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National Library Bibliotheque nationale 
of Canada du Canada 



NAY ONAL U8RARY 
Bi£; NAriONALE 

gOvernm:nt publications 

ON 
PUBLICATIONS OU GOUVERN£M£NT 



APPENDIX 



TO THE 



FORTIETH VOLUME 



OF THE 



JOURNALS OF THE HOUSE OF COMMONS 



DOMINION OF CANADA 



SESSION 1905 



PART II 




OTTAWA 

PRINTED BY S. E. DAWSON, PRINTER TO THE KING'S MOST 

EXCELLENT MAJESTY 

1907 






920631 



LIST OF APPENDICES, 1905. 



PAET I. 



No. 1. — Report of the Select Committee on Telephone Systems, containing Minutes 
of Proceedings, Evidence, Interim Reports and Synopsis of Exhibits. 

PART II. 

No. 1. — Report of the Select Committee on Telephone Systems, Appendix A, con- 
taining letters addressed to the Chairman and other members of the 
Committee ; also papers, statistics, &c, furnished by Foreign Govern- 
ments and by various Telephone Companies in Canada and elsewhere, 
&c, &c. 

PART III. 

No. 2. — Report of the Select Standing Committee on Agriculture and Colonization. 

Printed in Part III. 

No. 3. — Second Report of Select Standing Committee on Public Accounts respecting 
payments on account of Printing and Stationery Department. 

Not printed. 

No. 3a. — Third Report of Select Standing Committee on Public Accounts respecting 
payments to C. S.'Boon, dredge General Meade, $1,533; Dunville, $8,628, 
and C. S. Boon, towing, $1,366.75. Not printed. 

No. 3b. — Fourth Report of Select Standing Committee on Public Accounts respecting 
payments to Joseph E. Gobiel, ' Yukon Telegraphs.' Not printed. 

No. 3c. — Fifth Report of Select Standing Committee on Public Accounts respecting 
payments to J. T. Donohue — ' Yukon Transportation Claims.' 

Not printed. 

No. 3d. — Sixth Report of Select Standing Committee on Public Accounts respecting 
payments to N. G. Valiquette. Not printed. 

No. 3e. — Seventh Report of Select Standing Committee on Public Accounts respect- 
ing payments to Dr. C. T. Purdy. Printed in Part III. 

No. 3f. — Eighth Report of Select Standing Committee on Public Accounts respecting 
accounts of John Bertran & Sons, John Inglis & Co., and Poison Iron 
Works. Not printed. 

No. 3g. — Ninth Report of Select Standing Committee on Public Accounts relating 
to payments to Woods (Limited). Printed in Part III. 

No. 3h. — Tenth Report of Select Standing Committee on Public Accounts in re 
proposed amendments to Audit Act. Printed in Part III. 



v V .;■- 4 



SELECT COMMITTEE 



ON 



TELEPHONE SYSTEMS 



VOL. II. 

APPENDIX A. 

(revised edition.) 



Containing letters addressed to the Chairman and other members of the 

Committee; also papers, statistics, &c, turnished by Foreign 

Governments and by various Telephone Companies 

in Canada and elsewhere, &c , &c. 



PRINTED BY ORDER OF PARLIAMENT 




OTTAWA 
PRINTED BY S. E. DAWSON, PRINTER TO THE KING'S. MOST 
EXCELLENT MAJESTY 
1 905 
[App. No. 1—1905.] 



4-5 EDWARD VII., APPENDIX No. 1 A. 1905 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



APPENDIX 'A' 

CORRESPONDENCE. 

Telegram. 
No. 1. 
Sir William Mulock, 

Postmaster General, 
Ottawa. 
Telephone meeting. This joint committee representing the county council, town 
councils, trade and labour councils, and boards of trade of the county of Waterloo, 
assembled in the town of Berlin, this 23rd day of March, 1905, to discuss the organi- 
zation of a competitive town and rural telephone service, learning of the action take:i 
by the government in the appointment of a committee looking to and the taking over 
of the telephone service of Canada do hereby defer further action pending the out- 
come of such investigation. We hereby congratulate the Postmaster General, Sir Wm, 
Mulock, on the action he has taken and unanimously recommend the Government 
to entirely take over and operate the telephone service of Canada. 

ANTHONY OCHS. 
Chairman Telephone Committee. 

No. la. 

Ottawa, March 24, 1905. 
Dear Sir, — I have the honour to acknowledge the receipt of your telegram of 
the 23rd instant favouring me with the views of the joint committee representing 
the county council, town councils, trades and labour councils and Board of Trade 
of the county of Waterloo, assembled in Berlin on the 23rd instant to discuss the 
organization of a competitive town and rural telephone service, and recommending 
the Government to take over and operate the telephone service of Canada. 

I shall have pleasure in communicating your telegram to the Parliamentary 
Committee at present engaged in studying this important question. 

Yours faithfully, 

WM. MULOCK, 

Postmaster General. 
Anthony Ochs, Esq., 

Chairman, Telephone Committee, 
Berlin, Ont. 

No. 2. 

W. J. Eoche, M.D., MP., 

House of Commons, Ottawa, Ontario. 

Dear Mr. Koche, — As you are a member appointed to inquire into the tele- 
phone system in Canada and elsewhere, I venture to make some suggestions which 
may prove useful in your investigations.' 

In the first place, there is no public telephone system in Canada worthy of tha 
name, except the Bell Telephone Company, and so far as I am aware there is no- 

1— d— 1 



2 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

telephone man competent to discuss the proposition anywhere outside of the Bell 
Company's employ, so unless your committee gets some outside expert's assistance 
there will be a danger of your not covering the situation completely. As a_ matte* 
of fact the bulk of the independent operating companies are located in the middle or 
western states, there being only three or four cities of any importance from Chicago 
to the Rocky Mountains which have not competing companies operating with greater 
or less success. In some of the Territories where these independent companies operate, 
the Bell people have been entirely driven out, or maintain only long distance stations, 
leaving the local work entirely in the hands of the smaller companies. 

Effective competition is given to the Bell people only by those companies which 
are strong enough to parallel every mile of long distance telephone or toll lines 
operated by the Bell Company, and such independent companies, as have done thia 
have also expended their +.oll lines so as to thoroughly serve the various communities 
in a way which the Bell people never could be induced to do. 

There are four or five telephone men in the "United States, any one of whom could 
elucidate the whole subject, and be of most valuable assistance to your committee. But 
whether or not you will be able to get them is another question. One of them is Mr. 
T. A. Potter, who is general manager of an extensive independent plant operating in 
Iowa, Minnesota and Dakota. His company have over six thousand miles of toll lines 
and a long number of exchange. Another one is a Mr. Bills, of Milwaukee, a gentle- 
man whom I have not had the pleasure of meeting, but whose experience I have reason 
to believe is very extensive. The third. Mr. Charles Webster, of Minneapolis, who was 
the head of the syndicate which endeavoured to get a charter last session from the 
Manitoba legislature, and the fourth is Mr. A. T. Averill, an Iowa man, whose address 
I do not know. There are also several in Chicago. 

In going into the question of the cost of operation, the committee will have the 
greatest difficulty without the assistance of an undoubted expert, in arriving at the 
true value of any portion of the Bell Telephone Company's plant. The fact is that 
any telephone plant prior to 1895 is now obsolete, and not only imperfect in operation 
but more expensive to maintain. Since 1895 there is to be taken into consideration a 
ten per cent annual depreciation, and only such portions of the plant as have been con- 
structed since about 1900 are really modern. You will find upon investigation that 
the Bell people conduct their business upon the principle that they must receive in 
returns every five years the total investment, plus dividends and operating expenses.. 
Therefore, the amount of money necessary to expropriate the whole Bell telephone plant 
will certainly be very much less than the apparent book investments of the company. 

I would like very much if business engagements permitted to place my services 
at the disposal of your committee for the purpose of facilitating its work, but I am 
very much afraid I will not be able to do so, as I have trials now which will keep me 
in court for about three or four weeks continuously, but any information I can give 
you, will be cheerfully furnished. My own idea (short of government ownership, by 
which I mean Dominion government ownership, which involves the expropriation of 
the Bell plant) will be to grant a charter to a strong financial company, who will un- 
dertake to parallel the Bell long distance system and connect with municipal systems, 
which in return for long distance services would operate a long distance line upon 
percentage basis. This would give municipal ownership an impetus and would enable 
local interests to be served far better than Dominion government ownership would be 
able to do, as the various municipalities could operate at costs and supply free telephone 
service to the ratepayers, in any event they could reduce the expenses to a minimum. 

I am sending a copy of this letter to Mr. Maclean, with whom I last week dis- 
cussed the matter while in Toronto, and if there is anything further I can do, I shall 
be obliged if you will let me know. 

With kind regards, believe me, faithfully yours, 

GEO. A. STEWART POTTS. 



APPENDIX - A " 3 

APPENDIX No. 1 

No. 2a. 

Ottawa, March 22, 1905. 

Dear Sir, — Your communication of the 18th instant to Mr. Eoche was referred to 
the Select Committee on Telephones to-day, and I am instructed to thank you for the 
information contained therein. 

The committee is desirous of obtaining from every possible source such informa- 
tion as will assist in reaching a practical solution of the telephone problem. I am 
therefore writing to the gentlemen whose names you have been good enough to furnish. 

If you can yourself supply any data in regard to the working of telephone systems 
in the west, the committee would much appreciate your assistance in this way. 

The following are the leading points upon which the committee desire informa- 
tion : — 

1. Name of company and territory covered. 

2. Amount of capital and bonded indebtedness, if any. 

3. Number of telephones in operation. 

4. Miles of long distance lines. 

5. Rates per annum for local service. 

6. Long distance toll charges. 

7. Name of competitive company. 

8. Number of telephones operated by competitive company. 

9. Miles of long distance lines operated by competitive company. 

10. Rates per annum charged by competitive company. 

11. Long distance toll charge of competitive company. 

12. Rates charged before advent of competition. 

Any further information of a general nature regarding the operations of telephone 
companies of which you may have knowledge will be welcomed by the committee. 

I may say that the intention of the committee is to conduct the investigation in 
an absolutely impartial manner and solely in the interests of all classes of the people 
to whom the telephone has become a daily necessity; therefore any assistance you can 
render in supplying reliable data or information as to the source from whence such 
may be obtained will at all times be gladly received. 

You do not state Mr. Potter's address ; might I ask you to be favoured with it. 

Faithfully yours, 

WILLIAM MULOOK. 

No. 3. 

Toronto, Ont., March 21, 1905. 

Dear Sir, — I take the liberty to write as I understand the members of the com 
mittee for the investigation of a telephone service for the farmers, have made the state- 
ment that they are thankful for any information received in relation to their business 
of investigation. 

In the suburbs of Toronto (Toronto Junction) there is now in operation an 
automatic telephone service of nearly two hundred telephones. This system is kept in 
perfect working order by one man, and needs no more than two wires from each 'phone 
to central, the central connections being made strictly automatically. I am person- 
ally very interested in electricity and understand and can appreciate the value of any- 
thing new in the way of telephones ; therefore am in a position to judge. I might say 
that this system is unlimitable as far as the number of stations are concerned, and from 
what I can understand seems to be the very thing you are in quest of for the local dis- 
tricts, although Mr. Stark (of the Stark Company, Limited) who is manager of this 
company, states that with this system one is able to telephone over longer distances than 
frith the Bell Telephone. I might here state that Mr. Stark was for many years the 
backbone of the Bell Telephone Company here in Toronto, and rose up from a position 

1—d—lh 



4 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

of line's man. This system that he is endeavouring to introduce into Canada is also 
working under one of the largest incorporated telephone systems of the United States, 
in the city of Chicago. 

The rates which the Stark Company, Limited, are able to offer their subscribers 
are exceedingly reasonable, notwithstanding this fact that they still are able to pay 
good dividends on their investments. 

Hoping that this information will be of some service to you and the executive 
committee, I am 

Sincerely yours, 

G. L. BEARDMORE. 

Sir William Mulock, 

Postmaster General, 

Ottawa, Ont. 

P.S. — Any further information that I can give you will be a pleasure. 

No. 3a. 

Ottawa, March 23, 1905. 

Dear Sir, — I have to acknowledge receipt of your favour of the 21st inst., and beg 
to thank you for the information contained therein. 

I assure you that the committee will at all times greatly appreciate any information 
upon the subject of telephone operations in Canada and elsewhere which any member 
of the community is in a position to furnish, as it is intended to thoroughly investigate 
this question from every conceivable standpoint, with a view to securing the very best 
telephone service for all classes of the people at the lowest possible cost. Again thank- 
ing you, 

Believe me, dear sir, 

Yours faithfully, 
WILLIAM MULOCK, P.M.G. 
G. L. Beardmore, Esq., 

Per The John Inglish Co., Ltd., 

14 Strachan Ave., Toronto. 

No. 4. 

Toronto, March 23, 1905. 
Hon. Sir William Mulock, 
Ottawa. 

He Telephone Committee. 

Sir, — I had charge some years ago of the matter before the Department of Agri- 
culture, wherein the Bell Telephone patents were declared invalid, and then became 
possessed of some information which may be of some service in considering the ques- 
tion of public telephone system. 

The Bell Telephone commenced business with a capital of about $500,000— of 
which $100,000 — represented an investment, the balance of about $400,000 being given 
in payment of certain patents, which at that time were invalid by reason of breaches 
of the Patent Act, and which breaches had been committed to the knowledge of 
those selling them. This stock was largely held by the American Bell Telephone 
Company, of Boston, who practically controlled the Canadian company, and sent their 
representatives to take charge of the work. Some of those interested in the manage- 
ment of the Boston company were also interested in companies who supplied eJectrie 
and telephone appliances, and the apparatus required by the Bell Telephone Company 
was purchased to a large extent from this company. The result was that prices were 
paid largely in excess of what the work could have been obtained for from other manu- 
facturers or contractors. For example: 



APPENDIX "A" 5 

APPENDIX No. 1 

One switch-board was advertised and stated to have cost the Bell Telephone Com- 
pany $50,000, being purchased from a United States manufacturer, which was, as I be- 
lieve, controlled by the Boston company. I could have had the same switch-board 
manufactured for the Bell Telephone Company for about $15,000 — so when the state- 
ment is made that the present rates do not pay, it must not be forgotten that the capital 
jf the company has been inflated to a very large extent by the means above indicated. 

There are affidavits on file in the courts in which the value of the Bell equipment 
as given by themselves and disinterested parties are shown up and the result of this 
evidence was such that on a motion made by me that the Bell Telephone Company 
should give security for costs, they being a foreign company to Ontario, having their 
head office at Montreal, to which they gave the answer that they had assets in Ontario, 
after the Master in Chambers had heard the affidavits and argument on behalf of the 
Bell Telephone Company, he, without even calling on me, ordered them to give security 
for costs, as their assets were in such a shape that I would have been unable to realize 
my costs if successful. The Bell Telephone Company did not risk an appeal from this 
decision. 

I do not know if the above facts are pertinent to the inquiry being made by your 
■committee and if not I trust you will pardon my writing you at this length, but from 
what I saw in the newspaper it seemed to me that a knowledge of these facts might ba 
useful to those inquiring into the matter. 

T have the honour to be, sir, 

Your obedient servant, 

JAS. R. ROAF. 

2fo. 4a. 

Ottawa, March 24, 1905. 

My Dear Sir, — I have the honour to acknowledge the receipt of your letter of the 
23rd instant conveying to me certain information with reference to the Bell Telephone 
Company, and shall have pleasure submitting your communication to the parliamentary 
committee at its next meeting. 

Yours sincerely, 

WM. MULOCK. 
James R. Roaf, Esq., 
Barrister, 
88 Church St., Toronto, Ont. 

ITo. 5. 

Brantford, March 23, 1905. 
Sir Williajc Mulock, P.M.G., 
Ottewa, Ont. 
Dear Sir, — Brantford has been taking a deep interest in the telephone business for 
the past two years, and was about passing a by-law to install either a municipal or an 
independent system, but after knowing you are going into the question we do not think 
it is wise to go until after your commission get through collecting all information. 

As stated before, we have secured an immense amount of information and dat* 
through Aid. Norman Andrews, who has visited a great many places, and has cham- 
pioned the cause from its beginning, and would be able to give your commission a lot 
of valuable information, and is quite willing to do so, if you notify him to do so. It 
would be very gratifying to the people of Brantford to keep in close touch with thi3 
question, and this would enable us to do so. 

