Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-01-05
SPECIAL NOTICES.
EXPLANATIONS OF TELEPHONE RATES.
WASHINGTON, D. c., January 8, 1901.

-. January o. 46VA
To Whom 1t May Concern:
The Chesapeake and Potomac Telephone Com
pany recently issued to its subscribers who were
affected thereby letter announcing reduction
Of rates for telephone service and mileage to take
effect January 1, 1901. have received from va
rious sources circular letter over the signature
Of Mr. Samuel Ross Of this city, dated the oath
Of December last, which declares that the letter
Of the Chesapeake and Potomac Telephone Com
pany above alluded to is simply a method Of de-
featng the bill for the Incorporation of the Wash
ington Telephone Company, now on the Senate cal
endar. Mr.. Ross charges the Chesapeake and Po-
tomac Company with a Of good faith in
making changes in rates, and attempts to sustain
that charge by statements designed to say that
the revenues of the Chesapeake and Potomac Com
pany increased by these changes Some Of
his statements are short of the whole truth. and
his circular letter is generally incorrect and mis-
leading, and as he seeks to promote his enterprise
by misrepresenting (probably unintentionally) the
Chesapeake and Potomac Telephone Company, 1
submit the following:
1t is true, stated by him, that in his pending
bill the offer is made to furnish business tele-
phones at $4S and residence telephones at $36 per
year, but he has yet made any showing that
the service be furnished at these rates. as
sert that such will not pay the cost Of op
Grating and maintaining such a plant as he men
tions and reasonable return the capital in
vested. When Mr.. Ross discovers method Of
doing business at less than cost and making
profit he will have supplied long felt want and
be indeed benefsctor.
The greater part of this circular letter is devoted
to attempt to show that there has been real
reduction in the rates of the Chesapeake and Po-
tomac Telephone Company. In support of this as
sertion 1t is stated that the reduced rate Of S4S
per year, which is advertised is for service for
six parties Il line, and that while there is a
nominal reduction to the subscriber, there is an
actual large increase in the receipts of the COM
pany,'' in that it receives s2ss for single wire.
against $50 proposed to he charged by the new
company.
This is entirely inaccurate and misleading as
indication of the profits that the Chesapeake
and Potomac Telephone Company would derive
from single line, the inference sought to be
suggested by Mr.. Ross being that while the
pany receives but $125 for unlimited service upon
II metallic circuit, by placing six parties on line
1t receives $lSs from the same thing.
He does not call attention to the fact that con-
nected with this sA-party line there six tele-
phones, the expense Of Installing and maintaining
which is five times greater than the expense OF
installing and maintaining the telephone for which
the maximum rate is charged, nor does he mention
the fact that the expense of operating the six teie
phones is much greater tLan the expense Of OPP
Grating does he speak of the loops CT cop
mol Nir in lone. .,I,I,
half mile, that have to be strung and mainta med
from the cable terminal to each of TIE six tee
phones. When these things are considered the
faliacy of the deductions IF Mir. Ross becomes
apparent.
The same is true of the rate OF $50 for
ured service at residences upon six party lines as
to which Mi Ross says: For Il measured service
residence telephone the Chesapeake and Potomac
Company has announced Il pretended reduced rate
of $50. with six parties line. $3.50 for a
single wire, and this only 600 calls" In
addition TO the considerations just stated this
statement Is erroneous in the further respect that
1t asserts that the of the line is limited but
go calls. For $50 year 600 outgoing calls are
allowed each telephone, $500 In all, and the
number Of incoming calls that may be received is
unlimited.
Aside from this, the two above discussed
and which the only rates criticised by Mr.
Ross in his letter not. and not intended to
be, reductions of rates existing before their
adoption. They are new rates, established and
applied to classes of service and equipment never
before in use in this city, and have been intro
duced for the purpose of furnishing persons Of
moderate needs with inexpensive service by
means of the best equipment. The rates Of the
Chesapeake and Potomac Telephone Company for
| unlimited service with metallic circuit long dis
| lance equipment have been substantially reduced
The mileage charges have also been reduced AS
follows:
Old Present
| Mileage charges Rate Rate
One-party line, per quarter mile. $40 $500
| Two-party line, per quarter mile. D.. 600 800
Three or more parties, per quarter
mile OBSERVATION-DISCLOSURES. 800 2.mJ
Mileage charges made by all telephone COM
| panies that have been engaged in business long
| enough to know that 1t costs much more to con
struct and maintain a line two miles long t:lan
another one mile long. 1t has however been til,
| effort Of tine Chesapeake and Potomac Telephone
Company to reduce mileage charges as much ,.s
possible. For this purpose 1t decided to estab
lish In tine city of Washington five exchange dis
tricts instead Of one, and in anticipation of til,
establishment Of the four exchanges the mile
age charges taken off upon AL telephones 10
| Gated within radius Of mile of each of tho
| proposed exchanges. This resulted totally dis
! pensinS with the mileage charges heretofore mad,
| in all parts Of the city, except in the extreu..
| northeast ard southwest. and in a substantial re
duction of such charges for telephones located be
you'd the onemle radi OF these cA'h:lge dist ricts
and, will be from the above these mileage
charges have been still further reduced 10 The tx
tent of half for and two party lines anr
two-thrds fo- other lines.
All subscribers TO unlimited service have beer
given opportunity TO avail themselves of th,s.
| new rates and these reductions without being re
Iured enter Into acts ut the l,.,lcct
| rates. In many cases the saving suse, ihcr.
! upon service and mileage charges has been Iuor,
| than $4,000, and in some than S10G U
per annum. the amount depending, of course uYor
the distance from the exchanges, the character 81
| equipment, etc
| The Chesapeake and Potomac Telephone ComJpan,
has constantly endeavored by the int reduction o.
message rates and party l!nes and by the reduc