Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-11
CAUSE OF COMPLAINT
Inquiry Into the Local Telephone
System.
ARROGANCE and ANSUMPTlONCHARGED
Effect of Competition in Other
Cities Pointed Out.
MIR. HEMPHILL'S REMA RKS

When the telephone inquiry was resumed
by the subcommittee on appropriations to-
day Mr.. Birney continued his representa-
items in behalf of the citizens movement
for lower rates. He presented additional
comparisons Of rates in other cities, as
follows:
Rates Under Competition.
Little Rock. 400 phones; business, So;
residence, $50; taxes, 80 cents pole
Baltimore-Bell. $500; business, SIS and
1928; residence, $40. Home, 1,25O; business,
s4S Met. Cir. only; residence $50 (unlimited);
taxes s. per pole and s. per yard of con-
duit.
BLOOMINGTON. In.-Home. Central Union.
LOO; business. s24; residence, SIS.
Decatur, 1ll.-Bell, 1000; business, s. and
Sc per month; residence, $3.50 and s. per
month. Citizens, 1000.
La Fayette, Ind.-Bell, 1000; business,
SIS and 81. Harrison, business, $50; resi-
dence, SIS.
Columbus, Ind.-Bell, business, s12; resi-
dence, $3.50. Harrison 1900.
Frankfort, Ind.-Bell, 500; 80 cents and
s125 per month; residence, 40 cents to IS
cents.
Norfolk-Bell, Southern States, 1903; bust
ness, $50; residence, $1S Zach company
$500 and 81 per pole.
Erie, Pa.-Bell, Mutual, 800; business, $40;
residence, SIS.
No Competition.
Providence, r. 1890; business, s12O;
residence, $50.
Milwaukee-3,250; business, $12O; resi-
dence, SO.
Newport, Conn.-9OO; business, s72 to s1o0;
residence. 500 to s4S.
Hartford, Conn.-Business, $75 to 1925;
residence, S3S.
Springfield, ILL., 200; business, s4S; resi-
dence. $50.
These figures demonstrated conclusively,
Mr.. Birney said, that wherever competition
existed rates had fallen, and yet the old
companies continued to do business and
make profits.
the difference between the cost of construc-
ton of overhead and underground systems
as proposed by a Pittsburg construction
company. According to the statement, the
cost of a 2OO-wire line upon sixty-foot poles
would be $3,I0S64 a mile, while for 200
wire line laid in cement-lined pipe in under
ground conduits the cost would be $500. 60
mile. The cost of maintenance of an
overhead line would be 1 per cent of the
COST while for an underground system the
maintenance would be one-half of / per
cent.
Therefore," said Mr. Birney, cit is shown
that 1t costs but $500 a mile more for an
underground system, and the cos of MAIN
times as much as the other"
Mr. Birney said there were competing
companies DESTROYS of entering the city
which would give bond for good service.
Assumption and Arrogance.
Mr.. Birney said the question of excessive
rates is not the only one that is annoying
the citizens who use telephones. The COM
pany has been arrogant to the last degree
seeming to assume unusual rights of do
minion in this District. He said there were
court decisions upho.ding the right Of the
legislature to revise the rates. One of
these decisions was upon a case to which
this very telephone company was party
Mr. Birney then related TO the committee
the several classes of complaints which
the citizens have made against the tele-
phone company. and which have been pub
lished in The Star from time to time.
One of the instances cited was this: A
druggist, who was a telephone subscriber
learning that a fire was raging in the
reighborhOod where his residence was To-
Gated, called over his own telephone for
the nearest telephone in that vicinity to
ascertain IL the fire was near his house.
He was refused by the central office unless
he paid 10 cents. the excuse being that his
telephone was for use in his drug business
exclusively, and that ascertaining the To-
cation of the fire was not his business.
Mr.. Birney said he was informed last
night by an official of the government that
the most important matters soon become
public property If transmitted over the tele-
phone. The official cited a case in point.
He said that when one of the most i'm
portant transactions in which the Treas
ury Department has been engaged was
pending 1t was necessary to communicate
with New York over the long-distance
phone. The official first called up Presi-
dent Bryan and was assured by him that
abs olute secrecy could be obtained. After
finishing his conversation with New York
the official was dsmayed to overhear his
remarks under discussion by the operators
in the telephone exchange. Mr.. Birney said
the opportunity for the violation of secrecy
was a frequent cause of complaint among
the citizens.
Some discussion occurred between Mr..
Pitney of the committee as to the right of
Congress to prohibit a certain kind of con-
tract on the part of the telephone company
Mr. Birney said the citizens did not ask
prohibition, but regulation, the latter be-
ing clearly the right of Congress.
He'll Telephone Company Dividends.
Mr.. Birney submitted an extract from
Philadelphia newspaper of December II.
1897, TO show the dividends paid by tn.
American Bell Telephone Company, as fol-
lows:
The extra dividend of ~ per cent makes
os per cent declared in excess dividends by
the company since 1884, in twenty-one pay
nents. besides IL per cent per annum in
regular quarterly payments. From 1881 to
1891 the company paid u per cent an
nually; In 1892 Is per cent; in 1893 IS per
cent; in 1894. 1917 per cent; since then, Is
per cent annually"
Mr.. HemphilPs Remarks
Mr.. John ]. Hemphill, associated with
Mr. rney. addressed the subcommittee.
He said the Bell Telephone Company is
the only corporation serving the public in
this city which has never reduced its rates.
The company las steadily increased its
price. He said all the evidence shows that
In every city where competition exists the
Bell companies have lowered the cost of
service. ~
Mr.: Hemphill suggested that Congress
should require the company to reduce the
prices, and, In default Of that, authorize
aEother company to enter the city and do
business at lower prices.
In That correction, Mr.. Hemphill said
there were many companies anxious to
come In at lower reduced rates.
Mr.. Hemphill read to the committee the
prices paid fer telephone service in the
cities of Europe
In conclusion, Mr.. Hemphill said the Bell
Telephone Company has a capitalization of
$26.OO0.OOO. paying from Is to IS per cent.
Its sole pos session is one Berliner patent
The hearing will be resumed tOmorrou