The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1909-03-18
ACTS AS GO-BET WEEN
Secretary OF State R'y Commits
sion Accused by Representa-
tiveof Telephone Companies
SAYS ACTIONS WERE PROPER

A sensation was caused when, In the
hearing before the joint committee on
transportation, j. B. Ware, Chicago,
representing H. d. Critchfeld, MilWau-
kee and the independent telephone in
terests charged that John @. Winter
botham, secretary Of the Wisconsin
Railroad Rate Commission, had acted
as go-between in the transfer of the
Dane County Telephone company, the
Madison Independent company, to the
Wisconsin Telephone company, the Bell
organization, and had received a com
mission therefor.
Mr.. Ware had referred to the mem
bers Of the Commission as honest, re
liable men, but expressed doubts as to
some of the employees and agents. He
said the true meaning of the Cleary
bill, No. 349A, was whether the people
should have the right to say when a
community should have competition in
telephone service or whether the Com
mission should have the say.
He was asked to explain his remarks
concerning the employees Of the Com
mission He did so by asserting that
the secretary Of the Commission had re-
ceiyed a percentage in the transfer of
the Independent company to the Bell
company. The committee seemed as
tonished and members demanded if he
knew whereof he spoke He asserted
he did and declared Mr. Winterbotham
would not deny it.
The natural tendency, he said, was
for the large corporation to buy the
smaller competing plant and thereby
wipe out competition and the employees
of the Commission found it possible
to use their position and authority,
acting in behalf Of the larger company,
to conduct negotiations and receive a
commission on the transfer.
It is alleged Mr. Winterbotham re-
ceiyed a, commission Of 5 per cent on
the transfer of the Dane county system
to the Bell company and that at least
one stakeholder Of the former company
threatened to take the matter into the
courts unless his percentage of the
commission was returned and that
later he received his share.
j. G. Crowley, Superior, followed Mr.
Neill, the latter speaking as a resident
of Minnesota. The main contention
over the bill seems to be between the
Bell company, and it's licensed lines on
one side and the real Independents on
the other. It is asserted that not over
three really independent companies
were represented.
In closing the argument, Mr.. Cleary
asserted it was simply ques
tion whether unrestricted competition
should go on until the stronger corpora
ton created a monopoly by absorbing
the weaker or whether the state should
create a monopoly under regulation
| Without state regulation the end in
evitably would be that the public
would pay the bill. In view Of some
i VI Gn6 OU,JeCJI0IS IdlStu liz dSh0u tHe
committee to amend the bill by defn
ing what was meant by "Municipali
| ty.'
John n. Winterbotham, secretary OF
the Rate Commission, said in regard
to the Ware charges: &
II did nothing in connection witt
the transfer of the Dane County Tele
phone system to the Wisconsin company
as secretary Of the Railroad Rate Com
mission For twelve years [ was law
partner of Mr.. Crawford, who, with his
family, held about 65 per cent of the
stock in the Dane county system and
when the transfer was talked, after
consultation with him and with F. w
Hoyt, probably the next largest stock
holder, | bought up the shares of the
fourteen or fifteen remaining stock
holders for transfer to the Wisconsin
company and received therefore com
mission of 5 per cent.