The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-05
TELEPHONE
WAR
INDIANAPOLIS EXPECTED TO DE THE
SEAT OF ONE.
officials OF the Central Union and New
Telephone Companies Make
Statements.

In every city where an independent tele-
phone company has been established the
struggle for supremacy between it and the
Central Union Telephone Company has been
sharp and interesting, and now that the
New Telephone Company, of this city,
makes the announcement that it will begin
to put in telephones the first of the week,
and will open its lines March J. it is ex-
pected that indianapolis. too, will be the
seat Of telephone war. An indication that
this matter has become of general informa-
ton is that, along with expansion" it is
being discussed in the business mems arena
the rear platform of the street car. OF
course the struggle between the two COM
panies began when the New Telephone
Companys solicitors began operations, but
it is now warming up to the climax Bust
ness men concede that it will be necessary
TO have the service of both companies at
first, but, it is pointed out, the law of the
survival Of the fittest will in time obtain in
the telephone situation. The Central Union
Telephone Company is one of the strongest
corporations of the country, and it's fight
ing ability is shown everywhere it comes
into competition with an Independent COM
pany; the New Telephone Company is COM
posed of some of the city's most substan-
tial business men, and, apparently. has the
sympathy of the people. The New Tele-
phone Company has fve-year contracts with
its subscribers; the Central Union will make
six month contract with new subscribers.
and has none at all with most Of it's old
ones, except that they pay by the quarter
year.
A guard stands at the door of the operat-
ing room Of the New Telephone Com
pany, in its building on North Meridian
street, and allows no one to enter who has
not pass, and passes are issued only to
employees of the company or the contractors
men, who are working on the $4,000 switch
board being put in. This is one of the pre-
cautions of war. The officers of the COM
pany say they do not want the switchboard
examined until it is completed. No more
tangible explanation is offered. For the
sake of comparison the following talks with
harry b. Gates, of the New Telephone
Company, and w. A. Vail, of the Central
Union Telephone Company, are printed:
Mr.. Gates-Our rates will be $24 a year for
residence phones and $40 a year for business
mouse phones. The instruments will be Of
the iong-dlstance variety, on copper wire
circuits. We have now 5000 subscribers, and
every one has entered a five-year contract.
The Central Union Company has held up
the people of this city for Years, but now
you can get telephone service from it for
any any price l know of one druggist in
the Central Union service and is now pay
ing $40 1t won't be able to keep its sub
f f6e @e1 at any price don't know what
the same tactics it has in Fort Wayne-give
free service. 1t didn't collect a cent there
during 1885, but still il has 400 subscribers
to the independent company's 1000 The
people don't want the Central Unions serV-
ice, even free, if they can get an independ-
ent service. We will have no party line
service-always unsatisfactory. We will
have connection with the other Independent
companies of the State.
Mr.. Nail-A person doesn't want tele-
phone service that doesn't extend out of the
city; Our lines run all over the country,
while the New Telephone Company hasn't
got pole in the air or a wire outside Of In
dianapolis. We are getting new subscribers
every day and this new company doesn't
worry us at all Our rates run from $12 up,
and we not cutting them. The telephone
business is a natural monopoly, and even if
two telephone companies in one town have
equally good service, one must eventually
lose In Fit. Wayne we are in an unfOrtu-
nate position, because we have no franchise
but l will give any one 800 who will find
contract for free service that we have made
there. The Independent company there has
about 600 subscribers and we have 1850 Our
rates are little lower than the Independent
companys, but neither is making any
money.
TALK OF A COMBINATION.
The School Board is preparing to make
contract for forty telephones with the New
Telephone Company, and in speaking of this
matter yesterday Mr.. Vail said he thought it
strange that the board had not advertised
for bids, according to the usual custom in
making contracts. At the board meeting 1t
was suggested that the contract should be
made Immediately, for it was believed there
would soon be a combination between the
two companies and rates would go up. Mr..
Gates, of the New Telephone Company,
when asked whether there would be a com
bination, said:
Il do not care to talk about whether or
not the Central Union Telephone Company
has made US proposition. / will say, posi-
lively, that there will be no combination Of
any sort"
The head of one of the large business
houses of the city was asked what his house
was doing in the telephone matter. He re-
piled that it had no contract with
the Central Union, but had made
Telephone Company In reply to
question whether the Central Union had Of
fered to cut rates, he said it had not but he
knew of instances where the Central Union
had procured contracts for the Limited
number OF calls service by saying that the
limit would never be reached for $25 a year.
He understood, he said, that the Central
Union was proceeding along this line in it's
fight against the New Telephone Company.
He expected to have both services for a
time after the New Company began opera
TONS but he confident it would come to
pass that one of the companies would con-
quer the other. And he added, 1--WE have
a fiVe-year contract with the New Telephone