The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-12-25
TELEPHONE WAR
TAXES NEW TURN
Bell Company Committee Out
With a Statement.
BUSINESS MEN MEET AGAIN
DECIDE TO MAKE NO RECON-
MENDATIoN AT THIS TIME.

The committee which was selected to
confer with. the two rival telephone com
paues IL the interest f the salt Lake
business mJn for a reduction of rates last
night al a meeting held in the Eiks' club
voted not 10 make any recommendations
in its report, which viii be submitted al
an open meeting 10 be held in the pario-s
OF the Commercial club on the evening OF
Ihui SCay. Dec. -. at s o'clock.
las! evening David Murray, TepreSent-
ing the Rocky Mountain Bell Telephone
company. submitted an Tltimatum upon
the latter COmpany's proposition. which
was read ana discussed BY the members
of the committee, and which is as fol-
lows:
Proposition of Bell Company.
December q. 1904.
Messrs. Simon Bamherger, chairman; J.
". DelarO j. NJ Marriott Joseph Nelson,
~ +, Rich, committeeman, Salt Lake
City. Utah.
Gentlemen: In a former communication
We have explained to YOU the advantages
OF cur rate plan, and pointed out the
saving to the community which results
from our apportionment of charges.
The extraordinary development OF our
business during the past year has re-
suited in net gain of 2,17S subscribers
during the eleven months ending Dee l,
an increase Of nearly 80 per cent, giving
total of more than 1908 telephone sta
tons in operation la Salt Lake City. OF
these Ills new subscribers. II40 were FOR
residence telephones, which me ans that
about 50 per cent OF the new installations
were at the rate OF 81 per month. Such
development is not only a, great advantage
TO people Of moderate means who. by
our system OF rates are enabled 10 obtain
telephone service IN proportion TO their
needs, but il means also that each mer-
chant using our service can get cOnnec-
l.
and that the value of the utility to him is
correspondingly increased.
Profit to the Merchants.
\ telephone service like that provided
by the Rocky Mountain Bell Telephone
company, which furnishes one telephone
to even ten people, including women and
children, In Salt Lake City. is not only
ttme-saver, bur IS direct source of
revenue TO the merchant, since the profit
on orders received by telephone is over
whelmingly greater than the cost of IA
cllties for receiving such orders. The
merchant benefits more by the increase
of residence telephones than by an in
crease i'm business telephones. If our eX-
change were made up exclusively Of low
priced residence telephones, it would not
pay expenses. AS it is made up. il pays
expenses, because the business telephones
pay d share of the cost of operating the
residence telephones the rates being APP
portoned as far as possible TO the use
which the subscribers make of the ser
vice.
4 telephone exchange made UP entirely
of business telephones could offer a COM
paratiVely low rate, but because IL fur
niShed few connections with customers
would be OF comparatively little value
on the other hand If residence rates are
made high enough TO carry their fun
share Of the general expense. there re-
suits restriction Of that wide use Of
the telephone which is desirable for the
best interest Of the community.
Under our rate plan. the exchange, as
whole. pays d moderate return on tho
capital invested from business telephones
ana that received for residence tele-
phones must be maintained or our bust
ness VIII show a loss. II some accession.
as regards the business rate. will re
suit IN larger business development.
so that the aggregate, business revenue
viii remain praCticallY.thc same. then We
can make the concession without endau-
gcrlng our rate scheme. or the high resi-
dence development. which we regard as
essential and which we are bound as
public servants to maintain.
\ greater development of business teIe-
phones and the iasta llation Of additional
facilities by business men whose tee
phones are overloaded Will mean an i'm
prCNemcnt OF the service. II is To the
advantage OF all concerned that further
facilities be provided in business estab-
ilShmCntS. If some business men who are
now using one Of the cheaper classes of
an unlimited single line service. and if
some business men who are nov usiDS
the unlimited single line service will in
crease the number OF their trunk lines
at a somewhat decreased rate per line
and if the stability OF such new contracts
can be assured by fiVe-year contracts for
the mutual protection of the subscriber
and the company. a change in business
rate can be conceded without endangering
our general rate plan
Offers Reduc+io,, IN Ro+oc
1t is proposed therefore. relying on the
co-opcra ton of your committee and the
citizens whom you represent, to offer a
discount OF SIS per year on unlimited in
dividual line telephone service under a
iiVc-year contract. so that the subscriber
viii nay 81 instead Of 800 pcr year. and
be induced thereby 10 increase his ia
cilities. 1t is also proposed to make a
Sl2 per year discount on this unlimited
Individual line service under a one year.
contract, making the cost to the sub
scriber in that case SIS per year.
In addition to the above proposed dis
counts from the present $50 rate we have
already announced To YOUR committee an
individual line business rate of $iS per
year for 200 calls, this service To be
without registers at the subscribers tele-
phone.
We also wish TO announce that the
present $4S unlimited individual tine resi-
dence rate will he discounted at the rate
Of So per year il paid at the office on
or before the 10th dag Of the first month
Of the quarter.
Rates Under New Schedule