Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-25
PHONE MONOPOLY,
CONFESSING GUILT,
QUIZ MUST FOLLOW


Bell system"
MIR. Bethel said tina the system" or
scheme" of rates of the Bell companies
had been approved in Australia and In
Germany and France.
wherever foreign Investigations have
been made" said he. this system of
varying rates according to the service
has been approved, except in Paris"
Senate Alderman wanted to know
whether Paris telephones were govern
Tnent-owned or maintained by private
corporations.
THE Paris system is government
owned and is one of the poorest in the
world" said Mr.. Bethel. This week l
have received a letter from the French
minister of post and telegraphs asking
TO be allowed to send six officials here
to study our system for six months"
What do you mean by varying ac-
cording to the service?" asked Senator
Fielder.
I'VE have a graduating scale" replied
the telephone official. ut begins with a
fixed number of messages, say 600, in
Newark. The subscriber pays for hav-
ing his name in the telephone directory.
for the privilege of receiving any num-
q VI IltBddBcb diAo ~ . III tAAS A'6bt
to SEM 900 messages a year.
III 1 pay for receiving the messages,
that means a double profit for the COM
pany,' said Senator Fielder. because
the fellow that is sending the message
to me is paying for sending it."
Mr.. Bethel was greatly confused, but
finally admitted that he had stated
something like the proposition suggest
ed by Senator Fielder. There should
be a reasonable allowance of messages
to go with the first charge against the
subscriber for SERVICE" Mr.. Bethel
went on. From that time on, the cost
Of messages decreases, as the number
sent increases. If the subscriber con-
tracts for 5000 messages and sends 2,400
he can get a refund"
Il would like to know the capitaliza-
ton of the Bell system in New Jersey"
said Senator Gebhardt, II know that
Mr.. Bethel can't tell me, but I would
like him to try"
Mr.. Bethel said he could tell, but he
talked for some time without getting
down to fgures. Last week he said
that the company's capitalization was
1913. 900, 900.
Immediately after the United States
Supreme Court decision in the case OF
the American Telephone and~Telegraph
Company merger" Senator Gebhardt
said, ten shares of stock were given to
tho holder for every share held before
that"
Senator Fielder said hat he nder-
stood Mr.. Sommer had offered a COM
parison Of rates to show that In New
ark more was charged for limited serv-
ice than was charged for unlimited
service In other cities. Mr.. Bethel said
that there were two companies in Buff
falo with which the Newark rates had
been compared and that subscribers
had to pay for both services. In
Rochester the Independent company
wanted to increase its rates from the
figures given to the committee by Mr..
Sommer. That was all he offered as
ar answer.
Mr.. Bethells general remarks were in
the nature of a wall. lie spoke of the
STAR repeatedly and denounced its
criticism. I'VE are damned if we do
and damned il we don't" said the dig
nif1ed telephone company official.
1.-The American Telephone and Tele
graph Company owns the entire cap
ital stock OF the New York Telephone
Company" said Mr.. Bethel, in reply
to another question. THE Bell Com
psny, of Pennsylvania, holds the entire
stock of the Delaware and Atlantic"
Has that been so from the time that
the companies were formed?" was
asked.
mo. 1t dates from the time that
system from the Potomac TO the St
Lawrence was worked out
Mr.. Sommer insisted that. these an
swers showed a merger, and that II
there had been a merger in the manner
Indicated 1t was illegal. In quick sue
cession questions brought out that the
New York company paid AZ per cent
on its gross earnings to the American
that Mr.. Bethel was a stakeholder il
both New York and Delaware d At
lantic, but that his stock was merely
Qualifying and was actually owned BY
the parent Bell company; that the Bel
company and the Western Union were
intermixed; that the New York com
pany holds certain stocks and bonds Of
other companies which are not prosper
Gus; that the New York company hold:
stock in the Newark Telephone Com
pany, and uses it's conduits and Other
property; ii was too long an argu
ment" 10 attempt to tell why rates ar
higher in North Jersey than Souti
Jersey. and that the company woulC
sorle day stop all unlimited service IL
Newark.
Mr.. Ackerman's question was yer,
specific md aimed to leave no loop
hole when he asked II the New Yorl
Telephone Company controlled tn
Newark Telephone Company. Mr.
Bethel paused before he answered.
Dodgcs Question.
Il might answer that question No.
because the New York company ha
no representative on the board of tn
Newark Company, but that would no
be the whole truth" he said. FAM
want to tell you the whole truth.
Let me tell you something of tn
difference between cities where sub
scribers have to pay two t~elephon
companies for service and a city wher
there is but one company. Where Their
are two companies you pay double rate
and take inferior service.
Years ago a two-company wav
swept over Northern New Jersey; !
was not confined to Newark it
local compan alone. In Paterson