Evening star., 1914-07-30
Question Of Obsolete Rates

The defendant further AYERS that the
rates in exhibit 3. filed with the bill.
are the rates to the government OF the
District OF Columbia. in pursuance or
the act OF April q, 1904. which have
been in force without change. since
Aprii, 1904 but are not available TO
the general public within the District
Tor business service. The defendant
admits that April 3. 1913. 1t also filed
titled Obsolete rates within the Dis
trict of Columbia mentioned In the
plaintiffs bill as exhibit c, but the de-
sendant denies that the word 'ooso-
lete' In the list was the mere conciu-
sion OF the agent or officer OF the .Se, de,
the rates SO designated as obsolete were
and had been in point OF fact obsolete
for many years. The defendant admits
that all contracts known as the nat
rate or obsolete contract In force at
March I. 1918. have since been legally
by notice on the part OF
this defendant to the parties anected
by such termination The defendant
admits the list Of obsolete or fat rate
Established Prior to 1888.
Further answering. the defendant
places of business prior to 1858, when the
number Of subscribers Of the defendant
we're relatively few. In 1885. and while
continuing in force the fat rate plan for
business service. the defendant also put
into effect In the District schedule OF
measured or message rates for business
service, under which each subscriber pays
according to his usaSe-that is. for the
number Of messages sent per year from
the telephone on his promises. June 80.
1904, when there were approximately
SAB business stations in use in the
District. Of which 2,7SO were on the nat
rate basis, and because 1t realized that
fiat rates for business service were not
suitable nor equitable in a territory of the
character and population Of the District,
In which there was and Is a wide varia-
tion in the number Of messages sent BY
the respective subscribers to such busi-
ness service. and were therefore inequi-
table and unjust to those subscribers who
had need to and did send relatively few
messages per year, the defendant ceased
making contracts for this business serv-
ice at fiat rates. and since the last men
toned date has required each OF Its new
subscribers for business service to sign
a contract for service at measured or
message rates, which rates thereupon be-
came and ever since have continued the
regular. common and standard rates for
business service to the general public
within the District.
Contracts Eliminated.
"Therefore,' 1t is everred. "the defend
ant established a policy Of gradually elimi-
mating the contracts for fiat rate busi-
ness service, which had thus become OBJ
solete, with the purpose OF disseminating
and entirely eliminating all such con-
tracts, and as result Of this policy
steadily pursued there remained March l,
1918. only the small number Of 1888 Of
such obsolete fat rate contracts cover
ing service TO only 312 stations. whereas
there were on said date approximately
$500 contracts at the regular standard
measured or message rates covering serv-
ice to approximately 21.773 stations.
"This defendant further AYERS that the
said obsolete or fiat rate is unfair and
as against the great ma
jorfty Of its business subscribers who are
and for many years have been paying
the regular standard measured or mes