The times. [volume] (Richmond, Va.) 1890-1903, 1900-02-22

gained would this company connect with
its system I said yes, provided the
corporation organized in Virginia could
build a comprehensive system OF local
lines to connect with the long lines OF
the Long-Distance Company, the Long.
Distance Company would connect with
that company under the same terms and
conditions that it connected with any
AJther company. The suggestion was
made then that some gentlemen in Fir-
ginis would apply to the Legislature for
a charter. We stated that if that was
done we would help them in every way
that we could; we would subscribe money
when the books of subscription were
opened. We expressed to them the hope
that a large sum of money would be
subscribed In Virginia, as we wanted to
localize the company as much as could
be- And out of this grew the bill before
you, and out of this grew my interest
in this bill.
AS TO RATES.
Senator Tyler: in any of the charters
that YOU have gotten in other States
to establish your system has there been
any fixture Of rates?
General Meany: No. sir: no. SIR.
Senator Tyler: Have you any general
system of rates?
Gen. Mcany: Yes, sir. There is no
corporation or no people who recognize
as we'll as we do the necessity of popular
rates. The telephone is a thing that if
you charge q price beyond its value or
beyond the price people can afford to pay
for it. you get no subscribers. or get SO
few that your system is not of much wall
ue The history of the development of
the telephone business by the Bell Com
1yanies, as q rule has been on the line
of popular rates.
It might be of interest for the Com
mittee TO know that the first rates charged
by the original Bell Companies were as
low and I think lower than many of the
competing lines are now charging. In
the development of the business to-day
1 see no future in 1t unless we can make
popular rates and increase the number
of our subscribers and increase the
amount of service done over our connect
ing lines.
Senator Tyler: There has been
material reduction in your rates in the
last few years?
Gen. A1eany: Yes. sir.
Senator Tyler: Hasn't that grown out
Of the fact of competition on the part
OF local lines?
Gen. Meany: No sir. There Is not IA
competing company in the city OF New
York there Is not a telephone exchange
of any other company except the New
York Telephone Company in the city of
X,
operated In the city of New York. ex-
cept the New York Telephone Company.
and the rates have been going down
every year, until they have in that city
now thirty eight thousand subscribers
on Manhattan Island, with the average
rate lower than it was eight years ago
when they had only eight thousand sub
scribers.
Mr. Pollard: What is the cost of
huSiDacs ',,hone n New York.
Cen Meany: From $50 to $2i0 a. year
$40 a year for unlimited metallic cir
cult service. The average rate In New
York city IS less than 500 a year. There
is not over 10 per cent. OF all of the thirty
eight thousand subscribers that take the
unlimited rate of $40.
Chairman Sands: Does that allow them
to speak anywhere throughout the
United States without further charge?
Gen. Meany: No. sir. There is u toll
charged for ull service outside of the eN-
change center, based upon the time con-
sumed and the distance traversed.
APPEAL FOR AN ORDINANCE
Mr.. Pollard: Were You aware there
was a general ordinance in the city of
Richmond under which your company
could operate?
Gen. Meany: Yes. sir.
Mr. Pollard: Did you make application
to enter under that general ordinance?
Gen. Meany: l made application to the
City Council of Richmond, as l before
stated, for an ordinance.
Mr.. Pollard: An independent ordinance?
General Meany: Exactly, but calling
attention to two provisions Of the gen.
eral ordinance that we asked, q modl-
fication Of One was compelling US to
enter and place our wires under ground;
to build 100 per I'm excess of our
needs, and to hold that excess for some
company that might or might not come
and to charge rental for it when that
company did come. If it did not come, we
could not use it. 1t meant the invest
ment of twice as much in an under
ground plant as was necessary. I don't
refer to the cables that go in, am
speaking of the sub-ways-twice the
Investment we would have had to have
made if we made it for our own pur-
pose. s.
Mr.. Pollard: Are you not conducting
now business in the city of Richmond
without any ordinance, coming in on the
poles of the company that is here
against the city's protest. that is serving
under an injunction in the United States
court? w i..;:,
General Meany: NO. sir.
Mr.. Pollard: On whose poles dc You
come?
General Meany: We are not on any
ones poles in the city of Richmond. We
are not doing any business directly in
Richmond any more than we wouldfdo
it in Suffolk or any other town con-
nected by the lines Of other companies
with our system
Mr.. Pollard: You are not doing any
telephone business in Richmond?
General Meany: No. sir.
Mr.. Pollard: Haven't you an exchange
here?
General N1eany: No. SIR.
Mr.. Pollard: Have no business here
whatever?
General AIeany: No. sir. Of course,
answering questions this way may be
misleading. The Americana Telephone
and Telegraph Conapany's lines extend
to Manchester. across the river, the
Southern Bell Telephone Company con-
Meeting with us at Manchester just as
company in Fredericksburg might
connect with us outside of the city of
Fredericksburg. We are not here dis
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