The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1898-12-17
The Telephone Monopoly.
From the philadelnhia ledger.

From the Pnlladelpnla Ledger.
one of the most extortionate monopoles and
one which gives the poorest and least satisfactory
returns to the public is the Bell Telephone Com
pany. Starting its business with fair charges, it
has gradually raised the rates to those who are
compelled to use the instrument until they now
double and in some instances treble what they
originally were. Indeed. i'll New York city, ac-
cortling to the Herald, the charges four times
what they were when the exchanges were first
opened This has been accomplished by crushing
all competitors and by securing here and there leg
SIation which has given ii clear field to GO pretty
much as it peases as huge monopoly.
BY systematic raising of charges while, ut the
same time, not adding to the quality of the public
service, the company now it is said is able to pay
dividends from l6 to 1874 per cent, and to quote
from the New York Herald "has only been able to
keep these dividends down below 20 per cent. by
increasing its capital stock until it has mounted
from S45OOOO TO 100000 OO.' To prove the asser-
lions it makes, the Herald gives the following fig
ureS:
Actual cash capital National Bell Tele
phone Company in 1S79.................. Sll0O000O
Actual cash capital American Bell Tel
ephone Company in ISSO............... 54$,1OOOO
Telephone Company estimated, about 30, DOC, 600 90
Price per share, last quotations. 2S000
Earnings of the Bell Company for esh-
Average dividends (about IS per cent.
Can pay dividends of per cent. on. 10000, 10000
Actual cost of Il long distance telephone
i'll open market, lots of one dozen..... 80
Royalty exacted by Bell monopoly for
each instrument used i'll its exchanges,
per ................. 400
Cost of unlimited use of telephone to
business men i'll Detroit where there
is competition $500
Cost of unlimited use of telephone to
business men i'll New York, where
there is no competition. 2lO.O
Expense account yearly of Bell Com
pany for protection..........-. 2,OOO,OOOOO
tees in New York, 1885. 1OOOOOOO
In this city the users of telephone pay SLIGO for
the instrument, for which $40 is paid in New York,
but even that is more than double what it is worth,
when its and the character of the service are
considered. This charge is for nominally exclu-
siye wire but the of which is jusas like as not
to discover that he receives no prompter trea tment
than is given i'll the cases where two or more per-
sons on the same wire. In addition to the I'M
limited service, the Bell Telephone Company adds
materially to its heavy income by giving very bad
accommodation for what it calls its measured SER
vice. at a very high price. That is on special
line 500 is charged for every 800 exchange calls and
cents for every additional CALL and Sl56 for every
24OO calls, with cents for each additional one.
Where two persons are on the same wire $50 are
charged for 600 calls and $3.50 for 24O0 the rates for
termediate rates.
As long this corporation has monopoly of the
service just so long it and is likely to charge
extortionate rates. and give in return bad service
as it can and do business at all. How bad that SER
vice is few persons can realize, save those who
are forced to suffer by it. 1t is not all uncom-
mon event for subscriber, who pays for the of
an exclusive wire, to call up another and be in
formed by the Office that the "wire is occupied"
and to have that information repeated on several
successive calls, although how exclusive wire
can be occupied by other than the single person
using it is problem which only the company can
solve. Neither is it for subscriber to be COM
PEELED to wait several minutes for an answer from
the Office, and many more before connection is
made. Modern business has made the telephone
necessity, and the Bell Telephone Company, while
lie its exorbitant charges, fails to supply the
facilities for the increased volume of bus
mess. 1t is monopoly which feels the public con-
venience shall be made subordinate to its profit
getting. What is needed and what is the only re-
lief are two or more competing companies, so
guarded by legislative acts that there is little or no
possibility of their being absorbed by any one of
them. When this happens the merchant and house
holder in this and other large cities, who pay
outrageous rates, and half the time cannot COM
municate with others promptly, may hope to re-
ceive the attention accorded customers in other
lines of business and pay therefor rate which will
bear comparison with what is charged in smaller
towns.