Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-16
MUST SEE CONTRACTS
President Bryan'I Excuse Not Con-
sidered Satisfactory.
RESUMPTION OF TELEPHONE HEARING
Quoted Statistics Claimed to Be
Misleading.
QUESTION IoH PROFITS

President Bryan of the Chesapeake and
Potcmac Telephone, Company resumed his
remarks at tolay's session Of the House
appropriations subcommittee holding the
inquiry into local telephone rates.
Referring to some of the statements by
counsel for the citizens at previous hear
ings, Mr.. Bryan claimed that in many
cases the figures given were misleading
and he held that they. should not go into
the permanent record without explanation.
Lr. Bryan coEtroverted the estimate OF
the profits which the London Telephone
Company was said TO have made, and
which were cited an indication of the
profit in the telephone business. Mr..
Bryan said that the showing made in the
accounts of the Eendon company was
through a system OF fnanciering which
would not be tolerate in this country.
Mr. Bryan said there was vast differ
ence between the cost of construction Of
electric light conduits and telephone con-
duits. The cost of the latter was very
much in excess. he said He referred to
the Detroit telephone system, which the
counsel for the citizens at d previous hear
ing had cited as a model of what might be
done in the direction of cheap service. He
said, reading from an electrical publication,
that the competing company had publicly
estimated it's assets at 81 ,0o2 49, while in a
sworn statement to the auditor general of
the state the assets were set down at
500, 0Gs. He said this was an Indication of
instability of the concern.
You mean to show that the stock Is wa
tered?" asked Mr.. Pitney.
Yes
.Then," rejoined Mr.. Pitney, your state
ment is in the direction of indicating that
the company is able to pay dividends, even
at low rates on watered stock.
Mr.. Pitney said the journal quoted was
publication in the interest of the Bell Tele-
phone Company.
Mr.. Bryan said he did not know that-the
| journal sometimes raped the Bell company
pretty hard
The Stock Not Watered.
Mr.. Bryan said he desired to correct an
impression which the record of the last
hearing gave. He was made to say that
| there was some water in the stock of the
Chesapeake and Potomac Telephone Com
pany.
81 did not mean to make such state
ment,' said Mr.. Bryan II do not believe
there is any water in the stock. What
meant 10 say was that the capital stock
| penditures for the plant and property, but
| that there were other elements which went
| to make up that excess such as franchise,
good will, right of way. Stc.'
Mr.. Pitney askede$heNcauSe of delay in
| furnishing the subeommjttee copies of all
contracts with the american Bell Tele-
phone Company heretofore demanded.
Mr.. Bryan replied he thought 1t necessary
to obtain the consent ofIhe other party to
the contract as thskexhibition of the con-
tracts would disclose to.the world the bust
ness of the two companies.
Not n Gepd Excuse.
Mr.. Grout said he coild not appreciate
this excuse. This was aicommittee of Con-
gross investigating the subject of telephone
service in the District, and the contracts
| were a part of the subject,
Mr.. Bryan insisted that he did not want
to publish foriithe benefit of his business
| rivals and tire World The Business details
of the company.
Mr.. Pitney suggested to Mr.. Bryan that
he was enjoying a public franchise, and
was insisting that he was not overcharging
for the service. - He was resting his de-
Tense of the cost of service partly upon the
ground that it was necessitated by his con-
tract with the American Bell Telephone
Company.
Mr.. Pitney said it was incumbent upon
the representatives of the people to see
that those who were enjoying the public
franchise did not overcharge the people.
| He insisted, therefore, that the contracts,
which were necessary for the investigation,
should be produced. The committee would
cCrsider the question of giving the con-
| tracts to the public.
In answer tc a question from Mr.. Dock
| cry, Mr.. Bryan said there were 935 metal
| &c circuit and 1,267 grounded circuit tele-
phones in the District Of Columbia. Re-
| plying to Mr.. Pitney. Mr.. Bryan said the
contract with the subscribers imposed an
obligation upon the subscribers to use the
| telephone for their own use. Violations of
| this contract were discovered through the
observations of the monitors in the tele-
phone exchange.
DO the monitors keep in communication
with the subscribers while they are talk
| ing together?" asked Mr.. Pitney.
Mr.. Bryan said he could not answer this
question without inquiring of the monitors
Mr.. Dockery thought the matter was i'm
portant, as it involved the question of the
secrecy CT the business of the subscribers.
The committee will meet tomorrow at
1O:aO o'clock. A visit will be paid to the
telephone exchange and the Automatic
Companys exhibition exchange Friday
morning at 10 o'clock
Decline to Issue the Order.
Mr.. A. M. Hodgxins 1913 Q street. sew
eral days ago requested the District Com
missioners to require the cars of the Cap
ital Traction Company to stop on both