The Indianapolis world., 1900-01-27
SATURDAY, JAN. 27, 1900.
TELEPHONE SERVICE.

Up in Detroit they had, once ON a |
time, telephone war. It. resulted in |
the establishment of a new company (
whose avowed object was to com pei |
competition and thus benefit the dear |
public. Now the oldest of the two |
ompanies-controlled by the Bell
has absorbed the newest, and the peo-
pie of Detroit, even with the danger of |
increased telephone charges confront
ig them are feeling better than they J
did when they were putting up cash
for and suffering the annoyances that |
accompany two telephone systems.
Discussing the matter, the Detroit |
News says; ''No city is big enough |
for two permanent competing tele-
phone systems, and that one of the
local concerns should absorb the
other was as invltaOle from the be-
ginning as sunrise and sunset. It is
all very fine to theorize about compe-
tition; but competition in respect to
telephone service ID ust be as unsatisfsc-
tory to the customers as it is unprofit-
able TO the companies. Telephone
service is o0e of those natural monOp-
olies, created by the very force Of cir
cumstances. There can be competi-
ton in telegraph service, in the ex-
press business and, with certain llmI-
tations. in the railroad business; but
competition in telephone service
means great deal of annoyance, if
no increased expense to the user, If
he tries to secure as efficient service
through two companies as he could
secure through one. Out of
the consolidation, however, they will
ultimately obtain many advantages
that are not to he lost sight of. Busi-
ness and professional men will no
longer be taxed for two telephones,
even if they are forced to pay more
for the one telephone than they paid
for either of those they have been
using for the past four years, while
the increased convenience cannot be
lost sight Of" What has taken place
in Detroit will take place in other
cities in due course of time. Every
business man knows that two tele-
phone services constitute a nuisance.
The advantages that ere derived, inthe
way Of lower pr ces for single phones,
from competition are more than
neutral zed by the increased cost and
annoyances resulting from the COM
pulsory employment of two services.
Consolidation must come, and may the
fittest survive. ve.-lndIanapolis Sun.
What is said aboYe by the Detroit
paper and the Sun has often been set
forth in the columns of this paper.
The telephone business is peculiar and
differs in some respects from all other
large businesses run by corporations.
Centrality OF control is essential to
getting the best results in the tele-
phone business, and the nature Of it
is such that it does not call for outside
competition to prevent what are US
ually called monopoly features Sue
cess in this business depends upon
efficiency of service and popularity
among the patrons. 1t is not a neces-
sity, in the strict sense of that word,
but luxury, and people can do with
out luxuries. Just as soon, therefore,
as the prices get too high or the SER
vice poor, the punishment will come in
shutting off the connections. In other
words, the patrons always have the
whip-hand. They can't be "cornered"
and forced to pay, as in the case of
necessities. when not satisfied they
can always quit, and this produces at
the worst only Inconvenience. 1t will
be seen, therefore, that the telephone
management always has the greatest
possible inducement, that of self-in-
terest, to give good service and keep
the rates on basis that will not cause
dissatisfaction. Thus, as we have
said, competition is not needed to
'keep down a monopoly" The tend
ency of the telephone business, so far
from developing abuses, is to get rid
of them as the best results come from
a perfection of the service in every
way.