Trusting you will give this your best consideration, I remain, 

Yours respectfully, 

JOHN MUIR. 



6 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905- 

No. 5a. 

Ottawa, March 24, 1905. 

Dear Sm,— I have to thank you for your letter of the 23rd instant with reference 
to the telephone inquiry now proceeding. I observe what you say respecting Alderman 
Andrews possessing valuable information on this subject, which he is quite willing 
if desired to communicate to the committee. The committee desires to obtain all 
available information respecting this important matter, and will welcome any assis- 
tance in that direction which Mr. Andrews may be able to render. 

Before a Parliamentary Committee summons a witness, it is usual for suca 
committee to know in a general way the nature of the evidence that he may be able 
to offer in order that it may be decided whether or not his testimony would be material. 
I judge from your communication that Alderman Andrews has been studying the 
workings of various systems. If this be the case, his evidence would, no' doubt, be 
very helpful. I have to-day written him upon the subject. Thanking you for your 
communication, I am, 

Yours sincerely, 

WM. MULOCK. 
John Muir, Esq., 

The Goold, Shapely & Muir Co., 

Brantford, Ont. 



No. 5b. 

Ottawa, March 24, 1905. 

Dear Sir, — Mr. John Muir of Brantford, informs me that you have obtainel 
much information and data respecting telephones, that you have visited many place?, 
and would be glad to furnish to the Parliamentary Committee much valuable infor- 
mation. I would be glad if you would kindly let me know in a general way the 
nature of the information which you could communicate to the committee. I will 
then have the pleasure of submitting your letter to the committee for its consideration 
and determination whether it would desire your personal attendance at Ottawa to 
give oral testimony. 

Yours sincerely, 

WM. MULOCK. 
Alderman Norman Andrews, 
Brantford, Ont. 



No. 6. 

Ottawa, March 22, 1905. 

Dear Sir, — Your name has been furnished to the Select Committee on Tele- 
phones, now sitting in Ottawa, by Mr. George A. Stewart Potts of Winnipeg, as a 
possible source of information regarding the. working of telephone systems in the 
United States. The committee has therefore instructed me to communicate with you 
in the hope that you would be willing to furnish some few particulars regarding the 
operation of companies with which you are associated. 

If you can see your way to furnish the committee with such information upon 
the following points as you may see fit, your kind assistance in this matter will be 
much appreciated. 

1. Name of company and territory covered. 

2. Amount of capital and bonded indebl.ecli.css, if any. 

3. Number of telephones in operation. 

4. Miles of long distance lines. 

5. Kates per annum for local service. 



APPENDIX "A" \ 

APPENDIX No. 1 

6. Long distance toll charges. 

7. Name of competitive company. 

8. Number of telepones operated by competitive company. 

9. Miles of long distance lines operated by competitive company. 

10. Rates per annum charged by competitive company. 

11. Long distance toll charge of competitive company. 

12. Rates charged before advent of competition. 

Any further information of a general nature regarding the operations of tele- 
phone companies of which you may have knowledge will be welcomed by the com- 
mittee. 

Thanking you in anticipation, 

Believe me, dear sir, 

Yours faithfully, 

WM. ML LOCK. 
Charles Webster, Esq., 
, Minneapolis, TJ.'S.A. 



No. 7. 

Ottawa, March 22, 1905. 

Dear Sir, — Your name has been furnished to the Select Committee on Telephones, 
now sitting in Ottawa, by Mr. Geo. A. Stewart Potts, of Winnipeg, as a possible source 
of information regarding the working of telephone systems in the United States. The 
committee has therefore instructed me to communicate with you, in the hope that you 
would be willing to furnish some few particulars regarding the operation of companies 
with which you are associated. 

If you can see your way to furnish the committee with such information upon the 
following points as you may see fit, your kind assistance in this matter will be much 
appreciated : — 

1. Name of company and territory covered. 

2. Amount of capital and bonded indebtedness, if any. 

3. Number of telephones in operation. 

4. Miles of long distance lines. 

5. Rates per annum for local service. 

6. Long distance toll charges. 

7. Name of competitive company. 

8. Number of telephones operated by competitive company. 

8. Miles of long distance lines operated by competitive company. 

10. Rates per annum charged by competitive company. 

11. Long distance toll charged by competitive company. 

12. Rates charged before advent of competition. 

Any further information of a general nature regarding the operations of telephone 
companies of which you may have knowledge will be welcomed by the committee. 
Thanking you in anticipation, 

Believe me, dear sir, 

Yours faithfully, 

WM. MULOCK. 
Mr. Bills, 

Milwaukee, U.S. 



8 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 8. 

Chicago, March 21, 3905 

Sir William Mulock, 
Dominion Parliament, 

Ottawa, Ontario. 

Dear Sir,— We note in a recent issue of the Toronto World that you are the mover 
of a resolution appointing a committee to investigate the general telephone situation, 
and that you have been appointed a member of the committee. 

We beg to say that we shall be pleased to give you any information that we may 
have at hand at any time, regarding the development of independent telephony in the 
States, and the work along this line with which we have been connected in your Do- 
minion. 

Will say that in the States, the past ten years, there have been established about 
6,000 independent public service exchanges, having in operation over 2,500,000 stations 
at an investment of approximately $200,000,000. 

In sections in the States and also in the few towns in the Dominion where inde- 
pendent service has been properly established, there are in use_ one telephone for about 
every ten inhabitants. 

According to the last report of Mr. C. F. Sise, President of the Canadian Bell 
Company, they have 475 exchanges, with 66,160 stations, showing that your average 
is less than one telephone to 100 inhabitants. 

To show that the rate of one to ten can be maintained in your smaller towns, we 
enclose herewith a description of the exchange at Neepawa, Manitoba, and also, of the 
exchanges at Port Arthur and Fort William, all of which maintain even a better rate. 

We shall be pleased to hear from you at any time. 

Yours very truly, 
INTERNATIONAL TELEPHONE MFG. CO., 

Henry Shafer, President. 



No. 8a. 



Ottawa, March 23, 1905. 



H. Shafer, Esq., 

President, The International Telephone Mfg. Co., 
Harrison and Clinton Sts., Chicago, 111. 

Dear Sir, — I have to thank you for your favour of the 21st instant, and on behalf 
of the Select Committee on Telephones, beg to assure you that any information or as- 
sistance you may afford the committee will be much appreciated. 

As you have been good enough to make this kind offer, I venture to ask that you 
forward me such information as you conveniently can regarding the operation of tele- 
phone systems of which you have actual knowledge. 

Among other information which will be of assistance to the committee are the fol- 
lowing most important data : — 

1. Name of company and territory covered. 

2. Amount of capital and bonded indebtedness, if any. 

3. Number of telephones in operation, what proportion copper or iron, metallic, 
or grounded circuits ? 

4. Miles of long distance lines, what proportion copper, metallic, or iron grounded 
circuits ? 

5. Average cost per telephone of subscribers lines inclusive of central equipment. 

6. Average distance of subscriber's stations from central office. 

7. Cost per mile of single wire of long distance lines. 
:8. Rates per annum for local service. 



APPENDIX "A " 9 

APPENDIX No. 1 

9. Long distance toll charges. 

10. Name of competitive company, territory covered and number of telephones 
operated by it at this date. 

11. Miles of long-distance lines operated by competitive company, and toll charges 
for use of same. 

12. Rates charged before the advent of competition. 

The committee also desires to secure general information regarding the operation 
of telephone systems in rural communities, as this section of the public has been to a 
great extent overlooked so far as the provision of telephonic facilities is concerned. 
Thanking you in anticipation of your further kind services, 

Believe me, dear sir, 

Yours faithfully, 
WM. MULOCK, 

Postmaster General. 



No. 9. 

International Telephone Manufacturing Company, 
Office and Factory, 
Harrison and Clinton Streets, 

Chicago, March 25, 1905. 
Sir William Mulock, 

Postmaster General, 

Ottawa, Canada. 

Dear Sir, — Your valued favour of the 23rd instant is received. We note your 
inquiries and beg to say that the cost of telephone plants varies considerably, depend- 
ing largely on local conditions, that is, it depends on the average distances of the sub- 
scribers from a central office point, the condition of the soil affecting the cost of digging 
trenches for underground conduit work, the setting of poles and conditions of th's 
kind. 

The amount of capital and bonded indebtedness of the different companies depends, 
not only upon the difference in cost of construction, but also the difference in plan of 
promotion. Some of the companies which are organized on a conservative basis, show 
in their capitalization and bonded indebtedness, the actual cost plus a reasonable con- 
struction profit, while others cover large amounts for promotion, &c. 

To give you information accurate and direct, from some of our largest independ- 
ent companies, built on the most conservative basis, we would refer you to Mr. E. M. 
Coleman, secretary of the Louisville Home Telephone Company, and vice-president of 
the Kentucky Long-Distance Telephone Company, of Louisville, Kentucky. Mr. Cole 
man was also, for a number of years, secretary of the Independent Telephone Associa- 
tion of America. He can probably give you the most forceful information. 

Mr. M. H. Bentley, electrical engineer, 330 Illinois street, Indianapolis, Indiana, 
who had charge for many years of the long-distance business in Indiana can give you 
valuable information on this line. 

We would also refer you to Mr. C. H. Judson, General Manager of the Mutual 
Telephone Company of Des Moines, Iowa, who built the exchanges at Des Moines, S*. 
Paul and Minneapolis, Minn., and Kansas City, Missouri, — some of the largest ind^ 
pendent companies in the States. We can further refer you to Mr. Frank H. Hall, of 
Wheeling, W.V., who built the exchange at Wheeling, Salt Lake City, and Ogden, 
Utah, as well as others. 

With reference to telephone systems in rural districts, wish to say that it has been 
clearly shown in the States here, that service can be given at the most reasonable rates 
and serves the moj-t people by local companies, either on a corporation basis or co- 



10 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

operative basis. This can be readily understood, as if the service is owned by a company, 
for instance like the Bell, it requires a manager and other help, whose time is given 
exclusively to the telephone system, .while if operated by a local corporation, or local 
business firm, or on a co-operative basis, it can be maintained and operated by persons 
having other occupation. 

The companies that are financially controlled by local interests, are also mori 
freely supported and the management more satisfactory to its patrons. 

We beg to suggest, that even under Government control of the telephone systems, 
it would be unwise for the general Government to aim to control local village systems, 
and rural country party line service. The plan which has proved most successful in the 
operating business here, is for one corporation in a section, to control the long-distance 
lines and not aim to control the local exchanges, but make connection upon a standard 
basis with all of the local systems, allowing the local systems to be financed and con- 
trolled by local people. 

If applied to municipal or Government ownership upon the same basis, it would 
suggest the ownership of the long-distance lines or inter-province lines connecting the 
larger cities by the general Government, the local city systems by the municipalities, 
and the rural systems by co-operative companies or the town boards. 

What the municipalities can do in the business, is clearly shown at Port Arthur 
and Fort William, Ontario; Neepawa, Man., and other towns, who have established muni- 
cipal or independent systems in the Dominion, and it cannot be denied that what one 
town can do can be accomplished by all others, if the matters are taken up on the same 
business basis. 

We shall be glad to give any further information that may be desired at any time, 
and are always yours to command. 

Yours very respectfully, 

INTERNATIONAL TELEPHONE MFG. CO., 

Henry Shafer, P-esldent. 



No. 10. 

Sprague Telephone Company, 

Demorestvii,le, Ont., March 21, 1905. 
W. F. MacLean, M.P. 

Dear Sir, — As you have for some time taken a deep interest in public ownership 
of telephones, of which principle you have many followers throughout the country, my- 
self amongst the number, and as I see that the Postmaster General has now made a 
move in the direction of ascertaining to what extent that feeling exists, therefore, I 
take the liberty to write ycu on the subject. We have now in operation about two 
hundred miles of line (including trunk lines), and about two hundred subscribers, be- 
ing the largest private telephone system strictly rural in Canada. We have had all 
the inconveniences to contend with in regard to the use of trunk lines service of which 
the Bell people have a monopoly, and as you know, handicaps any independent com- 
pany, and no private system is complete without the use of the trunk lines. We are 
using our own private capital in this system, and giving the very best service for a 
rental for each subscriber of $10 per annum. We have now arrangements with the Bell 
Company for the use of their trunk lines, so that our subscribers have a very complete 
rural system. I should like very much if you could induce the Government to at least 
take over the trunk lines, so that the people might get service not only cheap, but by 
having the trunk available, independent lines could start up all over the country and 
give good service. 1 will not trouble you at present with anything further, as I know 
ycur time is fully occupied. Press on in your good work. 

Yonvj most respectfully, 

JOHN A. SPRAGUE. 



APPENDIX "A" 



11 



APPENDIX No. 1 

No. 11. 

W. F. MacLean, Esq., M.P., 

Ottawa, Ont. 



Harrietsville, Ont., March 21, 1905. 



Dear Sir, — Please accept best wishes of our co-operative association in your fight 
for the nationalization of trunk lines of telephones. We have only been in business 
less than a year, and I think our annual report herein sent is quite a creditable show- 
ing, when we consider that it is entirely a rural telephone system. 

We could do much more business if we had money to build the line, and could get 
connection with the long-distance lines (Bell); We are using Bridging telephones with 
long-distance transmitters, and on a metallic circuit, and can have 16-25 instruments 
on one line, and any subscriber on said line can talk to any other subscriber on same 
line without using central. 

Our association is with you in your endeavours, and the work of the special com- 
mittee, of which you are a member. Kindly keep me supplied with information of out- 
come of your inquiries. 

Tours truly, 



P.S. — Our annual rental per 'phone is 



W. DOAN, 
Harrietsville, Ont. 

), payable half-yearly in advance. 

W. D. 



No. 11a. 

FIRST ANNUAL EEPOBT OF THE HARRIETSVILLE TELEPHONE 

ASSOCIATION, LIMITED. 

Harrietsville, December 31, 1904. 

Jo the shareholders of the Harrietsville Telephone Association, Limited. 

Herein, find statements of capital and revenue accounts ending December 31, 
1904. 

Telephones installed December 31, 1904, 48. 

Miles of poles, 22. 

Miles of metallic circuit, 2£ ; . 

This 25 miles of metallic circuit is composed of four party lines converging 
and ending in our switchboard at Harrietsville. 

Supplies on hand December 31 : — 75 poles, 500 lb. wire, 150 glass insulators, 
100 side blocks, wood pins, porcelain spools, &c, valued at $100. 

The earnings of your association hereafter, because of the increased number of 
telephones which will be soon installed, should be better than in the excellent showing 
made herein. 

The Harrietsville Telephone Association, Limited, of Harrietsville, Ont., has 
pleasure in inclosing warrant for past half year for dividend No. 1, of 4 per cent, 
being at the rate of 8 per cent per annum, payable on or after January 1, 1905. 

The annual meeting of shareholders will be held on Monday, January 23, 1905, at 
2 p.m., in the I.O.O.F. Ha 1 !. Harrietsville, Ont. 



12 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

CAPITAL ACCOUNT. 

RECEIPTS 

135 shares sold and fully paid at $10 eaeh $1,350 00 

Interest 6 45 

$1,356 45 

EXPENDITURES. 

Purchase of interests in old line $ 161 00 

Construction of lines, switchboard, &c 1,160 16 

Balance in bank 35 -? 



$1,356 45 
REVENUE ACCOUNT. 



RECEIPTS. 



Rentals of phones to December 31 $ 132 50 

Toll charges 14 23 

Interest 2 65 



$ 149 3« 

EXPENDITURES. 

Operating expenses $ 59 83 

Balance on hand, including dividend No. 1 89 55 

Your trustees have deemed it wise to set apart ten dollars of the net earnings of 
the past half year into a reserve fund. 

It has not been possible to give service to all who have desired to use the system. 

We believe the plant to be in good working order, and are offering sixty-five more 
shares for sale to allow of extensions. 

All of which is respectfully submitted. 

W. DOAN "I 

[•Trustee Committee. 
S. E. FACEY J 



No. 12. City Clerk's Office, Toronto, 

March 28, 1905. 

Dear Sir, — I have the honour to forward herewith a copy of a resolution which 
was adopted by the city council on the 27th instant, as follows: — 

' Resolved, That this council, learning of the action of the Dominion Parliament 
in the appointment this session of a Select Committee looking to the taking over of 
*he telephone service of Canada, do hereby endorse said proposal ; this council con- 
gratulates the Honourable the Postmaster General on the action he has taken, and 
unanimously recommend the Government to entirely take over and operate the 
telephone service of Canada, and that copies of this resolution be forwarded to the 
city members of Parliament and to the Postmaster General.' 

