The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-04-27

loss, but with q small margin OF prom
to the company. Mr.. Tyler has eX
planned to you how the telephone bust
ness differs from any other business
whatsoever. He has illustrated how tht
cost of serving an exchange of 1000 SUB
scrbers, as against an exchange OF l0'
subscribers, is not ten times as great
but So times as great. Take three OF
four persons of equal telephone needs
and start a telephone line between any
two of them. Then construct line
from that base line to the rest, and yot
will see how rapidly, and in geometrca
ratio the amount of service grows as the
others come upon the system.
To those who use the system the most
it is the most valuable, and of course
they should pay a larger rate, precisely
as the man who uses more water, more
gas, or sends more kilograms, pays more
than he who uses but little water or lit
tie gas, or sends but few kilograms
For the purpose of grading these rates
we have spared no time or expense as
well as in finding out the amount of tel.
ephone service which the various classes
of people in this state require, and oul
rates are based upon the results Of our
Investigations.
4. The Southern New England Tele-
phone company has steadily uniformly
and voluntarily decreased its rates; the
percentage Of decrease in the last five
years being "a per cent. 1t is steadily
and intelligently working out the pro-
blem how every person wanting tele-
phone can have 1t, al price which shall
pay for its bare cost and small margin
Of profit. The company has always been
contented with very moderate returns
on its capital.
I Five years ago the average rate for
telephones in this state was $66; now it
ia $4S.
In this connection / will consider the
propositions of the Boston & New York
| Telephone company 10 furnish free tele-
phones to all the municipal offices Of the
state. Is this a business proposition, or
is 1t claptrap? In the first place, it in
wolves telephone for each town clerk
for each first sslectman, probably all of
them-for each board of assessors and
board of relief, for every mayor and for
each executive officer of a city, for each
warden and every executive officer Of a
| borough, for each engine house, and for
each school house and for many others.
| 1t would seem as if the absurdity of the
| proposition was enough to show that
the makers of it were ignorant of the
business.
The alleged reason for making the Of
fer is the fact that telephone compa-
mics use the streets of the city, as Of
course they do. People live on the
streets, and we can get to their houses
and places of business only through the
streets, and there is no reason why our
subscribers should not have the benefit
of the use of the streets in order to reach
their houses and offices, with the tele-
phone.
DO gas companies furnish gas free to
anybody? Yet the gas companies use
the streets of the state. Do water COM
panies furnish free water to muncipaI
offices? And yet they use the streets of
the state. Do electric light companies
furnish electric light free to the munich
pal offices of the state? And yet they
use the streets. Do electric street rail-
way companies furnish the municipal
offices of the state with free railway
tickets? And yet they use the streets Of
the state.
Look at the matter more closely
Those who do use the telephones of any
sustem, and pay for them necessarily
have assessed against them the cost of
furnishing and serving the telephones
that are dead heads" THIS PROPO-
SITION TO FURNISH PROBABLY
1000 FREE TELEPHONES IN THE
STATE OF CONNECTICUT MEANS
THAT THE OTHER TELEPHONE
SUBSCRIBERS HAVE LOADED ON
TOTHEM THE COST OF THAT FREE
SERVICE. In other words, the paying
subscribers are taxed for the benefit of
the municipalities. There is neither
sense, nor fairness, nor business, nor
Justice, in this clap-trap proposition.
Now, look at the proposition to fur
nish frst-class telephone service on the
basis of $50 for business houses and $50
for dwelling houses. The only argu-
ment in support of it is that in the life
and death struggle going on in the
Western States such rates are being fur
nished
Assuredly it does not need argument
to show that no intelligent conclusion
where neither cost nor profit is taken
into account.
(a) The managers of the proposed |
new telephone company have had no
telephone experience, either in the capt. |
tai required for the business or in the |
and operation of tele-
phones.
CD The Southern New England |
Telephone company has the widest and |
most thorough experience in these par
ticulars.
(c.) We know from experience that
good telephone service in this state, |
it's length and breadth, can
not now be rendered at these rates pro-
posed by the Boston & New York COM
pany.
(d) The cost of wages alone per
station, is $25. And the cost of opera
ton, per station, s46 and more.
In reply to our proof Of experience,
(e.) NOT ONE PARTICLE OF EVIL
BEEN OFFERED THAT
TELEPHONE BUSI-
NESS CAN BE DONE IN CONNEC-
rICUT AT THESE RATES.
Last year the average operating ex-
oense per telephone station, exclusive
If interest and dividend charges, was
4 L. ,t,& |