Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-09
TELEPHONE RENTALS
Inquiry Begun by the House Special
Committee.
DISCUSSION OF GENERAL CHARACTER
Commissioner Wight and President
Bryan Heard.
WILL MEET ROW

The special subcommittee. on telephones
and gas of the House appropriations COM
mttee today began the investigation of
telephone rates in the District. The work
was only of preliminary character today
Mr.. Grout, Mr.. Bingham, Mr.. Pitney, Mr..
Dockery and Mr.. Allen of the subcommit-
tee were present
Commissioner Wight Heard.
Commissioner Wight appeared before the
subcommittee and told of the inquiries the
Commissioners had made as to telephone
rates prevailing in other cities. He pre-
sented tabulated summary of the in
formation gathered. The Star has hereto
fore published this matter
MT wight said there seemed to be no
guide to account for the difference in the
rates charged in the various cities. For
instance, in Nashville, where the munich
patty derives revenue of 81 per annum
from each telephone, the rates are 80 1-3
per cent lower than in Washington In
Harrisburg, where the city gets only %
cents revenue from each telephone, the
rates are per cent higher than in Nash
vile.
Mr.. Wight said the Washington company
was embarrassed by the laws relating to
wires. Inc company can not string over
mead wires nor put them underground.
MIR. Pitney suggested that this embar-
rassment was but temporary and that the
rates were fixed before the embarrassment
arose.
Mr.. Wight said that such was the fact.
He said it would be impossible for the Com
miss1oners to report properly upon the
question of excessive rates until they knew
what were thu operating expenses and the
| receipts of the company, together with the
cost of the plant. He said The present
capitalization of the company did not rep
resent the actual cash invested, and that
II was far in advance of the cost of the
plant.
In reply to a question of Representative
Bingham, Mr.. Wight said the company was
operating under charter granted by the
state of New York, and that it paid no tax,
save upon its real estate. The company
granted the District government some con-
Cessions in the use of its poles and in rates
for the fire alarm and police service. On
the other hand the District permitted the
company to use some of it's poles. The &C
commodation was reciprocal
President Bryan Speaks for the COM
pany.
President Bryan of the local telephone
company then addressed the committee
lie said there had been delay in preparing
the information asked by the committee,
but it would probably be ready within a
week. He will make a preliminary report
tomorrow, however at the request of the
committee.
In reply to questions put by members of
the committee, Mr.. Bryan said the local
Sclupoiy was uoiilS DuSlHeSS IN w est IT.
ginia Maryland and the District of CO.
lumbia, but that the accounts were kept
together. The Bell Telephone Company
owned a majority of the stock of the local
corporation. All of that majority except
Is per cent OF it had been purchased.
Mr.. Dockery asked if the Bell company
or the local company had made division
of territory with the Western Union Tel
egraph Company.
Mr.. Bryan said he was not informed Of
any such division. He said that 1t would
be necessary in considering therates which
should be charged to take into consldera-
ton tie fact that royalties have to be paid
by the local company on the patents on the
Instruments. The company would be use
less without instruments
Mr.. Pitney suggested the company would
be useless without subscribers, even If it
owne1 valuable patents, and that Congress
snouli take into consideration the question
of rates charged the public.
Mr.. Bryan referred tc the cost of MAIN
tanning underground conduits and said there
was a great deal of dead capital in the
conduits, because preparations must be
made row for the future in the conStruc-
ton Of the conduits.
The discussion, which had been of a gen.
eral character up to this point, was brought
to an end by the arrival of the noon hour
and the converting of the House.
The subcommittee will meet again tomor-
row at 1890.