Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-06-29
TELEPHONE COMPETITION.
The Independent Movement is Not to
BE Despised.

The Independent Movement is Not to
BE DeSpised.
From the Providence Journal.
At the recent convention of the indepen-
dent telephone companies it was stated
that 800, 600 instruments are in use in the
United States, and that Of this number
nearly two millions have been placed in
stores and residences since the expiration
of important Bell patents, about six years
ago. This estimate, if correct, shows that
the Bell company was upwards of twenty
years in creating demand for over half a
million telephones; and those who are ia
mliar with the Bell policy Of high rates
will not question the statement that COM
petition alone made it possible for the pub
lie to secure telephone service at reason
able prices. The original plan was to draw
dividends from a limited number of pa
irons; the Independent idea was to have as
many customers as possible and to encour-
age the use of the telephone by offering
rates which persons of comparatively small
incomes could afford to pay. The result Of
this liberal policy was the remarkable de-
velopment of the industry, as indicated by
the statistics submitted at the Cleveland
convention.
not to be despised has been proved by con-
cessons on the part of the Bell companies,
which, until within year or two, acted on
the general principle that monopolies can
for years that money would be lost by
reduction of charges, but the enormous
dividends declared told different story;
and when the basic patents became public
property the Independent companies had
no difficulty in securing rights to establish
exchanges in the localities occupied by the
Bell corporations. Then the public soon
learned that instruments as desirable as
those having the Bell trademark could be
obtained At the eleventh hour the old
companies realized the error Of prohibitive
prices, but it was too late to drive com
past six years the corporations which pay
no tribute to the Bell interests have in
creased in numbers and have the reputa-
ton of serving their patrons satisfactorily
1t has been demonstrated that there Is no
monopoly in telephone business either IN
small towns or large cities when more than
a reasonable profit is exacted, ana II mas
been proved that two competing companies
can at least clear expenses IN the same
territory. The use Of two instruments has
its disadvantages. 1t is better to have only
one exchange furnishing service at rates
owner or tenant can afford to pay. If the
Reli companies are wise they will intrench
themselves in places not yet INVADED py
the indenendents not by franchises OF con-
tracts with cities and towns, but by oner-
ING superior facilities and rates Whlcn are
not exorbitant. Competition - no. ~ uv
feared where dividends are reasonable: new
Enterprises flourish best where stocknoid-
orc receive 10 or Is per cent on their IN
easements The showing made by the IN
dsnendent Telephone Association IN CieVe-
land a few days ago may be accepted as
strong evidence In support OF INC ass., ' ~,
nnnents ready to take advantage OF the er
rors of the old policy, and not oislnchneo
~ invtte competition Of service and tolls.