The Washington times. (Washington [D.C.]) 1901-1902, 1902-03-03
CONGRESS MUSTSHOW
AUTHORITY TO ACT
Saturday in the Supreme Court Of the
United States is the following sketch:
History of Washington Plant.

"The first telephone exchange in Wash
ington was established by George C. May
nard and William H. Barnard. in Janu-
| airy, 1879. under the name of the National
Telephone Exchange
This continued until December 1. the
same year, when it was succeeded by the
National Capital Telephone Company. a
corporation which, in August. 1888. was
succeeded by the Chesapeake and Potomac
Telephone Company, the defendant to this
suit The assets conveyed to the present
company were: Cash, SIS. 600.5e; accounts
receivable, S9,12S-22; supplies, $3,61S.24;
stock National Fair Association, $100.
Total, s2.44s.25s less accounts payable.
SIS, 113.32; net cash assets. S77.334-93; cost
of actual construction. S9l, 1921. Total,
s16S. 1914.
For this the company delivered stock
to the amount of $4,000. its total capital
stock being $3.50. coo.
"At the same time the Chesapeake and
Potomac Telephone Company acquired all
the rights of the Telephone Exchange
Company. a West Virginia corporation,
then operating in Maryland. The con-
sideration was S1.9G0.000 of the capital
stock of the Chesapeake and Potomac
Company.
of this stock $500. GOO was delivered to
the National Bell Telephone Company and
$1.270,000 to the Telephone Exchange
Company. OF this last amount 100000
was to be passed to trustees for the use
of the Chesapeake and Potomac Telephone
Company, and subsequently, s62 600 there
of was assigned to the National Bell Tel
ephone Company. and the remainder. $751;.
geo. sold on the market for S24,546.61.
The Chesapeake and Potomac Telephone
Company received for this issue $l.scJ 600
cash. bills receivable and supplies, ST,-
334.93 and plant valued al $500. 600. To-
tai. $345. 045.24."
In discussing the management of the
company the complainants say in their
brief:
These extravagauces of the Chesa-
peake and Potomac Telephone Company
are stated for the purpose of showing
that whatever may be the result finan-
cially of the operations OF the company,
1t would be nanifestly unfair to over
turn an act of Congress because this
company cannot earn expenses and divi
dends. in view of the fact that its man
agement has been most extravagant and
inefficient, and especially when 1t ap-
pears that other corporations in towns
and cities of like size. with less than
half the rates OF charges. have been able
TO earn a reasonable income
In speaking Of the nature of some Of
company. it is stated in the brief of the
subscribers:
Instead of theories propounded by
girls and young men. inexperienced ex-
cept in the actual work of responding to
calls for telephone connections. the
court was entitled to have. and the de-
PENDANT might have produced. the rec
ords and accounts of telephone companies
in other cities of the United States, show
an ytin larIy no al
phone of the business in those cities
These records and accounts have been
studiously kept out Of the case and the
witnesses confined to repetition OF the
theories made plausible through mathe-
NAUTICAL tables worked out by ingenious
electricians. Not one witness is pro-
duced to show that the theoretical re-
suits of these tables have ever been
verified in actual practice. while noun
tain OF proof discredts them.
I'm the only case where the defendant
does produce figures from actual work
ings over a series of years. the results
are destructive TO every theory on which
defendant has rested its case, and most
strongly support the contention of the
plaintiffs.
Proofs No Answer.
THE proofs do not answer the ques-
lions: II excellent telephone service is
given in Toronto at an annual expense
to the telephone company of s25.26, why
may it not be given here at that sum?
IF. at rates never exceeding $50, the
Bell Telephone Company of Canada has
for years paid ) per cent dividends on
its capital stock. and has amassed $780,
OCO of reserve fund. why is 1t that the
Chesapeake and Potomac Telephone
Company cannot live and pay dividends
at like rates."