The Colorado statesman., 1906-09-15
Telephone Situa ton.

The advent in Denver of several pro
moters with a scheme for the estab-
fishing of a second telephone system
in Denver is furnishing food for refec-
ton on the part of our citizens. An
analysis of the franchise which they
propose to have submitted to the tax
paying electors at the next general
election, and a careful consideration of
the subject of telephone competition as
general proposition, brings out a
grave question as to any benefits to be
derived from the scheme by the people
of Denver.
A much quoted maxim says that
competition is the life of trade: this
is always true as for as the trades
men are concerned, and, in most cases.
the public is the beneficiary. The
principles involved in telephone com.
petition, however, are in no way identi-
cal with trade competition Expert
ence has proven that in every case
where a city has two telephone sys-
TENS the value of the utility to the sub
scriber has been cut in half, or, he has
forced, in order to reach all telephone
subscribers, to install telephone Of
each system, thus practically doubling
his telephone expense. That is what
telephone competition does for the bus
mess man. no matter what the rates of
either company may be.
If there were no element but the
question Of rates entering into the
proposition, the rates proposed by the
new company will hardly prove attrac-
tive to any considerable number of sub
scribers to the present system. They
propose to charge S6.25 per month for
business, and s2.25 per month for resi-
dence, reserving the right in
their proposed franchise to increase
these rates 80 cents per month for
each one thousand subscribers added
to their exchange above ten thousand.
AS the Colorado Telephone Company
now has 10000 telephones in Denver
it is apparent that at this ratio of il
crease the rev company's rates would
amount to considerable sum before
the new company could properly be
considered as a competitor of the Col
orado Telephone Company from the
standpoint of the number of possible
connections in each exchange in pro
portion to the rates charged Besides,
over 5000 of the present telephone
users in Denver are paying 5000. Of
less, month for their residence tele-
phones, and some 1000 others are pay
ing less than $500 a month for their
business telephones. There are other
thousands paying less than $500 a
month for their residence telephones,
and less than 500 month for their
business telephones; and $500 for res
idence and $500 for business is the
maximum rate provided in the pro-
posed franchise of the new company.
This is the proposition that CON
fronts the business man where a
competitive telephone system is pro-
posed. The experience of other cities
where dual telephone systems exist is,
that from fifty to eighty per cent of
the business men have both tele-
phones, which gives them divided
service and double expense. 1t fol-
lows, then, that every business man of
Denver who signs petition, votes for
or in any way encourages a second tel
ephone system, is acting against his
own interests. 1t is a proposition that
directly affects the pocket-book, and
the pocket-book will get the worst of it.
DR.. j. E, Sheppard, of Durham,