Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-26
Business and Residential Phones.

While the paragraph in the District ap-
preparation bill relating to the telephone
rates was under discussion in the Senate
yesterday afternoon for the better part
Of an hour, no word was spoken to indi-
cate that the senators engaged in the dis
cussion appreciated the distinction drawn
by the amendment between the business
and the residence telephones. AS far as
the talk went it indicated that the pro-
posed new rates were to apply to all the
telephones in the District But this is far
from the fact, as the text of the amend
ment itself shows. That paragraph is in
two parts, one of which evidently applies
strictly to telephone service for which pub
lie money is appropriated Such appropria-
tions are limited specifically to the rate
of $50 year for one-party metallic cir
cult unlimited service. and $4s year for
two-party service. That, of course, can
apply only to the telephones in use in the
service of the federal and District govern
ments. But The rates restriction is then
carried further by means of proviso that
until the population OF the city of Wash
ington shall be $50, 900 or over no more
than the above specified rates shall be
charged by any telephone company doing
business in the District of Columbia for
such use of such telephones at private resi-
dences within the District of Columbia"
Therefore 1t clearly appears that the $50
and SiS rates are to apply only to the pub
lic-service and the residential telephones,
leaving the business men of the city subs
Ject to whatever rates the company may
choose to charge. Thus the rate relief
granted by the amendment is by no means
gratifying as it might appear from a
mere reading of the debate itself without
reference to the terms of the paragraph.
There are, according to statements made
by representatives of the Chesapeake and
Potomac company recently, IL 900 business
and residential telephones in service in the
District in the proportion of abodt seven
OF the former to four of the latter. So that
the new rates, IL adopted, will cut off $12
year from the cost of only four-elevenths
of the subscribers, leaving the former rates
to stand as to the other even-eleyenths.
Nor will the loss to the telephone company
be represented by a direct multiplication Of
s12 by the number of residential subscribers,
for Of the residential subscribers now on
the lists a considerable percentage already
pay less than $50 and $4S a year, being
members of four-party combinations with
the measured-service limit on their con-
tractual of the phones. If the COM
pany does not establish, outside of the
statutes range, a measured-service system
proportionate in cost to the prescribed
rates. it stands to lose very little by the
contemplated lowering of the unlimited
service rates.
In the conference adjustment of this
matter some provision should be written
relative to the business telephones, which
are so much the larger part of the telephone
business. The law of 1898 of which the re-
peal is proposed applied to business as well
as residential phones, and congressional
regulation of rates should not confine itself
to fraction of the telephone subscribers
If after elaboration 1t is not considered
wise to fix fiat rate for unlimited use of
a business telephone Congress should find
mum rate for a measured service suitable
to this class of phone use which will guar
antee the company a fair revenue and the
subscriber immunity from extortion In the
absence of any legislative restriction what
ever.
The amendment proposed by Senator
Newlands and adopted without division
providing for an annual report from the
company Is a move in the right direction
and should be Kept in the paragraph what
ever hefalls the rates proposition The pub
lie should have some basis for computing
the workings and earnings of this important
public service corporation 1t is at present
dependent upon the statements made at
hearings and Investigations.