The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-07-13
In the Indianapolis Independent of
July 8, 1899, appears the following:
RAISING THEIR RATES.
Official Organ of Independent Telephone
Companies Lets Cat Out of Bag.


1t seems that the so-called indepen-
cent or opposition companies are not
able to carry out their ideas. They
started in by charging in their various
periodicals that the Bell licensees were
robbing the public by making exorbi-
tdnt rates for their telephone service.
NOW the very same fellows turn
around and recommend to the so-caIled
independent or opposition companies
that they charge rates in excess of what
the Bell company is charging.
The following quoted from the June
number of the Electrical Engineer and
Telephone Magazine the official organ
of the independent companies, pub
lished at Chicago, bears out the above
statement:
SUGGESTIONS FOR THE NATION
AL TELEPHONE ASSOCIATION.
There are three important subjects
that should be fully and freely dis
cussed at the coming convention of the
National Telephone association, name
ly:
Uniform and reasonable rates for
local service.
Uniform franchise bills.
Standard construction specifications.
On every hand the admission Is made
that Independent telephone rates should
be increased from fifty to one hundred
per cent, and that the new rates should
be as nearly uniform as possible.
At the present time, one exchange
has a yearly rate of sic and $24, it's
neighbor on one side with twice the
number of subscribers has a rate of
only $l2 and SIS, while it's neighbor to
the north has a rate of $40 and $50.
Quite naturally the subscribers in the
should pay only the lowest of these
three sets of rates. forgetting that the
last set of rates is the only reasonable
set, that not one Of these three ex
changes has ever paid a cash dividend;
that all three are heavily in debt and
that large sums must be expended by
each for new equipment and new ma
terial required in the reconstruction Of
these plants.
We do not believe there is any profit
In operating the average independent
telephone exchange at rates less than
$24 and $50.
II the number of subscribers exceed
400, we believe the rates should be not
less than $50 and $40, and where there
are 1000 subscribers the rates should be
$50 and $4S.
WITH 1000 SUBSCRIBERS, RATES
SHOULD BE MADE TO COVER LO-
CAL CONDITIONS, BUT SHOULD
NOT BE LESS THAN $50 AND $50;
WHERE THERE IS AN. UNUSUAL
WORK EVEN THESE RATES
SHOULD BE INCREASED.
With increased rates, telephone COM
panies would feel justified in re-equip-
ping and rebuilding their plants, in set
ting aside dividend and sinking funds,
and in compromising their officials for
services aNfn1l1xy 70 nd Iaa TN
proved character of the service would
amply compensate the subscribers for
this small increase in rates.
The need of a uniform franchise bill
acceptable to the average council and
yet protecting the interests of the COM
pany that will operate under it's pro-
visions has long been felt The Ma
tional Association could easily agree on
a bill that would be passed by city
councils without alteration or the add
ing Of limitation clauses, instigated by
the Bell monopoly. that seriously hand
leap the progress Of the good work of
installation and operation.
Standard construction specifications
should also be prepared and sent out
with the recommendation that all fu-
ture work be constructed along the
lines indicated. The value OF Uniform
ity cannot be overestimated, and there
Is little doubt that a committee could
easily be named that would gladly take
W this work.
From this 1t would seem that the
much heralded Cheap rates" neither
prove profitable to the investor nor
enable the management to properly
keep up the service, as the business
mans necessity requires. In other
words, the independent" companies
have undertaken TO do thing they did
not understand and have found 1t to be
failure.
Indiana Is the hotbed of inde-
pendent telephone companies, but 1t
appears that out In that section where
telephone companies can attach their
wires to lamp posts, hitching posts and
even to men who stand upon the street
corners, engrossed In thought, and quiz
atlsF Ia tRtp ha iai INT