The evening times. [volume] (Washington, D.C.) 1895-1902, 1900-02-05

The COniPany7s Income
! The evidence Of Mr. Haskias shows be-
yond question that the income realized by
the defendant from its previous rates. as
: per contracts. was. in round figures. at the
/ rate OF a little less than $500. 100 per year,
and that for the six years prior TO said date.
/ the total gross earning OF the defendant
/ had been as follows:
| For 1892. Sis. 639. IS.
| For 1898, $194. PSI. 81
For 1884. $192, 2Sg. so.
[ For 1895. s194 1857.
| For 1886 $194. O7O.3 80
For 1897, S206 417-64.
| That the total expenses during the same
| period bad been as follWs:
For 1882 $IG6. 12I.33
| For 1888 SfI9 1873
For 1894. 1928, 045.S9.
For 1895. SOS. 1O2. IS.
For 1886. $l21 ia 81.
For 1897 $lS6. 276-79.
About the same average OF earnings Is
/ in 1897 was kept up for the first nine
months OF 1898 The average expense per
Z telephone during this time was a. the rate
OF $71.20 per year. During these six years
/ the dividends paid on the stock allotted
TO this District 1$75000O) were as fol-
lows:
For 1892 2. per cent. 81. eco
For 1893, , IL per cent, $3.50.
Fer 1884. 2 per cent, So. O0e.
For 1893, per cent Sl5.OC0.
For 1886. 3 per cent So. 500.
For 1887, 4 per cent $50 COO
The average rate Of earnings Ter sub
scriber during these six years was. ia
round figures, about Slt0, so tia &C. ap-
pears that the income derived from the
contracts Of the defendant with irs sub
. -rfh az ont fa-
than the income which woald be derived
from the rates fixed by the statute. re kon-
ing on the basis OF an equal number CT
subscribers OF the same classes.
Il is claimed. by counsel for complain
ants. that much larger number OF sub
s-rb-rs would az once be procured r the
defendant should observe the statute rates.
and that sp0BdiRgly greater profits
would follow. While IL IS quite probable
that an increase OF subscribers might be
the result OF the lower rates. yet iJ Is by
10 means certain that such wOuld be the
case II is likely that most OF the bust
ness houses and Offices and officials Of the
Government in this District and many Of
the more prosperous residents. have the
telephone now, and the population is so
largely composed Of people employed in
the Departments. aud officially connected
with the Government. who would not ger
orally have telephones 20 their residences.
that the increase o. subscribers raruCt BE-
relied upon TO such an extent as iJ might
De in other cities
II @ considerably larger number % sub
s.rihers should. however. result the av-
erage expense per subscriber would TO,
/ In my judgment be reduced. The cost OF
construction ia the central Office and the
. cost of operating. would be increased for
such additions per subscriber. IS switch
| boards are now constructed. while the gen
\ eral expenses and salaries might be reiuc-
Ga per subscriber.
Conditions Of business.
The safer guide for the future is the
history and experience Of the past. In
the case 81 Smyth vs.. Ames. I6s United
States. thu experience OF the railroad
companies 'or the pas. .hree years was
made the Do sis Of calculation for the prob
able effect of the sJatutr and the Court
page 523) uses this language in approval
OF such method.
The first and most important cOnten-
ti6n Of the plaintiffs is that If the statute
had been in force during any one Of the
three years preceding its passage. the de-
. PENDANT companies would hare been com
PEELED TO use their property for the public.
substantially without reward or without
the just compensation to which they we're
entitled We think this mode OF calcutta
ton for ascertaining the probable effect
OF the Nebraska statute upon the railroad
companies in question, is one that may be
properly used"
The telephone business is vet too young
to enable the making OF calculations for
the future from which results can be re-
liably asceTtained. IL is largely in 4
trsi.~.-inn state. especially so as 10 switch
beard construction and exchange service.
There are uneXpired patents on some of
prOyemenJs are constantly being made:
and while there are some instruments free
from patent rights il is claimed the best
instruments are subject TO royalties. The
contracts Of the defendant company with
the Bell Telephone Company and the
Western Electric Company require the de-
PENDANT TO pay annually about $3.50 per
telephone for receivers and transmitters
used by subscribers and for drops on the
switchboard in the central office. For this.
however. and by virtue of their contracts.
they are to have the use OF all such patents
as the Bell Company now owns or here
after acquires, 50 that it. may be regard
ed as an advantageous arrangement IN ali
ways except as TO cost, for it secures to
the defendant and TO each subscriber the
best appliances Obtainablc.
The evidence shows that the books of the
defendant we're well kept. and that they
were fully examined by the expert account
ants with papers and vouchers; that its
business was carefully cOndG rted with rea-
sonabIe economy, considering ,ae quality Of
the service rendered and the novel charact-
er of the business; that the total amounts
expended for the purchase OF real estate
and construction of the plant to the date OF
December 81. 1885,. was SOS, ILLS; that the
charges to maintenance and construction
as appearing on the books. we're CORRECTLY
made. and that the cost OF replacing the
present plant, or the value Of the plant as
IL then existed, was. at the time of the
passage of this act. S441. 1856. The mum
Der Of miles of underground conduits laid
IS Is -, more than half Of the same being
laid under asphalt pavements- These con-
Quits are made OF vitrifed terra Gotta ducts
with manhoIes at certain distances, and
the cables or wires are drawn through
these ducts from manhOle to manhOle, as
they are required for new subscribers.
Expenses OF COastrnetIon.
This is called the drawing-in system, as
distinguished from the solid-conduit sys-
tenn, previously in use. The cost Of add
tional ducts to provide for future growth
of business is very tri6ing. as compared
with expense OF opening streets and dig
ging trenches and constructing manhOles.
and it is in evidence that some three or
four thousand additional subscribers could
be served by cables to be drawn in the
vacant ducts now maintained, il they
should be obtained in locations convenient
to said coRduits.
Before reaching this style Of conduit
the defendant spent Sis, coo in solid con-
and ooh