Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-05
FRIDAY, OCT .. 1900.
THE BELL COMPANY HAS
VIOLATED ITS FRANCHISE.

~ In the franchise granted the Bell Tel
ephone Company by the City Councils
{ OF Norfolk appears this clause:
The Bell Telephone and Telegraph Com
pdny, tfs successors and assigns, shall not
FURNISH service at rates bcloip those charged
bV dny other telephone company in tho city
of Norfolk for tho same scrpicc'
The plain purpose of this clause was
to prevent the Bell company, which is
q wealthy corporation, from cutting
rates and driving any other Telephone
company out of the field in this city.
1t was intended to prevent the Bell
company from establishing Monopoly.
The Bell company and the Southern
States company are each furnishing
telephone service in this city. Until re-
Gently. each was furnishing an unllm-
tied service to residences at SIS n year.
A short time ago the Bell company in
stituted what it called Limited SER
vice." of which there were several
kinds. The lowest charge made for
such a service was s12 per annum, or
s Sc belo,o the charge at which the
southernlStates was and is furnishing
.
furnishing this limited service below
the charge at which the States fur
I nishes service. has the Bell company
violated its franchise?
Let us see. If the Bell company can
furnish a limited service at all, 1t can
s prescribe the limits OF such service. If
1t can furnish service at charge
befoto the charge of the Southern States,
it can furnish such service at rates as
much below as pleases it.
1t now furnishes householders an
i outward service (Which means the
I householder can call any subscriber
with full service, but no subscriber
can call him) for S12 year. If it can
furnish such service at So year with
out violating it's franchise, it can fur
Z nish 1t for 81 year without violating
Its franchise. If it can limit the SER
vice by saying nobody shall call UP
the subscriber. it could limit 1t lust
as we'll by saying only 10 or 100 people
shall call the subscriber in one day.
3 AS no householder in Norfolk is called
Z 100 times a day this would be the
equivalent of an unlimited service; yet
z the Bell company, by the mere device
or sham of calling 1t limited, could fur
nish such service for 81 year.
In like manner. 1t could furnish the
business houses with a service at So
year by putting upon it the limitation
that the phone should not be used at
exactly ten o'clock in the morning, or,
three O'clock in the afternoon. In
/ short, IF the Bell company can fur
nish g limited telephone service desig-
mated by itself, at n cost Jeloio its com
petitor, 1T can make the limitation as
jmmaterial as 1t pleases, and it can
K make the charge as loio as il p!casos.
What would follow such a policy:
This sort of limited service at 81 a
s year would put telephone in every
Z residence where there is the. slightest
4 need of one. 1t would put a telephone
{; in every business house In the city
The Bell company has ample capita
I and could stand the losses it would en-
tell; the Southern States has not anc
I could neither stand the losses such q
cut would entail nor secure subscribers
at d reasonable charge. 1t would have
10 90 out Of business. The Bell com.
Spany would then haze a Monopoly.
Thia IS precisely what the clause OF