Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1912-09-14

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
and honest aldermen are not the ones
by them.
A watchful eye IL being kept on the
situation by too many people 70 have
II easily misunderstood.
A new report has been ordered on
the books and accounts Of the Tels-
phone Trust.
When the aldermen get that report
they ought to be In Q position to low.
or rates.
II they raise them they will raise
something hotter than this climate
has been for the past few weeks.
The Automatic telephone operated
by the Chicago Tunnel Company 10
far more popular than the Trust
phone. /.
The figures prove Il.
The figures Of the Bell Company are
misleading as to the number OF tele'
phones. While their count Of phones
Is no doubt correct, II 10 misleading
because most people think that this
refers to subscribers. A. q 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 the public IL with
the new Automatic Company.
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The Chicago Telephone Company.
which is suffering 20 much from
want OF funds. according to certain
city experts" that It will have t.
raise telephone rates on the people
in order to exist, paid 8 per cent In
dividends last year.
Think Of 1t!
Eight per cent on twenty.seven mil
lion dollars!
This 10 the company that started
with q capital stock OF half million
and now has a capital stock Of TWEEN
ty.seven millions.
It pays s per cent annual dividend
on twenty.seven millions and puts W
o twenty-five story modern once
building besides.
The people OF Chicago are sucl
easy marks that the phone crowd wan
to get more out Of them and asks To-
an increase In rates at the hands o
the City Council.
And two experts" agree that thil
poor" company Is losing money!
In 1911 the Chicago Telephone Com
pany paid s per cent In quarterly divi
dends OF 2 per cent March 81, 2 pc
cent, June 80; per cent, Septembe
80; 2 per cent, December 80, 1911.
Here is a nice little nest egg
S2,l60 600 divided up among the stock
holders.
When to this Is added the profit
paid the parent" Bell Te!ephon
Company, the amount grabbed of tn
people OF Chicago is simply enormous
Instead OF raising telephone ratei
the City Council should lower then
The net earnings of the Telephon
Trust increased from s4,270,s09
1900 10 s23,095,3s9 In 1910.
And yet the Trust wants to squeez
more money out of Chicago people.
We take the following from pag
"a OF the Report on the Causes {
Municipal Corruption in San Fral
cisco as disclosed by the investig'
tlons OF the oliver grand jury and tn
prosecution OF certain persons fC
bribery and other offenses against tn
state" made by a committee appoin
ed by the mayor OF that city and pul
lished by order of the board OF s.
pervisors, city and county OF Sa
Francisco, January 8, 1910:
THE Pacific Telephone and Tel
graph Company bribed the Supervi
ors to prevent the Home Telephor
Company or any other organizat!o
from obtaining a telephone franchis
in San Francisco. No attack OF an
kind on the Pacific Telephone an
Telegraph Company was threatene
by the Supervisors. and the sole pu
pose OF the crime was TO maintain
profit which might be cut by th
competition OF business rivals. Th
Supervisors were paid in all owe
$4,000. The managing committee
the board OF directors Of the compan
swore before the Grand Jury that the
did not know how the funds weT
procured for the bribery
This report was signed by Willial
Kent formerly a we'll known aide
man and reformer Of Chicago and 81
other members OF the committee a.
pointed by the mayor OF San Franci
co, Oct. ~, 1908.
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Mayor Harrison made populs