The Palatka news and advertiser. [volume] (Palatka, Fla.) 1908-19??, 1914-11-13
THE STATE OF FLORIDA has adopted
the policy Of the regulation of tele-
phones and other public utilities oper-
= atinn wit hin tic boundaries and has del

such utilities to furnish adequate and efficient
service at reasonable rates. This policy was
adopted in recognition of the fundamental eco
nomc proposition that the public would be better
served by one public utility, whether it be gas
water, electric light, street car or telephone
which furnishes an adequate and efficient service
and at reasonable rates. than if the same public
is furnished such service by two or more such pub
lie utilities.
The application of this principle is obviously
more pertinent in the case of telephone compa-
MES than in the case OF any other pubic utllty
A number of leading cities in this country nave
tried two telephone systems and, after eXpeflenc-
es covering various periods, have found that the
dual system is a source OF economic waste ana
public annoyance. majority OF these cltleS
have returned to one system and have recorded
their objection to two telephone systems IN any
community. w
The railroad commissions and public utility
commissions in many states have been confronted
with the problem of the dual telephone system
The subject has been given exhaustive study by
experts, and many commissions now decline to
permit second company to be established IN
town where there is already telephone company.
This same attitude has been taken by the
courts in number of cases where the question OF
two telephone systems is involved, and in recent
case reported in 141 Pacific $50, Mr.. Justice Chad
wick, concurring in the unanimous decision OF the
Supreme Court Of the State of Washington, said:
Indeed, two companies furnishing the same
Is,
taxpayer unwarranted, and unjustifiable. 1t is
only necessary to refer to the dual system OF tel
ephones that have been maintained in some OF the
cities of this state to prove this premise. Instead
of cheaper. and better service the system has re-
suited in double burden of expense, and often
times in utter confusion of service"
Without regard to Palatka the Railroad and
Public Utility commissions have almost without
exception, recognized the economic proposition
that the public is better served by one telephone
company and that this principle is applicable IN
the interest of the public as whole.
SOME RECENT DECISIONS.
Some recent commission decisions on this
subject which will be of interest to the citizens OF
Paatka at this time are as follows:
"An additional telephone company would not
solve the problem. More wires would but create
more congestion and poorer conditions Tor trans
mission system. A new company could no more
contend with high tension electric lighting wires
than can the present company No more effect
i've service could be placed at the switchboard OF
a new company than can be placed at the present
switchboard
"The telephone business more than any other
demands single service or single utility. "A pa
tron of telephone company desires to be connect
ed with other telephone patrons OF the commun-
ty. This can be accomplished more cheaply ana
satisfactorily by single company than by TWO
OF more companies. 1t is different with gas or
1890"
one patron or user of the product or service is IN
no way connected with interested in another
patron or user as such. And, yet, In these utll"
ties it may be conceded that SINCE utility can
furnish the product or service to the inhabitants
of a given locality at lower rate and under bet
fer conditions than will be had if the community
is served by two or more utilities. "-lndlanaP
lie Service Commission December 81, 1913.
"The Commission would not approve the es-
tablishment of a competing telephone plant IN
voving additional burden upon the patrons ana
division of the normal revenue from the business
with resultant loss to the corporation ALREADY es-
tablished in the field, unless the case presented
some specific circumstances to JuStl1y same En-
perience has demonstrated that a local telephone
exchange is a natural monopoly, and that, as
general principle, the more complete TINS monop-
oly the more cheaply and the more conveniently
the service can be- rendered for the pubic, ana
the less the interference with or Disagreement OF
the public streets and highways thereby. In the
very nature of the business every multiplication
of such utility corporation in local exchange
area is proportionate division OF the service rem,
dered. Therefore, this Commission holds that
admission of competition in local telephone SER
vice is to be avoided wherever possible to do so,
with due consideration of the local condition IN
voved"-Missour Public Service Commission,
February %, 1914.
aft is undoubtedly an economic waste for two
telephone companies to serve the same commum-
ty, especially if that community be one OF the
smaller communities in the commonwealth, and
economists and courts now recognize that there is
such a thing as a natural monopoly. Illinois
State Public Utilities Commission May ~, 1914
DIVIDED SERVICE AND DOUBLE PRICE.
.-. .oThis Board is already on record against the
unnecessary duplication of telephone apparatus.
# means generally, and it would mean in this par
ticuIar case imposing upon the public the evils of
a divided service or double price. We can see no
sufficient reason for approving franchise that
would imnose this undesirable condition upon tel
enbone subscribers in this region" New Jersey