Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-07
A STATEMENT OF FACTS.

Here are some of the facts that are
worthy of study in any consideration
The former City Councils openly vio-
lated the franchise of the Southern
States Telephone Company in granting
the franchise of the Bell Telephone
Company. To save the city from dam
age. by reason of this violation. the
Bell Company had to justify in bond
of $4,000, with security.
This violation consisted in not put
ting the same restrictions as to maxi
mum charges, ETC., upon the Bell Com
pany as upon the States. From this
violation has come the present trouble
as to telephone rentals.
The Bell Company. in turn. violated
less than it's alleged competitor (fur-
nishing residences at SIS, while its al
legged competitor was charging $25),
when its Uhe Bells) franchise said it
should not do so. 1t kept up this cut
rate for nearly two years, but the city
took no cognizance of it. NOR DID
THE SOUTHERN STATES COM
PANY (WHICH WAS BEING HURT
BY IT'D MAKE ANY PROTEST
WHATEVER. OR TAKE ANY STEPS
TO PROTECT ITSELF.
The Southern Bell Telephone Com
pany recently adopted a new schedule
of charges, with maximum OF $50 per
year to business houses. and n mini
mum of s12 for limited service to resi-
dences.
The Southern States cannot charge
over $3S per year for business phones.
because it's franchise fixes that as a
maximum limit. The Bell franchise
fixes no such limit, nor any maximum
limit at all.
The Southern States Company, there
fore. cannot compete with the Bell
Company on these conditions, imposed
on the States Company by the City,
in violation of the City's contract with
the States Telephone Company, be-
cause 1t cannot raise it's charges to
business houses to recoup itself for low
charges to residences, as the Bell Com
pany is doing. In fact, moreover. the
Southern States seems not to care
whether 1t secures business by compe-
tition or not.
The low charges of the Bell Company
for residence service is in violation of
it's franchise. The low service will
enable the Bell Company to place a
largely increased number of phones in
residences. and business men will then
pay Its extortionate charges in order to
reach the householders who are their
patrons.
The ultimate and inevitable result of
this will be that the Southern States
will be driven out of the field. and an
open telephone Monopoly established,
or it will remain as a mere dummy"
competitor to prevent the irruption
into the field OF really competitive
company, While the Bell Company will,
in fact. enjoy all the solid advantages
of an absolute Monopoly of the local
telephone field.
The charge of $50 year for tele-
phone service, to business houses, is
unreasonable and extortionate: yet the
Southern States Company has not at
tempted to profit by the great dissatis-
faction the Bell Company has occa-
stoned. 1t is not actively soliciting
business; the Bell Company is actively
soliciting business. Such so-called com
petition cannot be depended on to offer
any relief therefore: there is already a
practical Monopoly.
The City Councils have the power to
amend the Bell franchise; it was speci-
fcally reserved in that franchise by
section ..
Councils can afford relief from the
present eXtortionate telephone charges
by fixing maximum rate. and con-
forming the Bell franchise to the condi-
tons, privileges and restrictie4-t,ff tire
States franchise. This would merely
put the two local companies on the
same footing. and would he no Injustice
to the Sell Company.
These are the facts as the Virginian-
Pilot finds them. They are set down
with no tingc of malice toward the
southern States or Bell Company. ana
they are respectfully commended 10 the
attention OF the City Councils, and it's
committee, which are alone able to
handle the situation effectively with
out law suit, and which are under
double obligations to- take the matter
up-as protection to the Citizens OF
Norfolk and because their predecessors
helped to bring the situation about bv
giving the Bell Company an unfair ana
Illegal advantage of the public and OF
its alleged competitor.