Evening star., 1900-05-10
RATES
President Wilson of the G. and P. Go. 8
Letter to Senator Proctor.
he SAYS NO REDUCTION Is POSSIBLE
That Present Prices Are Necessary
for Reasonable Profit.
VIEWS ON MEASURED SERVICE

1t is expected that in a short time the
subscribers of the Chesapeake and Potomac
Telephone Company will receive copies of
the letter of Mr.. Jere NJ. Wilson, president
of that company, to Senator Proctor. chair
man of the subcommittee of the Senate
committee on the District of Columbia, in
charge of the bill to incorporate the Wash
ingtOn Telephone Company, giving reasons
why the existing telephone company can
not lower its rates in accordance with the
suggestion that made by senator's
In this letter Mr.. Wilson reviews the his
tory of the Chesa peake and Potomac Tele-
phone Company since the present manage
ment assumed control of 1t, with especial
reference to the legislation contained in the
District appropriation bill approved in June,
1898. lowering the rates to be charged for
a teleuhone service here. He makes
argument against what is known. as the
''fat-rate' system and in favor of the
measured service. In conclusion, Mr. Will
son says:
Mr.. Wilson's Conclusions.
Il have made this statement for the pur-
pose of indicating that the Chesapeake and
Potomac Telephone Company has been do
ing all that it reasonably could to lower the
charges for telephone service to the people
of the District of Columbia 1t is impos-
sible to bring the use of telephones. ex-
cepting, of course, at public pay stations,
within the reach of all. That can no more
be done than horses and carriages and
thousand other conveniences and luxuries
of life can be enjoyed by all. To undertake
to bring the telephone within the use of
everybody, irrespective of circumstances, is
simply preposterous. 1t costs money to
create a plant and to operate it, and 1t
must be that the users of the telephone
must pay what is reasonably compensatory
fnr mol Law a iS rer,t .,
rates to be charged for telephone service
cannot be measured by the circumstances of
the individual, but mus: oe measured, In
large degree, by the cost or furnishing the
service, recognizing always that the rates
must not be in excess of what will afford
reasonable return for the outlay and ex-
pensc of furnishing such service.
by the methods above referred to- the
Chesapeake and Potomac Telephone Com
pany has been endeavoring to bring the
ra tes down to the lowest figures possible
consistently with furnishing first-class
service and keeping the plant in first-cIass
condition. This subject has had the most
careful and conscientious consideration and
am compelled to say that under existing
conditions. and the present state of the art
the Chesapeake and Potomac Telephone
Company cannot al this time offer any
lower rates than those above Indicated 1t
would not only be unwiSe but foolish to
undertake to furnish telephone service in
this District at rates lower than would
compensate the company for the expendi-
ture involved.
New COmpany's Proposition.
Il am not unmindfui of the fact that the
company that is now seeking authority to
construct and operate plant in this Dis
trict proposes to furnish telephones for S4s
per annum for places of business and $50
per annum for residences. AS yet. SO far
as I have learned, they have furnished no
facts to the committee or to Congress that
ftA,- will he oh 40 ,fcl
these rates. If they have any such facts
or data they will doubtless give the COM
mittee the necessary information on that
subject. From the best information that I
have been able to procure, after carefully
investigating this matter, and with view
to ascertaining whether the Chesapeake
and Potomac Telephone Company can fur
nish service at such rates. and having in
mind the experience of other Independent
companies in Baltimore, Detroit, Newark,
New Orleans and many other cities l ven-
ture to assert that it is impossible to rem
der such service as Is demanded by the
people of the District of Columbia at such
rates.
"As illustrative of this it is proper to say
that the business telephones now furnished
by the Chesapeake and Potomac Telephone
Company number 2, 1855; the residence tele-
phones, 701; total 3.oG1- CThis is exclusive
of the private line telephones, amounting to
about 30G) At the rates proposed in the
bill to incorporate the new company the
revenue that would be derived from these
telephones would be as follows: Business
telephones. s'13.520: residence telephones.
So. 1886; total. s13S.756 AS / have already
said. it is a fact, of which evidence will be
given If desired, that the Chesapeake and
Potomac Company paws out in the city of
Washington alone to it's employees and for
supplies and taxes an aggregate sum of
nearly $lo2,00o each year This is in addi-
ton TO such purchases of supplies and
equipment as are necessary to be made
elsewhere: for example, switch boards ca
bles, copper and iron wire, cross arms,
poles. telephone instruments and equip
rent. insulators, batteries. bells protectors
and the like, and is also exclusive of inter-
est on bonds, sinking fund requirements, an
allowance for depreciation and unusual ex-
penses growing out of casualties, such as
storms. sieet, fires. electrolysis, etc
Proposed Rates ImpossibIe.
$50 that I venture to assert with great
confidence that it is impossible to render
efficient telephone service in the District Of
Columbia at the rates proposed by this
company that Is now seeking to be incor-
porated. The rates that the Chesapeake
and Potomac company is now Offering To
the public are. so far as have been able to
ascertain after careful consideration Of