Your obedient servant, 

W. A. LITTLEJOHN, 
Honourable Sir William Mulock, City Clerk. 

Postmaster General, Ottawa, Ont. 



APPENDIX " A " 13 

APPENDIX No. 1 

No. 13. 

Gormley, Ont., March 24, 1905. 

Re Telephone Systems. 
Sir William Mulock, 

Ottawa. 

Dear Sir, — Would you allow me as one who has had a little experience in connection 
with an independent telephone system to suggest to you the advisability of confining 
the national ownership of the telephone to the ownership of the ' trunk lines ' and 
leave to local management either to companies or perhaps more preferably to muni- 
cipalities the ownership of the local systems. The local managers would understand 
much better the local currents of business and traffic which must be taken carefully into 
consideration in laying out the system and in locating the local exchanges. 

Of one thing I am firmly persuaded, an efficient system can be furnished by Govern 
ment and municipal ownership at a fraction of the cost to users that the Bell Com- 
pany charges. The system with which I am connected has now in operation about 
twenty-five miles (of two wires) line with over 40 'phones installed and extending 
from Stouffville to Markham and the surrounding country in Markham township 
and White Church. A farmer paying us $12 per year is allowed the free use of the 
entire system whereas the Bell Company are charging some farmers in the district 
$20 per year with the privilege of talking to one village only without paying extra. 
In addition to the service that we are now giving we are at present considering the 
question of extending to Aurora and adding about 16 miles to our line and probably 
another 30 'phones all free to a subscriber for $12 per year for a private house or 
$15 for a business man, and we expect our investment will pay us a dividend. 

By all means let us have public ownership. 

Tours respectfully, 

ALEX. D. BEUCE. 



No. 13a. 

Ottawa, March 25, 1905. 

Dear Sir, — I have to thank you for your letter of the 24th instant favouring me 
with your views regarding the telephone question. I do not know whether your com- 
munication was sent to me for the information of the Parliamentary Committee, and 
therefore I write to see whether I have your permission to lay your letter before that 
body. I have no doubt that the Committee would be glad to have from you a full 
account of your system from the beginning, and should you have no objection, I would 
suggest your furnishing amongst others, the following particulars : 

Date of commencement of your system; amount of capital invested; mileage, 
number of telephones in use; cost of maintenance; total revenue; total expenditure; 
extent of privileges of patrons, including connection, if any, with other systems. 

Tours sincerely, 
Alexander D. Bruce, Esq., WM. MULOCK. 

Messrs. Bruce Bros., 
Gormley, Out. 



No. 13b. 

Gormley Ont., March 29, 1905. 
Sir .William Mulock, 
Postmaster General, 
Ottawa. 

Dear Sir, — Tours of 25th instant re information on telephones, arrived yester- 
day. 



14 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In reply, you are at liberty to use my letter of 24th instant in any way that may 
appear useful to you. 

In reply to your inquiries, I will be pleased to give you the information for whi^.h 
you ask and also any other information I may be able to give you, but will require a 
few days to obtain some of the particulars to which you refer. ^ 

Our executive committee meets on the 31st, and as president, I shall bring up 
some of the questions you asked. 

To me it appears that the arrangement of the local services throughout the coun- 
try is the most serious problem facing the government in dealing with the telephone 
question. 

Eespectfully yours, 

ALEX. D. BRUCE. 



No. 14. 

Canadian Machine Telephone Company, Limited, 

Toronto, March 30, 1905. 

Sir William Mulock, 

Chairman Special Telephone Committee, 
House of Commons, Ottawa. 

Dear Sir, — While the Committee, of the House of Commons is considering the 
telephone question as it exists in Canada, we respectfully desire to call attention to 
the work we are at present prosecuting and the system we manufacture and arc 
installing. 

We will fir&t refer briefly to the work we have in hand at present. Last year we 
were given a franchise in the town of Peterborough, Ontario, where we are installing 
a system in competition with the Bell Telephone Company, and where, after the fran- 
chise was granted, in about four weeks we secured between four and five hundred sub- 
scribers for our service. We have about completed our outside construction, having 
built two miles of underground conduits in the business and central portion of the 
town and covered the remainder of the town and immediate neighbourhood with the 
most modern construction. In fact, we believe we can say without boasting there is 
no outside construction in Canada that is of the same modern and substantial class 
we have in Peterborough. We anticipate that upon giving satisfactory service there 
w : ll be an immediate demand for more services, and we have installed cable for 1,100 
telephones. We have erected our own central office building. Our central office equip- 
ment is now completed at our factory and will be shipped for installation in a very 
short time. Before the end of May we will be giving service in Peterborough. We 
may say that quite a number of towns and cities are awaiting this demonstration 
before deciding the question of granting a competitive franchise in their munici- 
palities. 

We own the Lorimer system in Canada and it is this we are installing in Peter- 
borough. 

As regards this system we would point out that it is a Canadian invention and 
has been pronounced by Canadian and American experts to be an improvement on any- 
thing in the telephone field. It is in fact the only automatic telephone system in 
existence that is the product of Canadian brains and Canadian money, and it is a 
matter of much gratification to know that Canadian inventors have produced some- 
thing that telephone engineers state is in advance of anything of its kind. In fact, 
it has been called ' the telephone of the future,' and we are satisfied that its future 
will prove that it is fully entitled to this name. It is a machine or automatic system 
requiring the services of no operators at the central office to make connections. It 
has been designed and worked out on a different principle from any other automatic 
system that has ever been invented. Some of its advantages are efficiency of service, 
absolute privacy or secrecy, accuracy and simplicity of operation. 



APPENDIX "A" 15 

APPENDIX No. 1 

We have a factory on Duncan street, Toronto, where we are manufacturing appa- 
ratus and where we have at the present time a 200 and a 500 exchange in operation. 
We would he pleased to have you and the members of your committee, or as many as 
could make it convenient, visit our factory and see our system in operation. This is 
the most satisfactory way of placing you in possession of the merits of the system and 
allowing you to judge of the place it will take in the telephone field. 

As an indication of the claims of this system we might add that the patent for 
the United States has just been sold for a very large sum, the investment not being 
made, as you can readily understand, until the opinion and report of acknowledged 
leaders in the telephone field in the United States had been secured. A most thorough 
investigation of the merits of the system with a view to deciding not only the quality 
cf the service it would give, but particularly to ascertain and weigh the advantages it 
possesses over any other system at present operating, was made. The fact that it 
stood this test and that the reports were sufficiently favourable to cause an investment 
to be made in it that was one of the largest probably ever made in a patent in the 
United States is all that is necessary to convince any one that our system is one that 
will immediately take a leading place in telephone work. 

We have troubled you with these details in a desire that you might consider it of 
sufficient importance in connection with telephone devclpment in Canada to investi- 
gate our system and its possibilities and the work we arc doing. 

We are sending you under separate 'over a copy of an illustrated pamphlet which 
shows our system, although the telephone instrument illustrated in this pamphlet 
bas been considerably improved in the one we are putting out in commercial opera- 
tion. Also copies of Peterborough papers which have made reference to our work 
there. 

Trusting this will prove of some interest to you and the members of your com- 
mittee, and thanking you in anticipation of any attention it may receive, we will 
eeteem it a privilege to give you any further information in our power. 

We remain, yours ruly, 
CANADIAN MACHINE TELEPHONE CO., Limited, 

F. D. Mackay, Manager 

No. 14a. 

Ottawa, March 31, 1905. 

Gentlemen, — I have to thank you for your letter of the 30th instant, with refer- 
ence to the telephone question, and shall have pleasure in submitting your communica- 
tion to the Parliamentary Committee now dealing with this subject. Perhaps you 
would desire to appear personally and give testimony before this committee. If so, I 
am sure the committee would be glad to hear you. Would you kindly inform me whe- 
ther, and if so, where, your system is now in operation. 

Yours sincerely, 

WM. MULOCK. 
Canadian Machine Telephone Company, 

Duncan Street, Toronto, Ont. 

No. 15. 

CANADIAN MACHINE TFLEPHONE COMPANY, Limited. 

Toronto, April 3, 1905. 
Sir William Mulock, 

Chairman Special Telephone Committee, 
House of Commons, Ottawa. 

Hon. Sir,— Following your suggestion, on Saturday last, while examining the 
Lorimer system of automatic telephony in our factory here, we desire to point out a3 



16 SELECT COMMITTEE OS TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

briefly as possible some of the claims made for our system. The most vital possibly 
fall under the two headings of ' cost ' and ' efficiency of service.' Without attempting 
to go into any detail of description, we place the following concise paragraphs under 
these two headings. 

QUESTIONS OF COST. 

The switchboards can be built at less cost than the modern multiple switchboard. 

The switchboards can be maintained at a lower annual cost, being substantially 
built and all parts being made interchangeable, and readily accessible substitution of 
parts can be made without interfering with service. 

The cost of operating is less, the services of the girl to make connections being 
dispensed with, and no more skilled labour being required to look after the apparatus 
than now employed in a central office. 

The cost of increasing the capacity of the central office apparatus or switchboard 
is never out of proportion to the number of subscribers to be served. The capacity of 
a central office may be increased by adding any number of additional sections that may 
be required (each section giving an additional capacity for one hundred subscribers) 
without interfering or depreciating the plant already installed. This means that an 
exchange may be increased to any number of subscribers without the necessity of in- 
creasing the rates, as is the case at present. 

EFFICIENCY OF SERVICE. 

The connections are rapidly made, and in a uniform time. There are no waits. 

The service is absolutely secret. Every conversation is over a private wire, as 
there is no way a third person at the central office can cut in or listen to a conversa- 
tion. 

When a conversation is completed the hanging up of the receiver automatically 
releases the apparatus that made the connection, and therefore at no time is the 
apparatus tied up or occupied by ' dead connections.' 

The automatic release also enables a number of calls to be made consecutively in 
a very short time. 

You cannot be cut off until you are through with your conversation and hang up 
your receiver. You are master of the situation. 

The machine switchboard gives the same service day and night and all day Sunday. 
This feature, together with the secrecy of the service, will be an appreciated advantage 
in the smaller places and rural communities. 

A compact exchange apparatus can be supplied for use in villages and small ex- 
changes, and give all the advantages of service. 

Besides such claims as outlined above, there is a great advantage possessed by the 
system, in that it is flexible 6*r capable of being utilized to give special service at lowest 
rates. By special service, we mean the attachment of buttons for fire alarms, police 
calls, ability to give a measured service or party line service, &c. 

As stated in our former letter, practical telephone men — and they are foremost 
in their profession — who have investigated this system for capitalists who have pur- 
chased the American patent have admitted its advantages to be in excess of all others. 
They have after investigation passed on the claims we made and Gne of the most emi- 
nent of them adds: 'Beyond and besides all this, my study of the application con- 
vinces me in a definite, though quite general way, that there is more in this system 
than has been claimed.' 

However, what we particularly desire to call your attention to is that inside of 
two months' time we will have a system in commercial operation in the town of Peter- 
borough, Ontario, where we have spent a very large amount of money in the very 
best construction work and have shown our faith in the future success of our system 
by providing for a growth to 1,100 subscribers, without any addition to our under- 
ground or cable system. This plant at Peterborough will allow the general public to 
pass judgment on our service and its many advantages. 



APPENDIX " A " 17 

APPENDIX No. 1 

As stated before, this is a Canadian invention, and, while demonstration plants 
in practical service have been in operation, the first commercial exchange in the world 
is being installed in a Canadian town. The system is bound to immediately take an 
important place in telephone development, and this is the reason we have troubled you 
by placing some of its advantages before your committee. 

In concluding, we desire to express our appreciation of the interest you have 
manifested in the telephone question and of the trouble and time you gave to your 
visit to our factory. We sincerely trust we will have the pleasure of a visit from 
other members of the committee. Any further information we can supply will be 
most cheerfully given. 

We beg to remain, hon. sir, sincerely yours, 

CANADIAN MACHINE TELEPHONE CO., LIMITED. 

F. D. Mackay, Manager. 



No. 16. 

The Chairman, 

Telephone Committee, 

Ottawa. 

Dear Sir, — As president of our local Farmers' Institute, East Elgin, I am fairly 
well in touch with the needs of the farmers, and the question of rural telephones ia 
becoming an important one. 

As there are quite a number of rural 'phones in use near here, and I am a mem- 
ber of the managing committee for one of the lines, I thought that perhaps a state- 
ment from me might be of some use. 

The Harrietsville exchange has 48 rural 'phones, perhaps 40 miles of line and a 
' central.' 

Local stock company, $9 per year on each phone, paid good dividend last year 
end extended lines. 

Belmont exchange has 4 lines centering at switch, in drug store, 36 'phones and 
30 miles of line. 

Built by subscription. 

No charge to anybody for using the 'phones, but to pay operator at switch, a fee 
of 5 cents is charged on each message passing from one line to another. 

'Phone holder may commute switch fees at $2 per year. 

Aylmer, Kingsmill and Mapleton line, 17 'phones, 10 miles line, built last summer. 

I was one of the promoters of this line. 

We raised $150 in five-dollar subscriptions by farmers, about $25 in smaller sub- 
scriptions, and the banks, business and professional men of Aylmer gave us about 
$100. 

This $275 built our line, and no charge is made for using it. On all the lines 
above mentioned, the telephones are private property, paid for by the farmer. 

Thirty to thirty-five 'phones, such as we use, may be put on a line without 
' central ' or switch-board. Each 'phone-holder has separate calls, as — Mr A, one long 
ring; Mr. B, a long and short; Mr. C, two Is. and one s.; Mr. D, l.s.l. ; Mr. E, l.,l.,s.,s., 
and so on Eight short rings will call the whole line, to listen to someone playing the 
piano, reading some important news, giving weather reports or election returns. 

I purchased the material and superintended the building of this Aylmer-Mapleton 
line, bought the 'phones and put them in, and have general charge of the line. Before 
buying the 'phones, I corresponded with 11 telephone manufacturers, and finally 
bought those made at Indianapolis, Indiana. They cost $13 each, f.o.b; duty, $3.13; 
freight about 30 cents; total, $16.43. Locally our line gives perfect satisfaction, and 
others are projected in our county. 

l—d—2 



18 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

If the government could give us long-distance connections, it would be a great 
step in advance. 

Yours respectfully, 

L. M. BROWN. 



No. 17. 

THE UNION TELEPHONE COMPANY, Limited. 

Florenceville, N.B., March 27, 1905. 
Sir Wm. Mulock, 

Ottawa, Ont. 

Dear Sir, — I see by the Daily Star that your Telephone Committee wish the names 
and headquarters of all independent telephone companies. Our headquarters is Flor- 
enceville We operate about 400 miles of long-distance 'phones, and a Strowger auto- 
matic exchange at Woodstock, N.B. I believe that all town and city exchanges should 
be owned and operated by the town or city, and that the Dominion government should 
build and operate all long distance lines on the same principles as the post office is 
administered. This would prevent duplication of systems, and in a few years be a 
source of revenue to the government, as the telephone development in the rural com- 
munities is only in its infancy. Something should be done at once to give the inde- 
pendent companies access to the railway stations. It is ridiculous that a business man 
cannot be answered from a station over an independent 'phone. 

Yours truly, 

THE UNION TELEPHONE CO., Limited, 

Per D. W. Ross, Secretary. 

No. 18. 

THE PEOPLE'S TELEPHONE COMPANY. 

Sherbrooke, P.Q., March 31, 1905. 
Sir William Mulock, 

Postmaster General, Ottawa. 

Dear Sir,— Inclosed you will find a map of the People's Telephone System, to 
enable you to understand that we are a company with vested interests, and at the same 
time debarred from connecting with Canadian Pacific Railway stations and most of 
those of the Grand Trunk Railway. 

We are interested onlookers of what is going on at Ottawa in the telephone inves- 
tigation. 

Yours truly, 

CHARLES SKINNER, 

Gen. Manager. 

No. 19. — (abridged.) 

St. Mary's, March 29, 1905. 
There is a private or independent telephone company organized in the township of 
East Nissouri, county of Oxford, known as ' Nissouri Telephone Association.' They 
have twenty-three mUes in operation, and along the route that the wire is strung farm- 
ers' houses are connected. Farmers are charged $5 per year and doctors and 
merchants $10 per year. They connect with the Bell system at Thamesford, and they 



APPENDIX " A " 19 

APPENDIX No. 1 

Boon intend to come to St. Mary's, and place householders on same basis as farmers, 
$5 per year, and merchants and doctors $10. 

