The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-01

telephone instruments located within the
city OF Providence for the period OF three
months next preceding the first day or
January. April July and October. In the
same year. and shall at the same time
pay 10 said city treasurer in full payment
FOR the rights aforesaid, special tax OF
9 per cent upon the gross earnings OF sad
such period. The first payment OF such
tax OF per cent upon such gross earn
ings OF said telephone company shall be
made on or before the 30th day OF Janu-
airy, A. ID. 1900; but said telephone COM
pany shall In the meantime pay to the
city of Providence the same rate OF spe-
ciai tax on It's gross receipts that II Is
now paying TO the city OF Providence. un-
der the provisions OF chapter ABS or the
CITY Ordinances
This ordinance expressly provides that
the company shall pay a special tax OF
three per cent upon It's gross earnings
within the city-but the payments made
since its adoption, have been based upon
rental receipts instead OF gross earn
ings.
/ do not question the sincerity of the
company in continuing payments upon
it's rental receipts, but l believe that
mistake was made in not paying on its
gross earnings from the year 1900.
CAN PAY PER CENT.
The Providence Telephone company can
afford TO pay the city sum equal TO i've
per centum of it's gross earnings. The
city council should not grant any exclu-
sive franchise rights in addition 10 those
now possessed by this company for less.
The par value OF it's stock is $50 per
share; IL is now quoted on the market at
more than double its par value. Dividends
OF not less than eight per cent have been
paid during several years past. The COM
pany pays no tax on personal property
and is authorized TO increase it's capital
stock TO s5.000.ooo, by vote OF the corpora
ton.
The Rhode Island company pays to the
city FIVE per cent OF it's gross earningf
The Telephone company should not pay
less.
2 The ordinance does not provide for
sufficient reduction of rates to the people
OF the city, nor can IL be urged that even
the reduction made is in consideration OF
the franchise given In the proposed ordi-
nance, because the counsel OF the Tele-
phone company stated at a recent public
hearing on the subject, that the Telephone
company had under consideration for
some time. reduction OF rates, but had
postponed the announcement OF the same.
when the Home Telephone company ap-
piled for a franchise, so that IL would not
be considered TO have been forced by the
threats of competition to reduce the
same.
CAN MAKE REDUCTION.
I believe that the Telephone company
could make very substantial reduction in
its rates to the people of Providence
and still pay the large dividends 1t has
been paying for so many years. 1t is a
matter of common knowledge that when
the rates are reduced, the number of
users will increase. Telephones should be
placed within the reach OF as many as
possible. The telephone is a public neces-
sity The progress OF the city can be
measured almost by the number OF tele-
phones In use and corporations assuIn-
ing such public service should be required
by municipal regulation to give the pub
lie adequate service at the lowest COM
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