Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-04-10
standing of the clubs follows:
LOWER RATES FOR PHONES
HEARING ON PROPOSED INCoRPoRA.
TON OF NEW COMPANY.
Mr.. Hemphill Tells What 1t is Pro-
Competition In Other Cities.

The hearing on the bill to charter a new
telephone company in the District was con-
tinued yesterday afternoon before tine sub
committee Of the Senate committee on the
| District of Columbia after The Stars re-
port was closed. There were present Sena-
tors Mcmillan, Stewart, Hansbrough and
! Kinney.
Mr.. ]. M. Wilson. president of the Chesa-
peake and Potomac Company, continuing
| his argument. declared that the petition
| favoring new company was merely the
result of giving somebody fifty cents or a
dollar apiece to get singers.
mot one Of these gentlemen has told you
| how he found out that this work could be
| done for s4s or $780," he said. mo facts are
| presented. The claim is simply based on
! the bald statement that they propose to
| give this service for $36 or s4s.'
| Mr.. Wilson wanted to know how much
| money would be received by the new COM
pany from its 1000 subscribers.
| Mr.. Webb: I'VE do not propose to stop at
150O."
| get money enough to pay operating ex-
penses and fixed charges. Do you expect
| to pay dividends on your stock?'
Mr.. Webb: I'VE have over 1000 subscrib-
| ers now
Mr.. Wilson: DO you expect to make divi-
dends?''
Mr.. Webb: when we have lived long
enough We will make Them
Mr.. Wilson reasserted that on 100 sub
scr1bers the new company could not Eiake
Its fixed charges and per cent its
| stock-in fact, that it could not expect to
pay any dividends on stock. They could
not do it, he said, with 5000 subscribers.
He wanted to know what they estimated
their plant would cost.
Mr.. Hemphill: I've will come to that.
These gentlemen are not going to put in
million dollars without knowing their bust
ness
Mr.. Wilson: do YOU propose to put in .
Mr.. Hemphill: 1--WE will come to that"
Mr.. Wilson said that he did not doubt
that the committee would find out from
pany whether it was possible for them to
provide the service at the rates they pro-
posed.
Plans of the New Company.
Mr. J. j. Hemphin then addressed the
subcommittee. He said that Judge Barnard
| had decided that the rate fixed in the Dis
trict appropriation bill for the Chesapeake
and Potomac Telephone Company was one
| for which that company could not do the
service He did not decide that telephone
service could not be given for those rates.
The question was whether a new company
was to come in and be allowed to furnish
the service.
| In reply to a question by Senator McMil-
| Ian. Mr.. Hemphill said the new company
would have S15O,OOO of stock and be allowed
| to issue $4,000 of bonds He said that the
| Chesapeake and Potomac company had re-
| Gently been established with $4,000 and
had expended between $780, 900 and $500, 900
| in building up its plant, in addition 10 pay
| ing interest on bonds amounting to $780,
| COO, all Of which money had come from the
| receipts of the company.
| THE point Of difference between these
| companies. as 1 understand 1t, is this" said
Mr.. Hemphill. 1.-The Chesapeake and Po-
| tomac Telephone Company is the licensee
| Of the American Bell Telephone Company. 1t
| formerly paid $40 per annum for each trans
| mtter and receiver 1t used and which was
| worth so or So. Now 1t pays $3.50 every
| year. SO that in every two years it buys its
| telephones over again. 1t has to buy its
| switch boards from the Western Electric
| Company, which is an off-shoot of the
| American Bell Telephone Company"
! Mr.. Wilson wanted to know how much
| the new company would pay for its switch
| boards.
Mr.. Webb suggested that the Baltimore
| company had a switchboard to accommodate
| 1000 subscribers that had cost S1O,O 600 when
| ready for business.
| Mr.. Wifson-"What will this one cost?''
| Mr.. Webb-"We will come to that when
| we get the charter"
Senator Kenney asked whether other COM
| panies beside the lessees of the Bell Tele-
phone Company could purchase material