The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-01-05


Judge Jere NJ Wilson. President II the
Chesapeake and Potomac Telephone Com
pany has given out the following state
ment in reply to a circular letter recently
made public by samuel Ross. President of
The Washington Telephone Company:
To Whom II May Concern The Chesa-
peake and Potomac Telephone Company
recently issued 10 It's subscribers who we're
affected thereby letter announcing re-
duc,iCn Of rates for telephone service and
mileage TO take effect January /. 1891.
have received from various sources cir
cular letter over the signature Of Nj. Sam
uel Ross. Of this city. dated December q
Iast. which declares that the letter Of the
Chesapeake and Potomac Telephone Com
pauy above alluded TO. is simply method
of defeating the bill for the incorporation
Of the Washington Telephone Company.
now on the Senate calendar Mr. Ross
charges the Chesapeake and Potomac Com
pany with q want OF good faith in max
ing changes IL rates and attempts TO sus-
tain that charge by statements designed
70 say that the revenues Of the Chesapeake
and Potomac Company are increased by
these changes Some of his statements are
short of the whole truth. and his circular
letter is generally incorrect and misIead-
ing. and. as he seeks to promote his en-
Jerprise by misrepTesenting (probably IN
intentionally the Chesapeake and Poto-
mae Telephone Company I submit the fol-
lowing facts:
1t is true as stated by him, that in his
pending bill the offer is made TO furnish
business telephones at SIS. and residence
telephones AT $50 per year. but he has not
Yet made any showing that the service can
be furnished at these rates assert that
such rates viii not pay the cost of operat-
ing and maintaining such plant as he
mentions and a reasonable return on the
capital invested. When Mr. Ross discovers
a method Of doing business at less than
cost and making q profit. he viii have sup
Piled a long felt want. and be indeed a
bsnefsctor.
The greater part Of this circular let
ter is devoted 10 an attempt TO show that
there las been no real reduction in the
rates Of the Chesapeake and Potomac Tele-
phone Company IN support Of this asser-
ton Il Is stated that the reduced rate Of
SIS per year. which Is advertised. IS for
service for six parties on line, and that
while there Is a nominal reduction to the
subscriber. there is an actual large in
crease in the receipts of the company il
that # receives $2SS for a single wire. IS
against $36 proposed 70 be charged by the
new company
inaccurate and Misleading
This is entirely Inaccurate and mis-
leading, as an indication of the profits hat
the Chesapeake and Potomac Telephone
Company would derive from a single line
the inference sought TO be suggested by
Mr.. Ross being that while the company
receives but $I25 for unlimited service
upon a metallic circuit by placing six
parties on a line. it receives $288 for the
same thing.
He does not call attention 70 the fact
that connected with this six-party line
there are SIX telephones. the expense Of
installing and maintaining, which is five
times greater than the expense OF install
ing and maintaining the telephone 70
which the maximum rate is charged; nor
does ne mention the fact that the expense
Of operating The SIX telephones Is much
greater than the expense Of operating
one, nor does he speak Of the loops OF
copper wire, varying in length from one
eighth 20 one-haIf mile. that have 10 be
strung and maintained from the cable
terminal 10 each Of the SIX telephones. !
When these things are considered. the
faIlacy Of the deductions OF Mr.. Ross be
comes apparent.
The same is true Of the rate Of $50 for
measured service Al residences upon six
party lines. as 70 which Mr. Ross saws.
For a measured service residence teIe-
phone The Chesapeake and Potomac Com
pany has announced pref ended reduced
rate Of $50. with SIX parties on lire. or
$3.50 for q single wire. and this covers
only 6tJ calls IN addition to the con-
stderations just stated. this statement is
erroneous in the further respect mat IL
asserts that the use OF the line Is limited
10 but 500 calls For $50 year 500 out
going calls are allowed each telephone. OF
$500 in all. and the number Of incoming .
calls that may be received Is unlimited.
Aside from this, the two rates above /
discussed land which are the only rates /.
criticised by Mr. Poss in his letter. are T.
not and are not intended 10 be .reduc-
lions OF rates existing before their adon- /
ton They are new rates. established and /
applied 10 classes Of service and equip
ment never before in use N this city. and F.
have been introduced for the purpose of !
furnishing persons Of moderate neecs (
with an Inexpensive service b. means Of T.