Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-25

little company was formed that today
has only LOCO stations and 800 of these
have our phones as well. the other s0O
only being users of the local service
| exclusively.
"In Sussex County there is a little
| company with about 500 stations. There
is a big difference between the COM
pany in Sussex County, outside the
metropolitan area, and the company
like that in Newark, which is a field
that must essentially centre in the
great metropolis of New York city.
There is a little company at Bound
Brook that had $50 stations some time
ago and has less than fifty now.
Elizabeth has a local company with
a flat rate for service of $36 per year.
1t has but $50 subscribers, and of these
over 200 have Bell phones as we'll.
Another company is the Hudson &
Middlesex, with $50 subscribers or less.
That company, however, has recently
voted to increase it's capital from $780,
600 to $1,000 600, and has applied here
at Trenton for through right of way
for ines to Newark and Jersey City.
The Newark Telephone Company
represented an investment of $500, 900, OF
which $780, 900 was stock and 5000 900
bonds. That company when it organ
lied made a fiat rate of 500 for resi-
dence service and s4S for business SER
vice yearly. That company has never
been restricted in its business and has
been allowed to develop it's plant and
business as best it could. 1t is true
that the New York Company has IN in
terest in that company. On answer to
Mr.. Ackerman's question:.
Newark Phone Company.
1.-THE bonds of the Newark Telephone
Company sold for so cents on the dollar
after the company had failed to make a
go of it and stock sold at frc IN 81 to
Sc per share of a par value of $40. This
ompany now has from 1000 to 1900
stations. The point I wish to make is
that this company has made a greater
success than either the Paterson or
Elizabeth companies. The resolution
before the Senate committee avs that
the New York Telephone Company has
stifled competition. To stlhe COMPETE
ton means to control rates. So far as
| know no restrictions lave been
placed upon the Newark Company in
it's rates and no change has ever been
made in the rates 1t charges for service.
There are peculiar conditions in that
field and that is one reason why the
Newark Company has gone hin
Mr.. Bethel at another point said:
THE talk of the cost Of a telephone
instrument is all very we'll. but 1T
should be borne in mind that the In
strument is of no use on the wall Of q
room IL it does not connect with a sys-
tenn"
That is the answer to the crushing
OF the Newark Telephone Company. 1t
has been systematically wrecked, SO
far as its usefulness to the public Is
concerned, and thu subscriber finds the
service almost en- rely useless, merely
a case of an instrument without sery-
Ice. No effort is made to get Q sub
scribers, and year by year the prop
erty has deprecated, the number OF
patrons diminished and the minority
stock grown less valuable. Instead OF
trying to raise the rates for the serV-
ice and make the company more Valu-
able, the New York company has lett
the rates as they found them and
wrecked the company. Tha is one
way of sitting competition, more Ell
fective tina juggling rates. .
1--WE are opposed to an inVestigatlon'
said Mr.. Bethel, but we do not OPP
pose an investigation peenhSS =" -
wrong acts or COMMISSIONS vi oui Pc"
we peileVe IA PuphcitS. ! w ~ III III
pose that 'no .osonn, 7
nioiopoiiAo 49, ~ raforue,
n".N - nna;t.a a., ;deal creed
e., Eaoaam i. cornoro+;on ahoye re-
n.oooh 90 which tho first p,ank was
n,h1ioi+v
at real,ze tho advantages that would
flow from a clean hill of health that an
Investigation nv the general
would result in he went on. For !
know that an investigation by the at
torney-general would be a fair, square,
: judicial proceeding.
"But there are other things to be con-
sidered. First. an investigation would
be practically an indictment. III wouio
seriously interfere WIN our ou
anu INV Il "'i''
"second-"e are ."S' co"'e."
=" new building In Newark' costing
almost Il half million do'inrs' we
a. -I.AU --n thai