The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1906-09-25
FAVORS MONOPOLY
PHONE SYSTEM
Mayor Dunno of Chicago
Goes on Record as Oppos-
ed to Competition.
MESSAGE TO CITY COUNCIL
Executives Recommendations Quoted
in Part, Define Position in
Much-Mooted Question.
Especial to Lake County Times.)

Chicago, Sept. 25.-Mayor Dunno in
his message TO the city council this
evening placed himself on record as
favoring a monopoly telephone sys.
tenn. lie recommended, however. that
the city at once negotiate for an
improved service at reduced rates. His
recommendations were based upon
months of investigation of the advant-
ages ana evils of competition, and
while favoring a one-company system
he expressed himself as strongly in
favor of getting improved and cheaper
service from whatever company has
the franchise to supply the city with
telephones The message was in a
sense disappointment to the coterie
of independent telephone officials
present
Without attempting an explanation
of the double charges, the confusion,
and the worry caused by a competitive
system the mayor declared in his be-
lief that the telephone is natural
monopoly and that competition should
be admitted only where the establish
ed company makes arbitrary refusal
to grant just and reasonable rates.
In part, the mayors recommendation
was as follows:
For some years past the citizens
of Chicago have complained, in my
judgment justly, of the excessive tele-
phone charges made against them by
the telephone companies of this city.
These complaints have been directed
principally against the Chicago Tele-
phone company.
Recently this company, in obedi-
ence to the mandates of the supreme
court of this state, has reduced the
rates hitherto charged by said com
pany and, 1 am informed, has reduced
other charges not covered by the SUI
preme court decision. am further
informed that this company is ready
to consider further reduction of tele-
phone rates. To what extent it is will
ing to reduce rates l am not fully in
formed.
Is Essentially n Monopoly.
I'm my judgment the telephone ser
vice of city is essentially a morop-
oily and until the city is empowered
by law to undertake the giving OF
telephone service to its citizens, it
should be performed by one company
and that company should be compelled
TO give efficient. modern. -te-date
service at just and reasonable rates
which rates should be much below the
rates hitherto imposed upon the citl-
zers of this city" 4
The mayor also called attention to
the fact that there was another com
pany which had evinced it's willingness
to construct and operate a telephone
system at rates much lower than those
charged by the Chicago Telephone com
pany and give to the city of Chicago
free telephone service, and one-fourth
of the net profits.
At the close of the meeting several
aldermen who are members of the
committee on gas and electric lighting
having in its charge the framing OF
the franchise for the Chicago Tele-
phone company, expressed the opinion
that tho company would make reduc-
tions in its rates.
The Chicago Telephone company is
much gratifled at the tone of the may
ors message and is sending quotations
from it in circular form to Hammond
and adiecent towns where its service
is in use