Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-08


we're. Their expenses were 10000, leav-
ing net revenue of $4,000, and they paid
dividends of per cent on their capital
stock of $2,650,0VO. which does not repre-
sent a penny of investment, leaving sur
plus of $}6,SOO
These items of expenditure are well
worth looking into. The general expenses
were $4,000, according to their own state
nent; operating expenses, SAL 900; mainten-
ance, $S1 900; telephone rental and switch
board royalty, $4,000; real estate expenses,
800; interest, So, $50; messenger expense,
1918 !,
Here, then, we have a corporation that
took from the people of this city $4lS,0OO in
1891, when the cost of operation was but
$4,000; and after they pay per cent on
81, $4,000 OF stock, which represents moth
ing, and the interest or the bonds, which
represents the entire investment, they are
able to put down as general operating ex-
penses $4,000, and pay $4,000 for rant and
ISL, 200 for maintenance. Yet they object
to a reduction OF their rates and say it is
impossible to maintain the system and re-
duce the rates.
1T seems to me- the capital city of the
nation ought to be the model for every other
city in the land that its people ought to
have the best service, the most economical
service, upon the best plan; and yet we
foster condition of things by which a
company is organized, is bonded for all its
plant cost, and the people Of this commun-
lily are obliged to pay dividends at per
cent on 2,65o,00o of stock which represents
nothing; they are obliged to pay sum for
maintenance which, owing to the size of
the item, sSl,UG0 in 1891, shows that they
pay not only for maintenance but for all
expenses. paying royalties to the Bell Tele-
phone Company of $4,000 year, paying
salaries Of $4,000 year, for that is what
the general expense account means, and
even then there is a surplus of $4,000.
Mr.. President the Telephone system in
tits city ought to be owned by the city.
The lighting plant ought to be owned by
the city. We ought to set an example to
the other cities thiS pjy
the economical service the people are emit
ted to. We should set an example of city
management and city ownership, so that
the other cities of the United States could
adopt the system. If we had city marriage
nent ard city ownership, the city would
get the use of its telephones ard the gov
eminent would get the of its telephone
Tor nothing, and the prices, instead of be-
ing from $l0O to $125 fer each instrument
would be less than $25. That is the expert
ence OF other cities. 1t is the same in re-
gard to lighting We passed an act of
Congress providing that no ether company
should enter the city. There is no compe-
tltion. They have an absolute monopoly, q
monopoly the value of which belongs to
the people of this community
Mr.. Pettigrew- showed that teleohore
rates In other cities are much lower than
in this city.
Mr. Allen said he had been Informed by
d gentleman who is well informed on such
subjects that the telephone plant of the
chesapeake and Potomac Telephone Com
pany could be duplicated for $500. 900.
trough 1t is capitalized at s.. 10000
"that w ts 10 suggest said Senator Bacon
teIephone company DO not constitute the
most serious consideration at this time
Iney not only charge these exorb;,ant
prices pr put they are practically a denial to
the people of this community of the use of
the telephone. 1 do not believe there is an
other community in the United States
where the telephone is used to an extent
PEOPLE as 1t is used in this community. In
Ctaer communities, and certainly in smaller
communities, every little shopkeeper has
telephone and almost every man has a
.eiepn1ne at nj his residence, but here it is a
rare thing. They simply cannot afford it
at the prices that are charged. The conse-
quence Is that the telephone is not used
mere except to a very limited extent, and
me telepnone, which has become a prac-
tical necessity In modern life, is denied to
the people of this community because of
the exactions of this monopoly"
Mr.. Pcttigrew's Substitute.
MI Pettgrew offered the following SUBJ
stitute for the House provision regarding
the telephone company:
provided, That from and after the pas
sage of this act 1t shall be unlawful for any
person or any telephone COMPANY dong
business In the District of Columbia 10
charge or receive for the use of any tele-
phone more than the following rates per
annum, namely: $50 for each telephone
used in hotels or other places of business
and $50 for each telephone used in resi-.
cences, within a radius of l mile from the
telephone exchange, and for each addi-
tlonal mile beyond such radius a further
Charge per annum of 81 to places of BUSH
hess and IS to residences, and any sub
scr1ber for the use of any telephone at the
maximum rates above specified shall be en-
Titled 10 service not inferior to the best
service now given by any telephone COM
pany In the District Of Columbia
And provided also, That any person en-
Titled to telephone service, his servants and
the members OF his immediate family, but
10 other person, shall have the right to use
without extra charge any other telephone
equipment, with the consent of the SUBJ
scriber to the aforementioned equipment
And any owner, operator, agent or other
person VINO shall charge, collect, or receive
for the U.s. Of any telephone any sum in
excess OF the rates fixed by this act, or re-
fuse to any person any privilege right
herein specified, shall be deemed guilty of
misd emeanor, and on conviction shall be
fined not to exceed SO"
The Telephone at Honolulu
Il am satisfied" SAID Mr.. Perkins, there
is much truth in what the senator from
South Dakota said that this corporation is
making enormous interest upon it's invest
ment, and that 1t is paying too much money
for the royalty which the parent company
charges to the subordinate cumpan.rs
nave arrived at TINS conclusion In my own
m,nd Tor the reason that when | visited the
faWallan Islands d lew Years since 1 1ounI
mat III almost every house, In every store
III every place of business in Honolulu there
was teiepHone, ana mat teie ynunes, were
also III Use upon the piantatlous-eyeryuuu
fad Il teiepnoae. Ii seeIled to be necess-
" 10 the people OF those lSianus IN the ia
citc.
Il was surprised at their eNtrayagance
ana mace inquiry. / asked them no..
lhuch they paIo Tor the use OF the tet.-
pnone- They SAID for an Ordinary residence,
Il was from 81 to - per monun or lr,L,
sI- 10 "a per annun;: and IN business,
houses doubie that rate, no charge benz
inaue Tor switching. That WAS uEe entire.
cnaige Ior the telephone. 1 asked now rms
coulo De, way II WAS the rate Was so cheau
Wien we were paying IN Canfointa nye
times That sum tor telephone service Tney
sald tnat the government of the Hawaiian
ISLANDS recognized no patents, or at lea 4
had not done SO in the case OF the telephone
company. Inc result was that the curpo-
ration lIere was paying nothing 10 the pay
eHt company who owned the Latent rlent
OF the leiepnCne.
reasoning IRON analogy, if that cor
pofat1on In The Hawaiian Islands can con-
struct ara maintain a telephone and nav