El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-02-07
TELEPHONE RATES
How Competition Affected Reduc-
ton In Michigan Town.

How Competition Affected Reduc-
ton In a Michigan Town.
The following figures have been fur
nished by the agents OF the proposed
new company, and are given for pur-
poses of general information.
In the year 1892, r. A. Brett. OF
Chicago, started the Independent
Telephone movement in the state OF
Michigan, that state being considered
at that time the strongest Bell state
in the union. In each and every town
where he proceeded to organize the In
dependent company, the Bell company
was quick and ready to grant reduc-
ton of rates, which was a clear case OF
reduction through fear of competition,
and that it wished only to crush out
opposition with its great wealth, in or
der that it might have the field to it
self and charge what it pleased.
In this connection the case of Detroit,
Mich, is cited, in which the Bell rates,
previous to opposition, ranged from
S72 per year to $3.50. After comepeti-
tion the rates we're brought to S36 and
$40. The old company was quick to
meet the new cut. In smaller places
the merchants and manufacturers
brought the monopoly face to lace with
competition, and in that way they have
won both good service and reasonable
rates. I'll fAsO may Rob SOu0 pOlutST
by reading the Information given be-
low.
Port Huron, Michigan: Old rates
for business houses, S45 90; for resi-
derces $40. 90 per year. Three months
after Mr.. Brett's company began max
ing contracts rates were set at S3O.OO
and S24.00 respectively. When this
new plant was almost ready the Bell
company dropped to S24.0 90 and $500
| hat 0f a
month and q half to all who would con-
tinue to be subscribers for three
| months from April first, the time stipu-
lated for the new company to begin
| work. Nevertheless the maj ority OF
the subscri bers believed in standing by
the new company.
Escanaba: The Bell company,
which ad an exchange of nearly one
hundred subscribers in that little city,
was routed from the field, and the ex-
change closed. This was brought
about on account of the excessive rates
charged, viz S4S.OO per year for bust
ness houses. and $500 per year for
residences.
| George w. French was granted q
franchise Ia the interest of the COM
petiue company, and he succeeded in
ests blishing an exchange larger than
that of the Bell. He charged $2S. 90
and S2O.0Oa year. He is giving ex-
cel1ent satisfaction and 6rst-class SER
vice, and the people are more than sa-
tisfed with the exchange.
jackson, Observation-Disclosures rates of
telephones S4S 90 for business, $500
| for residences. Prices reduced to
S42 90 and S32. 90 through competition.
The new company gives service at
| the rate of $50. 100 for business places
and $1,000 for residences. The Bell
cOmpany's service is much better than
it used to be.
Benton Harbor: Former rates 81 and
So. so for business and residence. Pres
ent rates So and $50. Decrease due
to efforts made to organize a new COM
| pany which would give service at $3.50
and 81. so.
| Calumet: Rates were $50 and S4S per
aunum, respectively. The Bell COM
pany promised considerable reduction
when the opposition company gained a
foothold.
Ithaca: Old rates S3S and S2S. Pres
ent rates 1924. Reduction due to COM
petition. which offered service at $40.
| Charlotte:-TheB Bell company re-
duced rates 25 per cent owing to COM
petition.
Iona:-Rates were $500 and S35 90.
Since April 1st, 1892, they are S36 90
and 24.OO. A franchise was given to
the competing company the previous
fall.
Manistee:-The Bell rates were
$50. 90 and $500. The manager an
| nounced a reduction to $4,000 and
| $1,000 because the business men of the
town organized q stock company,
secured franchise, and prepared to
establish an opposition plant. The
new company promised service at
S24.OO.
Cadillac, Michisan:-War on the
Bell company was begun six months
| ago. The new com pany established a
system, charging $500 and $1,000.
| Now there is no Bell telephone ex-
| change existing in that city, and the
| present company has four times as
many subscribers as the old concern
had.
Flint, Michigan The Bell company
| tried to head off competition oy re-
ducing rates from S4S.OO to $26 90 and
S24.O 90. The new company was given
| franchise and put in a superior service,
met the old company's reduced rates,
| and doubled their list OF Subscribers.
Ishpeming, Kalamazoo, Three Riv-
ers, Grand Rapids, Petoskey, Charlie
| voiX, Marshall, Saginaw. Holland,
Grand Haven, Ypsilanti, Vasssr, ST.
| Clair, MeuOminee, st. Johns, Salt Ste.
Marie, Mt. ClemmOps, Owosso, Lud
diugton, Adrian, Hillsdale, Lansing,
have had similar experiences.
This work was all done within the two
years time that Mr.. Brett was operat-
ing in Michigan, that is in the years
1892 and 1893. Since then the con-
sbructiOn company he organized has
built In many larger and more import