Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1912-09-21

tails OF the passage of the telephone
ordinance five years ago.
Ugly rumors"!
Well, there are some pretty ugly
rumors going the rounds just now.
But the Mayor, Corporation Counsel
affected by them.
A watchful eye Is being kept on the
situation by too many people to have
1t easily misunderstood.
A new report has been ordered on
the books and accounts of the Tele-
phone Trust.
When the aldermen get that report
they ought to be in position to low.
er rates.
II they raise them they will raise
something hotter than this climate
has been for the past few weeks.
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The Automatic telephone operated
by the Chicago Tunnel Company is
far more popular than the Trust
phone.
The figures prove It.
The figures Of the Bell Company are
misleading as to the number OF tele-
phones. While their count Of phones
is no doubt correct, 1t is misleading
because most people think that this
refers to subscribers. As matter Of
fact, the number Of telephones 10 less
than 100000 district subscribers. and
that includes their lines In suburban
territory.
They have been thirty.six years get.
ting 100000 subscribers. while the
Chicago Tunnel Company have gotten
$4,000 subscribers In less than two
years.
This shows that sthe public 10 with
the new Automatic Company.
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The Chicago Telephone Company.
which Is suffering 80 much from
want OF funds. according to certain
city experts" that 1t will have to
raise telephone rates on the people
in order to exist, paid per cent In
dividends last year.
Think Of 1t!
Eight per cent on twenty.seven mil.
lion dollars!
This is the company that started
with a capital stock Of half O million
and now has a capital stock OF TWEEN.
ty.seven millions.
1t pays s per cent annual dividend
on twenty.seven millions and puts up
twenty-five story modern once
building besides.
The people OF Chicago are such
easy marks that the phone crowd want
to get more out OF them and asks for
an increase in rates at the hands OF
the City Council.
And two experts" agree that this
poor" company is losing money!
In 1911 the Chicago Telephone Com
pany paid per cent in quarterly divi.
dends OF per cent March 81, per
cent, June 80; 2 per cent, September
so; per cent, December 80, 1911.
Here Is a nice little nest egg OF
$2,I60,C00 divided up among the stock
holders.
When to this is added the profits
paid the parent" Bell Telephone
Company, the amount grabbed of the
people OF Chicago Is simply enormous
Instead OF raising telephone rates
the City Council should lower them
The net earnings OF the Telephone
Trust increased from s4,27o,S09 In
1900 To s23,095,3s9 in 1910.
the uapfs "a cp,taa1o
more money out Of Chicago people.
We take the following from page
"a of the Report on the Causes of
Municipal Corruption in San Fran.
cisco as disclosed by the investiga.
tiols OF the Oliver grand jury and the
prosecution OF certain persons for
bribery and other offenses against the
state made by committee appoint.
ed by the mayor OF that city and pub.
llshed by order Of the board Of SUI
perYisors, city and county OF San
Francisco, January 5, 1910:
The Pacific Telephone and Tele-
graph Company bribed the Supervis.
ors 10 prevent the Home Telephone
Company or any other organization
from obtaining a telephone franchise
In San Francisco. No attack of any
kind on the Pacific Telephone and
Telegraph Company was threatened
by the Supervisors, and the sole pur-
pose OF the crime was TO maintain a
profit which might be cut by the
competition OF business rivals. The
Supervisors were paid in all over
$4,000. The managing committee OF
the board Of directors Of the company
swore before the Grand Jury that they
did not know how the funds were
procured for the bribery"
This report was signed by William
Kent, formerly we'll known alder.
man and reformer of Chicago and six
other members OF the committee ap.
pointed by the mayor Of San Francis
co, Oct. -. 1908
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