At present the business is so successful in the township of East Nissouri that this 
private corporation paid a dividend to its stockholders for last year of twenty per cent, 
and they expect this will increase as they branch out. This shows that cheap tele- 
phone service can pay big dividends. Mr. Philip Harris, of Lakeside P.O., Ont., who 
is a stockholder, gave me this information. 

Yours truly, 

JAMES BAXTER, 

St. Mary's P.O., Ont. 

Ho. 20. 

British Columbia Telephone Company, Ltd., 
Ralph Smith, Esq., Vancouver, B.C., March 30, 1905. 

House of Commons, 
Ottawa, Ont. 

Dear Sir, — I notice from the eastern papers that you are a member of the special 
committee appointed to inquire into telephone matters. I would like to have an oppor- 
tunity of appearing before the committee, but unfortunately, owing to pressing busi- 
ness engagements, I cannot leave here just at present. Would it be possible to get) 
from the stenographer a copy of the proceedings from day to day; one could then see 
whether there was anything particular calling for explanation or comment by us ? 

Our company owns all the systems in British Columbia; the capital is entirely 
local, the Bell Company do not hold and never have held any shares. The relations of 
the company with its subscribers have been on a friendly footing, and the company has 
always been willing to extend wherever there was a fair chance of business. Last year, 
at a heavy expense, over $100,000, we laid a cable to connect Vancouver Island with 
the mainland and conversations are now carried on between Nanaimo and Vancouver, 
Victoria and Chilliwack, and indeed all island and mainland points. This is not a 
money-maker, but is a great convenience to our subscribers. 

The maximum rate we can charge is fixed by our Act of incorporation at $5 per 
month, but we have never charged more than $4. Our general rates are :— 

Business, individual, $4 per month. 

Business, two party line, $3 per month. 

Residence, individual, $3 per month. 

Residence, two party line, $2 per month. 
In small places our rates are lower, e.g., Nanaimo: $3.50 individual business, $2 
individual residence. Taking into consideration the very high rate of wages ($3 for 
eight hours), in British Columbia and the distance from our source jf supplies, these 
rates are very low; in fact, they are nearly 50 per cent lower than che rites at Seattle, 
Tacoma, &c. 

Eriends of mine from Australia and New Zealand passing through here, inform 
me the government systems there are all single wire and poor, out-of-date plants, while 
the rates, considering difference in cost of operation, are not any lower than ours. 

That this company is progressive can easily be seen by reference to the official) 
statistics of telephones (enclosed herewith). We have in British Columbia many more 
telephones per head of population than any province in Canada, and in Vancouver we 
have more per head than any city in the British Empire. I also inclose a statement 
taken from a magazine called ' Sound Waves ' for June, 1904. It is an advocate of 
independent telephony ; the statement shows that even with fierce competition in places 
where wages are much lower than here, the competitive rates are about equal to ours 
without competition; we claim our rates are as low as possible compatible with good 
service, and that our service and plant are equalled by few places and excelled by none. 

l— d— n 



20 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

We send round periodically a special agent to interview subscribers and ask if any 
complaints. In Vancouver he interviewed 600 with under 1 per cent of complaints, 
and these on investigation found trivial. In Victoria there were no complaints; the 
subscribers were loyal to the local management, and would not, we concluded, even if 
any cause, complain to a stranger, particularly from Vancouver. 

I will be exceedingly obliged if you will kindly keep me posted on this matter. The, 
journey is a long one; as I was east just before Christmas, I do not want another trip, 
but will go to Ottawa if necessary. I am sending you one of our calendars that will 
show you we are not so slow. 

Thanking you in anticipation. 

Yours faithfully, 

W. D. FARRELL, 
Taking the population of the last census, there is in Canada one telephone instr i 
ment to every 65 persons. 
By Provinces : — 

Ontario, one telephone to every 50" 7 persons. 

Quebec " " 63"8 " 

Nova Sci '• •• 99'4 " 

New Brunswick " " 85'3 " 

P. E. Island " '' 215'0 " 

Manitoba " " 5V5 " 

N. W. Territories " " 251'3 " 

British Columbia " " 33'4 " 

W. D. FARRELL, 
Vancouver, B.C., President, 

March 30, 1905. B. C. Telephone Co., Ltd. 

Telephone Rates. 
J. B. Ware. 

The following statistics were obtained in March, 1904, from mayors of the citie* 
reported, and are believed to be entirely accurate : — 

~ u Bell Rates. Independent. 

L,uy ' Bus. Res. Bus. Res. 

Allegheny, Pa $ 125 $ 100 $75 $58 

Atlanta, Ga 84 48 42 3Q 

Buffalo, N.Y 4S 3 g 

Columbus, 72 36 40 ^4 

Dayton, ° 72 35 40 24 

Elizabeth, N.J 100 54 36 30 

^u't? 3 ' * ;/ 60 30 40 28 

Fall River, Mass 81 63 36 04 

Fort Wayne, Ind 48 36 36 24 

Grand Rapids, Mich 3 g 24 30 i 8 

Harrisburg, Pa 72 57 gg 9 -> 

Indianapolis, Ind 72 48 4(> :) - 

Kansas City Kan 84 6Q ^ ^ 

Lincoln, Neb 48 36 3( , 

Los Angelos, Cal 60 40 4g 

Memphis Tenn 84 3Q 4g ~ 

*$*'?% 48 30 3 <> 18 

Portland, Me 76 25 42 . 24 

Rochester, N.Y 60 40 4Q 3Q 

Savannah, Ga 50 lg 4f) 2 _ 

Scranton, Pa 80 63 36 ^ 

St. Joseph, Mo 50 36 40 30 



APPENDIX " A " 21 

APPENDIX No. 1 

Bell Rates. Independent. 

Bus. Res. Res. Bus. 

San Antonio, Tex. 60 24 36 24 

St. Paul, Minn 84 48 48 30 

Syracuse, N.Y 80 48 36 24 

Toledo, 72 36 48 30 

Troy, N.Y 96 50 40 30 

Wilkesbarre, Pa 72 57 28 24 

Wilmington, Del 36 24 36 24 

Most probably Independent Companies make no profits after providing for depre- 
ciation, a very heavy item — 10 per cent per annum on outside plant at least. 

W. D. FARRELL. 
Vancouver, B.C., 

March 30, 1905. 



No. 21. 

Bruce Bros. — Carrick Roller Mills, 

Gormley, Ont., April 8, 1905. 
Sir William Mulock, 

Postmaster General, 

Ottawa. 
Dear Sir, — In reply to your inquiries of March 25 v telephone system : 

1. The Bethesda and Stouffville Association commenced business August 15, U904. 

2. Capital invested, $2,350. 

3. Length of line, 25 miles of two-wire line. 

4. 'Phones in use, 41, with 6 applications for 'phones, which will be installed as 
soon as 'phones arrive; the above capital of $2,350 will cover said installation. 

5. Cost of repairs to date. (Salary of central office operator not fixed.) 

6. Revenue from paid messages — 

August 15 to October 1 $ 7 35 

October 1 to January 1 11 26 

January 1 to April 1 18 70 



$37 31 



In connection with this, our entire system (including connection with other lines) 
was not in operation until December 1, and the public are gradually learning to make 
more use of the line. * 

In addition to the above income from fees, we have a current rent roll from 
rented 'phones of $154, which, together with the income from the eight 'phones, which 
will be put in immediately, will give us an annual rent roll of $235 (irrespective of 
income from paid messages, as above) on our our investment of $2,350. 

Privileges of Subscribers. — A shareholder is entitled to one 'phone free, and has 
to keep same in repair; if he desires more than one 'phone, he must buy his instru- 
ment and be at all cost of connecting with main line and of repairs, and pay one-half 
the regular rental charged non-shareholders. 

'Phones are rented to non-shareholders at $12 per annum for private 'pbones and 
$15 for business 'phones upon a three years' contract in each case. 

In the case of both shareholders and lessees, the entire system is at the disposal 
of the subscriber without any extra charge. And also, we have an exchange with 
three other independent lines, giving a total connection of about 68 miles of line, 
with between 70 and 80 'phones, the exchange between the four co-operating lines is 
absolutely free to subscribers. In the near future we expect to make connection with 
one, and perhaps two, new independent lines on similar terms to the above, and, to 



22 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

facilitate the co-operation of the various lines, steps are now being taken to organize 
a central committee to deal with matters of common interest to the co-operating lines. 

When we first contemplated the organizing of our association, we endeavoured 
to secure connection with the Bell Company, and were, as we supposed, cordially re- 
ceived; but when we came to discuss details, we found the terms to be such that we 
dropped the negotiations, and, judging from our experience up to the present, we have 
no reason to regret our decision. 

Concerning the prospects of the association, we have decided to construct 1 miles 
of new line this season, and have under consideration total extensions of 16 miles ; 
these extensions will also be free, to subscribers, from extra charge. In view of the 
fact that we have spread ourselves over some long stretches with but few 'phones on 
them, we believe that by working up the business and filling in the vacant stretches, 
we can make the system pay its way and possibly pay the shareholders something on 
their investment, besides giving them their telephone service free. 

If we, being amateurs, and purchasing our material at retail rates and paying 25 
per cent duty on 'phones, can do this, it appears to me that a national system of tele- 
phones should be a good investment for the government. 

In conclusion, I would respectfully suggest that your Committee give special 
attention to the solution of the difEculties that would be encountered in arranging the 
local services throughout the country. It will be in that direction that piiblic owner- 
ship will meet its greatest difficulties, and yet it will be upon the efficiency of that 
part of the service that the success of the entire national system will largely be 
judged. The difficulties, however, can apparently be overcome. 

Respectfully yours, 

ALEX. P. BRUCE. 



No. 21a. 

Select Committee on Telephones, 

Ottawa, Canada, April 10, 1905. 
Sir, — I beg to acknowledge receipt of your favour of the 8th instant, and, on 
behalf of the Select Committee on Telephones, I thank you for the information con- 
tained therein. 

Yours faithfully, 

WILLIAM MULOCK, 
Postmaster General, and Chairman of Committee. 
Alexander D. Bruce, Esq., 

Carrick Roller Mills, 

* Gormley, Ont. 



No. 22. 

The National-Interstate Telephone Association, 

Cleveland, 0., April 5, 1905. 
Hon. Sir William Mulock, 

Postmaster General and Chairman of Committee, 
Ottawa Canada. 

Sir, — I have the honour to acknowledge receipt of your favour of the 28th ult- 
Under separate cover, I am sending you five copies of prospectus, including constitu- 
tion and by-laws, of the National-Interstate Telephone Association, which will explain 
themselves. 

We have over 2,500,000 independent telephone subscribers in the United States. 
The Bell people make claim for considerably less than that number. Mr. Vinton A. 
Rears, of Boston, Mass., has recently published a booklet on the telephone development ' 



APPENDIX " A " 23 

APPENDIX No. 1 

which I think would be of interest to you, and which you can get by inclosing him 35 
cents in stamps. 

According to last reports we have in Ohio 196,617 independent telephones, 104,370 
Bell; independent exchanges 617, Bell 157; independent toll stations 1,452, Bell 753; 
independent stockholders 1,729. I have not at hand the same kind of statistics on any 
of the other states, but the percentages in all the states of the central west are equally 
good, in many cases better, than those of Ohio. 

The equipment used by the independent telephone companies is manufactured by 
the independent manufacturers of the United States. 

The independent companies now have quite extensive toll line systems here in the 
States, and it is possible for me to talk from Cleveland to Rochester and Syracuse, New 
York, on the east; Charleston, West Virginia, and Louisville, Kentucky, on the south, 
Grand Rapids and Saginaw, Michigan, and other points in that vicinity on the north- 
west; and as far west as St. Louis, Missouri. 

The National-Interstate Telephone Association will have its next convention in 
Chicago on June 20 and 21, at which time we expect to have the majority of the Stated 
well organized and affiliated with this association. 

If there is any other way in which we can assist you in getting an independent 
telephone system in Canada to connect with the independsnt interests of the States, 
we will be very glad indeed to have you call on us. 

I am, sir, yours very truly, 

JAS. B. HOGE. 



No. 22a. 

Select Committee on Telephones, 

House of Commons, Ottawa, April 10, 1905. 

Sir, — I beg to thank you for your favour of the 5th inst., and the information oo.i- 
tained therein. The Select Committee is desirous of communicating with as many j£ 
the independent telephone companies in the United States as it is possible to obtain 
the addresses of, and I am informed by Mr. A. L. Tetu, of Louisville, Ky., that possibly 
you would be good enough to favour me with a list giving the names and addresses of 
the majority of these companies. If you are in a position to do this the Committee 
will much appreciate your kindness. In the event of your not having this information, 
might I ask you to favour me by saying where you think it may be obtained. 
Thanking you in anticipation. 

I am, sir, yours faithfully, 

W. MULOCK, 
Postmaster General and Chairman of Committee. 
James B. Hoge, 

The National-Interstate Telephone Association, 
Cleveland, Ohio. 



No. 23. 

CORPORATION OF TOWN OF PETERBOROUGH. 

Offices, 127 Simcoe Street — Henry Best, Mayor. 

Clerk's Office, Peterborough, Ont., April 11, 1905. 
Hon. Sir Wm. Mulock, 
Postmaster General, 
Ottawa, Ont. 

Hon. Sir, — Your favour of April 6th received. I enclose, as you requested, a 
certified copy of the agreement between the Canadian Machine Telephone Company 



24 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII.. A. 190 5 

and the Town of Peterborough. This company has not quite completed the installa- 
tion of its plant, but expects to be ready for business by the first of May. _ 

We are pleased that parliament is making an inquiry into the telephone business, 
as the question of the control of the streets is a very important one for the munici- 
palities. Judging from the trend of public opinion as to public utilities, government 
ownership of the trunk telephone lines would be approved, and with this view we are 

in sympathy. 

I have the honour to be, Sir, 

Your obedient servant, 

HENRY BEST, 

Mayor. 



No. 23a. 

Toronto, October 3rd, 1904. 

To the Mayor and Council of the Town of Peterborough. 

Gentlemen, — The question having been raised in regard to the position of the man- 
hole covers in connection with the telephone conduit subway which we propose laying 
on your streets, we hereby agree and undertake, in the event of the street levels being 
changed at any time owing to the town laying a permanent pavement or improving 
the present pavement, to make any necessary changes in our manhole covers so as to 
conform to the new level thus established. This we will do at our own expense at the 
time the town is doing the work on the pavement, the town to give us reasonable 
notice of its intention to do work on any street or streets. 

We beg to remain, 

Respectfully yours, 
CANADIAN MACHINE TELEPHONE COMPANY, LIMITED, 

F. D. Mackay, 

Manager. 



No. 23b. 

This indenture, made in duplicate this twenty-first day of May, in the year of 
our Lord, 1904, between the Canadian Machine Telephone Company (Limited), (here- 
inafter called the Company), of the first part, and the Corporation of the Town of 
Peterborough (hereinafter called the Corporation), of the second part. 

Whereas, the Company has applied to the Corporation for the right to use the 
streets and lanes in the municipality for the purpose of placing poles, ducts and wires 
for carrying on a telephone business, and it is desirable in the public interest to grant 
such request upon and subject to the terms and conditions hereinafter mentioned 
and the Corporation has agreed to pass a by-law for such purpose. 

This indenture therefore witnesseth that in consideration of the premises and the 
agreement on behalf of the Corporation hereinafter contained, the said Company 
hereby covenants and agrees with the said Corporation as follows : — 

1. That the said company will within twelve months from the date hereof install 
and have in working order in the said Town of Peterborough a complete and efficient 
Lorimer telephone system sufficient in all respects to handle the business of its cus- 
tomers. 

2. That the said Company will furnish telephones to and connect same through 
a central station with all who desire to subscribe for same and are residents of the 
Town of Peterborough, or to any place of business in the Town of Peterborough at 
the maximum price of $15 per year for private houses and twenty dollars ($20) per 
year for places of business, and will supply any one person or firm with a telephone at 
his house and another at his or their place of business for thirty dollars ($30) per 



APPENDIX "A" - 25 

APPENDIX No. 1 

year, and will not hereafter during the term of this agreement raise the price of any of 
said telephones. 

