The evening times., 1900-02-05


rate OF a little less than 5000, 900 per year,
and that for the six years prior to said date.
| the total gross earning of the defendant
| had been as follows:
| For 1892, S17S, ,639. .3S.
For 1893, $194, ,25794.
For 1894. 1892 .2S9.60.
For 1895, s194 1887.
For 1896 $194, ,070.32.
For 1897, S206, ,417.64.
That the total expenses during the same
period had been as fellws:
For 1882, $106, ,121.33
For 1893, $i19. 1913 &c.
For 1894. 1929, ,045.S9.
For 1895. $10s. 1925.
For 1896. 1921. 794.34.
For 1897, s1s6 276.79
About the same average of earnings es
in 1927 was kept up for the first nine
months of 1898. The average expense psr
telephone during this time was al the rate
Of $7120 per year. During these six years
the dividends paid on the stock allotted
to this District 1850, 000) were as fol-
lows:
For 1892 per cent. 81. .0G0.
For 1893, . IL per cent, s1S.750.
Fer 1894, per cent. $4,000.
For 1895. per cent, $4,000.
For 1896, 3 per cent, So. 800.
fOr 1881, per cent. sSD,Oou
The average rate OF earnings PER sub
scriber during these six years was. in
round figures, about S1GO: so tia it ap-
pears that the income derived from the
contracts Of the defendant with its sub
scribers was at least 100 per cent g,e ter
than the income which would be derived
from the rates fixed by the statute. re -kon-
ing on the basis of an equal number Of
subscribers of the same classes.
II is claimed. by counsel for complain
ants. that a much larger number of sub
scribgrs would at once be procured II the
defendant should observe the statute rates,
and that eorrespOHdingiy greater profits
would follow While il is quite probable
that an increase Of subscribers might be
the result OF the lower rates. yet it is by
TO means certain that such would be the
case. 1t is likely that most OF the busi-
ness houses and offices and officials Of the
Government in this District. and many Of
the more prosperous residents. have the
telephone now; and the population is SO
largely composed of people employed in
the Departments and officially connected
with the Government. who would not gen
orally have telephones ct their residences.
that the increase OF subscribers carEct BE-
relied upon to such an extent as il might
be in other cities.
II q considerably larger number Of sub
seribers should however, result the av-
erage expense per subscriber would not
in my judgment be reduced. The cost OF
construction in the central Office and the
cost of operating, would be increased for
such additions per subscriber. as switch
boards are now constructed. while the gen
eraI expenses and salaries might be redue-
cd per subscriber.
Conditions of business.
The safer guide for the future is the
history and experience of the past. In
the case OF Smyth W. Ames. 169 United
States. the experience of the railroad
companies for the past three years was
made the basis of calculation for the prob
able effect of the statute, and the Court
page 523) uses this language in approval
OF such method
The first and most important conten-
t6n OF the plaintiffs is that if the statute
had been in force during any one of the
three years preceding its passage. the de-
fendant companies would have been COM
PEELED to use their property for the public,
substantially without reward, or without
the just compensation to which they were
entitled We think this mode OF calcula-
tion for ascertaining the probable effect
OF the Nebraska statute upon the railroad
companies in question, is one that may be
properly used"
The telephone business is vet TOO young
to enable the making of calculations for
the future from which results can be re-
liably ascertained. 1t is largely in 4
transition state. especially so as TO switch
DCaTd construction and exchange service
There are unexpred patents on some of
the improvements. and patentable i'm
proyements are constantly being made;
and while there are some instruments free
from patent rights, il is claimed the best
instruments are subject to royalties The
contracts Of the defendant company with
the Bell Telephone Company and the
Western Electric Company require the de-
fendant ito pay annually about $3.50 per
telephone for receivers and transmitters
used by subscribers and for drops on the
switchboard in the central office. For this.
however, and by virtue of their contracts.
they are to have the use of all such patents
as the Bell Company now owns or here
after acquires, SO that it may be regard
ed as an advantageous arrangement in all
ways except as to cost, for it secures to
the defendant and TO each subscriber the
best appliances obtainable.
The evidence shows that the books of the
defendant were we'll kept, and that they
were fully examined by the expert account
ants. with papers and vouchers; that its
business was carefully conducted with rea-
sonable economy, considering the quality of
the service rendered and the novel charact-
er of the business; that the total amounts
expended for the purchase of real estate
and construction of the plant to the date of
December 81. 1897. was S56S, 111-15; that the
charges to maintenance and construction
as appearing on the books. were correctly
made and that the cost of replacing the
present plant, or the value of the plant as
il then existed, was, at the time of the
passage of this act SAL. 1865. The num-
ber of miles of underground conduits laid
is Is 1-2. more than half of the same being
laid under asphalt pavements. These con-
duits are made of yitrifed terra Gotta ducts, !
with manhoIes at certain distances and |
the cables or wires are drawn through |
these ducts from manhole to manhole, as |
they are required for new subscribers.
Expenses Of Construction.
This is called the drawingin system. as |
distinguished from the solid-conduit sys
tenn, previously in use. The cost of addi |
tional duets to provide for future growth |
Of business is very trifing, as compared |
with expense of opening streets and dig |
ging trenches and constructing manholes; |
and it is in evidence that some three or |
four thousand additional subscribers could |
be served by cables to be drawn in the |
vacant ducts now maintained, il they |
should be obtained in locations convenient |
to said conduits.
Before reaching this style of conduit. |
the defendant spent $115,00o in solid con- /
duits and cables, which were afterward |
abandoned because of being inaccessible /
for the purpose of making repairs or
change of lines.
1t appears by the evidence that ii is GUS
tomary for telephone companies generally