Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-03-14
Telephone Company SaysRate
Cannot Be Lowered.
WOULD STOP PROGRESS
PRESIDENT BETHEL GIVES DATA
IN SUPPORT.
Extension of Time Granted East Wash
ington Heights Rail-
road.

Today was District day in the House of
Representatives. and after the disDosi-
ton of several matters of legislation.
Chairman Babcock of the House District
committee presented statement from the
Chesapeake and Potomac Telephone Com
pany in which that corporation makes an
appeal that the rate-limiting clause at
tached to the District appropriation bill
shall not be enacted into law. The com
pany declares that the rate limit pre-
scribed would arrest its progress and pre-
vent it from giving to Washington a serv-
ice of the standard desired. rather live
ly discussion was precipitated. but as Mr..
Babcock's remarks and the statement re-
quired no action today the debate was of
short duration.
In calling up the matter Representative
Babcock said that during the consideration
% the District appropriation bill legisla-
tive amendment limiting the telephone
rates had been offered in the House and
adopted. He declared he was absent from
the city at the time this action was taken.
The limiting clause was in effect the same
law as was passed by Congress several
years ago. This law. Mr.. Babcock said.
had been held by the Supreme Court to be
uEreasonably low and a virtual confscation
OF property, therefore being unconstitu-
tional and void. The effect of the amend
ment to the appropriation bill would be to
bring the matter into the courts again and
have a repetition of the litigation of the
past few years
Lively Discussion.
Representative Cowherd of Missouri in
terrupted to state chat the Supreme Court
of the United States had never passed upon
the merits of the case, but had remanded
the matter to the lower court with the
statement that the tribunal did not have
sufficient information to determine whether
or not the rates proposed in the law were
excessive.
cision of the court he was reading from
testimony adduced before the Senate Dis
trict committee last month. Mr.. Babcock
said he sincerely hoped some good would
grow out of the amendment adopted by the
House and a satisfactory settlement of the
rate question be arrived at. He hoped that
the matter might be adjusted in confer
ence.
Representative Bartlett of Georgia who
introduced the amendment to the aDpro-
priation bill, stated that when he did so
he was aware of the fact that the limiting
clause went no farther than the law of
1898. However, it was all that could be put
into the bill under parliamentary practice.
With his amendment as a basis he said, 1t
was his purpose and his hope that between
the Senate and House conferees some sat
he made. He believed the people of the
District should be relieved of the enor-
mously excessive charges now In effect.
Mr.. Babcock declared the company had
complied with the decision of the courts
with reference to the law of 1898. Mr..
Bartlett denied this, and said their compli-
ance had gone only SO far as the telephone
service furnished the government of the
District of Columbia He asserted that
there had been no final determination judi
cially of the matter.
Chairman Babcock then presented and
asked To have read as a part of his state
ment letter received by him from Presi-
dent L. n. Bethel of the Chesapeake and
Potomac Telephone Company of this CITY.
Mr.. Bethel called attention to the fact that
the limiting clause had been adopted by the
House without an opportunity for hear
ing. He hoped the company would be heard
IN the matter before it is finally disposed
of. In the letter President Bethel says:
President Bethell's Letter.
In 1901 the company entered upon gem
eral plan of Improvement. In the following
year Congress passed a law authorizing the
extension of the underground system in
Washington, and in that year seventy-five
miles and in 1908 iifty-seven miles of I'M
foreground conduit were constructed
building costing. including site, about $780,
40 was erected at 14th and streets and
upon its completion a modern central office
equipment was installed therein. Another
new building, to cost about s22J 900 on 18th
street near G street, is nearing completion.
IN which new and complete exchange
equipment will be installed at an early dat
The work is now under way and will be
completed In the early part of this summer
On the whole, in charging and improv-
ing the telephone plant in Washington ap-
proxlmdteiy Sl,5tO0oO of new money has al
ready been invested. The plans for con-
Struction and reconstruction of work in 1904
of
$3.50. 900.
The purpose of the mana cement has been
ana IL TO PROVIDE Iii Washington telephone
system that for coInprehensiveness and
completeness shall not be surpassed
We appreciate that during the general
reconstruction work that has been going on
our service has not been up to the high
standard of efficiency which we hope soon
L. be able to maintain. We practically have
been replacing old telephone plant with a
new one. at the same time being compelled
L" Keep the old one in constant operation.
a very rapid development of the sys-
ten Is going on. During 1903 the percent
age OF growth In telephones was larger in
washington than iii any other city in
America having popula ton of 100 coo or
more, except Baltimore and St Louis and
the percentage In Washington WAS only a
fraction of per cent less than in 81 Louis.
ON the LIST of March. 1901. there We're APP
proximately 12.lJ9 stations in service
while on June 80. 1902. there were &. 426
per cent
The rapid growth OF the past few wears
has been largely due TO the notifications
of rates made from time to time. Appar-
entity the present rates are not fully known
and understood"
Small Dividends
Mr. Bethel gives u history of the Iitiga-
ton in which the company has been in
volved and submits testimony recently
taken before the Senate committee on the
District of Columbia on the subject. He
follows this with statement showing the
capitalization of the company and the
dividends il has paid, which have ranged
from to per cent, there being four years
in which no dividends were paid Continu-
ing. he says:
These statements relative to capitaliza-
tion and dividends can easily be verified
b. inquiry at the Office of any broker who
deals in telephone securities. The diyi-
dendS nave been in no year eNcessi re but
IN the contrary far below the reasonable
expectation of an investor, and the capital
On which they have been paid represents
cash paid in and payments for telephone
property necessary for the conduct of the