Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-12-02
ivy ENTY PAGES.
SUNDAY, DEC. 2,
COST AND MAINTENANCE OF
TIE TELEPHONE SYSTEM.

Elsewhere today the Virginian Pilot
prints three interesting letters on the
Telephone question, one of them show
ing how the Bell Telephone Company
has attempted to drive out a Mutual
Company in Huntington, West Vir-
ginia. by giving free service and has
failed. The new company furnishes
first-class service for s24 and Sl2
year. respectively. and has GI5 sub
scribers. while the Bell Company has
200 subscribers. paid and free. This is
sufficient evidence that an efficient in
dependent company can successfully
compete with the Bell Company where
the latter is not favored by City Coun-
ellis to the injury of the independent
company.
It is worth while to observe, also,
that the assertion that the Bell Com
pany never gives free service was
made by the same authority as the as
sertion that the Bell Company has lost
money in Norfolk by reason OF the pre-
vailing rates. We have seen how much
of truth there was in the first asser-
ton; let us also examine the second.
1t cost the Southern States Company
$4,000 to install n system here sufli-
cient to carry 1900 phones and to ac-
tually install 500. This cost included
switchboards, submarine cables to
Portsmouth and Berkeley. the under
ground work and the erection of poles,
and stringing of wires. The cost of the
whole plant complete, with 1900
phones put in, was about $4,000. Its
earnings on 700 business and 500 resi-
dence phones are not less than $4,000
annually. OF this sum, about $4,000 is
required for maintenance. leaving ST.
on 100000. If. however. $4,000 be- set
aside for surplus and improvements
this leaves 1000, which is per cent.
on $1,000 and 10 per cent. on $l20, coo;
about the actual cost of the system.
These are the facts as to the South
ern States Company. Manager Wilson
boosted before the Committee OF Coun-
ellis that his company could manage II
telephone system more economically
than any other. The maintenance of
the Bell system here should, therefore.
not be over $4,000 a year, While its
earnings before the recent advance in
: its rates were as large as those of the
Southern States Company. DOES
ANYBODY BELIEVE, then. that ii
spent the $1,000 it Should haze earned
over the cost of maintenance and 49,
600 more every year? Is it consonant
with common sense TO suppose that the
Bell Company (Which boasts of It's
managerial economy and ability) has
been spending $4,000 year more in
,nantaiBing its system Than the South
ern States Company. which has about
lie same number of phones?
The Southern States Company main
taii.s It's System for about SIG, 900 a
year; the southern BELL Comapny
would, therefore be claiming to have
spent about $4,000 a year in maintain-
ing its systern, which carries about the
same number Of phones az tho states
system And this is the proposition
that a majority Of the Councils com
nlacently swallowed after the Bell
Company's MANAGER came down from
New York and made googoo eyes at the
Telephone Committee. In qiew OF
these facts, above recited, how clo-
Quent VAS the naive observation of
President East; IF the Bell Company
shas been losing $4,000 a year, etc"
:-----
Some members OF congress are dis
posed to sidie up to nilitarjsm of The