Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-24


We do not pay any ROYALTY to the
parent company; we pay a rental on
the instruments we get from the
American Bell Telephone Company.
The losses on the operation of the
Norfolk telephones exceeds more than
ten thousand dollars than we have got
In. L decline to state what 1 took in
and what L lost We make more mo-
ney with five hundred subscribers than
with q thousand at the same prices.
when you have u telephone exchange
to support-a larger number of people
employed. The entire scheme becomes
more complicated.
A BUSINESS PARADOX.
The operation of five hundred ex-
change and a thousand station costs
more per station to operate 1 cannot
answer how much more; it depends on
local conditions and local manage
ment. But, as a general proposition
an exchange of three thousand stations
will cost you to operate it probably
double what an exchange of one thou
sand will.
We can make more money in Nor
folk with one hundred stations than a
thousand, with the same conditions.
COLLISION DENIED.
l would know If there was any collu-
sion between the Southern States Tel
ephone Company and the Bell Tele-
gle stakeholder or Il single official or
any person connected with the South
crn States Company. l know l have
never had any Intercourse with them
and no communication with them.
WOULD BE THERE.
If / was the general manager of the
Southern States Telephone Company
and ! was invited to be present at this
discussion you would hear from me- as
| am here, unless L had broken leg
or something, and I would have n re-
preventative here. l want to say most
emphatically that there has been no
understanding between the Southern
Bell Company and the Southern States
Telephone Company: that l do not
know anybody connected with the
Southern States Company: that there
has been no correspondence between
us-never been any conversation about
any understanding whatever.
WILL LOSE MONEY.
They cannot make money at the
thirty eight dollar rate. | have been
in the business twenty years. have
seen some statements made in court
seen the record of some statements
made in court by that company as to
their expenses. / remember very dis
tinctly $500 for maintcnance-S6 q
station-and I know absolutely that no
company with one thousand stations
can maintain their apparatus for Sc per
year for a station.
CAN DO BUSINESS CHEAP.
1t cannot he done. We cannot do it.
and we can run this business as cheap
as anybody. and. think, n little
cheaper. l can run my business in Nor
folk cheaper than any local company
charge TO Norfolk is smaller than the
expenses of operating any local admin
iStration.
FOR THE PUBLIC GOOD.
The manager of the Virginian-Pi-
lot explained the position of the paper
as being that Of representing the in
terest of the people. The public will
applaud the action of the Virginian-
Piloot. He objected TO the committees
attempt to have private meeting
about public matter The commit
tee wrote a letter asking certain ques-
tons and marked them confidential
The Southern Bell Company doubled
the rates and refused TO answer ques-
tons because 1T was private business.
The committee put itself in false
light in saying that II would not reveal
the facts II learned.
The manager said If it Is not n fact
that the meeting was to he secret he
would make an apology to the commit
tee.
JUDGE TAYLOR SPEAKS.
Mr.. Taylor appeared as an attorney.
MIR. Wilson makes a fair statement
he said The Southern Bell Company
was existing here without charter.
There was n charter granted to the
Southern States. in which the company
was restricted to rates. And the city
also said that 1t would not grant any
better rates than the Southern States
had. That was the condition when the
Southern Bell came here and got n
franchise which required no maximum
rate.
MORAL OBLIGATION.
Then he spoke of the moral obliea-
ton of the Counclmen 10 rectify the
violation of the charter in granting q
better rate to the Southern Bell Com
pany than it gave to the Southern
States Company
TO SAVE THE CITY.
He illustrated how the city of Nor
folk took bond of $4,000 to save it.
self harmless against the breach of
faith and contract. There must be a
maximum and a minimum rate. 1t
rests with the telephone company to
define what is a limited service. 1t
can then charge what it pleases, and
put It's rates to 81. and still not break
its contract
another company. The Bell Company
can force the Southern States Com
panv to the wall when it gives lower
rates.
JUDGE WILCOX. !
Mr.. Wilcox said The rates have
not been doubled. The rates have been
graduated so that the man who uses
1t most pays most. Stress is laid on
the fact that the people are not prone
to object 10 lower rate. If the rate
is violation of the charter. the com
pany Will change the rate. There viii
be no petition to increase the residence
rate.
NO FRANCHISE.
The Bell ,nhone had n resnIntio,, n G