The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-11-20
DUAL TELEPHONE SYSTEM TO-
TAI FAILURE ON THE
PACIFIC COAST.
History Shows That Ten Opposition
Companies Have Been Compelled
to Quit Business.

The history of the dual telephone
| system in ten cities on the Pacific
coast shows that two opposition plants
were sold by the sheriff for less than
I! one-third of the original amount in
vested by stockholders and eight
others voluntarily quit business be-
cause they could not make it pay At
| San Jose. California, the Peoples
Telephone company, after levyfng
100 per cent. assessment and building
| its plant at cost Of about $4,000.
found after running six months that
| it was apparent the plant would never
pay for the necessary maintenance
and there being no way to meet the
| existing debt the company's property
was attached and sold at sheriff's sale
for about $4,000. Nearly 120 stock
holders lost every cent they put into
the concern.
Santa Cruz Company Wont.
The Popular Telephone company at
Santa Cruz suffered like fate. After
| constructing a plant at cost of more
| than $4,000 and operating it for sew
eral months the stockholders refused
| O pay any more assessments and the
plant was sold at sheriffs sale and
the stockholders realized but a very
small percentage Of the amount that
was originally invested. Opposition
companies in other cities that could
not make it pay and either voluntar1-
lv quit or were absorbed by the rival
company are as follows.
Portland-Columbia Telephone COM
pany.
Petaluma, Cal-Home Telephone
company.
Portersvlle, Cal.-Mount Whitney
Telephone company.
Santa Cruz.-Pacific Coast Telephone
company.
San Jose-People's Telephone and
Telegraph company.
Bakersfield, Cal.-Mt. Whitney Tel
ephOne company.
Sonora, Cal.-Automatic Telephone
company.
Seattle-Northwest Telephone and
Telegraph company.
Franchises Denied.
Twelve councils in cities on the Pa
cific coast have denied franchises TO
opposition telephone companies on the
ground that a dual telephone system
is unsatisfactory, works hardship on
business men and users of telephones;
is confusing; encumbers the streets
with unsightly poles and dangerous
equipment; and is not practical. THESE
cities are: Berkeley, Fresno, San JOSE
Madeira, Portersville, Hanford. Pa
cific Grove, Riverside, Spokane, Ia
coma. Olympia, Baker City, Or
What Investigating Trustees Say.
| Several boards of trustees In seven
cities on the Pacific coast invest1gat-
ed thoroughly the subject Of grant,
| ing franchises to opposition telephone
companies and reported as follows:
FRESNO-"Telepho is natural
monopoly. A real competing telephone
system is not practical Unanimous
verdict Of all consulted is double sys-
| tenn a failure imposing unreasonable
burdens upon community" "As i'm
practicable as clock with two pendu-
| lums."
BERKELEY-"Woul not be to the
interest of the town to have two sys-
TENS of telephones in operation, and
| would work a hardship on the COM
munity, cts
RIVERSIDE-"Upo thorough in
vestigation conclude that a double tel
ephone system is confusing and ex-
pensive, and that the public can be
better served by one company"
MADERIA-"Unnece duplica-
ton of everything, including cost to
the individual telephone subscriber,
without resulting good to the COM
| munity."
SPOKANE-"A double telephone
system would cucumber our streets
with unsightly and dangerous equip
ment, be expensive to the individual
and a detriment to the community"
BAKER CITY-"Two telephone sys-
i TENS would be against the interests of
| the town.
| PACIFIC GROVE-"Found in cities
where two systems had been in opera
ton, that instead of giving cheaper
and better service the opposite had
been the result"
What an Ex-Mayor Said.
SAN JOSE, Cal, July 2, 1902.
| S. F. Cowan. Esq, Chairman Franchise
Committee, Fresno, Cal.
| Dear Sir:-In reply to yours of 9th
ult. Just received. The opposition tel
ephone company in San Jose came into
existence during my term as mayor,
some time in 1894, or 1895 I think. It's
career was short, Something like two
or three years) and cost it's stockhold-
ers. mostly local people, about all they
put in it,
| 1t utterly failed to demonstrate the
necessity or advantage of competition
in that particular business, and while
its advent did result in a small reduc-
| ton of rates by the old company, all
business houses (and some residences)
were obliged to put in both phones.
which meant an increased cost for this
service. 1t also led to endless con-
fusion. After the so-called new"
company passed out of existence. the
old company did not increase rates;
on the contrary they have since been
1aa.oa and the service constantly