Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-04-10

Mr.. Hemphiii continued to say that the
new company offered bond of 100000 to
be forfeited in case It did not carry out the
terms of its charter, and he thought that
guarantee ought to satisfy anyone of its
good faith. He continued to say that there
was no instance on record in the United
States in which the American Bell Tele-
phone Company, or any of its licensees, had
ever reduced its rates, except as the result
Of competition. He said that the American
Bell Telephone Company really fixed the
telephone rates for the District of Column
bia.
Senator stewart-"Where is that corpora
ton organZed?'
Mr.. Hemphill-"1t is organized in Massa-
chusetts."
Senator Stewart-"You say it has power
to control rates for telephones in the Dis
trict of Columbian"
Mr.. Hemphill-"Yes sir, and the question
I submitted to the court was whether the
American Bell Telephone Company could
fix rates while the United States Congress
could not"
Mr.. Hemphlll said that It was true that
the measured service was cheaper, IL the
subscriber used his telephone but very lit
tie. He said that more than two calls a
day would be needed on a telephone. If 1t
was to be Of any service But to be obliged
to pay extra for all telephone calls in ex-
cess of that number was like having a
servant in the house and then having to
pay extra IL such a servant We're called
upon to 60 on an errand or to bring glass
Of water. For twenty years or more the
American Bell Telephone Company and its
licensees had conducted Its business on the
plan Of an unlimited service, but now a
measured service had been resorted to, be-
cause of the demand that was seen every
where for cheaper telephones. He spoke of
the rate OF &se year for a measured SER
vice with four telephones on line. He
said that amounted to STA a year for each
Of these lines. and unless the system had
been improved every time any one on the
line should be called up, everybody on that
line would have to look out to see if they
were wanted.
What the New Company offered.
The new company propose unlimited
long-distance telephone service. He said
that the American Bell Telephone Company
and its licensees had been entitled as pio-
neers to receive good compensation, and the
people had not begrudged them a fair re-
turn for their investments. But that COM
pany had not responded to demands for ex-
tending their system by means of cheaper
rates.
He gave a number of instances in which
new telephone companies had entered other
cities with the result of vastly increasing
the number of telephone subscribers At
Indianapolis, Indiana, the old company had
/, 500 subscribers. A new company was in
troduced and now has 1000 subscribers.
while the old company has 3,400. He said
there were demands from Richmond Balti-
more, Plttsburg. Wilmington, Delaware and
other cities for the chartering of new tele-
phone company in the District of Columbia
in order that the telephone companies of
those cities might connect with them.
Views Of Subscribers.
Mr.. v. Baldwin johnson told the sub
committee Of the difficulty he had had with
the telephone company in his business. He
was opposed to the measured service and
said that If a new telephone company was
started he would at once put their tele-
phones in his places of business and would