Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-01-26
PHONE CO. NOW
FACES PROBE BY
Acknowledgement
Investigation of Extortionate
Methods Throughout State to
Be Begun Immediately.
WILL MAKE REPORT TO
LEGISLATURE NEXT WEEK
Exposure by STAR Brings De-
nunciatiOn OF Monopoly from
Senator Gebhardt.

An investigation into the excessive
methods of the New York Telephone
Company will be made at once by At
tcrney-General Wilson. The attorney
general, it is expected. will report to
the Legislature not later than next
week. and il the example set by New
York State be emulated here, joint
legislative committee to probe the
trust will be the result The STARS
exposure caused the lawmakers to
wonder. and even those Republican
senators who enjoy telephone and tele-
graph franks" quietly confessed that
Newark business men were being dis
criminated against by the telephone
company.
Talk about the Standard Oil COM
pany being a trust and working hard
ships upon the public, they don't conf
pare with this company" Indignantly
declared State Senator William C
Gebnardt of Hunterdon county, who in
the absence of Senator Harry v. Os-
borne introduced the resolution in the
Senate which directed the attorney
general to make a thorough investi-
cation of the methods employed by the
telephone company in the northern
part of the State of New Jersey, and
more especially in the city of New
ark. The full text of the resolution
follows:
The Resolution.
Whereas, II has become matter
of public information that the New
York Telephone Company has secured
an absolute monopoly of the telephone
business in the northern part of this
State, and
Whereas, The New York Telephone
Company has raised its rates 10 ekor-
bitant figures, as illustrated by the
cost of service In the metropolis of
New Jersey compared to rates in cities
of similar size where competition
exists, and
Whereas, Business telephone service
with a limit of legs than sixteen ness-
ages a day cost 1928 per year in New
ark and but $4S per year for unlimited
service in the city of Rochester, N. Y:
$S4 for unlimited service in Buffalo,
N. Y, and $100. for unlimited service in
Cincinnati, o., therefore be it
Resolved, That the attorney gen.
eral investigate the conditions which
make such unfair and excessive rates
possible, and report TO this Legisla
ture the proper course to be pursued
in correcting abuses of the privileges
that have been secured through the
sitting of competition"
Mr.. Gebhardt like Senator Osborne,
has made special study of the trust
methods of the New York Telephone
Company. The Essex senator proved
that the trust in order to make effec-
tive its higher scheduling rates OBJ
tained control of the so-called inde-
pendent company-the Newark Tele-
phone Company. The result of Sena-
tor Osborne's quiz has already been
printed in the EVENING STAR.
The Hunterdon senator says that he
made a similar Investigation of the
telephone conditions in Jersey City and
discovered that the New York Tele-
phone Company had gotten control of
the Hudson Telephone Company there
for the same purpose and in the same
way as the company did in Newark.
Mr.. Gebhardt says that wherever the
little companies pretend to be COM
petitors of the trust excessive rates
prevail like Newark and Jersey CITY.
and it is high time now that the
Legislature should interfere.
Tells of watered Stock.
There Is more watered stock in the
telephone trust than there is in any
other big company that / know Of de-
clared Senator Gebhardt to a STAR re-
porter today. Twelve years ago the
telephone company had capital stock to
the amount of s25,000,O00. and in period
of ten years following tfr capital stock
was increased to 1925, 100000 Now that
the trust has secured the control of the
Western Union Company or rather
merged with it, the capital will run into
a billion. With the increase of the
telephone business, the rates should be
reduced, but. instead, the company
Keeps increasing them, and If the State
does not interfere there is no telling
where the abuses will lead to.
IF SO many of the Republican men,
bers OF the Legislature We're not receiv-
ing favors from the telephone company
the Legislature would appoint q joint
investigating committee at once and
put check upon the unfair dealings
of the company. / propose to do all in
my power to force the telephone COM
paly to not only reduce its rates, but