3. That the said company will at all times, give as good and efficient and modern 
telephone service in the (Town of Peterborough as it furnishes in any other place in 
Canada in which it may be doing business and will keep the same supplied with the 
latest improved machines and appliances manufactured or used by the said company 
in any place in Canada. 

4. That in case the said company shall fail to install the said system within the 
time above limited or should fail to operate the same at any time after such installation 
provided such failure to operate is not caused by strikes, accidents or unforeseen or 
inevitable casualty and in that case not exceeding thirty days, or should it enter into 
a combination or amalgamation with or sell out to any other telephone company doing 
business in the town of Peterborough, then in any of said events the right of the said 
company to use the streets and lanes of the town of Peterborough shall ipso facto cease, 
or in case of the breach by the company of any of the terms hereof, then the right of the 
said company to use the streets and lanes of the said town shall after notice has been 
given to the company by the corporation of the default and the same has not been 
remedied within two months after the notice has been given ipso fpucto cease and the 
said company will ore demand at once remove its poles, wires and other appliances from 
the streets and lanes of the said town. 

5. The said company will on the following streets or parts of streets in the said 
town place its wiTes underground and shall not erect any poles, namely on George 
street from Murray street to Charlotte street, on Hunter streat, Simcoe street and 
Charlotte street from Water street to Aylmer street and on Water street from Murray 
street to Simcoe street and will not place any poles on George street between Charlotte 
street and one hundred feet south of Charlotte street or on Water street between Sim- 
coe street and one hundred feet south of Simcoe street, and will also when and if 
required by resolution of the council place its wires underground on any additional 
streets or parts of streets of the said town on which the wires of other companies are 
hereinafter placed underground, and will if conduits are hereafter constructed by the 
corporation on streets on which the company shall have put its wires underground allow 
the corporation to remove such wires to such conduits and will on streets on which + he 
company shall have its wires on poles remove such wires to such conduits tat its own 
expense and will pay in each case the annual charge fixed by the said corporation for 
the use of such conduits. 

6. That the said company in doing ^any work on the said streets or lanes or in 
laying ducts, stringing wires or placing poles including the height and quality of said 
poles and the position of such poles, ducts and wires, shall be under the control of the 
corporation engineer or such other person as may be designated by the council, and 
shall do all work under his supervision and to his satisfaction and subject to his 
approval, and shall not unnecessarily incumber or obstruct the streets or lanes, and 
after any work on the same is done will at once .restore the streets and lanes to the 
same condition they were in before such work was commenced and replace or remove 
any soil or material taken from, placed or brought on such streets or lanes by the com- 
pany or its employees, and the said company shall place, construct, and maintain its 
poles, ducts, conduits and wires and all other works so that the same will not interfere 
with, obstruct, injure or damage the corporation sewers, water pipes, water tables, 
drainage and other corporation works or the private property of any person, firm or 
corporation, and in respect to such any work shall comply with the provisions- of 
section one of by-law No. 770 of the said corporation and the provisions of any by-law 
hereafter passed respecting the regulation of poles on the streets and lanes of the town. 

7. That the company, on the written request of the corporation engineer or other 
officer designated by the corporation, if in his opinion a change in the location of any 
pole or poles is necessary, shall and will ajt its own expense change the location of such 
pole or poles, provided /such change will riot require the removal of any pole for a 
greater distance than fifty feet. 



26 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

8. That from and after the said company shall have two hundred subscribers and 
over and from and after the time the said corporation shall charge any other company 
doing a telephone business in the said tlown a pole rental (the said company will pay 
to the said corporation such rental per pole as is charged to other companies having 
the right to place poles on the streets of the town. 

*>. That the said company will not cut or trim any trees on or adjoining the streets 
or lanes of the said town or allow the same to be done by its employees except with the 
express permission of the council or such officer as it may designate by resolution aad 
on such terms as may be imposed. 

10: That the said company shall and will indemnify and save harmless and keep 
indemnified and harmless the said corporation from all claims, actions, damages, loss, 
costs and expenses whatever arising 'or occurring by reason of the construction, main- 
taining, repairing or operating the said .telephone system or in any way connected 
therewith ,or relating thereto or resulting from or arising out of the same or by reason 
or on account of any matter or thing done or omitted to be done by the company 
under or by reason of this agreement, or the failure or neglect of the company to do 
or perform anything which the company is by agreement or by law required to do or 
perform and' will pay to any person, firm or body corporate any damages, such person, 
firm or body corporate may sustain in consequence of any act or default of the com- 
pany. ' 

11. That the said company will allow the said corporation free o* charge the right 
to use the poles of the said company for the purpose of placing wires thereon for a fire 
alarm system, a police patrol system or other like corporation purposes, provided the 
effective operation by the company of its telephone system shall not thereby be im- 
peded or injured. 

12. That on the expiration of the said term of ten years for which the said com- 
pany is to have the right to use the streets and lanes of the said town the said com- 
pany shall and will on demand remove its poles and wires from the streets and lanes 
of the said town. 

This indenture further witnesseth that in consideration of the premises the said 
corporation hereby agrees with the said company that provided the said company 
performs, fulfils and keeps the covenants and agreements on its part to be observed, 
performed and kept that the said company may for a period of ten years from the 
first day of January, 1905, use the streets and lanes of the said town for the purpose of 
placing in, upon, over or under the same, poles, ducts and wires as above mentioned 
for the purpose of carrying on a telephone business in the said town, but nothing herein 
contained shall be deemed to limit or interfere with the control of the streets and 
lanes of the said town by the corporation under the Municipal Act or any by-law or 
agreement now in ffirce or hereafter passed with regard to placing poles on the streets 
or lanes, or its power to grant any right or license to any other company or individual 
to use the said streets and lanes of the said town for the placing of poles, ducts and 
wires for any purpose. 

In witness whereof the said company and corporation ha>e hereunto caused their 
corporate seals' to be affixed, attested by the hands of their proper officers thereto duly 
authorized. 

ROBERT NEILL, President. 

L.S- 
Signed and sealed in the presence of, M. H. LUDWIG, Secretary. 

F. D. Mackay, G. M. ROGER, Mayor. 

L.S. 
S. R. ARMSTRONG, Cleric. 

I hereby certify the foregoing to be a true copy. 
S. R. Armstrong, 

Clerk, town of Perterborough. 
Peterborough, April 10, 1905. 



APPENDIX " A " 27 

APPENDIX No. 1 



No. 24. 

INTEK-STATE INDEPENDENT TELEPHONE AND TELEGKAPII 

COMPANY. 

Aurora, Ills., April 11, 1905. 

Dear Sir, — A communication from the ' Select Committee on Telephones ' signed 
by yourself, was received at this office a few days since. 

To supply the information outlined in the list of questions accompanying the com 
munication, it would entail no small amount of work and would represent duplication 
of a thoroughly tabulated volume of information compiled by the ' Department of 
Commerce and Labour, Bureau of Census of the United States of America,' recently 
gotten out on the same subject. 

The latter portion of your communication you request ' a statement of general 
view upon this class of service and the results up-to-date of your operations in regard 
to this branch of your business,' referring to rural telephone service as I take it. I 
might say in reply to this inquiry I am more or less familiar with three different plans 
for supplying rural telephone service, either one of which has proven reasonably satis- 
factory, and at the same time profitable. 

The ' Inter-State Company,' of which I am secretary and general manager, is 
operating in round numbers 15,000 telephones in the state of Illinois (that portion of it 
lying north of Springfield). Of this number there are approximately 4,000 stations 
in farmers' residences. We own the telephones, wire and poles, complete, in this class 
of service as in all others operated by this company. We charge an annual rental for 
this class of rural service of $12 to $18 on party lines of 10 subscribers per line, which 
pays for the exchange service only in the village or town where the switchboard is 
located. If service is desired to any other exchange a toll charge is made of not les3 
than five cents, which is the minimum charge between any two points. We are operat- 
ing thirty-five exchanges and have something over 1,000 miles of copper, trunk toll 
lines. Eor what we call long-distance toll service we charge five-eights of a cent per 
mile, air line distance. 

I am a one-third owner of a county system in Iowa, operated on a different plan. 
Here we own and operate an exchange in the county seat and instead of building rural 
lines ourselves, supply a circuit from the corporation into our switchboard connected 
with a metallic circuit owned by the farmers on the road traversed by the line. We 
restrict the number of parties on a pair of wires to ten. Each one of the ten pays his 
proportionate share of the cost of the line, and owns his own 'phone. We charge them 
50 cents a month for switching them at our exchange, and give them all the subscribers 
connected with it without extra charge. This has proven satisfactory to the farmers 
and profitable to us. 

I was interested in the organization of a county system in this state (Illinois), 
where the plan carried out contemplated the ownership by a company of the exchange 
in the county seat, which also built toll lines to all the smaller villages in the county 
connecting with the exchange. These small exchanges were in turn owned by local 
interests in the smaller towns and villages. The Central Company in this organization 
made a charge of $3 per year for each subscriber in the smaller exchanges for maintain- 
ing toll connections with the county seat, and over its own lines between the towns 
themselves. The annual charge of $3 per subscriber, I think, is as low as could be made 
and be profitable, however, in the county in question there are something like 2,000 to 



28 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 19° 5 

2,500 subscribers in the smaller exchanges, and each separate exchange becomes re- 
sponsible for the amount due the Central Company of $3 per subscriber, thus relieving 
the Central Company of the annoyance of making collection of the subscribers them- 
selves, and I can say the plan has worked admirably, and consider it one of the finest 
examples of modern methods of supplying telephone service m a territory organiza- 
tion such as our counties are. . , 

The information referred to as compiled by the ' Government of the United Mates 
is full and complete, and absolutely reliable, and I should judge available for your in- 
vestigation should you desire to examine it. 

Hoping I have in some measure covered some of the points you desired information 
upon, I beg to remain, 

Tours respectfully, 

Sir William Mulook, E. R. CONKXIN, 

Ottawa, Canada. Sec'y and Gen'l Manager. 



No. 24a. 



Ottawa, April 13, 1905. 



Dear Sir, — I have the honour to acknowledge the receipt of your letter of the 11th 
instant, and beg to express my very grateful appreciation of your courtesy, and the 
valuable and interesting information contained in your letter. Perhaps you would not 
mind my asking an explanation of that portion of your letter on the first page, which 
reads as follows: — 

' We charge an annual rental for this class of rural service of $12 to $18 on party 
lines of ten subscribers per line, which pays for the exchange service only in the village 
or town where the switchboard is located.' 

Is this annual rental of $12 to $18 the total amount of the rental of the ten sub- 
scribers, or is it the amount charged to each one of the ten subscribers? 

Doubtless there are other classes of rural telephone systems throughout the States 
besides those mentioned in your valuable communication. Would it be too much 
trouble for you to refer me to any other sources of information regarding rural tele- 
phone systems? 

Yours sincerely, 
E. R. Conklin, Esq., WM. MTTLOCK. 

Secretary and General Manager, 

Inter-State Independent Telephone and Telegraph Co., 
Aurora, 111., U.S.A. 



No. 24b. 

INTER-STATE INDEPENDENT TELEPHONE AND TELEGRAPH 

COMPANY. 

Aurora, Ills., April 22, 1905. 

Dear Sir, — I take pleasure in further serving you in the matter of supplying ad- 
ditional information regarding the inquiry of your favour of the 13th instant. 

The annual rental for ' Rural service of $12 to $18 on party lines of ten sub- 
scribers per line ' is the rental of the individual subscriber. The gross rental per line 
being $120 and $180 per year, respectively. 

Again expressing further willingness to assist in any additional information which 
I am in a position to supply, I beg to remain, 

Yours respectively, 
Sir Wm. Mulock, E. R. CONKLIN, 

Postmaster General, Secretary and General Manager. 

Ottawa. Canada. 



APPENDIX " A " 29 

APPENDIX No. 1 

No. 25. 

Hespeler, Ont., April 12, 1905. 
The Hon. Sir William Mulock. 

Dear Sir, — About 1891 we formed a co-operative telephone company, calling it 
the Farmers' Alliance. We did not get a charter because in the beginning it was in- 
tended to serve only places which the Bell refused to consider. Though the latter's 
lines ran through Breslau, they would put no instrument in the village, which as 
a central point was so much desired. The farmers supplied poles and work, the rest 
of us the money, and we built in the neighbourhood of thirty miles, with about thirty 
instruments. Each person purchased his own instrument and kept it in repair. We 
used both Bell and Ness instruments and found no difference except in the price, the 
Ness being cheaper. We connected Preston, Hespeler, Breslau, Berlin, New Germany, 
Winterbourne, Bloomingdale, Bridgeport and intermediate points, and seeing the 
satisfaction of the service we tried to get to Gait and Guelph, but were excluded by 
the exclusive franchises of the Bell in those places. We had a central station at Hes- 
peler, but we found it inconvenient to have two systems in a small town, and when the 
Bell approached us with a view of uniting our centrals, agreeing tjo give a good ser- 
vice, we acquiesced. This went along for some time but continued misunderstandings 
cropping up, the Bell proposed to purchase our lines. 

In construction we had contracted a debt of about $800, and were on the point of 
getting a charter allowing us to make rates and collect them, because for a number of 
years none of the subscribers paid anything. We were inexperienced and relied on 
promises and sold, and we have been sorry ever since. Since then, 1894, the rural tele- 
phone service in the county has been gradually getting less, and we of the county coun- 
cil thought there should be both a cheapening and extension, appointed a committee 
last January, which met a representative of the Bell last February and while he offered 
a $15 rate for farmers, with five cents per call extra for Berlin and Waterloo, we 
thought it still too high. Yet since that time about fifty farmers havu signed contracts 
showing that the farming community desires service of that kind even at a high rate. 
From our experience we know that the actual cost of management per instrument does 
not exceed $5 per annum . In Waterloo we feel very strongly, that in the case of tele- 
phone service which is in its very nature a monopoly, we can't expect of a corporation 
to give any better rates than they are obliged to, and that the only satisfactory solu- 
tion will be government ownership, or at least control. Thanking you for your query 
and wishing a speedy happy solution, 

I remain, yours truly, 

ANTHONY OCHS. 



No. 25a. 

Ottawa, April, 14, 1905. 

Dear Sir, — I beg to thank you for your interesting and valuable letter of the 12th 
instant, which I had pleasure in submitting to the Telephone Committee this morning, 
and to inform you that the committee have decided to request your attendance to give 
evidence, which I hope it will be convenient for you to do. 

Yours sincerely, 

WM. MULOCK. 
Dr. A. Ochs, 

Hespeler, Ont. 



30 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 26. 

THE OLD KENTUCKY TELEPHONE AND TELEGRAPH COMPANY, WIN- 
CHESTER, KY. 

In reply to inquiry of March 28, 1905, the secretary-treasurer, Mr. J. W. Chambers 
reports as follows: 

The Old Kentucky Telephone and Telegraph Company covers the counties of 
Clark and Montgomery and the two cities of Winchester and Mount Sterling. Their 
authorized capital is $100,000, of which $70,000 is paid up. The company has been 
in operation ten years. The bonded indebtedness is $70,000, and the floating debt 
$30,000. The population of territory served is 30,000. 1,350 telephones are in opera- 
tion, 1,175 of which are residence and 175 business telephones. About 100 subscribers 
have both Bell and Independent telephones on the same premises. The cost of the 
local service is about $75 per subscriber. The subscribers' lines are of iron, some of 
which are grounded and some metallic circuit. All lines are on poles. The system in 
use is 'Magneto.' The American Electric Telephone Company's Express Transfer 
switch-boards are in use. The subscribers' telephones comprise several types, any 
one of which is good, viz.: those of the American Telephone Company, Chicago; tb.3 
Stromberg-Carlson Telephone Company, Rochester, N.Y. ; the Dean Electric Company 
of Elyria, O. The company has about 400 farmers' telephones. 

The rates charged are: residence, $12 per annum; business, $24 per annum, in 
the city. 

Charges in the rural districts are on a movable scale, as follows : 

A farmer having a direct metallic line for his own use pays the local residence 
rate of $12 per annum and in addition thereto $5 per mile, per annum. be3*ond the 
city limits. 

Where there are several farmers on the same line, the extra mileage charge is 
divided and each fanner pays in addition thereto the $12 per annum local residence 
rate. 

The company has paid three per cent on the stock and five per cent per annum on 
the bonds. Three per cent is set aside for depreciation but an increase is contemplated. 

The company permits the use of its lines free of charge to other independent com- 
panies who return the same privilege on the understanding that charges are made for 
the use of the long-distance lines. 

