Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-08-09
GOVERNMENT PHONES
SECRETARY MORTON 70 EXAM
INE INTO THE MATTER.
Cabinet Officers Object to tie Proposed
Contract Rates by the Chesapeake
and Potomac Company.

An important step was taken at the cab
met meeting today toward the establish
ment of a telephone system In the District
OF Columbia by the United States govern
ment-primarily for its own use whether
for use by the public also to be determined
later, but at this stage being in embryo.
The whole question has been placed in
the hands of Secretary Morton of the Navy
Department, and he will at once begin an
investigation 20 determine Just what adj
vantage, II any, will accrue to the govern
nent If 1t should erect and operate an inter-
department and bureau telephone system.
The new Secretary of the Navy will de-
vote much time to consideration of the
question and will receive reports from the
heads and high officials Of all the depart
Chesapeake and Potomac Telephone Com
pany.
The question was suddenly brought up at
the cabinet meeting today by the statement
OF several of the cabinet officers that the
local telephone company has within the
last few days presented to several of the
departments blank contracts for another
year that fix the charges at figure con-
siderably above the charges in the last
contract
This has been resented by departmental
| officials, and they called the attention of the
head officials to the situation with the re-
at the cabinet meeting.
| The opinion of cabinet officers who had
not investigated the question thoroughly
was that the local company was raising
rates without good reason, and that there
was likewise no good reason why the gov
eminent should not construct Its own teie-
phone system.
Secretary Morton at the close of the cal hi
net meeting, said that he did not care to
discuss the subject now, as the matter had
just been placed in his hands and none of
the cabinet officers had given 1t serious
thought. All he knew was that there was
strong opinion that the government de-
partments were being charged too much for
the service they were obtaining, and that
the question of establishing government
system would be looked into from every
standpoint
Attorney General to Investigate Laws.
The cabinet officials were not posted as
to the laws that are in existence as to
| telephone charges in the District, but At
torney General Moody will make an inves-
tigation that he may be able to report the
| facts to Secretary Morton. The controller
of the treasury recently decided, however
| that there are now no laws on the statute
| books covering telephone charges to the
government except as to the District of
Columbia, and that the telephone company
may make and apply its own rates. The
| laws now in existence, the controller held
applied to charges to individuals. The de-
cisfon of the controller was to the effect
| that the law of April q, 1904 the work of
| the last Congress, repealed all prior laws.
| and that the last law, as stated, applied
| solely to rates to individuals.
The allegation is that this construction of
! the law induced the Chesapeake and Poto-
mac Company to prepare to raise rates to
| all government departments
While the whole matter of a government
| system is at present in embryo 1t is proba-
BILE that Secretary Morton will make COM
DIete investigation and reOOrt his view to
| Congress and to the President with recon-
| mendations for or against an interdepart-
| mental telephone system-constructed. own
| ed and operated by the government II the
| recommendation is in favor of such sys-
| tenn, and the outlook at this time is that
| it will be- Congress will be asked to provide
the necessary appropriation for the con-
| struction and operation of the system.
The government pays thousands of dol
lars year to the local telephone company,
and the company has many thousands of
| dollars invested in lines Instruments etc.
| in the various departments OF the govern
ment. Consequently, the present step is an
| important one in many ways. not only to
| the government, but to the telephone COM
pany. The tearing out of many miles or
| telephone lines would be big loss to the
| telephone company.
| The question of telephone rates under the
| laws prior to April 1904, has been in litfga-
| ton in the courts of the District for some
| time.
| The officials of the telephone company
were not prepared to discuss In detail the
| cabinet move today. Mr.. +. H. Bethel.
| the general manager, said that he did not
understand there had been any disSatis-
| faction with the rates submitted to the de-
| partments for contract this year, and felt
| that the rates did not average above those
| in the past years. he felt that when the
| matter had been fully investigated by the
| cabinet officers they would come to the con-
cluson that the rates q whole were not
| increased.