Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-04-05
CHEAPERlOCAl TELEPHONES
HEARING GIVEN BY A SENATE SUB
COMMITTEE.
Presented in Favor of In
cooperating the New Washington
CO.-Contracts Already Obtained.

A hearing was given yesterday afternoon
by subcommittee of the Senate committee
Of the District of Columbia on the bill to In
corporate the Washington Telephone Com
pany. Members of the subcommittee pres
ent were Senators Proctor, chairman: Ken
ney of Delaware. Gallinger of New Hamp-
shire, Hansbrough of North Dakota and
Stewart of Nevada.
The hearing was begun at 2:15 o'clock by
Mr.. H. w. Rusk, who explained the status
Of telephone legislation In the present Con-
gress, He was followed by Mr.. G. R.
Webb of Baltimore, who made an argument
at length, explaining the plans of the people
who desire to form the new company.
He said the plan of the company now op-
Grating in this city is to have few SUBJ
scribers at a high rate, while the company
seeking operation seek to have a large
number of subscribers at a small rental
each. He gave instances in which new COM
panies had entered cities and increased the
number of subscribers, especially in the
homes of the people.
Time for Another Company.
Mr.. Webb claimed that while the Chesa
peake and Potomac Company in this city
advertised 5000 phones their lists actually
contain 1920. plus eightyfour in the sub
urbs. He said there had been 1913 duplicate
names on the list. He said his company
has contracts with 2,010 subscribers for five
year terms, little effort having been made
to solicit subscribers in the residence sec
lions of the city. OF their contracts 752
were with people who have Chesapeake and
Potomac Company telephones.
He disclaimed the idea that the measured
service is growing in popularity. Mr.. Webb
said the Chesapeake and Potomac Company
had proved in court here that they could
not reduce the price of telephones, and he
said, that being the case, it was time for
a all0U TO
ter this field as the only means of giving
the people cheaper service.
Speaking of long-distance service, he said
his company was making extensions that
would soon result in providing such service
over their telephones.
Mr.. Webb protested against the adoption
OF amendments to his telephone bill which
had passed the House. especially the pro-
vision for a tax Of 11a per cent on its gross
receipts. Finally he declared that he was
satisfied the bill would pass the Senate if
reported by the committee.
Attitude of Subscrfbers
Mr.. Henry F. Woodland. representing the
Telephone Subscribers Association, re-
viewed the difficulties the people in the
District had met in their efforts to get
telephone service at reasonable rates. and
said their only hope was in securing another
company here The association he repre-
scented was satisfied of the good faith and
ability of the Washington Telephone Com
pany TO give the desired rellef.
w. N. Marbury. attorney for the tele-
phone company now operating in Balti-
more, did not think cheap telephone rates
would ever be secured in sthe District I'M
less they were given by a new company.
For this reason no good could come from
a decision Of the telephone case in the
Court of Appeals. The Chesapeake and Po-
tomac Company had proved that it could
not reduce its price. He said the new teIe-
phone company in Baltimore had been a
success, and when it was sold by the re-
ceiver 1t brought more money than had
been invested in it.
The Other Side Presented.
A. s. Worthington spoke briefly in reply
to those who favored the new company. He
said the stock and bonds authorized for the
new company by the pending bill amounts
to 81, 500, 900, the interest on which, at per
cent, would amount to $4,000 With 1,5OO
telephones the new company could not pay
interest on bonds and dividends on stock
He maintained that telephones could not be
furnished in this city for less than the pre-
vailing prices.
S. H. Brown, chief engineer of the CO.
lumbia company, said he had measured the
distance of the telephones in this city from
the exchange and found them to be on an
average one-haif mile instead of two miles,
as stated by Mr.. Worthington
The subcommittee finally agreed to con-
tinue the hearing at 2 o'clock next Monday
afternoon.