The company has about 75 miles of toll lines, the cost of which is $20 per mile of 
metallic circuit, not including poles. 

The long-distance charges, up to 25 miles, are about 1 cent per mile. Beyond that 
distance, one-half to three-quarters of a cent per mile. 

The Bell did not enter the territory until the Old Kentucky Company had de- 
velopsd the busine3s. The Bell has now from 350 to 375 telephones, 250 to 275 of which 
are residence and 100 business telephones. The Bell rates are: residence $12, business 
$24 per annum. Party lines in the country, $12. 

The wages paid are : foremen $2 p3r day, trouble-men $40 per month, switch-board 
operators from $15 to $20 per month. 

The cost of central switch-boards was about $5 per line. Subscribers wall tele- 
phones $8.50. Subscribers desk telephones $10.50. Iron wire costs from $3 to $3.25 
per mile. 

POLES. 

Feet. 

25 

30 

35 

40 

45 

50 6 00 



Red Cedar. 


Chestnut. 


$1 75 


$1 25 


2 50 


1 50 


3 50 


1 75 


4 00 


2 00 


6 00 


3 50 



APPENDIX " A " 31 

APPENDIX No. 1 

Cross-arms, 3£-inch by 4|-mch by 8 feet, delivered, 25 cents each. 

Insulators, $12 per thousand. 

The company has two central exchanges at Winchester and Mount Sterling. With- 
in corporation limits, each subscriber has a separate wire. In the country party lines 
are used, with not more than six on a line. 

On party lines the divided circuit system of ringing, which is simple and easy to 
keep in repair, is used. 

A selective signalling system has been tried, but found slow and cumbersome and 
difficult to keep in good working order, in consequence of which it was abandoned. 

An increase in the residence rate from $12 to $18 per annum is contemplated. Be- 
yond 300 subscribers, a $12 rate is not considered remunerative. 

Old Kentucky Telephone and Telegraph Company, 

Winchester, Ky., April 14, 1905. 
Sir William Mulock, 

Chairman Telephone Committee, 
Ottawa, Can. 

Dear Sir, — Your request for information relative to operation of our telephone 
company has just been received, and we will give you such information as may help you. 

1. Old Kentucky Telephone and Telegraph Company. Our company covers the 
counties of Clark and Montgomery, as well as the two cities of Winchester and Mt. 
Sterling, the county seats of each county, respectively. 

2. Authorized capital stock is $100,000, of which about $70,000 is paid up, and 
bonds to the amount of $70,000 has also been, issued. Besides that, we have a floating 
debt of about $30,000. 

3. About ten years. 

4. About 30,000 people. 

5. About 1,350. 

6. 

7. About 100. 

8. About 1,175. 

9. About 175. 

10. About 75 miles. 

11. About $75 per subscriber. 

12. Costs about $20 per metallic mile for wire alone. 

13. Iron, part grounded and rest metallic. Everything should be metallic for best 
service. 

14. About 70 

15. See 10. 

16. All overhead. 

17. Magneto. 

18. We use American Electric Telephone Company's express transfer switch-boards, 
but have several type telephones, any one of which is good, viz. : American Electric 
Telephone Company, of Chicago, 111., Stromberg-Carlson Telephone Company, of 
Kochester, N.Y., or Dean Electric Company, of Elyria, Ohio. 

19. About 400. 

20. We charge $12 per year for residence service in city, $24 per year for business 
in city, and we charge in the country on a movable scale basis, for instance, if a farmer 
lives 5 miles from the city limits and has a metallic line to himself, we charge $5 per 
mile per year milage, to which we add our regular city residence rate of $12 per year. 

If there are several on the metallic line the mileage is divided between the number 
on the party line, but each one pays the $12 per year besides. 

21. For short distances, say up to 25 miles, we get about one cent per mile, but 
when we have longer lines we charge from Jc- to f c. per mile. 

22. See 20. 



32 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

23. Three per cent on stock. 

24. Five per cent on bonds. 

25. About 3 per cent, but we will probably increase that amount, after our rates 
are raised. We think that our present charge for residences is too small and expect to 
raise city residences to $18. A $12 residence rate will pay up to about 300 telephones. 

26. See 25. 

27. We connect with other ' independent ' companies, and under present con- 
ditions permit them to use our lines free of charge, while we use theirs free — this 
with understanding that charges are made between exchanges for toll use. 

28. We occupied territory first. The Bell Company would not build an exchange 
till we developed the business. 

29. About 350 or 375. 

30. See (28). 

31. See (28). 

32. About 250 or 275. 

33. About 100. 

34. See (28). 

35. $12, residences; $24, business and $12 party lines, country. 

36. Foreman, about $2 per day; trouble men, $40 per month, operators, from $16 
to $20 per month. 

37. (a) About $5 per line. 

(c) $8.50. 

(d) $10.50. 

(e) Have none. 

(f) 14 galv. 3§ B.B. iron, 14 B.B. iron |. 

(flO 25 feet red cedar, $1.75; chestnut, $1.25; 30 feet, red cedar, $2.50; chestnut. 
$1.50; 35 feet: red cedar, $3.50, chestnut.$1.75. ; 40 feet: red cedar, $4; chestnut, $2; 
45 feet: red cedar, $6; chestnut, $3.50; 50 feet: chestnut, $6. 

(h) 3i x 4| x 8 feet delivered in car load lots at about 25 cents each. 

(i) Insulators, $12 per M. 

38. We have two central exchanges— one at Winchester and the other at Mount 
Sterling. 

In corporate limits of each place we give each subscriber a separate wire, but in 
country we have party lines with not more than six on a circuit. 

For party lines we use 'divided circuit' system of ringing, which is simple and 
easy to keep in repair. 

We tried a ' selected signalling ' system, but found it too slow and cumbersome 
and too hard to keep in good working order, so abandoned its use. 

We trust that we have covered the ground as thoroughly as you deem necessary 
and that you may get some information that may be of service to you. 

Wishing Canada success in her undertakings, we remain, 

Yours. &c, 
OLD KENTUCKY TELEPHONE AND TELEGRAPH COMPANY, 

By J. W. Chambers, 

Secretary and Treasurer. 

No. 27. 

THE LOUISVILLE HOME TELEPHONE COMPANY, LOUISVILLE, KY. 

In reply to inquiry of March 28, 1905, the President, Mr. John A. Armstrong, re- 
ports as follows: — 

The Louisville Home Telephone Company operates in Louisville and Jefferson 
County, Kentucky, New Albany and Floyd County, Indiana, and'Sellersburg, Clark 
County, Indiana. 



APPENDIX " A " 33 

APPENDIX No. 1 

The amount of stock issued to date is $1,310,000. Bonded indebtedness, $1,430,000. 
Tlie company has been operating three years. The population of territory served is 
300,000. 9,100 telephones are in operation in three territories, comprising 7,700 direct 
lines, having one telephone each, of which 4,400 are in residences and 4,700 in business. 
The number of subscribers using both Bell and independent telephones on the same 
premises is between 3,000 and 3,500, largely residences. 

The average cost of local plant is $145 per subscriber, the lines being mostly met- 
allic copper circuits, of which one half are in underground conduit. The system ii 
use is-a 'central energy,' manufactured by the Stromberg-Carlson Tel. Mfg. Co., of 
Rochester, N.Y. 

The rates charged are, for business telephones within the city limits, $48 per annum. 
Residences within one mile radius, $24 per annum Within two miles, $30 per annum. 
Outsid3 the two-mile radius but within the city limits, $36 per annum. 

The company has about 2J0 rural telephones, but this branch of the business has 
not been developed because of the heavy city business. The rates for farmers' service 
are regulated by mileage. 

No dividends liave been paid on tbe stock, but one is in prospect for the near future. 
Five per cent per annum lias been paid on the bonds. Three to five per cent is set aside 
for depreciation, although from one to two per cent is considered ample. The amoiint 
of surplus, or reserve fund, on December 31 last was $34,000. 

The company interchanges service with any independent or anti-Bell company 
through the Independent Long-Distance Telephone and Telegraph Company, the local 
company getting 25 per cent on originating business, where clerks, &c, are furnished, 
the long-distance company reserving the right to put their own switchboard and clerks 
in at a lower percentage. 

The number of Bell telephones before competition was about 3,800. At this date 
the Bell telephones are about 8,000, of which latter 4,600 are residence and 3,400 busi- 
ness telephones. 

The Bell rates before competition were as under : — 

Business. 
Limited Service — 

Six-station circuit, $30 per annum and 3c. per each out-going call. 
Four-station circuit, $42 per annum, 60 calls per month; extra out-going calls 

4c. each. 
One telephone on line, $60 per annum, allowing 60 calls per month ; extra out- 
going calls, 5c. each. 

Unlimited Service — 

Four-station circuit, $48 per annum. 

Two-station circuit. $78 per annum. 

One telephone on line, $96 per annum. 
Extension telephones, $18 per annum. 

Residence. 
Limited Service — 

Six-station circuit, $24 per annum and 2c. per outgoing call. 
Four-station circuit, $42 per annum, allowing 60 calls per month; extra out- 
going calls, 3c. each. 
One telephone on the line, $48 per annum, allowing 60 calls per month ; extra 
out-going calls, 5c. each. 

Unlimited Service — 

Six-station circuit, $30 per annum. 

Two-station circuit, $48 per annum. 

One telephone on the line, $60 per annum. 
Extension telephones, $18 per annum. 
l—d—3 



34 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Since the inception of the independent service in this territory, the rates of the 
Bell Company have been almost anything to get business. During the year 1902 and 
part of 1903 they installed several ten-party line telephones at the rate of $12 per 
annum in residences. They also endeavoured to start ten-party business lines at $30 
per annum, but only put in fifty of them, and have since cut them out entirely. 

The Bell Company here has over 66 per cent of its subscribers on party lines. They 
now charge $90 per annum for one business telephone on a separate line, or $48 per 
annum per telephone, with four telephones on the same line. When they think a sub- 
scriber must retain their service, they will not furnish a $48 telephone, but insist on 
payment of the $90 rate. 

Their latest residence rates are : for one telephone on a line, $36 per annum; for 
p number of telephones on the same line, $24 per annum each. 

Wages paid are : Foremen, $3 per day; trouble-men, inspectors and wire-men, $2.50 
per day; switchboard operators, $12 to $30 per month. 

The cost of the central switchboard, with 7,500 lines equipped and an ultimate 
capacity of 12,600 lines, was about $150,000. 

The subscribers wall telephones cost about $10.50 each. The desk telephones the 
same. 

Cost of poles, cheetnut and cedar, ranges from 75c. to $30 each. Cross-arms cost 
25c. each. 

The plant is divided into several departments, as follows: — 

The cashier's department, which controls the book-keepers, collectors, &c. 

The contracting department, which controls the putting in and taking out of tele- 
phones, the issuing of directory, &c. 

The wire chief's department, which has control of the switchboard and clearing of 
trouble. 

The operating department, which controls the operators at the switchboard. 

The stenographic department, which takes care of the stenographic work and type- 
writing, filing of correspondence, &c. 

The team department, which controls the stablemen, wagons, stock, &c. 

The company owns no long-distance lines, but connects with those of the independ- 
ent Long-Distance Telephone and Telegraph Company, the charges being about three- 
fifths of a cent per mile. 

The company has thirteen directors, composed of leading business men in the city. 

No - 27a - Louisville, Ky., April 12, 1905. 

Sir William Mulook, 

Postmaster General and Chairman of Committee on Telephones, 
Ottawa, Canada. 

Dear Sir, — In reply to your letter of March 28, 1905, which contains on the reverse 
side a number of questions, which we will now attempt to answer by number : — 

1. The Louisville Home Telephone Company, operating in Louisville and Jefferson 
County, Ky. ; New Albany and Floyd County, Indiana; and Sellersburg and Clark 
county, Ind. 

2. Amount of stock issued to date is $1,310,000; the bonded indebtedness is $1,430.- 
000. 

3. Three years. 

4. About 300,000 people. 

5. Nine thousand one hundred telephones in operation in our three plants. 

6. Seven thousand seven hundred direct lines, one telephone per line. 

7. Between 3,000 and 3,500, largely residences. 

8. About 4,400. 

9. Four thousand seven hundred. 

10. We own no long-distance lines. 

11. Average cost per subscriber, of local plant, about $145. 



APPENDIX "A" 35 

APPENDIX No. 1 

12. We own no long-distance toll lines. 

13. Metallic circuits, mostly copper. 

14. Own no toll lines. 

15. Own no toll lines. 

16. About half and half. 

17. Central energy. 

18. Stromberg-Carlson Telephone Manufacturing Co., Rochester, N.Y. 

19. We have about 200 at present. Have not as yet begun developing the rural ter- 
ritory, because of the heavy city business. 

20. All business and professional telephones within the city limits, $48 per annum. 
Residence telephones within one mile of the court-house, $24 per annum. Beyond 

the mile limit and within two miles of the court-house, $30 per annum. Outside the 
two mile radius to the city limits, $36 per annum. 

21. Long-distance company, with which our company connects, charges about f of 
a cent per mile. 

22. Our rates for such service are regulated by mileage. 

23. No dividends have been paid as yet, but one in prospect for near future. 

24. Five per cent interest paid on bonds per annum. 

25. From 3 to 5 per cent, although from 1 to 2 per cent is, in our judgment, ample. 
•26. On December 31, 1904, was $34,000. 

27. We interchange service with any independent or anti-Bell company through 
our connection with the Independent Long-Distance Telephone and Telegraph Com- 
pany, we getting 25 per cent on originating business where we furnish clerks, &c. The 
long-distance company reserving the privilege to put their own board and clerks in at 
n lower percentage. 

28. About 3,800. 

29. About 8,000 in the same territory covered by us. 
30 and 31. About 3,800 telephones estimated. 

32. About 4,600 residence telephones. 

33. About 3,400 business telephones. 

34. Bell rates before competition were as follows: — 

Business or Professional, Per ji,,^ 

Limited service (six-station circuit, three rings on same line), 

outward calls, 3c. each $2 50 

Limited service (four-station circuit, two rings on same line), 

60 calls per month; extra calls, 4c. each 3 50 

Limited service (private circuit), 60 calls per month; extra, 

calls 5c. each 5 00 

Unlimited service (four-station circuit, two rings on same line) 4 00 

Unlimited service (two-station circuit, one ring on same line) . 6 50 

Unlimited service (private circuit) 8 00 

Extension 1 50 

Residence. 
Limited service (six-station circuit, three rings on same line), 

outward calls, 2c. each 2 00 

Limited service (four-station circuit, two rings on same line), 

60 calls per month ; extra calls, 3c. each 3 50 

Limited service (private circuit), 60 calls per month; extra 

calls, 5c. each 4 00 

Unlimited service (six-station circuit, three rings on same 

line) - 2 50 

Unlimited service (two-station circuit, one ring on same line) 4 00 

Unlimited service (private circuit) 5 00 

Extension set 1 50 

1— d— 3} 



36 



8 ELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. '905 

35. Since the inception of the independent service in this territory, the rates of the 
Bell Company have been almost anything to get business. During the year 1902 and 
part of 1903, they installed several ten-party line telephones at the rate of $1 per month 
in residences. They also endeavoured to start ten-party business lines at $2.50 per 
month, but only put in fifty of them, and have since cut them out entirely. The Bell 
Company here has over 66 per cent of its subscribers on party lines. They now charge 
$7.50 for an independent business line, or $4 per month for four-party business line. 
When they think a subscriber must of necessity retain their service, they will not fur- 
nish them the $4 service, but insist upon their paying the $7.50 rate. Their latest Tates 
on residence telephones, independent line, are $3 per month net; party lines $2 per 
month net. 

36. Foremen, $3 per day; trouble-men, inspectors and wire-men, $2.50 per day ; 
operators, from $12 to $30 per month. 

37. (a) Our switchboard has an ultimate capacity of 12,600, with 7,500 lines 

equipped, which have cost to date, including test racks, &c, about $150,000. 

(b) We have no sub-exchange switchboards. 

(c) Subscribers wall telephones about $10.50 each. 

(d) Subscribers desk telephones about $10.50 each. 

(e and f) We use so many different sizes of lead cable for underground and 
overhead work that it is impossible to give the cost of this material, as the 
prices vary so much with the fluctuation of the market. 

(g) We use wooden poles, chestnut and cedar, and the prices range from 75 
cents to $30 each. 

(h) We use yellow pine cross-arms, which cost about 25 cents each. 

