Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-16
Government Telephone Rates.

Mr. Morton, while Secretary of the Navy.
was directed by the President to make a
complete investigation of the government
telephone service. and his report on the
subject Is of considerable general interest.
Mr.. Morton said in part:
1t being apparent that contracts for tel
ephone service must be made under usual
commercial conditions. the matter of pos
sible competition. either by private COM
pany or by an independent governmental
system. was taken up. Estimates were In
vited for including the various department
tai switchboards in a general system inde-
pendent of the exchanges Of the Chesapeake
and Potomac Company. The figures sub
mitted made 1t seem doubtful II an 1nde-
pendent system could be installed economl-
cally, especially In view OF the estimate or
the amount Of service which would have to
be purchased from the Chesapeake and Po-
tomac Company even should an Independent
system be installed. This estimate, con-
firmed by a careful gauge at a later date,
showed that much more than one-half OF
the total business was done outside OF the
departmental switchboards.
Under these circumstances, negotiations
were opened with the representatives of the
Chesapeake and Potomac Telephone Com
pany. Upon the representation that the
governmental business In the District Of
Columbia should be considered as a whole,
and not as representing large number of
to make a special governmental rate, as
follows:
Full service stations, 50 each per annum.
Interior, So each per annum.
Trunk lines, $24 each per annum
Switchboards, $36 each per annum.
Wire mileage, Sc each one-eighth mile per
annum.
Messages 21k cents each.
1t was agreed that the actual number of
messages used should be paid for.
Before the completion of the agreement
with the telephone company the question of
a fiat rate or a measured service was care
fully considered. Under the fiat rate sys-
tenn each telephone pays it's pro rata share
of the whole cost of doing business with
out reference to the business actually done
by that particular station. Under the meas
ured system payment is made for the rental
of the equipment, plus a payment based On
the actual business done. 1t Is apparent
that under the fiat rate system there ought
to be no more stations than are absolutely
necessary, or that can be employed at a
reasonable and constant volume of busi-
ness On the other hand, with measured
system and with a moderate rental for
equipment. 1t Is economical to install sta
lions which will not be continuously en-
ployed.
The use OF the telephone in the govern
ment service should be so arranged as to
save the time of officials and employees in
making communications upon official bust
ness, and 1t is apparent that there must be
wide variations in the amount of telephone
communication between the different points.
Under a measured system tie-line business
can be carried on at the cost simply Of the
rental of equipment, while general exchange
business can be transacted through the same
instrument with the added charge only for
the actual business transacted. Under the
measured service system the telephone ar
rangements Of the departments can be ex-
tended indefinitely and economically
wherever saving Of time Of officials and
clerks indicates the proper use Of the tele-
phone. Under the fiat rate system the
number of stations and the convenience of
the system could only be economically ex-
tended where enough business could be
fOreseen to utilize the capacity of the in
strument.
Consideration of these facts as applied to
the telephone service of the government in
Washington. as well as the consideration
or the general telephone practice, left no
room for doubt that the measured service
system was that suited to the interests and 4
needs of the government, and that a fiat
rate charge would not allow of the econo-
mics desired, nor would 1t permit of the
maximum of an efficient telephone service.
On June Is, 1905, I was notified by the
general manager of the Chesapeake and
Potomac Telephone Company that his COM
pany had determined to make q further re-
duction in the rental price of private branch
exchange instruments. and that, beginning
July i. the rental would be Sc per station
per year A reduction was also made in
the rental Of switdhboards from $50 to s24
per year. This action was entirely yoIun-
tary on the part of the company, and in
creased by $3.50 per year the saving which
had been arranged previously, beginning
January l. 1905.
Nothing should be done which would in
terfere with the saving of time to officials
by the use of the telephone. At the same
time IT should be carefully borne in mind
that telephones rented by the government
are rented for official business only. and
that there is no more warrant for the gov
eminent to pay telephone calls for the
transaction of social matters and nrivate
business than to pay other personal ex
penses not incurred In the line of official
duty. 1t is recommended that this mater
De taken up by the different departments,
and such orders Issued as NAV restrict tha
use OF the telephone to official business
only.