The times. [volume] (Washington [D.C.]) 1897-1901, 1898-03-08


manner 81. the Senate yesterday. They
came up in connection with the District
of COLUMBIA appropriation bin, which is
now before that body.
The hill, rs il came from the House.
had an amendment which the House had
almost unanimously passed. fixing the
rates 10 be charged for telephone service
in the District. These rates made il un-
lawful for amy person or telephone conf
pany doing business in the District of c.
lumbia TO charge or receive more than
500 per annum for Inc use of a telephone
on separate wire: $40 for each telephone,
there being not more than two on wire;
$50 for each telephone. there being not
more than three on wire, and So for
cacn telephone. there being four or more
on the same wire. This amendment had
been stricken 0ut by the Senate Commit
ice on Appropriations. Mr.. Allison. who
has charge Of the bin, said that this was
done because a subcommittee Of the Dis
trict OF Columbia Committee was making
an investigation Of The matter. and that
majority of the committee thought 1t best
10 await the result Of that investigation
committee Of the TWO houses.
An Exl crt Employed.
Mr.. Faulkner who is a member Of the
investigation committee, said that the
committee had employed aIr. Hastings,
one OF the best experts in the country, 10
make thorough investigation Of the tel
ephone company's books and that the re
---y,,1a L., -, ~. ,,.ft1,F., ,,-aai-
lIr. Berry. q member Of the Appropria-
lions Committee, stated that the commit
Tee was not unanimous in striking out
the condition placed IN the bin by the
House ''The committee was almost
equally divided. as remember it., said
he "a large number OF the members be-
leving that this provision was a reasona-
bic one, and ought to remain in the bill
II is said that the House committee put
il there without investigation. ] do not
know whether that is true or not"
Mir Faulkner said he thought the proper
thing FOR the Senate TO do was TO let
the conference committee settle the mat
ter.
Mr Pettigrew said that the rates charg-
cd by the Chesapeake and Potomac Com
pany were 100 per cent more than the
rates in other cities where there was COM
petition. Continuing, he said:
THE TELEPHONE company organized in
the city Of Washington has capital
stock OF S2.60C Coo: Il has bonded indebt-
edness Of over 100000, which shows that
the stock represents not one dollar Of the
investment OF this stock . per cent is
owned By the Bell Telephone Company,
which is an organization possessing moth
ing but its contracts. and yet they pay
dividends amounting 10 s26, 600 a year, be-
sides paying 10 the Western Union Tele-
graph Company about s. 089 a year to
maintain trust. The Western Union
Company made q contract with the Bell
Telephone Company 10y which II was
agreed that they would not 90 into the
telephone business If the telephone COM
Dany would pay them royalty.
1T has been impossible TO get a report
from the Telephone Company since the
Year 1891. In that year they evidently
made a mistake and published their
whole proceedings and according TO that
report the total revenue in that year was
$4,000. Their operating expenses for the
year were given as 81, 600. Yet with this
showing, they object 10 a reduction Of
their rates.
1t seems TO me- said he. that the
Capital City Of the nation ought TO be an
example TO the cities OF this country
The telephone system and electric light.
ing system ought 10 be owned by the city
81 we .had this city ownership the cit,
and government would get the use OF IN,
telephone service for nothing.
Mr.. Pettigrew then cited the rates il
other cities where they had competition
showing that So per year for bushes:
houses was the highest rate charged
whore such conditions existed.
100000 weuId Duplicate It,
Senator Allen said he had been informed
by parties having very large experienc,
On matters 81 this kind that the Who'll,
system could be duplicated for 100000
and that there were parties standing
ready 10 duplicate il today If Congress
would give them the construction per.
mits
Mr.. PettigrcW: THE situation is about
This. Certain parties having patents OF
telephones organized the Bel Telephone
Company, which proceeded TO the orgaT.i-
cation Of local companies in the United
States which were made up OF the resi-
dents Of the cities which were 10 receive
The service These local companies issued
capital stock, - per cent of which
was turned over 70 the Bell Telephone
Company Tor the use OF the patents and
The remaining - per cent was held by tht
local company. In addition 10 this tho
tain royalties. In the city Of Washington
the company was organized with a capi.
tai Of s, 90 900 90 1881; according to thei,
published reports they paid 4 dividend
81 per cent on this capitalization and
per cent on S5fS.000 worth of bonds
These bonds were equal 10 the total cos
Of their entire plant. The total cost O,
operating the system does not exceed
100000 year. and the provision Of ia,
House bin gives Them rev enue Of ovel
100000 year, which ] claim IS excessiy,
and more ihau ii ought 10 be. If the city
owned the plant itseif ii DWlld pay a vcry
much smaller sum
Rates Lower Elsew here.
Mr. Perkins Of California was heartii1
in favor Of the House provision and sal,
he hoped it would not be stricken out
DE cited the rates in vogue IN California
cities. showing that the highest clarsr
was only 50 per year and that. too. Il
cities very much smaller than Washing
ton. Mr.. Perkins alluded 10 the telephon
service IN The Hawaiian Islands. He sal
that on visiting Honolulu several year
ago he was very much surprised 10 fin
telephones IN most Of the private dwell
ings and IN all Of the business houses an
IN every instance in the farm houses
Upon inquiring he found that the rat
was only 81 per month for dwellings an
s. per month for business houses. tn
reason Of this. he stated, was that tn
government Of those islands recognize
10 patents whatever and that the com
panles operating telephones had only, 1
pay interest on the Investment He Sai
they calculated 10 make about 80 pc
cent on the investment, and figuring O
that basis he thought we were having
fssn deal ffr s1F