New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-04
FOR CHEAPER TELEPHONES.
SENATOR BRUSH TELLS WHY CHARGES
SHOULD BE REDUCED.
ARGUMENTS ALSO MADE BY c. C. sHAYNb AM
FRANK s. GARDNER-ENoRMouS PROFITS
OF THE COMPANIES


Albany March 3-The Senate Finance Commit
Tee this afternoon gave hearing on tho Dill IN
troduced by Senator Brush providing Tor lower
telephone rates The yearly rates fixed by 1t are
as follows: Cities of million inhaol'ah's "''u
over S25; cities less than one nllhoh anu i'
than five hundred thousand. s5: less than iiVe nun
dred thousand and more than one hundred thou,
sand saS: less than one hundred thousa"u an"
more than twenty thousand, SSS; places less '"'''
twenty thousand and more than eight thousaHu'
$50: places less than eight thousand 81.
There was a large delegation OF New orK pus'-
ness men present 10 advocate the Dill anu '''0
principal telephone companies OF the state "e''
represented by counsel IN opposition to II. Aiho"s
those who favored II were Frank S. Gardner sec
,s,arv Of the New-York Board of Trade ana
TRANSFORMATION: c. c. Shayne president OF me
Merchants and Manufacturers Board o. Irade'
D. J. Osgood. William McCarrol SNas NJ "iu
dings Andrew b. Rogers. H. d. carey NlIiia'n =
Mcconnell J. Frederick Alderman, H. NJ. ""i'e'S'
T. J. Gavegan. E. Youmans. Charles Haup'her'
John Monks r. A. Riley and Jchn j. Kennedy
Senator Brush made an extended argument IN
support Of his bill. Among the reasons winch nc
advanced for its passage were the foNo"l"s'
The company has an absolute monopoly IN
New-York and many other cities IN TINS o'at"
There is no competition 10 reguia'e @"9i ee' W
no limitation by statute.
Taking advantage Of this situation IN New
York the company has by stages advanced 'he
charge from $50 year in 1881 to s24o IN 1870
There is nothing TO prevent similar advances IN
the future II the company think the people can
be made TO pay them
The telephone has become a necessity anu Us
such. controlled by a monopoly, the charges shouid
be regulated In the public interest.
THE rate In New-York is higher than any where
In the world for the service.
'In six years. ending with 1887 the metropolitan
Company made profit of 473 sl-l09 per cent on Its
shown by testimony taken by the Ainsworth In
vestigat.ng Committee. Such excessive profits MADE
by a monopoly serving the public under PUBIC
franchise demand the interference OF the police
power Of the State IN the public interest
THE companies the public streets and high
ways and the State should require that. in return
for such privileges. the public. which confers the
franchises should not be unreasonably taxed for
the service. The Ainsworth Investigating Commit
tee OF the Assembly. after careful examination.
recommended a bill which fixed the charge in New
York at Sc 30 q month SIS year within one milo
OF O central Office. The rate then charged was
$50 year. nearly 100 per cent higher
than the Ainsworth Committee thought fully re-
nunerative All items Of facts obtained by the
Ainsworth Committee in 1887 were under oath. We
are now compelled to rely almost wholly upon the
statements made by the companies themselves.
THE capital Of the Metropolitan company In
January 1897 was 50 10000; that was the amount
upon which the State tax paid. There Rad
been no Increase for several years. Its earnings
were: Year ending September 60 1894. s2ls2,4 54
year ending September 80 1895. s24ia19i; year end
ing September go 1896 s2.sO0c0O. This shows an In
crease Of earnings In two years. between 1894 and
1896 OF s6l7.546 on the same capital.
I'm January, 1897. the capital OF the New-York
and New-Jersey Telephone Company was Ns6l,b50.
according to the tax paid TO the State. The earn
,sngs OF that company for the year ending Septera
Der go 1896 s621,5co. That is the Brooklyn
company.
THE capital OF the Bell Telephone Company Of
Buffalo was, on January !, 1897. 100000. Its
earnings IN 1896 were Si9i.50O In 1895 It's earnings
were s4is.5Ss. In 1895 Mr.. Miburn. counsel for the
Buffalo company. stated before the Senate Cities
COMMITTEES that the expenses for labor alone per
subscriber in Buffalo about SIS 10 the COM
pany without sending message. A few months
after this statement was made. and under pressure
of public discomfort. the Buffalo company com
menced giving five hundred messages per year
10 subscribers for $50. SIS less than their
lawyer said 10 Senate committee their labor cost
them. And ind by this method they in
creased their earnings in 1896 1896 nearly $4,000
on the capital. Like tina Chatham-st. tailor
they sold their service below cost. but made more
money because they did such a big business. Tele-
phone finances are very mysterious stated be-
fore legislative committees by telephone lawyers.
1.-THE real facts OF the cost OF rendering the tele
phone service in New-York will never be known to
the public until some such bill as No $50 is passed
Washington throws some light on the subject
In 1894 the Interior Department paid the Bell Tele
Telephones. which together with the salary OF the
operator at the central station aegregated HSS
being average of a fraction SO per annun
per instrument. The next year. 1885, the Depart
sisting Of 10 lines connecting extra buildings in
the city. They were attended by the same operator
at the same salary formerly. and. in addition 10
This. an electrician employed to keep the lines
,n order at expense Of $3.50 per year. Estimating
os tae ee SP H SO q s
OF over So . on each instrument In use In other
for Itself the service at one-seventh the price
formerly charged by private corporation for the
Mr.. Shayne reviewed some OF the arguments
presented by Senator Brush Tor cheaper rates and
the efforts which mercantile associations had been
making for several years TO secure relief from
The Democratic platform back in the eighties
contained the following plank The public demand
khat various questions relating to the chartered
monopolies should be made and decided and we
are IN favor Of the adoption OF measure 10 re-
strict the growing power Of such a monopoly.
They should De Subject to The supervision Of COM
the Deocrsts in fSs "gsatre w nope }o
the BILL | learn from good authority that the
challenged The Republican majority to take up the
Telephone, bill and has guaranteed that the Dem
throws the whole responsibility Upon the Repnblt
can party and they cannot evade It. am Re
the telephone subscribers who have suffered so
1T may be said tia, +; Is right for one who in.
vents any great appliance for the public good that
when the public domains no, interfered With
but II the streets are torn up for the purpose OF
laying wires and housetops are used for the pur-
pose OF strng!ng wires. and when the corpora alton
depends upon the people for It's franchises and
privileges then u certainly becomes subject TO
legislative control. and We ask you the majority
lion the principles advocated by The Demosaey in
1851. when that body declared that 'rnonopolies
should be subject 10 the supervision OF commits
sioners established by public authorities
THE time has arrived when the people must pro-
fcct themselves from these monopolies II they ever
expect 10 do 80. II will not be easier do so
when these companies have grown stronger. Every
day lost IS 8 chance gone. for the people grow
ing weaker and more powerless and the corpora
tons powerful"
Frank s Gardner secretary OF the Board of
Trade and Transportation OF New-York City. said
the present hll was a careful production q re-
cult OF the objections made 20 the previous bills.
Mr. Bethel. OF the New-York Telephone Com