Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-18
The TeIeDhOue Rates.

The Telephone Rates.
\ brief consideration OF recent history in
thu. matter of local telephony ought to sat
i-fy the Senate that there Is no good rea-
son for showing further leniency toward
the Chesapeake and Potomac Telephone
Company by refusing to pass the bill now
pending granting a charter to rival cor
puration and al the same time refraining
from compelling a radical reduction OF
its rates The old company prior TO the
passage OF the act of 1898, which attempted
90 reduce the rates. charged for telephones
from 800 for residences to 1928 for business
houses with unlimited service There Were
some special instances of fancy equipment
ur unusual services which called for even
higher charges, sucn as the s14S year
charged the plaintiff In the test case de-
cided by Judge Barnard and now awaiting
argument on appeal. The appropriation act
of ISIS reduced the maximum charge to
t.ap year for unlimited service. one party
on a wire. The company demonstrated to
tn satisfaction O: the lower court that IT
could not afford TO give such service for so
low rate. that 1t would BE- confiscatory
and consequently Illegal. being insufficient
TO meet the cost Of actually maintaining
the single telephone. The company proved,
that it cost s6S57 a year to maintain sim
gle telephone. based on "A six-year average.
Il is immaterial to the present considera-
ton that this showing was seriously i'm
Ioached. II suffices to note that on the
ccmpanys own claim the cost of maintain
ing business telephone was, only tritie
over one-half of the s125 charged
The Chesapeake and Potomac company.
having made that showing, and confessng
thereby to the enjoyment of exOrbitant
profits failed to meet the demands of the
situation by IL satisfactory reduction of the
rates to give the people freer access to
the service and at a compensation more
nearly commensurate with the cost of tee-
rhcny 1t offered no such reduction of the
fiat rates for unlimited service as It's own
records warranted. 1t contented itself with
extending a so-called measured SER
vice which ailured the small user.
u rmitting the introduction of phones
into residences and smaller business
places at a lower initial cost than be-
fore. and extending this Offer TO the large
user in terms which at first confused the
subscriber and in many cases tempted him
to change the form Of his contract. often
later to his dismay The measured service
has had the effect of increasing the num-
beg of phones in use In the District. but it
has lot adequately reached the case of the
average user, whose business frequently
conpcls him to employ the phone SO often
that no measured rate could prevent him
from being heavily mulcted In thus gam
bling upon the number of telephone calls
which would be needed during the year the
measured service subscriber has too often
suffered the fate OF him who inexperienced,
permits himself to be drawn into and to run
against another mans game.
Primary consideration ought TO be given
t. the unlimited service demanded by mod
ern business methods which has been used
the basis of comparison of rates in diff
fcrent cities and which Congress has under
taken to regulate In the public Interest.
Such service now costs virtually the same
~ before the act of 1893 was passed SGD
while the expense to the company on its
own best showing for a six years average
is only s66.57.
The question, however. is not what this
telephone company can afford 10 furnish
the unlimited service for. but what It can
lie supplied for by anybody. 1t is claimed
that good telephone service In a city Of
large size can be rendered at a cost of less
than $50 and figures are given Gncludlng
contention. The Chesapeake and Po-
tcinac company has no vested rights
in the District, no charter. no fran
chise. 1t Is here merely by suffrance. 1t
is not liz position to exact rates which ac-
cord only with is own ideas of profit. The
rules of business and equity should first
apply to force the rendering of the service
TT q rate which represents the present
trend OF reasonable prices in other cities,
the actual cost of installation and main
tenance and the fair profit which Is to be
granted to every private enterprise serving
the public. But in fixing this rate and the
prospective rate e profit the company
should not he permitted to cite Its own
'ecords. arranged oy it's own experts, to
swell the cost of maintenance. or to OBJ
-cure the actual cost of installation. 1t
should not be Permitted to charge against
the public the interest ON watcred stock or
the capitalized extravagances Of the past
or the heavy royalties paid by the corpora
tion In one capacity 10 Itself In another.
On the basis OF what it costs today to op-
crate telephone service with unlimited use
offered to the largest subscribers, it should
be compelled to reduce Its rates to the
point Of reason or else step aside for an
other company. pledged and bonded to rem
der satisfactory service for rates far below
those charged by the present monopoly.
In the floral offerings to Quay In the
- nate yesterday there was a noticeable
pieponderence of white flowers. emblematic
ot purity. 1t Is understood that they came
ficm Mr.. Quay's friends of the Sugar Trust.
Passing Old Lines.
Mr.. Cleveland. as he frankly confessed.
WAS In sermonizing mood at the dinner Of
the Holland Society In New York last night