( i) Market prices, which vary. 

(i) We use the McRoy clay works multi] 1 this varies in price, so 

much per duct foot. 

38. The plant is divided into several departments, as follows : — 

The cashier's department, which controls the bookkeepers, collectors, &c. 

The contracting department, wkhich controls the putting in and taking out of 
telephones, the issuing of directory, &c. 

The construction department, which has charge of the linemen, installers and equip- 
ment. 

The wire chief's department, which has control of the switchboard and clearing of 
trouble. 

The operating department, which controls the operators at the switchboard. 
_ The stenographic department, which takes care of the stenographic work and type- 
writing, filing of correspondence, &c. 

We have a team department, which has control over the stablemen, wagons, stock. &c. 

This about completes the organization. 

We have 13 directors, composed of leading business men of the city. 

Trusting this information will serve the purpose for which you desire it, 

I am, yours truly, 

JNO. A. ARMSTRONG, 

President. 

No. 28. 



Glen Huron, Ont., April 13, 1905. 
The Hon. Sir William Mulock, 

Chairman Telephone Committee, 
Ottawa, Ont. 

Dear Sir, — I have been following with much interest the proceedings of the Tele- 
phone Committee, of which you are the chairman, and in common with the people here 
am pleased to know that the matter has been taken up by the parliament of Canada 



APPENDIX " A " 37 

APPENDIX No. 1 

We have had our own little experience in telephone matters. Though not so great 
as many you are dealing with, yet it was of vital importance to the communities 
interested, and I beg to add our quota to the evidence you are receiving. 

We had asked the Bell Telephone Company on several occasions to extend their 
lines to this place, and always met with a refusal. We then built a private line extend- 
ing from Singhampton to Glen Huron station giving the people, though they had not 
contributed anything towards it, free service as far as it went. Nottawa and Duntroon 
to the north of us, Singhampton, Mclntyre, Badgeros and Maple Valley to the south 
and west of us, being without either telegraph or telephone communication, with the 
exception of telegraph at Duntroon and Singhampton, the writer proposed a scheme to 
fcrm a joint stock company with shares of $10 each, to build a line from Gollingwood 
connecting with the above-named places, and also to extend to Creemore via Dunedin 
later on. -We proposed giving as cheap service over the whole line as possible, the object 
being convenience and not dividends. We had several meetings, and the people were 
in hearty sympathy with the project and everything went well until the Bell Telephone 
Company heard of it, who then sent, unasked, two men canvassing over the territory 
for weeks. The first asked large bonuses from each place, and in every instance but 
one were refused. When they could not block our scheme any other way, they imme- 
diately accepted a small bonus subscribed by the people of Duntroon and ran a loop 
into that place and a loop from Collingwood to the village of Nottawa without any 
bonus or consideration whatever, and unasked. As these two places were large sub- 
scribers to the proposed local line, and feeling that the latter would be largely deprived 
of patronage on account of the Bell having long-distance connection, we found it impos- 
sible to get their assistance, and the result was that the scheme fell through for the time, 
and the other points mentioned are still without a line. 

As soon as the Bell company had the matter blocked, they immediately withdrew 
their canvassers, and I do not know of one being on the scene since. 

I might add that the points left out in the cold are more anxious now than ever 
they were for telephone convenience, and would glady co-operate with the government 
along the many lines being suggested by your committee. 

As I do not think it necessary to go to Ottawa to give what evidence we have here, 
I have availed myself of your kind invitation to send in an outline of what occurred 
in this section. If necessary, I can have data, affidavits, &c, prepared and sent to you. 

Hoping that what I have said may be of some benefit to you in your deliberations, 
and that yon may find a suitable plan to relieve the people of this country of the in- 
iquity of siich a monopoly as we have been, and are now, up against. 

I remain, your obedient servant. 

W. H. HAMILTON. 



No. 29. 

Synopsis of Letter of April 15, 1905, from J. H. Morrow, of Brighton, Ont., to the 
Chairman of the Select Committee on Telephones. 

Mr. Morrow incloses invoices from the American Electric Telephone Company of 
Chicago for two complete telephone sets of modern type, including long-distance trans- 
mitters, showing the cost to be $8.55 each f.o.b. Chicago. 

Mr. Morrow states that the Grand Trunk Kailway will not allow a telephone of the 
local system in the Brighton station. 

He also suggests that Mr. Wm. Wade and Mr. Samuel Nesbitt, of Brighton, be 
called as witnesses. 



38 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VI!., A. 1905 

No. 30. 

To the Honourable the Board of Railway Commissioners of Canada, 
Ottawa, Ont. 

May it please Your Lordships : — 

The towns of Fort William and Port Arthur, in the province of Ontario having 
constructed under due authority, a joint system of municipal telephones, nereby apply 
to your honourable board for an order, under section 193 of the Railway Act, 1903, 
upon the Canadian Pacific Railway Company, to provide for telephonic connection 
and communication with and within the respective stations of the company at both 
Fort William and Port Arthur, and that by such order such further directions be given 
as may be expedient according to law. 

W. D. LIGHTHALL, 

Attorney of the Towns of Fori William and Port Arthur. 
Montreal, January 28, 1904. 

BOARD OF RAILWAY COMMISSIONER. FOR CANADA. 

Tn the matter of the application on behalf of the towns of Fort William and Port 
Arthur for an order under section 193, providing for the instalment of municipal 
telephones on the premises of the Canadian Pacific Railway Company. 

Ottawa, March, 15th, 1904, 11 o'clock, a.m. 

JUDGMENT OF THE HONOURABLE A. G. BLAIR, CHIEF COMMISSIONER. 

This is an application by the municipality of Port Arthur undwr section 193 of 
the Railway Act for an order of this board granting leave to the municipality, which 
has organized a telephone system in the district, to enter the premises and stations of 
the Canadian Pacific Railway and place its telephones and make connections at the 
railway station and on the railway premises with the municipality's exchange. 

On the hearing of the application the Canadian Pacific Railway and Bell Tele- 
phone Company severally appeared by counsel and objected upon grounds which will 
hereafter appear to the making of the order applied for. 

Several questions of considerable importance have been raised by the contending 
parties, and as the application i~\ the first which has been made under the 193rd clause 
of the new Act, and will in all probability be followed by others of a similar nature, 
it has been deemed advisable by the board that in rendering our judgment we should 
state our views somewhat fully upon the principal contentions which have been put 
forward in the ease. 

The applicants chiefly rely upon the provisions of the statute as entitling f he muni- 
ciaplity to be admitted to the stations and premises of the railway at Port Arthur, 
and to place and maintain their telephones thereon. Thej claim that the privilege 
should be granted without compensation to either the railway or telephone company 
by reason of any contractual arrangements existing between those two companies for 
the use of the Bell Company of the railway premises for telephone purposes to the 
exclusion of any other telephone system, and contend that the only right to compen- 
sation this board can properly recognize is in respect of the expenses reasonably inci- 
dent to the placing, operating and maintaining the telephones of the applicants. 

In opposing the application, Mr. Creelman, counsel for the Canadian Pacific 
Railway, produced a contract, which had been entered into on the first of May, 1902, 
and therefore before the Railway Act, 1903, was enacted, between that company and 
+he Bell Company granting the latter company exclusive privileges of placing its tele- 
phones in the stations and on the premises of the railway company throughout its en- 



APPENDIX " A " 39 

APPENDIX No. 1 

tire system, and wherever the Bell Company was established. The privilege was grant- 
ed for a term of eight years, two of which years have elapsed. 

It is alleged that the service performed by the Bell Company is pecuniarily and 
otherwise of great value to the railway company and its patrons. That the Bell Com- 
pany system is most efficiently organized, that it gives a most excellent service and 
covers a large area in which no other telephone system exists. That such a service is 
required by the Canadian Pacific* Railway aud its patrons in order to the most efficient 
working of the railway and can be supplied by no other company, and that there would 
be no inducement to the Bell Company to give such a service if the railway company 
were to open its stations for telephonic purposes to competing parties. 

The Bell Company, through its counsel, contended that the company had vested 
rights and interests by virtue of its exclusive contract, which would be injuriously 
affected if the order applied for were made, especially without just and proper com- 
pensation. That this board has no power or jurisdiction to make siich order without 
awarding due compensation to the companies in respect of the rights and interests 
arising out of the contract. That the contract was a legal or valid contract, entire in 
its character and founded upon a valuable consideration, the essential feature of which 
is the exclusive privilege. That if the consideration failed, as it was contended would 
happen if the order applied for were made, the contract would be voidable at the option 
of the Bell Company, and that the duty devolves upon this board, while regarding pub- 
lic interests, of protecting private rights as well. 

Mr. Lafleur, on behalf of the Bell Company, produced a somewhat detailed state- 
ment, the accuracy of which was not controverted by evidence, showing the financial 
results for a year of the operation of the contract as between the railway and the Bell 
Company, which is as follows: — 

Results to the benefit of the Canadian Pacific Railway — 

Passes and franks over Bell Company's long-distance 

lines, valued at $ 18,297 00 

Exchange service, 774 instruments free to railway com- 
pany, valued at 22,562 00 



$ 40,859 00 
To the benefit of Bell Company — 

Trips, annual and periodical passes over Canadian 

Pacific Railway, valued at $ 22,258 00 

Refunds 200 00 



$ 22,458 00 



This statement, it may be noted, makes no mention of what is to the company a 
very profitable feature of its exclusive privileges. I refer to the advantage the Bell 
Company enjoys over its competitors in obtaining subscribers, by being able to ensure 
connection with, by subscribers, to the stations and offices of the railway. 

Both parties to the contract of the first of May declare themselves averse to its 
abrogation, or to any action by this board which may lead to its abrogation, and each 
professes to fear that to allow this application, unless subject to payment of compensa- 
tion upon a large scale — so large, according to suggestions made during the argument, 
as to be tantamount to a refusal of the order — would operate to the serious disadvant- 
age of the two companies. 

Mr. Lighthall, for the applicants, in his general reply, contended that the claim 
for compensation based upon the contract of Mayl, should not be recognized ; that the 
extent of the Bell and railway companies' territory, which would be affected by an order 
for admission to the railway station at Port Arthur, is so trifling and the disturbance 
of the existing arrangement in that one locality would be so small and unimportant a 
disturbance, having regard to the extent and area of the Bell Company's field of opera- 



40 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

tion, that it is not entitled to be seriously considered; that the agreement for an exclu- 
sive privilege is an agreement in restraint of trade and against public policy, and there- 
fore void, and being void cannot rightly be considered as the basis of a claim by the Bell 
Company for compensation; and that so far as that company is concerned, it is not 
mentioned at all in section 193, and not being specially named, it has no rights which 
this board is bound to respect or recognize. 

After having given the argument presented to us respecting the validity of the 
agreement of May 1 very careful consideration, I am unable to conclude that such 
agreement is not a legal and binding contract. The question as to whom a contract con- 
ferring exclusive privileges is void as being in restraint of trade and against public 
policy, has been quite recently judicially determined by the highest tribunal in the 
empire. As late as the year 1894 the House of Lords, on nppeal from the Court of 
Appeal in England in the case of Nordenfeldt vs. Maxim Gun Company, 1894, app. 
cas. 535, after passing in review the leading decisions up to that date, laid down the 
principles which governed the determining the question in these words : ' That such a 
contract was valid so long as it was wider than was necessary for the protection of the 
company, nor injurious to the public interests.' 

Lord Herschell quotes with approval the language of James, V.C., in the case of 
Leather Cloth Co. vs. Lorsont, who said : 

'All the cases, when they come to be examined, seem to establish this principle— 
that all restraints upon trade are bad as being in violation of public policy, unless they 
are natural and not unreasonable for the protection of the parties in dealing legally 
with some subject matter of contract.' 

With approval he also quotes from the judgment of Fry, J., in Kousillon vs. Eousil- 
lon, 14 ch. D. 351 ; 49 L. J. Ch. 338, the following : ' I consider that the cases in which 
an unlimited prohibition has been spoken of as void, relate only to circumstances in 
which such a prohibition has been unreasonable.' 

Lord Herschell also adopts the test laid down by Tindall, C.J., in a leading case : 
' We do not see how a better test can be applied to the question whether reasonable or 
not, than by considering whether the restraint is such only as to afford a fair protection 
to the interests of the party in favour of whom it is given, and nor so large as to inter- 
fere with the interests of the public' 

Lord Watson says: — 'It must not be forgotten that the community has a material 
interest in maintaining the rules of fair dealing between man and man. It suffers 
far greater injury from the infraction of these rules than from contracts in restraint 
of trade.' 

For my own part I am very clearly of opinion that no violence is done to the 
canon laid down by the ' common law courts in affirming that a restraint whvjh is 
absolutely necessary in order to protect a transaction which the law permits in the 
interests of the public ought to be regarded as reasonable and cannot in deference to 
political ideas be regarded as in contravention of public policy.' 

' There is no reported case which I have been able to discover, says Lord Ashbourne, 
where a covenant in general restraint of trade, clearly reasonable in itself and only 
affording a fair protection to the parties, has been held to be void.' 

Lords MacJSTachten and Morris both concur in this judgment; see this case also 
reported in 6 Eng. Bui. Cases at p. 430. 

It appears to me that in applying these tests there is no room for doubt — that the 
contract in question is a natural one — that the Canadian Pacific Kailway was entering 
into an arrangement with respect to its own property, an arrangement manifestly ; n 
its own interests and those of the public who were using its railway, and that the 
Bell Company secures such reasonable protection only as would alone justify it in 
contracting for such a service as it was undertaking to perform. The contract, I 
should say, therefore, when entered into, was a legal and binding contract, enforceable 
against either party by the other, and not void on the ground alleged by the applicants. 
There was no law then on the statute book whereby the railway company could be com- 
pelled to allow any telephone company to place its instruments and operate a telephone 



APPENDIX " A " 41 

APPENDIX No. 1 

in its railway stations; and not being legal compulsion to permit any, the railway 
company would be entirely free and quite within its legal rights to determine the con- 
ditions upon which any should be admitted. If effect were given to applicants' con- 
tention that this contract is void as being restraint of trade, this Board would in my 
opinion, be not so much relieving trade from undue restriction, as placing unheard of 
restraints upon the freedom of contract. 

We were much pressed during the argument by counsel for the applicants to re- 
cognize the analogy between telephone and telegraph companies and railway companies 
— his proposition being that a telegraph company has no power, in the absence of a 
special provision in its charter, to alienate the privileges granted to, nor to execute 
a valid lease of its franchises, and therefore he would have us informed that the rail- 
way company in this case could not be a valid contract to confer upon the Bell Com- 
pany the exclusive privilege in respect of the telephone service over their entire rail- 
way system. I recognize that the analogy is very close as pointed out by applicants' 
counsel, between railway, telephone and telegraph companies, but I am not sure that 
I clearly perceive the relevancy of this contention to the question before us. Un- 
doubtedly there is no implied power in any corporation to make a valid transfer of its 
franchises. There must be express authority to enable it to do so. But I do no 
that the contract under consideration can be so described. 

There is not wanting further very clear authority showing that a railway company 
may lawfully do precisely what the Canadian Pacific Railway Companj' has done in 
the present case, and showing, as well, that the contract conferring an exclusive privil- 
ege, identical with that of the Bell Company in the matter now before this Board, 
is not invalid as not being in restraint of trade. I refer to the case of the Canadian 
Pacific Railway Company. The Western Union Tel. Company reported in 17 Sup. Ct. 
Rep. p. 151. 

In that case E. & N. A. R. Co., which in 1869 owned the line of railway from St. 
John, N.B., to the United States boundary, gave the W.U.T. Co. by a contract hi 
writing, the exclusive right to erect and maintain its poles and telegraph lines, &c., 
on the lands of the railway company — after the C.P.R. acquired the control of the 
line of way, an attempt was made to construct a line of telegraph along the railway 
property. The W. U. Tel. Co. resisted the attempt and the validity of the W. U. 
Tel. Co.'s exclusive contract was attacked in the courts, upon the ground, among 
others, that it was a contract in restraint of trade and was void as being contrary xo 
public policy. The case was carried on appeal to the Supt. Ct. of Canada. That court 
held that the agreement was not void as an agreement in restraint of trade or as being 
contrary to public policy. 

It will be of interest to read an extract from the judgment of Ritchie, C. J., 
which was concurred in, on this branch of the case, by the whole court. 

