The news-democrat. (Providence, R.I.) 1906-1909, 1907-06-28
sI2O RATE FOR TELEPHONES

There appears to be lack OF information con-
cerning the for the $I2o rate of the Provi
dence Telephone Company and the value OF the SER
vices given in return.
In explanation we give the following extracts
from letter recently written to one of the Com
pany's subscribers
During the early years OF the telephone busi-
ness when there comparatively few subscribers,
rates were adopted which permitted unlimited use
of the Companys lines between all subscribers con-
nected with exchanges within fifteen miles of Prov
idence. As the business grew there came demand
for lower rates for people who desired less extend
ed and the so-called local rates adopted
varying according to conditions TO the popula-
tion, etc. in the towns and cities TO which they APP
piled the old full rates for service throughout the
larger territory being continued, however without
change, excepting the low rates for grounded line
service which obliged TO abandon because
the efficiency of the service destroyed by the
high tension currents of the trolley and electric
light companies. In consequence the Company was
obliged to adopt the Metallic Circuit system which
required double the number of wires with corre-
spondngly increased construction both overhead
and underground AS the business developed and
the number of subscribers increased, it became
necessary from time to time to add more trunk
lines; that is lines connecting the different ex-
changes that had been established to accommodate
the increasing interurban traffic.
"A subscriber today has more than twice as
many people with whom he talk than he had
five years ago, and, of course makes more frequent
of connecting trunk toll lines. If he has
the full service referred to (SI2o for business or
$Ioo for resdence), he pays no more than he did
years ago, although it costs the Company much
TO serve him, as the cost OF these lines is very
large, particularly where they underground as
between Providence and Pawtucket, while large
expense is involved in maintaining the heavy pole
lines which extend through country districts where
they are subject to damage from storms and are
situated miles from the of supplies and labor.
1t is obvious that the cost of operating becomes
greater as the use of the lines increase, more labor
being required TO the larger number of calls.
"For those whose business warrants this class
of service it is regarded by the Company one of
the cheapest in its schedule. For the subscriber
who has less need to communicate with the more
distant points the local rate (now 500 and under
the proposed new schedule $So) is available with
additional payments for each use of the toll lines.
This class of service is manfestly the just and
fair for both the subscriber and Company, as each
subscriber pays for actual service received and the
Company collects only for actual service rendered
"The rates referred to above are in each in
stance for special WIRE but the Company has other
lower rates for similar service with several sub
scribers connected on the same line In all cases
the quality of apparatus and OF service is the same
IAN illustration of the value of the higher
priced service ($I2o) is shown by test made some
months ago. Three lines were supervised Tor three
successive days. During that time the average
number per day of outgoing messages from the
three stations was Ga giving average use per sta
ton of FL calls day or o3oo year Ii these calls
had been merely local at sc. each they would have
cost the subscriber $I8o year instead of SI2o
"As stated above the $I2o rate Is one OF the
lowest on our list when we consider the service
rendered, giving as it does an individual line with
unlimited service throughout territory thirty miles
in extent It is not, however needed by the large
majority of subscribers is shown by the fact that
less than one-tenth of our customers take that
service