The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-04-07
TELEPHONE RIVALS CLASH


| average of sizes is 1000 subscribers. In
| the smaller exchanges the average OF
| calls Is ten to every subscriber, While
in the larger exchanges it is tifty-five
to every one: that is the larger eX-
| changes do fifty-f1ve times more work
| than do those Of 100 subscribers. The
| service in the larger exchanges is more
| expensive pro rata than in the small
er exchanges. Telephone rates during
| the past five years have been generally
adjusted to this system. The question
of cost of service is not simply how
much it costs to put it in and get 6
| per cent. on the investment The high
est rate charged is $100 for exclusive
| use Of a circuit in New Haven, Hart
ford, Waterbury, and Bridgeport, and
| the rate runs from that down to $72,
| $50, $4S $36, $25, and SIS in the larger
| exchanges, while smaller exchanges
| have lower rates.
Mr. Tyler next described the system
known as measured service" He said
that his company had just perfected
and was trying to get from the manu-
facturers new register which counts
the calls on a measured service"
scriber has been reduced 33 1-3 per
| cent. during the past Ave years, while
the number of telephones in use has
substantially doubled during that time.
Mr.. Tyler stated that the Southern
New England company was organized
with capital of 100000 paid in in cash
and has increased it's capital stock to
81, 100000. 1t has paid average cash
dividends of Az per cent. For a period
OF thirty-three months, from July, 1883,
to April, 1891, no dividends We're paid,
then dividends were resumed at per
cent. and have increased to per cent.
at the present time. He said that the
company now has surplus of $4,000
and bonded Indebtedness of $4,000, 900.
The cost of adding $500 stations during
the past five years was 1896, 066.14 1t
has been found that heavier wire is
necessary for the tall line system than
was formerly used and Mr.. Tyler said
that this extra cost was then not in
cluded by Colonel Rutherford in his es-
innate. He argued that it would not
cost company already in the field so
much to put in telephones as it would
to start a new line and said that to
operate the exchange plant of his COM
pany costs not less than 5000 or 1925 per
subscriber, not taking into account the
tall lines. He asserted that the plant
could not now be reproduced for the
amount of the company's stock and
bonds because rights of ways and IA
cilities had been acquired which would
cost more now and because for the last
ten years the necessity has been seen
of charging against the plan an amount
for deterioration.
Mr.. Tyler explained the relations of
his company with the American Bell
company. He said that without the
Bell telephone it was absolutely impos-
sible to do telephone business in the
United States and that his company
had been obliged to accept the terms
of the Bell company and give So per
cent. of its stock besides royalty ON
the instruments In order to obtain Bell
telephones. That this was all the stock
the Bell company ever took in the |
Southern New England company with
out paying 500 for every share. The
Southern New England has been charg-
ing surplus off against that stock, that
is, earnings otherwise applicable to
dividends have been used for construc-
ton. Judging from the past, he would
say that the plan of the Bell company
was to yearly reduce and eventually to \
wipe out the royalties and that while
S4S. 900 was paid in royalties the last
year, the reduction has been such that
he thought his company would not pay
more than third of that next year He
said that no dividend was paid for thir-
.y-three months because the earnings
were put in the plant. The Bell COM
oany was then entitled to a dividend
only half as large as other stockhold-
ers and it was represented to the Bell
that by suspending dividends,
he other stockholders were paying in
vice as much as it was. Mr.. Tyler
;aid that at that time the stock was
selling for So, 56 and 81 and that the
couldn't borrow cent except
IN his personal endorsement. After the
began to pay dividends its
,redit was better and early in 1898 the
stock rose to par.
Speaking of the difficulty met with
n putting up poles in country places
md, the necessity of laying conduits in
titles, he said that cities had contracts
With the paving companies to warrant
he pavement for ten or fifteen years
nd that when the telephone company
lad to take up the pavements to lay
onduits it was referred by the city to
he contractor, who was responsible for
he pavement and had been obliged to
ay the contractors 555 per cent. to put
he pavement back in the same condi-
ion as it was before being torn up. He .
aid that the company had provided for :
he laying Of $4,000 feet of conduits the ,,
oming season in this state. He had :
easons to believe aside from his nat ,
raj prejudice that there was no need
f another company and thought it
oubtful If competition in the telephone
usiness was possible. For effective 6
nd good telephone service in any COM
lunity it must be in the hands of one
because two companies cam q
OF give good service without an added +
Expense to the public. In time, as in f
re case of gas and railroad compares, 6
lere must come an absorption of one a
r the other. He thought that if the 6
ew company was to operate the lines q
: the Southern New England, it could n
OF give for five years service that
onnectcut people would stand because, Y
3 alleged, the new company don't
now how Tho bueinpSS 11111St he laorp / -