Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-03-10
OTHER CITIES RATES
HEARING BEFORE AROUSE COMMITTEE
Mr. Birney's- Argument for the
PROTESTING Subscribers.
PRESIDENT BRYAN'S FIGURES


Inc inquiry into telephone rates in the
District was continued today by the special
| subcommittee of the House appropriations
| committee.
Mi. A. A. Birney, representing the as
scciation OF citizens who are subscribers
| OF the telephone company, addressed the
| committee.
Mr.. Birney recited the local history Of the
Chesapeake and Potomac Telephone Com
| pany, which is familiar to the readers of
The Star. He said 1t was only a few weeks
ago that the people of the District became
| much aroused over not only the excessive
| rates. but spirit of arrogance on the part
| CT the company. Recourse was had to the
! courts, but the company successfully re-
| sisted the efforts
The citizens, Mr.. Birney said, desired only
to secure action which would be just alike
| to them and the company
| Inc investigation, set on foot by the Dis
| trlct commissioners, related, he said only
| 70 those cities where the Bell Telephone
| Company maintained a monopoly. He
| thought such comparison not fair.
! Inc citizens had sought comparison with
cities where there were competing COM
| panieS
Mr. Birney then submitted the following
| comparative statement of rates existing in
cities Where competition exists:
| Telephone Rates Under Competition.
Des Moinos-Bell, -; business, $54; resi-
! dence, $50. Mutual, 1900 business, s24;
residence, SIS. Taxes, per cent gross re-
ceipts.
Toledo, Ohio-Harrison 45o: NJ c., SO.
! Central unicn, 200; 3d. $50; residence,
| $24 to $54.
Grand Rapids-Ben, 800; business. s36;
| residence, $24. Citizens, $500; business,
$50; residence. s24.
Northumberland Union, 26OO; BUSH
| ness. $12: residence, $54.
Fort Wayne-Central Union, 5000; bust
ness, SIG; residence, s24. Ten cents per
| pole
| Detroit-Bel. =: business, s36; residence,
| $24 Detroit, $50; business, $50; residence,
SO
Richmond, Va. (before competition)-
Bel, l,lSo; business. 500; residence, $40
| crow, $50 and s1S). Richmond 1,35O bust
| ross, $}6; residence, $24.
| Augusta, Ga.-Bell, =: business. s6G Cbe-
fore); (now: $S6 and s2p. Automatic. =;
business. $3:.3'
Chillcothe, Ohio-Beil, =; Home, business,
$24: residence SIS.
Roanoke. Va.-gell, H. Former rates.:
business. $4S; residence, $50 (now. $50 and
| $50 ~ "'' 'e''0e''ee'
'In St. Louis the Rel Telephone Com
| rsny has been In tndfsputeda control, the
charges ranging from 500 to $3.50 for bust
| ness houses and $S4 to $l2j for residences
| A home company au; horized to use the
| klndiock system. in use in Detroit. is con-
| structing plant and taking subscribers at
$50 for business and $50 for residences, but
| is not yet in operation.
Attention is also directed to foreign
rates. In Berlin, Germany, the system is
| $3.50 is now reduced to $3.50 plus one
| pfenn!g per message for residences two
| pfennigs for business three pfennigs for
cafes and clubs ; ~
| business and SD for residences. In Swe-
den and NorwaN.a wheIe the government
controls the system, The rates are less
than in Germany, being, as we are in
formed, about ST per dnnuni."
Experience in Detroit.
Mr.. Birney said that the experience In
Detroit, city which might properly be
compared with Washington, demonstrated
the feasibility of putting lower rates into
effect. He read the letter of Gov. Pingree
of Michigan to Mr.. Danenhower of this
city, explaining the rates in Detroit, re-
Gently published in The Star. In that let
| ter 1t was shown that the competing COM
| panies had proved profitable investments,
and had caused the Bell Telephone Com
pany to reduce its rates, although prior to
competition the Bell company had declared
It could not lower its charges.
Mr.. Brney said that in every instance
where competing companies had gone into
Does any company propose to compete
here?" asked Mr.. Pitney.
Mr.. Birney said two companies stood
ready to operate in Washington. The Com
missioners had reported favorably on COM
petition. Mr. Brney said that this agita-
ton for lower rates was going on through
! out the country. Reference was made to
the rates existing in New York city, and
Mr.. Birney said that if $40 was considered
a proper rate in New York, where there are
5000 subscribers, the rate here, where
a ,hnr fc ,1t H.
out of proportion.
Mr. Birney said the Interior Department
formerly paid the local company $40 per
annum for each telephone The department
| put in system of its own and now oper-
ates 1t at a cost Of $1075 per telephone.
He said that one of the remarkabl feat
ures OF the investigation made by the citf-
| zens' organization is the fact that it is
shown that wherever company has been
allowed to compete with the Bell company
the latter has not only reduced it's rates,
but has continued to do business at the old
| stand and In the old way.
Effect of Municipal Ownership.
| 1t was also true, he said, that in every
case where foreign governments have talk
en- control of telephone systems the rates
have been reduced. He cited the rates in
| foreign cities to substantate his system.
| In Berlin the rental was reduced to $3.50
| year and pfenning per message for res
| licences, pfernigs for business and pfen-
| rigs for cafes and clubs, the pfennig being
| Cne-fourth o. enc cent of our money.
In reply to a question from Mr. Dockerv.
Mr. Birney said the cost of maintaining
| an overhead wire system exceeded the cost
| Of maintaining the underground systems in
| the proposition of 20 to /.
Telephone COmpany's Finances.
President Bryan Of the Chesapeake and
Potomac Telephone Company submitted to
| the subcommittee, at the request of Chair
| man Grout, a statement of the finances of
his company. Thf CAPITAL stock was $780,
Geo: bonded irdeHa edn&s, $4,000, with an
| interest rate of per cent The net rev.
| enues in recent years were as follows: $780,
$124,90471; 1891. SIG 300 81 1892, s1O6, 922. IS;
1893. Sill, 1851: 1894. $lp9 go SO; 1895. s12O.
424. SO; 1896. $115,O152S; 1897, S124, $50 40
The dividends during that period were as
follows: 1890, $92. $50; 1891 $4,000; 1892, $685.
$50; 1888, $40, 600; 1894 $50, OOO 1895, $53 600;
1896, SIS, 500; 1897, ,$t06900
The surplus for the several years was as
follows: 1890, $3224As1; 1891, $50 SO4. ga:
1892, $4O.6T2.S S; 1893. $64. 1881; 1894, $685.
63O83; 1895, $e7. 42453: 1896, $35, BIS. rs; 1871
SIS. 40. ii
Money was expended for construction as
follows: $780, 1911. 459S0; 1891 Sls2, 500 4Y:
1892. $S5. 5000: 1888. s1336O6O; 1894 $685.
Q2i 70. 1SQ5 ego Oh II. 1SA6 ZIG ,Ri AR. 1Su7