Evening star., 1898-12-15
THE TELEPHONE MONOPOLY
Citizens Of New York E1asperated by the
Excessive Charges
Legislation to Be Demanded on Two
Bills Providing for Lower
Telephone Rates.
From the New York Herald

From the New York Herald
Another effort will be made at ALBANY
this winter to compel the Bell telephone
monopoly to reduce rates in this state
The yearly charge for the unrestricted
use and full service of a telephone costing
six or seven dollars in the open market
has increased in this city by jumps, as fol-
lows:
Charge when first introduced. ........... s65
f1rSt advance. Observation-Disclosures. 90
Second advance. Observation-Disclosures. $50
Present rate. OBSERVATION-DISCLOSURES. 24A
Having practical immunity from legisla-
tive meddling, and being able to keep out
opposition through controlling patents and
subways, the American Bell monopoly has
beer paying dividends of from 16 to 1SA per
cent, and its earnings have grown SO rap
idly that it has only been able to keep
those dividends down below 90 per cent by
increasing its capital stock from year to
year until it has mounted from $3.50 900 to
$50 900 600
Two bills will be introduced at the ap-
preaching session of the legislature. One
will be the lines of the Brush-Davis bill.
which the democratic and republican ma
chimes killed at Albany last year 1t will
be supported by the board of trade and
transportation and by business mems asso-
Citations in every city of considerable size
in the state, but its more important back
ing will come from the city of New York.
Here the yearly charge for telephone that
you can use as often as you please with
out restriction is $40 a year. The bill cuts
the rate 10 $l25 year in this city.
Living Rates Fixed.
Under the bill the maximum charge that
can be made in this state for the unlimited
use of telephone is as follows
In cities of 100000 inhabitants or more,
$125.
In cities Of from 100000 to 1000 600 in
habitants $50
In cities of from 100 900 to 800 600 $iS.
In cities of from 20.Htn to 100000. S56.
In cities of from 5000 to 10000, $50.
In all cities and places of less than 5000,
1t will also be provided that i'll "all cities
and places" the rate for conversation at
public or pay stations shall be 10 cents for
the first five minutes and j cents additional
for each five minutes or portion of five
minutes thereafter. There is now 10-cent
rate for conversation within the limits of
the borough of Manhattan. For inter-
bOFOuGn comm munica ton an eXorbitant rate
is charged. From Manhattan to Brooklyn
the rate is 20 cents; from the Bronx to
Manhattan, 20 cents: from the Bronx to
Brooklyn, 81 cents: from Richmond to Man
haitian. 81 cents. Under the bill the rate
throughout the entire city will be 10 cents.
There will also be a provision that any
regular subscriber to a telephone shall be
given card emitting MN 10 llltN mes
cages a year from pay stations, in order to
communicate with his place of business.
Injury to None.
The aim of the bill is to see that injury is
done to no one. and it provides for a sort of
board of mediation between the telephone
monopoly and the users of telephones.
which will consist of the state officers. If
customers believe the rate of charge is too
high they may appeal to the state officers,
and the state officers may reduce the rate
so that the earnings of the company shall
not he more than 10 per cent if it be shown
that the earnings at the time are more than
10 per cent.
So too on the other hand. the telephone
company. if it believes that the rate is too
low, may appeal to the state officers, and
they may regulate the charge until the com
pany can earn IL per cent. The 10 per cent
of earnings must be based on bonded fndebt-
edness and actual stock capital paid in in
cash Provision is made for an eXamina-
ton of books and papers and Tor the sub
mission of sworn reports of financial op-
eratiOns. which must be accurate, under
penalties. No person engaged in enforcing
the law must own any stock in any tele-
phone company or have any business con-
nectiOn with such company; nor may any
person so engaged be permitted to procure
the employment of any person by the tele-
phone company.
This bill will also probably have a provis-
ion making it a misdemeanor for telephone
companies to consolidate TO destroy compc-
titi0n.
Another Bill Coming.
A new telephone crusader has entered the
field in the merchants and manufacturers
board of trade. This body will support Il
bill restricting the price to $50 for the use
of a telephone for 1000 messages during a
year. This is aimed at the limited service
extortion.
The introduction of these bills will not be
the only means employed by business men
and other telephone users to compel re-
duction of telephone rates. The leading
members of the board of trade and trans
portation and others have organized an
opposition company. known as the Peoples
Telephone Company, and the company is
now preparing to operate. 1t proposes
charging 800 year for its service, and will
let telephones in fiat houses and residences
on group lines for S12 year. The company
has complete stock of s., 000, 900 paid in,
and i'll an effort TO prevent the Bell monop-
oily from getting control a provision has
been made. though probably ineffective, in
that single individual shall hold more
than twenty shares.
Many telephone experts believe that just
soon as the Peoples Telephone Company
begins operations the Bell company will re-
duce its rates, and that the battle for tele
phones at a reasonable rate will be won
without the necessity for legislation being
had at Albany. The leaders in the Peoples
company and those most familiar with the
low-rate telephone war, however, take no
such view, and Will urge the telephone bill.
Enormous Earnings.
The net earnings of the Bell company for
1885, I'VE years after it had been organ
ized, were $1,703193, and the stock was
quoted as high as 213. In 1890, ten years
after the company had been organized, it
confessed to gross earnings of $4375 IS
and net earnings of s., ,S69, ,41S.35. These
earnings were on capital stock of $12,-
422,lo0.