Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-11
A HOLE TIE HOG MAY GO
THROUGH.

hhaA>OOO<As
| The Siiginian-Pilot yesterday pub
lished and called attention to the fran
chise granted in the spring of 1897, to
the american Telegraph and Tele-
phone Company of Virginia" (known
as the Long Distance Coz, by the
Councils OF this city, noted especially
the not generally known fact that this
franchise gives Mdt compuny The right 10
do LOCAL, as wcu as LONG DIS
LANCE. telephone business.
1t is Il matter of common knowledge
and appeared in the letters from vari-
GUS cities published ycsterday-that
throughout the United States there are
doing business under u variety of
names. but arc in fact mere creatures
of the "AMERICAN BELL TELFi-
PHONE COMPANY OF NEW YORK"
the parent corporation. 1t is more or
less an open secret chat the Southern
Bell Telephone Company, which does
a local Business here. and the Anne gisan
Telephone and Telegraph Company of
Virginia, which is presently doing only
II long distance busincss-bHt, as we
have seen, is cmponcrcd Ly lis frda-
elise TO do a local business diSo-arc
both merely branches of the said
American Bell Telephone Company"
The Southern Bell Company. in fact,
makes long distance connections with
the wires of the American Telephone
Company, and in general the companies
work together in entire harmony
The franchise of the american Tcle-
phone Company Of Virginia." as far
as 1t relates to Local business is
almost Identical in terms with the
franchise of the Bell Company. In
granting it. the City Councils commit
ted the same violation of the Southern
States franchise as in granting the
franchise of the Eel Company. and,
therefore, they required n like indcm-
nifty bond &5O.OOO), with security. TO
protect the City against the results of
this violation. In the franchise of the
American Company. by section 10.
Councils reserved the right to amend.
alter or repeal the franchise, just as in
the case of the Bell Companies; and. by
section 2. the American Company is
forbidden to furnish local service at
rates below those OF any other COM
pany for the same service.
1t is apparent therefore. that Coun-
ellis are under the same obligation to
amend the franchise of the American
Telephone Company as it is TO amend
the franchise of the Bell Company. 1t
does the same violence to the states
Company's contract with the city. as
does the 3ell franchise, inasmuch as it
fixes no maximum rate. If the fan-
chise of the American Telephone Com
pany should not be amended by fixing
in it n maximum rate, when the Bell
Company has been provided with
maximum rate by Councils, the Bell
Company could pretend To retire from
the field and turn over its lines, sby
some hocus-pocus. to the American
Company to be operated under the lat
ter's franchise. This would leave the
public in precisely the same predica-
ment as at present. the American Com
pany could put rates up or down Just
rs the Bell Company has been doing.
The work of fixing the same maximum
rate for each of the local companies
would then have to be done over again.
While the American Company's fran
chise forbids it TO make any other than
traffic arrangements with the Bell Com
pany, the section Is evidently worded
to forbid the American Company to
"sell, lease or assign" it's franchise rights
to the Bell Company, ana not to forbid
it TO buy the poles, wires and fixtures
of the Sell Company. At the time the
American company's franchise was
granted, the Bell Company was fight
ing tooth ana nail against franchise
imposing maximum rate, and the
clause in question was intended, evi-
IDENTIFY, TO circumvent a possible trick
of the Bell Company.
The only way to make the situation
water tight, therefore is TO fix the same
maximum rate for local service for the
Southern States, Southern BELL and
American Telephone Companies. That
will be at once perfectly fair ana en-
tirely effective.
- ------------------
NO STAR CHAMBER MEETINGS