Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1912-08-24

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they ought to be in a position to low.
er rates.
If they raise them they will raise
something hotter than this climate
has been for the past few weeks.
The net earnings of the Telephone
Trust increased from s4,270,5O9 in
1900 to s23,o95,3S9 in 1910.
And yet the Trust wants to squeeze
more money out of Chicago people.
The Chicago Telephone Company.
which is suffering SO 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 II!
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.
It pays per cent annual dividend
on twenty.seven millions and puts up
q 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 2 per cent March 81, 2 per
cent, June 80; 2 per cent, September
80: 2 per cent. December 30. 1911.
Here Is a nice little nest egg Of
S2,160,O00 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.
Mayor Harrison made o popular
move when he ordered new report
on the telephone situation. The lex.
pert" whose report is now In the
hands of the Council Committee fav.
ored the raising Of rates and O gen.
eral contribution to the necessities Of
the phone gang. His report strangely
enough showed that the Chicago
branch OF the monopoly Is owned
body, boots and breeches by the
American Telephone crowd who con.
troll the telephone business Of the
whole country. His report also shows
that the Chicago branch of the monop.
oily is obliged to buy all Of Its equip.
ment from q notorious Electric Com.
pany which is also owned by the
American Telephone Trust. This com.
pany makes Its own prices for what
II sells to the other concern and the
people OF Chicago are expected to pay
for the profits OF both subsidiary insti.
tutIons OF the Trust.
~
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.
tions Of the oliver grand jury and the
prosecution of certain persons for
bribery and other offenses against the
state made by a committee appoint.
ed by the mayor OF that city and pub.
lished by order of the board of su.
pervisors, city and county of San
Francisco, January 8, 1910:
The Pacific Telephone and Tele.
graph Company bribed the Supervis.
ors TO prevent the Home Telephone
Company or any other organization
from obtaining 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
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 a 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. y, 1908.
~9A
Telephone competition in Chicago is
needed and needed badly.
The people are sick and tired OF be-
ing forced to submit to the demands
of the phone trust They resent the
gall OF the trust in wanting the city
IN give N a mononolY and they are not