had the names Of over two thou
sand business houses who had agreed to
subscribe for telephone as soon as the
authority TO construct was granted by the
Government.
Mr. Hemphin then resumed his remarks
taking up the report made by an expert
for the Maryland legislature on this same
question. He said: Mr. BRYAN has laid
before you this report and asserted that il
supports his theory that IL will be i'm
possible for him 10 do business at any
reduced rates. This report shows that in
1883 the Chesapeake and Potomac compa-
ny bought up the plant existing in Balti
more which was a wretched affair and
paid 10000 and in addition TO that they
paid SCI 600 for existing contracts The
Chesapeake and Potomac Company i'm
mediately capitalized this company for
sl,sfD.990 and because they cannot earn
big dividends on that amount Of capital
Mr. Bryan says that he cannot do bust
ness"
The hearing VIII be continued today.