Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1900-02-01
PEOPLE
Paying the Freight
Having Secured a Mono
poly In Detroit
Bell Company Makes 800
Per Cent Increase.
Rates Advanced From S24 TO
S72 Per Year.
Money Invested In New Line Comes
From Subscribers.

From Subscribers.
The consolidation of the Bell and
Erie Telephone companies, at Detroit,
was announced two weeks ago.
An increase of 800 per cent in the
rates has followed as n direct result
Of this deal. 1t is the policy of the
Bell company, which absorbed the
Independent lines, to make its sub
scribers bear the burden. They will
pay, in rentals, for the recently &C.
quired property.
AS matters now stand. the Bell com
pany has an absolute monopoly on the
telephone business in Detroit. With
out competition it has the power to
place rates at any figure. That it in
tends to exercise this power Is evil
denced by the increase which has
been announced. Telephones that
rented, while there was competition,
at S24 per year, have been increased
to S72. This increase was made with
in two weeks after the closing of the
deal, by which competition was sti-
fed. This is only one of many illus
trations of the policy of the Bell COM
pany, where it has no competitor.
The Detroit Journal of Friday, Jan.
26, says editorially:
when the practical consolidation
of the telephone companies was eff
fected the management made public
the announcement that the rates
| would not be advanced as conse-
quence; but, on the contrary, that the
rates would remain undisturbed while
the service would be greatly improved.
AS proof of the sincerity of the an
nouncement, flaming advertisements
were published once in all the daily
papers, Offering to close twenty-five
year contracts at prevailing rates.
within a fortnight of the consum-
nation of the deal, and with the ad-
vertisement still fresh in mind, the
Michigan Bell company is making a
systematic and strenuous canvass OF
the local field for the purpose of per-
suading subscribers to the prevailing
service TO apply for better service
at the rate of S12 year, exactly three
times the rate named for the service
now given. In explanation of this cru
sade for the higher priced service the
officers of the company submit that
they are about to install a new
switchboard and that the higher
priced phones will be directly con-
nected with the long distance system,
thereby securing to patrons greater
convenience
ut cannot be that this is the first
step taken to provide a better service,
for both President Flowers and Pres
ident Glidden are on record against
any increase of price for betterlng the
service. yet there is something about
it quite suggestive of the way of the
heather Chinee, whose ways are dark
and tricks vain. The inducement
held ont that the new phone will be
connected with the long distance SER
vice is not enticing to the average
subscriber, for the average subscriber
has use for a long distance service
only once n year, if so frequently, and
business subscribers on the metallic
circuit are already served satisfactor-
lily. 1t is represented, however, that
the new phone will be much superior
to the old, although the old phone will
be maintained, but its connection with
the new switchboard will be incom-
plete and the service will not be OF
the best.
"Onc cannot, in view OF all the cir
cumstances, see in this new enterprise
anything less than subterfuge under
which the monopoly, having got con
troll of the field, purposes to treble the
price of telephone service. 1t will do
this, doubtless, by persuading business
firms and rich individual subscribers
to take the superior service at the
higher price and then by making the
cheaper service inferior ana unsats-
factory, drive others TO subscribe for
the So service. If this be not the
real purpose, why do the officers who
a fortnight ago, Were promising that
the service would be improved and
the rates not disturbed, now publicly
admit that the service of the cheaper
phones will be unsatisfactory be-