Daily press. [volume] (Newport News, Va.) 1896-current, 1905-01-15
THE CONSOLIDATION IDEA
Has Been Worked to the Limit, Thus
Decreasing the Number Of compa-
MES, While Showing Wonderful In
crease in the Number of Messau es
Sent-Farners' Phones.


OF electric current during the year end.
ing December 81, 1902 The present
bulletin concerns telephones and tele-
graphs, the subjects OF the three pre-
ceding it being street and electric rail
ways, electric light and power plants,
and municipal electric re-alarm and
police-patrol systems. All OF these re-
ports were prepared under the drec-
ton Of MIR. W. NJ. Steuart, chief Stats
.ician for manufacturers
Statistics are shown separately for
three classes OF telephone systems, as
follows:
l. Commercial systems, including
all systems operated by individuals,
firms, or corporations primarily for
revenue.
.. Mutual systems, including all
systems operated through mutual
arrangement between the persons de
irving benefit from the service. prima-
rily for the benefit of the owners, rev
enue being incidental to the operation
OF the line.
}. Independent farmer or rural lines
having no regular exchange or central;
these lines are often operated under
conditions similar to those controlling
mutual systems.
Mutual systems are frequently the
Outgrowth OF farmer lines, and com
mercial systems are frequently devel-
oped from mutual systems
Telegraph systems are divided into
two general classes as follows.
l. Commercial land telegraph and
ocean cable systems. including all sys-
TENS organized primarily for the trans
mission Of messages for the general
public
2. Railway telegraphs. including all
wires owned and operated in connec-
ton with railway system, to sub
serve its business of a common carrier,
OF operated by a commercial telegraph
company through an arrangement with
the railway company along whose
right of way the wires are strung,
whereby messages relating to the rail
way business are given preference.
Although the commercial telephone
has developed entirely during the past
thirty years, the bulletin shows that it
is now OF vastly greater Importance
than the telegraph. The extension of
the long-distance service, the introduc-
ton Of the commercial systems into
rural districts, the establishment Of in
dependent rural lines, the development
OF such lines. in some instances, into
mutual systems with an exchange and
more extensive service. and the rapid
ly increasing use Of the telephone in
private dwellings, all point to growth
OF the industry that can hardly be re-
allied. In 1902 the wire mileage OPP
Grated by commercial and mutual tele-
phone systems gave employment to
TOT per cent. Of the wage-earners,
paid 65.5 per cent of the wages, re-
ceived SO per cent Of the revenue, and
paid CTS per cent OF the expenses.
Telephone Systems.
At the census OF 1880 the telephone
industry was in embryo, few CONNER
cial companies being i'll operation prior
to that year The financial interests
represented were relatively OF great
Importance. but the amounts were
comparatively insignificant as com.
pared with the totals for 1902
The number of miles OF wire in use
in 1902 was III times. and the number
Of telephones nearly 43 times, as great
as in 1880. The number OF miles Of
wire ana the number OF instruments
operated in 1902 by the independent
rural lines, which in 1850 were not in
existence, were in excess OF the totals
tor the entire industry in the earlier
year.
In 1880 the population Of the United
States was so, l55.7S3 and the number
OF telephones Of all kinds was 54.3l9,
giving an average Of 923 persons per
telephone; the population of CONT
mental United States in 1902 is est.
mated at 7S,576,43G, and the number Of
telephones operated in that year was
2.3l5. 297, giving an average OF "a per
sons per telephone.
Although in some States the mutual
systems and the independent farmer
t,r rural lines are OF great Importance
the proportion Of the telephone bust
ness transacted by such systems in
continental United tSates in 1902 was
very small. The commercial systems
numbered 3157-three times as many
as the mutual systems. of which there
were 994-and reported nearly all OF
the wire mileage, telephones. and sub
Scribers.
The total revenue Of all telephone
systems from operation ard al! other
sources. amounted to S85.825.53h or an
average Of $3.50 per telephone OF
this amount. "a per cent was derived
trO mactual operation. The total oper-
ating expenses amounted to $50. 1867
Y O62. or $24.5G per telephone; the total
net income was $2l ,G60.7G5 or 1886
~ telephone. and The net surplus for
the year was $6,678,O46, or $2eS per
telephone.
The strong tendency toward concen.
tration is shown by the fact that al
though only 1874 telephone systems, or
At per cent Of the total number of
commercial and mutual systems, oper-
Ated 1000 telephones or over, these
systems reported 725 per cent. of the
telephones. S7.5 per cent. OF the gross