The news-democrat. (Providence, R.I.) 1906-1909, 1907-05-15

t1OHtlIlutn lTOiU fdkf A'ntsl
city for the construction OF said system.
ITO sum up. the city and state lose In
taxation. the people mast be satisfied with
one telephone system. the city's revenue
OF per cent. Is reduced. and the only
gain Is that the Providence Telephone
company will be able 20 punish the Home
Telephone company for Its audacity I'm
asking for a franchise in Providence by
laying II on the shelf for the next six
years. That company now pays the city
I'm taxes only A,575.45. and the state. ac-
cordfng 10 the state auditors report TO
the January session, 1906. but s73o4.s6.
IF all possibility OF competition is re-
moved the Providence Telephone company
can use the people OF Providence about as
II pleasee and there will be no possibility
OF Improvement in service or reduction I'm
rates for the next six years, even at
the reduced rates mentioned. the Provi-
dence Telephone company II charging
more for its unlimited business service
than is maintained anywhere In the coun-
try outside OF Boston. New York and
Chicago; while the proposed reduction for
residence phones simply extends to giving
people 20 per cent. more calls at the same
price.
MAY OFFER LOWER RATES.
1.-The Home Telephone company, II II
had been requested to submit its minimum
rates instead OF maximum rates (for II
cur prices are not 20 exceed the sums
set FORTH. would have furnished the com
mittee then. and is ready 10 furnish the
committee OF the city council now. a
schedule OF rates so just. 50 reasonable.
that telephones can be placed within the
yeacn OF all the people
THE Home Telephone company has
net. since the hearings closed. received
the same courtesy or consideration at
the hands OF the committee as has been
given the Providence Telephone COM
pany. Their officers and attorneys were
present at the meetings on several oc-
casions when ours were absent. through
no fault OF ours. and our representa-
tives were simply asked TO furnish I'm
writing what we had time and again
given orally and publicly as our sched-
uied rates.
wo-EDGED SWORD.
THE committee has used the Home
Telephone company a club to com
pei the Providence Telephone company
10 reduce it's rates. but the club In It's
hands. N the result OF the committees
deliberations be correctly set forth. Is
a two edged sword that will cut two
ways. for II will deprive the city OF
revenue and assure the Providence
Telephone company against competi-
tion. deprive the Home company OF
franchise and prevent the expenditure
or upward OF fl000,o00 for permanent
improvements In the city OF Provi-
dence.
THE Providence Telephone company Ia
also the loser because II is compelled TO
reduce its rates while % per cent OF the
residents At present without telephone
service will not be encouraged to hire
telephones because the annual rental for
such telephones Is left just whore II was
before.
FEARS COMPETITION
1T is patent that the desire on the part
OF the Providence Telephone company
for s-year franchise Is only 10 save
Its fac eand not obllge Il 90 admit that
fear of competition has caused the reduc.
ton. IL rates can be lowered under these
circumstances no exclusive franchise is
necessary and until rates are lowered
somewhere near what they are I'm other
cities Of the size OF Providence an ex-
elusive franchise should not be consid-
cred
For % years the Providence Teiephons
company has had the heid entirely 10 H.
self and had what amounted 10 an excIu-
elve franchise and maintained its present
meh rates; and now when competition