The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-01-30
TELEPHONE GROWTH A
CUBAN TRADE FACTOR
For 35 Years Cuban Telephone
Co. Has Maintained Steady
Volume Of Business.

Telephone companies securities have
long since taken their proper place
among the best securities in the inan-
cial markets throughout the United
states. Europe. and more recently in
cuba. according to a report made by
the president of the Cuban Telephone
Company. THE telephone business Is
now thirty-hve years old. and never In
It's history has there been any deprecia-
ton or reduction In the volume OF bust
ness done. 1t would be impossible to
measure In money value the great
growth Of trade that has already been
brought about by this service"
This Is particularly true Of the tele-
phone service IN Cuba. The history OF
the telephone there, according to an ar
ticle In Twentieth Century Impressions
Of cuba" dates back to 1SSs. In May
Of that year the Government OF Spain
issued an elaborate scheme for tele-
phonic development in cuba. Porto Rico
and he Philippines. The system was
TO be constructed with the most Inn
| proved appliances known. and later X
other appliances which In the Judgment
~ the Government would he beneficial
were discovered the holder Of the con-
| cessiou was to be required to put them
l hNlN' = III f'N A'''H' -
should he fail. the Government was
authorized to establish a new service
making use OF the new appliances. The
kinds OF telephone lines and cables were
to he specified in the sale. the secrets
Of the Government were to he kent IN
Niolahlc service TO the Government ny
the company was to he gratuitous up 10
; per cent. Of the apparatus employed
on the line fines were 10 he imposed
- .-.I.tAr 4DllnnenI FOR fltlnfa 10
comply with any OF the conditions ot
the concession. Under these terms an
auction sale Of the telephone conces-
sion FOR Havana was held and on
,ained by n company organized under
Spanish law. the Red Telefonica Com
pauy OF Havana. with a capital or S2'"'-
600 Spanish gold. In a desultorE wa!
the developed the havana sSs'
,.,n IN TO l.eO0 Blake telephones. in
EFFICIENTLY operated and inadequate to
the needs Of the community. Inc earn
lrrs instead Of being applied 10 tne
maintenance Of the plant were distr'o'
uted In dividends.
This was my a09. when Cuba was un.
der the military occupation OF the nlted
States. The i~nadeauacy or the plah'
came to the attention Of American 'aW'
,aliSts Who believed when developed ~
rordinE to- modern methods II would ne
+. rroltahle field for American capita
and purchased the stock. An American
COMPANY was organized in DECEMBER
1000. United States experts reported tnt
system so had 1t was entirely rehul'
and the work Of undermining began
However, although the necessity TOT ,el'
ephone legislation Was evident "a nl'
WAS vetoed by the President or the Gu
ban Republic. and telephone development
was AT - staudstill until the second IN
taryeutiou Of the United States in 1905
1897, when the provisional Government
took it up. getting no further. however
than the drafting Of a project. so !
was not until the Gomez Adm,nistra'lo
that the necessary legislation was pro
cured. Since then the extension or 'h'
local and long distance telephone ma
proved one Of the most powerful factof'
m the rapid development or Cuha.
Some idea Of the growth or the IONS
distance business may lie gathered IRON
the tact that in 1911 tho revenue IRON
his source Increased from s5no IN 'r
toh.r to $3.50" in March. one OF th'
factors responsible for This increase va
the installation ~ the automatic ie'e
uhuue whe the human operator wa
NO longer an Indispensable" "ssllN