The news-democrat. (Providence, R.I.) 1906-1909, 1907-05-31

pllcaty, and greatly superior To that oper
ated In any city In the Union where there
IS no competition"
Discussing the question of rates, ar
agreement upon which was reached undel
authority granted by the Reynolds reso
Iutdon OF Dec. IL last, tho minority repor
says: mo public hearing has been giver
on thds resolution A public hearing shotilc
be advertised and given, at which thos,
Interested might present their Views OF
what telephone rates ought 10 be In Prov
dencn ana according 10 the information
ut hand believe that tho people OF Provi
fence are unanimous In their opinion thai
telephone rates here are unnecessarily ex
or<bitant-"
The report quotes the sealed bids sub
mitted by both companies, also a seconf
submitted by the Providerc.
company. a counter proposition by tn,
majority OF the committee and the agree
ment upon which the majority And tn,
Providence company finally decided. Il
adds: Nothing is asked OF tho Prov
ience Telephone company concerning IT.
1870 rate for full service" and then add,
this strong criticism OF the agreement and
of some members OF the committees;
RATES TOO HIGH.
ITO such an agreement on the part
OF my associates cannot give my
OF an exclusive franchise to the Prov
idence Telephone company for any
period at this time, believe that the
rates agreed upon by the majority are
already too high. and am firmly OF
the opinion that the true solution OF
the telephone question in Providence
is to grant the petition OF the Home
Telephone company and allow compe-
tition to prevail. in oyder that the tel
ephone field may be developed. the
complaints against the local company
rectified and the rates reduced so that
the telephone may be brought within
the reach OF every home In this city
at price not prohibitive.
while much time has been spent by
my associates on the committee I'm
considering the matters before them. I
am not impressed with the earnestness
with which some OF them have advo-
Gated the claims Of the Providence
Telephone company and disregarded
the facts and arguments pre-
sented by the petitioners and the
wishes OF the vast number OF citizens
who were behind them. No attention
was paid to the schedules the Home
Telephone company was invited TO
submit. and some members OF the
committee worked harder for the
Providence Telephone company than
its attorneys. Further than being
used as n lever TO force the Provi-
dence Telephone connany's rates
down, the schedule flled by the Home
Telephone company received no con-
sideration."
The report recites as one ground OF op-
position TO the majority recommendation
hat the Providence Telephone company
las occupied this field exclusively for the
a~A
Until $40 per year is now charged for
ull business telephone service. and quotes
he company's present schedule OF rates.
then gives a comparison of rates charg-
q I'm 80 representative cities where tele-
'honic conditions are somewhat similar
o Providence" adding. "the figures from
OF other places are available
where competition has proved successful,
ut L take these as representative OF
u" The schedule embraces rates before
nd since competition In Philadelphia.
duluth. Indianapolis, Memphis, Mime
polls and st. Paul. Schenectady. Scran-
on. San Antonio and other cities, in
all OF which the Home, or In
dependent. company rates are said to be
oday what they were at the start while
he Bell companies have reduced their
rices from 30 TO more than 80 per cent.
COMPETITION ADVOCATED.
1t also contains tables showing how the
cry fact OF competition has resulted in
the number OF Bell telephones
n competitive cities from 40 to more than
90 per cent, while the independent
phones largely outnumber thee Bell tele-
'hones In most OF the places enumerated,
he combined increases being anywhere
rom 700 to 1900 per cent. while in only a
ew cases the Bell company has lost SUBJ
cribers.
1t is stated that 30 years OF monop-
oily In the hands OF the Bell Telephone
company resulted in the United
States having 100000 telephones" and
12 years of competition has resulted in
Independent companies having $780,
600 phones and the Bell companies 81
100000, an increase OF telephone users
In u years OF 100000 or over 1000 per
cent
1t is declared that competition exists
n practically all the cities OF this coun-
ry outside OF New England except boss
idden cities of New York, Cincinnati and
New Orleans Boston, Milwaukee and
Denver have granted franchises 10 COM
'etltive companies within six months
Competition has resulted in a largely
increased number of users OF both sys-
ems while only about 15 per cent have
,een fOrced 10 dupDcate Instruments, the
So per cent being benefited by
he reductions, while those who were
orced to have two systems had to pay
ittle II any. more than they had TO pay
lnder monopoly.
Extensive quotations are made from the
eport of Harry +. Nichols, an expert
ent by the New York Bureau OF Fran
'hises to visit 36 cities and investigate
he question OF telephone competition
,ersus monopoly" This In the main bears
'ut, II is said, the contention that COM
petition results in better and cheaper ser
ice to all concerned.
The Providence Telephone company's
development OF this field during its ex-
lusive occupancy thereof is roundly
II being contended that instead
II having only 12.40l phones in use on
IAN. /. 1907 here. at East Providence,
Johnston and In parts OF other
owns. there should have been more than
!, 900 In the city OF Providence alone.
DON'T FOSTER MONOPOLY.
II Is declared that the public de-
mands competition; that IL the Provi-
dence company can reduce its rates
with an exclusive franchise II can
make the reduction without such a
franchise; that IL II not the business
OF the city council TO foster monopoly
and that rather than do this the city
should obtain legislative authority to
purchase the Providence Telephone