Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-03-15
WOODS REJECTS BELL OFFER
President Of Independent Phone Companies
Says he Cannot Accept It.
TELLS Why TO THE COMMERCIAL CLUB
solution of 'roBIem Between Rivals
- oHered by Nebraska Com
paBy Not Acceptable
90 tbe Others.

F. II. Woods OF Lincoln, president Of
tho Nebraska Independent Telephone as
ISOLATION, has addressed to the Omaha
Commercial club reply 20 the proposition
Of the Nebraska Telephone company rela-
tive 10 furnishing independent companies
with toll line connection with Omaha
The letter endeavors to show why the
proposition cannot be accepted by the in
dependents and pleads for the establish
ment Of an independent system in Omaha.
Mr. Woods first compares the Nebraska
Telephone company and the system of
independents, as follows:
The Nebraska Independent Telephone
association is voluntary association OF
telephone companies, which operate III
exchanges in Nebraska. These companies
are owned by about 1900 citizens OF the
state and represent an actual investment
Of more than $4,000. They are operat-
ing 4370f telephones entirely disconnected
fr6n, tbe y3eli comnanvs system In the
same territory, including Omaha, the Ne
brasloa Telephone company operates only
phones and has only $50 independent tele-
phones tcalled Bell sublcenses) connected
with their system. Most OF the in,niependent
nections with all trade centers excepting
Omaha. and by the end Of the year they
tallic toll line connections and will form
compact system with not less than $1,000
!.elephgn,eos IN operation TheTe are m Se
hraska and the states contiguous to II
which are shut out from communication
condition as long as the Bell company is
permitted TO retain a monopoly OF your
local telephone business.
why They Do Not Accept.
The letter says the Bell companys pro-
posals cannot be accepted, in the first place
because while it offers ito pay a commits
sion on originating business to cover the
cost of operations" Il offers no compensa-
ton for receiving and transmitting the
business terminating in local exchanges.
Il says the Independents cannot think OF
accepting the Bells second proposition, APP
plying to towns where there are competing
exchanges, which proposes to buy the In
dependent plant, sell out to the independent
or merge the two in a new company, thus
restoring to a monopoly the control of the
local telephone business" Mr.. Woods adds:
1T would be treachery for any independ-
ent company practically to become a part
of the Bell system by entering into sub
license contract with the Bell people, which
is one of the conditions of acceptance of
the proposition. Acceptance of the Bells
proposition would require independents to
break contracts under which we have built
Joint lines with other independents and by
which we have agreed 10 remain connected
with them
Denies statement.
Tho statement OF the Nebraska COM
pany," said Mr.. Wood, that one of the
rules of the Nebraska Independent Tele-
phone association prohibits its members
from making connections with the Bell
monopoly, is absolutely false"
Mr. Woods sums UP the advantages TO be
derived from a second telephone company
in Omaha as follows:
First Better service. Only apparatus
of the latest type would be used and the
instruments would be the most modern
and perfect in use.
Second Extended service. The area OF
free service is generally extended over the
entire county in which the system is To-
Gated.
fhird. Lower rates. The Independent
company operating in Kansas City, more
than 1900 telephones furnishes full copper
metallic individual lOng-distance telephones
for S54 per year, and the same conditions
prevail In other towns where competition
exists.
Fourth. Where competition exists, toll
line connections can be had with all sur
rounding systems and exchanges.
In the trade territory tributary to Omaha,
there are 100000 telephones a good part
of which are located at points where their
users have no access to Bell telephones,
over which no communication can be had