Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-08-19
May Mean Telephone Monopoly.

Southern Bell Telephone Company has
decided to advance the rental of bust
ness phones. unlimited service. from
/, $4,000 to $4,000 per annum. and that this
advance is purported to be made be-
cause the company has $50 it states)
been doing business here at a loss OF
$1,000 year.
The telephone war of three years ago
is not forgotten. neither are the verbal
promises made at that time before the
Councils by the attorneys of the Bell
company. when it was seeking its fran
chise- The Bell company now states
that it proposes 70 inaugurate several
new kinds OF service, with rates rang
Ing from S12.eo to $4,000 per year per
phone.
Any radical change in the charges
for, OF methods of, conducting a great
public utility, dependent upon the gift
of valuable franchise from the pub
lie. deserves. and may expect, the most
careful scrutiny on the part OF the pub
lie For this reason it behooves the
business men of Norfolk, Portsmouth,
and Berkeley to take heed at the pres
ent time lest the present movement is
merely the cloak to disarm suspicion
and cover Interior designs looking to
q most complete monopoly of the tel
cphone service of the three sister cities.
1t Is suspected. by observant persons.
that 1t Is the intention of the Bell Tel
ephone Company to secure control of
.
pany for the purpose of removing it
from the field. With the Southern
Z States company out of the way, the
Bell company would have close mo-
nopoly of the local field, and could
charge such rates as it desired. Its
policy then would naturally be to pre-
vent the establishment of any compe-
ting line here. and to this end 1t would
bring it's immense capital and the
methods that have been used elsewhere
to kill competition.
In this connection 1t is timely to note
the different provisions as to rates in
3 the ordinances relative to the two tel
ephone companies here.
The Bell company may not charge
less than any competing telephone
company, but there Is no limit to the
maximum rates that it may charge for
its service.
The Southern States may not charge
more than $3S.00 per annun1 for a
phone. This maximum rate is fixed
by the ordinance.
- II ordinance granting. permission to
wv. r. Brown and j. a. Kelvin and
associates to install and operate the
plant now operated under the style OF
s5sthe Southern States Telephone Com
y pany. was adopted in 1895.
Section 6 is as follows: THE cost OF
telephone service to be rendered by the
said w. r. Brown and ]. A. Kelvin and
associates, by authority of this ordi-
nance. shall not, at any time during the
term of this franchise, exceed the an
nual rate of s3S per instrument for
business telephones, nor SIS per annum
5 per instrument for telephones in resi-
dences, and that where two or more
{ persons use the same residence circuit
the rate per annum per instrument
shall not at any time during the con
tinuance of this franchise exceed SCI
per instrument within the corporate
limits of the said city. and for quar-
tiers, halves and miles beyond the cor
Sporate limits aforesaid q like reasona-
BILE rate shall be charged, the above
rates to apply only to annual sub
ecrtbers; provided that no toll shall be
charged to the users of such telephone
within the corporate limits oe said city
for service to any point within radius
OF eight miles of the City Hall"
SECTION 0.
In regard to the raise of rates pro-
posed by the Bell company, it may be
we'll to note section OF the ordinance
& above quoted. Sec 0 SAYS: .'In CON
Norfolk will not grant the right to any
other person or corporation to erect,
build or maintain telephone system
except as hereinbefore named and de-
scrtbed; that is to say. the wires shall
BE placed underground and be subject
to the same regulations as are REQUIRED
OF the said Brown and Kelvin and as
SBocfates. and the person or company
operating the same shall pay to the
city the same consideration for the
privilege and be subject generally 10 the
4 came restrictions as tho said Bro,on and
) EeIpia and associates
It will be noted that Brown. Kelvin
and their associates are restricted as
70 rates they may charge for telephone
h service, and then why should the
s Southern Bell company not 'be subject
4 r6nerdIlgsf0 the same restrictinas as the sdid
E Broom, Hctrsn and dssocidtesS"
If they are SO subject how can thew
legally raise rates as they now pro
pose TO do?
When the Councils granted rights
here to the Bell company they never
contemplated the absorption by it Of