Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-24

The telephone monopoly of this city
has made money and paid dividends
from the day the first Hello" passed
over It's wires. twenty-three years ago.
1T has increased it's capital stock TO
S3S 100000 out Of It's earnings, has sue
cessfully, thus far, smothered competi-
ton, and is giving about as poor ser
vice to subscribers as there is in the
world.
The Journal contends that a five-cent
telephone for five minutes conversa-
ton in Greater New York would pay.
The New York Telephone Company
says that the present fiat rate of $24O
year and the present call rate of IL
cents for five minutes use of an in
strument are the lowest rates that can
he made to insure reasonable profit,
and that to reduce them would be to
rob the widows and orphans" who
hold the stock
lust a few figures on this line:
The original telephone rental was
$50 year. At that time. almost a
quarter of century ago, the telephone
business was practically in its infancy,
the cost of the installation of plant
had been great. there were no long
distance phones and the pay station
system had not even been thought of.
The rate was reasonable under the
circumstances. and subscribers allow
ed outsiders to use their telephones
without asking for pay. The company
pTOSDcTcQ despite ulillcultleS anu the
service was extended.
THE MONOPOLY'S FIRST CHANCE.
There came a time when business
was growing so fast that the telephone
monopoly saw an opportunity to make
more money. The price for the use
of an instrument for one year was put
up to $50. OF course. there was Il roar
of protest. but there was no compe-
ttion. The Bell Company had all the
that worth awning and
protesting persons were CURLY inform
ed that If they were not pleased with
the rate. it would afford pleasure to
the company to take out the tele-
phones.
The city grew, and the telephone SER
vice grew with it, The expense of eX-
tending lines was heavy and the tel
ephone monopoly, by legislative action,
was allowed to control the subways.
ii was not because the monopoly wish
ed 1t so. but because public sentiment
demanded 1t. that q provision was
made in the law that any other com
pany, wishing at any time to use the
subways should be allowed to do SO.
THERE IS NOW A TELEPHONE
COMPANY. RECENTLY ORGANIZED
WHICH HAS WIRES IN THE MO
NOPOLY SUBWAYS, BUT IT is NOT
DOING BUSINESS.
Despite the Preat expense incum-
bent upon the extension of it's service,
the telephone monopoly made money
and paid dividends. but the rapacity
of the monopolists was awakened by
the contemplation of the rich field they
had to work. and they raised the tel
ephone rate from 500 to $3.50. There
was another roar of protest, as futile
as had been that marking the first adj
vance. The telephone people an
nounced that tine growth of the bust
ness was cutting down profits, and
that the advance was necessary to en-
able them to make improvements and
extensions
CRUSHING AND ABSORBING
RIVALS.
With the growth of business and the
increase in price the profits of the
monopoly amounted to an astonishing
degree It branched out and absorbed
other concerns in the territory around
New York Some of these concerns
were not paying. but there was method
in their absorption, for the monopolists
realized that the patience Of the people
would be exhausted some day. and that
growing concern. even though located
outside of the city. would furnish an
ambitious independent company with a
foothold on the borders of the gold
mine.
IN COURSE OF TIME THE BROOK
LYN EXCHANGE MERGED INTO
THE MONOPOLY: EXCHANGES IN
NEW JERSEY WE'RE BOUGHT IN
OR BULLIED IN-UNTIL THE NEW
YORK TELEPHONE COMPANY, IN
CONJUNCTION WITH THE AMERI-
CAN BELL TELEPHONE COMPANY
AS THE NATIONAL MONOPOLY
WAS KNOWN AT THAT TIME, HAD