Omaha daily bee., 1903-03-19
TWO REPORTS ON TELEPHONES
Minority RecOmmends Legislative
Reduction I'm Rates, hut Bill to
That Effect Postponed.
(From a star Correspondent.l

From a STAFF Correspondent
LINCOLN, March 1S.-(Specfal.)-The
special telephone investigating committee
finally made it's report today. But instead
of ole, there were two reports and the
prospects are good for another one tomor-
row.. With the report signed by the en-
tire committee was a supplementary minor
ity report signed by Howell and Warner.
This minority report recommends that leg
islation be enacted that will cause a re- |
duction. of telephone rates IN Omaha on
business phones of 25 per cent and on res
idenee phones of 33 1-3 per cent. These
two also gave their reasons for believing
that such a reduction would still leave the
telephone company a fair per cent interest
on its Investments. A emb of the ma
jority of the committee who had not known
the minority would bring in a report, stated
that tomorrow the majority would bring in
a report saying that the deductions made
by the minority were not in accordance
with the testimony taken.
The committee agreed, on some Of the
findings and recommendations. The report
contains much Of the testimony taken and
a comparison Of the rates charged in nearly
every town in the state. Following Is a
summary of the findings and recommended
biOho Va II COmIullNoos o.. .
summary of Report.
First, we find from the evidence that the
cost Of construction varies SO much in dif-
ferent localities and depends so tnuch upon
J the material used therefor that 1t is Inn
I possible to say Just what the total COST
per phone, per line or per mile .ahouidg be-,
The telephone business in Nebraska is
controlled at, present by the Nebraska Bell
panies known as Independent companies,
the Bell company having about seventy-fve
and the independent companies owning
about 100 exchanges and 5000 miles Of toll
lines. Each system is extending rapidly.
The highest rates in existence An the state,
are in the city of Omaha. There the ex-
change has in operation about $500 phones,
the best class of service. which is for a full
fmetallic circuit, unlimited service bust
ness phone is charged for at the, rate of
$3.50 per month within a radius Of two miles
from the central office, which charge is
gradually increased for each quarter of a
mile beyond the two-mile limit, and the
lowest class OF service is for a ten-party
line residence phone, which is $3.50 per
month. The average charge for business
month. The average rental Tor residence
phones is about 1898 per month. The rates
between those two extreme charges are so
varied that the committee will not mention
all of them in this report.
No testimony relative to the rates In the
city of Lincoln was taken, but in all Of
the cities and towns throughout the state
where the Bell Telephone Company has ex-
rates vary from IS to 81 pei. month foF.fuil
metallic circuit business phones and for
residence phones from 81 to $3.50 per month
for a full metallic circuit.
The independent rates over the state are
mostly 81 for residence and 81 for business
extremes.
The committee found that where the Bell
emit people it had reduced its rates in some
instances to 20 cents per month for resi-
dsnce phones and to H75 for business
Bell rates had been double the amount
The committee found that where there
was competition between the Nebraska
company and the Independent companies
the rates OF the former were lower and
where there was no competition the rates
/, Of the independent companies were lower.
: The committee found that only about sc
y per cent of the gross receipts OF a telephone
company could be figured as profits. In
' the opinion. Of the committee, where a
. monopoly OF the business of the city OF
village the granting power should have the
power to control and supervise the rates
and charges made by such corporation.
Minority Report.
The following minority report was signed
by Senators Warner and Howell:
/. A reasonable deduction of-alI the evI.
dence is that the Omaha telephone ex.
change is paying about 1914 per cent upor
the investment therein.
2. That in addition to this 1914 per cent
proht, the Omaha exchange is paying a mel
royalty to the American Telephone and
" Il 1tltDnOnG company OF ABOUT Ii per cen
upon the Investment in said exchange.
3. Therefore, that the total net profit
which may be properly deemed as earned
by the Omaha exchange is about q per cent
on the investment.
4. II appears further that the Nebraska
Telephone company. can make an average
reduction Of about 26 per cent of its rentals
charged in the clCy OF Omaha Rnd still
maintain its property and pay a 6 per cent
dividend upon the investment therein.
G. Therefore, we would recommend such
legislation as would tend directly or indi-
rectly to reduce telephone rentals in the
city OF Omaha to an average of about q
! per cent of the present rate.
z. The reduction Of rentals for residence
telephones should be greater than in the
case Of business telephones. ana hence we
would suggest that the reduction in the
case OF business telephone rentals be made
20 per cent and residence telephone rentals
33h per cent, as upon this basis resultant
average reduction will be about "a per cent
Committee Kills Bill.
In the meantime while the telephone
committee is wrangllng about It's report
the sitting committee has voted not to re,
port for the general file s. F. 2s4. the tele.
phone rate bill by Howell OF Douglas
Those who voted for the measure were Rey,
nolds. Saunders, Day and Werner This
leaves Hall of Douglas among the numbel
who voted to kill the bill.
The other matter OF particular interes'
in the senate was the discussion Of II. r
236. the Gilbert primary election bill. whiel
after much discussion was ordered en-,
crossed for a third reading. The bill give
the board OF election power TO question
each voter and compel hin to sweal
whether he has generally supported tn