The evening times., 1900-02-05


are usually rated as business or residence
subscribers. and not wholly dependent
on the number of telephones on one line,
and as they are in places differing SO
widely in many respects from this city.
no exact comparison can be made, either
as to the productive capacity of the rates
or as to the necessary cost of the plant
and equipment or as to the efficiency OF
the service.
In the places where this cheaper t3le-
phone service is had, the cost Of con-
struction and maintenance is usually less
than it is possible for il to be in this D.s-
trict. In some places il is almost wholly
aerial construction. with no prohibition
against erecting poles or stretching wires
across streets and alleys, or attaching
them to house-tops. as appears TO be the
case in some Of the European cities. and
in some of these cities companies are al
lowed to stretch their cables through the
sewers, without the expense OF laying con-
Quits in streets In many other cities,
however. the rates for telephone service
are higher than those in vogue in this lis
trict. In Grand Rapids. Mich. and per-
haps some other cities where testimony
was taken, there were rival companies.
causing competition, and where 1t was
shown that nearly every subscriber had
two telephones, one belonging to each
sarily more incOnyenient, confusing and
expensive than to have only one COM
pany.
The rates OF some companies are only
regulated by mutual contract, without
competition; others. with competition:
while as to others, the rates are fixed in
the charters or by ordinances or statutes
of the municipal or State governments. As
a rule, the average distance from the
pQptroI Office in fl nfhaP gificz WhprQ
testimony was taken, is much less than in |
this District; and telephones Of the indie
pendent companies, so called, have no
such advantageous connections with long
distance lines those in this District
have. The companies furnishing the lower
rates have generally been in business only
a short time. and IL is not clear from the
evidence that they can make any profits
at the rates charged. and at the same
time keep up the plants in good condition
Rate Comparisons Weak.
There are certain contingencies that
must be anticipated. Depreciation OF over
head plants and OF underground plants !
must be calculated upon and provided for. |
What is known as electrolysis frequently I
interrupts the lines and threatens the de |
struction OF the cables and is an enemy 1
requiring constant watching in under
ground construction. This is frequently 4
caused b. the escape Of electric currents 4
from the trolley wires or electric light [
wires. and it melts or destroys the pro- .
tecting coverings of the cables. In over
head construction sleet and WlndStOTmS .
and large fires often DO great damage The
natural life Of telephone poles it about ten
years With a new company these things
are not so carefully considered in making
up statements as 10 annual income and
profits experience being required to arrive
at any certainty as 10 the business being
profitable or otherwise The books Of these
independent companies were not shown
and not examined b. experts.
Taking all these differences into consid-
Grafton. there can be very little comparison
which can be relied upon between the sew
eraI cities where the cheaper rates prevail.
and this District. and consequently the
greater part Of the evidence taken by the
should be given less weight
in determining the question new under con-
sidcration than the evidence showing the
actual experience requirements. and con-
tingencies OF this particular locality What
some other company can 90 in some other
place where the conditions are essentially
different wages lower. as in Europe. prices
of material less. construction on a different
plan distance from central Office less,
business centre of city we'll deiiu-
ed and nearby. and where there are many
ether differences in the character Of the
people the methods in which business IS
conducted and in ether matters. cannot
aid the court very materially in ascertain
ing whether the rates fixed by this act. I
On a different basis from any Of these. viii /
afford a Just remuneration 10 the defend- I
ant fer the kind of service supplied in this
District under the circumstances under
which the business here has been de-
veloped and maintained. and the court
ought therefore TO give greater consider
alton TO the facts derived from the expert ,
euee of the defendant. than 10 theories OF
experts who are without any experience IN
this particular field. u
Based largely on this experience, fully
shown BY the expert accountants, Haskins i
and Tompkins and being satisfied that the
company has been managed with reason ,
able prudence and economy. employing no
more help and buying no more materials
than was necessary. and that 1t has given (
the best service which could reasonably /
be expected having the most approved /
appliances and employing men and women I
who ere we'll skilled in their particular
deDsrtmpDts ! am convinced beyond any I
doubt. after disallowing all ex-
penses in the past experience about which
there is any room for fair difference OF
opinion. that the defendant cannot con-
Time to render the same efficient service {
TO subscribers located throughout this =
District that il has heretofore. without in :
curing greater expense per subscriber ;
than the maximum rates fixed by this act
ON this principal issue. / am compe. led :
n hold that the averment of the ans er
s sustained by the proofs, and it IS
7ecessary to undertake 70 determine here =
now much money should be set aside ( r
of plant or other contingent
xpenses, or how little reward on capital :
invested will satisfy the rule that Tequ res
come return to be possible.
Questions of Constitutiona1ity.
Having reached this conclusion, eft
considering all the facts and circumstances
IF the case proper under the au horitie5
% be considered. and making all ailos anees
which seem to be required by the eondi-
lions shown, it follows. as matter OF
course that these rates are not. in my
judgement just and fair as between TIE
defendant and the public. ]
No person has a right to compel another
person to furnish him telephone service
or other service or property at less than
it's cost; and Congress has no power to
pass a law which must necessarily have
that effect No doubt Congress can, by
proper law. that win be unobjeeti0nable
on constitutional grounds. regulate the
rates to be charged by the defendant; and
the Court need not consider whether the
charges heretofore made by the defendant
and agreed to by the subscribers were
higher than they ought to have been, 10 !
be fair and Just to the public y
These questions are not raised for judicial
,ninfon The Court has no power to fix \
rates. That is for Congress. or the con- 1
- ,ort;aS 70 do- and IL iS not for tho /