Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-02
REPLIES NUMEROUS
Patrons Respond ITO Circular of Tele-
phone Subscribers Association.
SHOWING OF TIE COMPANIES PROFITS
President Bryanis Silence on Ques-
ton Submitted to Him.
NEW MEMBERS ENROLLED

NEW MEMBERS ENROLLED
Mr. Henry F. Woodland, secretary of the
Telephone Subscribers Association, was
tusily engaged opening and reading large
number of letters when a Star reporter
called at his office this morning, and, point
ing to a stack of the communications on
one corner of his desk, Mr.. Woodland said:
Those are all in response to the circulars
we semi to subscribers inviting them to
join and cooperate with the association
Nearly every letter contains a check or
money in payment of the membership fee
to the association
"A communication has been received"
ADDED the secretary, from one who is very
close TO the local telephone company, and
whose name is not used for obvious rea-
sons, which shows TO some extent the large
prohts realized by the Chesapeake and Pu-
tcmac Telephone Company from its patrons
IN the District of Columbia and in Mary
land, both of which territories are under
,he management of the local company
mere The communication referred to hy
mr.. Woodland reads as follows:
Inc claim that the c. and P Telephone
company is not making money is not q
NaIu one To demonstrate this let it be
SHOWN nrst who is the real owner of the
company. Inc capital stock establishes the
ownership. The amount of this is 81. $50. layo
of which the American Bell Telephone Com
Eany OF Boston owns about 81 800 600 or
feariy three-fourths, having thereby the
cohtrol and practically the OWL ership of the
company. In fact, it dictates the policy of
the concern, and never consults the other
one-fourth owners. This three fourths own
eIshlp never cost the American Bell Tele-
phone Company one dollar Ample proof of
thls can be given. Now figure what income
the Bell company gets on this 81 500. 900
(this watered stock that came to them Tree
as a borus).
The Annual Dividend.
The usual dividend has been per cent,
winch means annually $4,000; the royal
tles paid the American Bell company, $7O-
ooo; salaries paid by us for managing the
American Bell company's interests, $4,000;
incidentals sale of goods to The company
by the Bell company, $4,000; total of $751;
wv That shows profit of 10 per cent per
anhun on It's nominal investment of 81 $780,
900, the latter being not real, but in itself
clear profit This profit has been going
oIl-1or about ten years (which, aggregated
shows a profit of $4,000 $50, and which, av-
eraged, makes an annual result of S}6p,0OO.
inere are about 500 telephones in the ter
ritory of the company embracing MARYLAND
and the District of Columbia and on this
fas1s, the above annual profit CT $569,oGJ
makes profit of ST2 on eacn telephone
All the improvements In the plant of the
company have been paidfo out Of the bond
issue of $f00,030 made in 1896. An inv esti-
cation of this issue would doubtless show
further profits" ~ II
With reference to the foregoing commu-
nication. Secretary Woodland said:
1t Is reasonable to conclude that if the
American Bell Telephone Company re-
ceives S2 fer the use OF each phone in its
In ooI torn -;f q
by the Subscribers Association is just and
right. If s72 year Is made on each phone
Il Is not asking too much of the local conf
pany to request a reduction OF rates 20 $50
with the increased charge for increased
distances from the exchange or central Of
flee, as provided by the draft Of a substi-
tute which We have ssked Congress to
telephones.
Matter of RefutatiOn.
''The association We uld like to have the
C. and P. Telephone Company refute the
statements made in the foregoing commu-
rication. President Bryan has not replied
to our letter asking for the privilege of al
lowing our expert accountant to 20 over
the company's books"
The secretary further stated, with refer
cree to the telephone situation, that it has
been said by former officer of the COM
pany that prior to Mr.. Bryans taking
charge of the local company phones rent
ed for $40 year. and the authority for
that statement added that the company
made money at those rates.
Edward S. Schmid has written the asso-
citation that he would willingly subscribe
three times the amount asked to aid the
cause. VIM. H. Saunders & Co. have writ
ten saying they have three phones and are
willing to subscribe to the associations
fund accordingly.
Low Rate.
In communication Rev. Dr. Wallace
Radcliffe states that while in Lexington.
KY, a friend informed him that his phone
cost him but s1S a year.
The following new names have been add
ed to the membership roll of the associa-
tion. in addition to those already published
in The Star: John j. Stafford, r. j. Earn
shaw, B. F. Shaw, Snyder & Wood, VIM
H. Saunders & Co., DR.. Thomas " Ham,
mond, Rev. Wallace Radcliffe, DR.. J. Wal
ter Lattimer & Nesbitt, z. NJ Honey, Hub
bard Heating Company. John w. Jennings.
Redfcrd w. Walker & Sons.