' If the railway company deems it in the interest of the company that there should 
be only one telegraph line on the right of way, why may they not give an exclusive 
right to a telegraph company to occupy the right of way, and prohibit other telegraph 
companies from interfering with such exclusive rights, except by consent of the com- 
pany to whom the exclusive right is given ? If the railway company can give a right 
at all. why may it not give an exclusive right? A telegraph along the line may be, 
and no doubt is, indispensable for the safe working of the road. The financial condition 
of the railway may render it impossible for it to work the telegraph line for itself, 
and assuming that no telegraph company could be found who would erect it without 
the exclusive privilege, and so be protected from competition, what law is there to 
prevent the railway company from securing the line by granting such an exclusive 
privilege ? I know of none. I fail entirely to see how this creates a monopoly and 
prevents competition. It certainly prevents the erection of another telegraphic line 
on the roadway, but how does it prevent the erection of a line on either side of the 
track, if the parties can secure the privilege of doing so over adjoining lands ? If 
they cannot do so, in what different position are they than if the railway had erected 



42 SELECT COMMITTEE OX TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

this line for their own exclusive use, and refused to grant the privilege to any person 
or company ? ' . , 

' That there was no monopoly is abundantly clear from the fact proved on the trial 
and admitted on the argument, that the Canadian Pacific Railway Company have, at 
this very time, built their line on the railway track, having their poles just beside the 
right of way between Vanceboro' and St. John, ranging in places from twenty-five to 
thirty feet from the track.' 

'The argument that an exclusive right to < rect a telegraph lino along the line of 
railway is against public policy would seem to rest necessarily on this delusion, if it 
has any foundation at all, that the public generally have a righl to erect telegraphic 
lines along and on the line of railroad, and therefore their exclusion of any such right 
may cripple and prevent competition, and tend to create monopolies ; but as the public 
have clearly no such rights, as there is nothing to prevent telegraph lines from being 
contiguous to and parallel with railroads, provided the n ay is secured, how can 

it be said to cripple and prevent competition ami tend u< create monopolies any more 
than the erection of the line of telegraph unconnected with the railway by private in- 
dividuals for their own exclusive use on a lino they have procured al their own expense 
would prevent competition, on a line parallel or contiguous thereto ? What is there to 
prevent the erection of a dozen different lino.- by a dozen different oompanies for their 
exclusive use respectively ? ' 

Admitting, therefore, as I do without hesitation, the close analogy between tele- 
phone and telegraph companies, and admitting that, for the purposes of the argument, 
this analogy extends even to railway?, it still remains, if the judgment of the Supreme 
Court of Canada and the judgment of the House of Lords in England be good law, 
which every tribunal administering the law in this country is bound to submit to and 
respect, that the Canadian Pacific Railway and Bell agreement is in law a good, valid 
and binding contract. 

There is another reference, not cited as an authority, which may not be inappro- 
priately mentioned in this connection. In the year 1S70, the Canadian government 
entered into an agreement with the Montreal Telegraph Company for a telegraph ser- 
vice on the Intercolonial Railway, and one of the covenants in that agreement is in the 
following terms: 'The company, in consideration of the premises, shall have the ex- 
clusive right to construct and work a telegraph along the line of the Intercolonial Rail- 
way until such a time as the option of purchase is exercised by Her Majesty.* This 
contract is in effect a perpetual exclusive franchise, unless the government should buy 
out the telegraph company's line on the terms set forth in the agreement. A similar 
agreement of an exclusive character exists between the government and the W. U. Tele- 
graph Company. Can it then be said with any plausibility that for thirty years con- 
tracts have been in actual operation between the government and these telegraph com- 
panies which were absolutely void, and which fact until to-day has remained undis- 
covered ? 

Having reached the conclusion that the contract before us is a valid one, and is 
not void or voidable upon any of the grounds assigned, our attention may not properly 
be directed to the new clause, 193, in the Railway Act. under which this application is 
made. The applicants press upon us this view?: That parliament, by the clause has 
abolished the exclusive feature of the Bell contract; it is a thing of the past thev say, 
and it can continue to exist in any locality only until the expiry of its term or until 
such a time as an application is made by some other telephone company to set the ex- 
clusive privilege aside, and when either of these events occur no damages can properly 
be allowed by the board by way of compensation for the taking away of such privilege. 
We have been compelled in view of this contention, to examine clause 193 with much 
care and ascertain, if we can, the true meaning and intent of parliament in enacting 
it. Does it mean, as is alleged, that parliament intended to strike at a legal and bind" 
ing contract, under which valuable rights and interests had been acquired and were 
being enjoyed, the consideration for which, as the Bell Company say, was the expendi- 



APPENDIX "A" 43 

APPENDIX No. 1 

ture of a considerable amount by their company, and take away their rights without 
awarding compensation in the usual manner? Such legislation, I am assured, would 
be contrary to the genius and spirit of British legislation, and in violation of the most 
elementary principles of right and justice. While the po^\er of parliament is supreme, 
and in the exercise of the right of eminent domain, it may, and not infrequently does, 
authorize the compulsory taking of private property for public purposes, it has never 
been known to do so without making, what it deemed, due provision for recouping the 
owner his loss in respect of the property taken. 

It is not too much to say that the Canadian Parliament has not done so in this 
instance. 

So careful have the courts of the land been to safeguard private rights and pro- 
perty that the most stringent rules have been laid down for the interpretation of sta- 
tutes which may affect such interests. 

In 1893, in the London and N.W.R. vs. Evans, it was determined that rights, 
whether public or private, are not to be hampered, interfered with or taken away by 
mere implication. 

' The Legislature must clearly and distinctly authorize it.' — 1893, I Ch. 16. 

In 1889, in re Cuno : 43 Oh. D. 17, Bowan, L.J., said: 'In the construction of sta- 
tutes you must not construe words so as to take away rights which already existed before 
the statute was passed, unless you have plain words indicating that such was the inten- 
tion of the legislature.' 

In Wells vs. London and T ilbury Railway Co., 1877, 5 Ch. D., p. 130, Lord Bramwell, 
L. J., lays down the rule : — 

' The legislature never takes away the slightest private rights without providing 
compensation for it, and a general recital in an Act providing for the execution of 
public works that it is expedient that the works should be done, is never supposed to 
mean that in order to carry them out a man is to be deprived of his private rights with- 
out compensation.' 

In Morris vs. Mellin (1827), 6 B. and C. 446, Bayley, J. :— 

' In order to avoid any written instrument by positive enactment, the words of that 
enactment ought to be so clear and express as to leave no doubt of the intention of the^ 
legislature.' 

In the United States, in which country British legislatures are not inferior in their 
solicitude for maintaining the sacredness of personal and private rights, it is part of 
the organic law which declares that private property shall not be taken for public use 
without just compensation. Nor do I believe that there is any country in the Wurld, 
which has emerged from savagery, where this great principle is unrecognized. 

If it were necessary to pursue the subject further in this direction, it might be 
remarked that the object of the applicants being to secure access to the railway station, 
so that subscribers to their company may be able to make inquiries about train arrivals, 
freight and kindred matters, the company could easily secure this concession by locating 
an office convenient to the railway station, and its office agent could easily and promptly 
obtain the information desired and communicate with the subscribers seeking it. The 
applicant company will need, it is presumed, to employ a person to attend the 'phone 
in the railway station if a connection with the station is made, or else pay the Canadian 
Pacific Railway Company for employing some one to do so, which would mean precisely 
the same thing. The expense would be much the same ; therefore (if that is an element 
to be weighed in the case), whether the company had its office convenient to the station 
or used the station agent's office. 

It will seem to follow that no serious question of monopoly can arise where the sole 
question is shall the telephone company's agent cross the street and make the inquiries 
of the station officials, or be so located inside the building of the railway company that 
he may put his question from the inside. There is nothing to prevent as many tele- 
phone companies as may be in operation in any locality having easy, quick and quite 
convenient access to the railway station in the same manner. 



44 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

If it be said that the Bell Company has a monopoly, the question may be fairly 
asked, ' What does its monopoly consist of V Certainly not of the telephone business. 
There is nothing to prevent telephone companies from being established in any i 003 ^ 
wheere a company having means sufficient for the purpose may choose to locate. Ihe 
extent of the monopoly, so far as affects the present application, is the right to have its 
'phone in the railway station on railway premises. 

The only difference between the Bell Company and any other company is that the 
railway company's agent may be reached directly by subscribers' 'phone, other com- 
panies not having a 'phone in the station may reach him indirectly by their agent most 
conveniently located. There is, therefore, no monopoly of the business of telephony; 
there is no monopoly of the information which the railway officials have to furnish for 
tthe general public; there will be no material difference in the expense of maintaining 
the telephone company's agent outside the railway station and maintaining him, so 
that, so far as I can discover, the general interests of the public are not prejudicially 
affected. 

Looking at the clause in question in the light of th ritios I have above 

quoted, there is only one construction which can be put upon its language, and that is 

that the order, if made, must take account of anj and all lawful rights and interests 

which will be injuriously affected by such order, and award compensation to the party 

rlics whose inter. iff< cted upon 

If the clause had made provision for the award of compensation limited to the 
construction, operation and maintenance of the new service, I doubt if the board could 
have properly made an order in this case at all. The omission to provide protection by 
the statute for all persons having existing rights which would be injured or destroyed 
by acting on the clause had there been such omission would, I incline to believe, have 
warranted the inference that the statute wa ded to apply only when the parties 

interested were confined to the railway and the applicants. 

We are relieved, happily, from any such difficulty by the plain language of the Act 
itself, which seems to contemplate and provide for two distinct kinds of compensation, 
in terms which appear to me to be free from doubt. ' The board,' the section Teads, 
' may order the company to provide for such connection upon terms as to compensa- 
tion, &c.,' and then immediately following it deals with a class of claims for compensa- 
tion, namely, such as might or would arise from the construction, operation and main- 
tenance of the connection. 

I read the Act as imposing upon the board the duty of granting an order in the 
case before us, although I do not say that the word ' may,' in the eighth line of thp 
section, must in all cases be read as if the word ' shall ' had been used. We believe the 
board is invested with a discretion to be exercised in each case, with due regard to the 
object and purpose of the Act on the one hand, and the conditions and circumstances 
surrounding the application on the other. Instances may not infrequently occur when 
neither the public interests nor convenience would be served by grantinz an order. 

Coming now to the question of compensation: While I do not think the board 
should name a sum or definitely determine the principles which will govern it in arriv- 
ing at the amount of compensation, without giving all parties an opportunity of being 
heard, it will be convenient and desirable, perhaps, for parties to be informed as to the 
way in which the minds of the commission are tending on this phase of the subject. 

Speaking for myself, I think we should preserve an open mind until we have again 
heard the parties who may desire to be heard, but I incline to the view that this is not 
an instance which will call for the imposition of onerous terms. I hold the opinion 
that the Bell agreement is what is knowr to the courts aa an entire and indivisible 
contract. The exclusive privilege granted the Bell Company is the essential considera- 
tion upon which the contract, on the part of the Bell Company, is founded. I believe 
there would not have been the same inducement to the Bell Company to make the ex- 
penditures and render the service it has done if this element in their contract had been 
wanting. I think, also, that a failure to maintain intact the exclusive feature of the 



APPENDIX 'A" 45 

APPENDIX No. 1 

agreement, as to a part of the Bell Company's territory, though such failure may be 
due solely to the intervention of parliament, is, at least, a partial failure in the per- 
formance of the contract, sufficient to entitle the Bell Company to have the contract 
nullified. 

It does not follow, however, that because the contract is entire, and may be nulli- 
fied, that either party will consider it to its interests that the existing arrangement 
should be terminated in its entirety, nor do I regard it as probable, in view of the profit- 
able and satisfactory character of the service, that it will be disturbed to an extent 
beyond what may be necessary to give effect to such order as the board may make. Any 
actual pecuniary loss which may be shown will result to either the railway or Bell Com- 
pany by reason of our order I think we should be disposed to consider. Beyond that 
as at present advised, I do not think we ought to do, as respects this branch of the 
Question of compensation. 

I think, therefore, our decision should be to make the order under clause 193, 
granting leave to the Port Arthur municipality to connect, operate and maintain its 
telephone system within the passenger and freight stations of the Canadian Pacific 
Railway Company at Port Arthur, upon terms as to compensation for any actual 
pecuniary loss the Bell Company and the Canadian Pacific Railway Company shall 
satisfy us they or either of them will sustain by or subsequent upon the interference 
with the existing contractual rights of the parties, and also such charges and expenses 
as may be occasioned by the construction, operation and maintenance of the connec- 
tion in the stations at Port Arthur of the telephones of the municipality; and in the 
meanwhile, pending the fixing and adjusting of the amounts, if any, awarded, the issue 
of the order by the board should bes uspended. 

When the Board next met, the Chief Commissioner recalled to the recollection of 
the parties that during the hearing of case No. 6 application of Port Arthur, he had 
stated that the case then appeared to him to be one which might be proper to refer 
by way of special case, to the Supreme Court of Canada, and now said that he wished 
to say for the Board that if the parties in this case, or either of them, desired, the 
Board would facilitate their obtaining the opinion of the Supreme Court on the 
Board's decision, and would be pleased to refer the matter, in the manner suggested, 
to the court, if either of the parties so wished. 

March 22nd, 1904. Note. — Neither of the parties has requested, up to the present 
time, that any reference to the court be made. 

JUDGMENT OP THE HON. M. E. BERNIER, DEPUTY COMMISSIONER. 

I concur to a certain extent with the views expressed by the President of the Board, 
but I cai»not reach the same conclusion. I am free to admit that under the common 
law the agreement between the Canadian Pacific Railway and the Bell Telephone 
Company is valid, but while its validity cannot be questioned by this Board, I am not 
ready to draw the conclusion, that, because of its validity, any other corporation, 
either telegraph or telephone, is precluded from having access to railway, freight and 
passenger stations. 

I have no notes, because I thought the Chief of the Board and myself might agree. 
For that reason I have not made a special study of the question in order to give 
elaborately my interpretation of the law. 

I do not want to infringe upon the rights of the Chief of the Board. 

By section 10 of the Act it is enacted that not less than two commissioners shall 
attend at the hearing of every case, and the Chief Commissioner, when present, shall 
preside and his opinion upon any question which, in the opinion of the commissioners 
is a question of law, shall prevail. 

But sub-section (b) of clause 23 at line 4, speaking of the powers of the Board, 
says: — : And shall have jurisdiction to hear and determine all matters whether of 
law or of fact.' Without having any desire to contradict the well prepared judgment 



46 SELECT COMMITTEE ON TELEPHONE SJSTEM8 

4-5 EDWARD VII., A. 1-905 

of the Chief of the Commission I intend to take advantage of that clause, if I am 
right, and express my own views. . 

I have already said it is the common law and it is the law in the province^ ot 
Quebec, that any agreement between parties, which is not against public interest, is a 
binding and legal one. I admit, as I have stated, that this contract is binding between 
the corporations which are parties interested in it, but I cannot concur in the con- 
clusion of the Chief of the Board, that because it is binding the public must sufhr 
the consequences. 

I have now to invoke clause 193, which seems to me to have given to the Board 
powers which did not exist before. 

I have followed the argument of the Chief, but I think if I may be permitted to 
say so, the conclusion he had drawn is going too far, that is, in saying that in every 
case compensation for the infringement of the agreement should be determined. 

I am of the opinion that the intervention of tLc Board cannot set aside the agree- 
ment between the two corporations as long as it is not against public interest, but 
supposing the Bell Telephone Company, by reason of an agreement passed for the sake 
of mutual advantage to the companies concerned, using that privilege, should prevent 
or preclude a village or town of any telephone communication would it be in accord- 
ance with clause 193 ? 

In order to express that more clearly; jusl suppose that in one of those remote 
villages the Bell Telephone Company was not willing, on account of the expense, or 
for some other reasons, to ploce a telephone in the station of the Canadian Bacinc 
Railway, and if another local or municipal telephone company was willing to build 
a line, then the Bell Company or the Canadian Bncific "Railway Company might step 
in and say, we have an agreement, you cannot vouch the station, even although the 
Bell Company is not willing to install a telephonic system. 

I am willing to admit thai com m may be given under certain circum- 

stances, and if I read well the language of the Act it seems to me very plain that this 
is left, in case of non-agreement between those interested, entirely in the hands of the 
Board of Commissioners. 

I will cite again, though it has been alr<*» Jy referred to, clause 193 : ' Whenever 
any municipality, corporation or incorporated company has authority to construct, 
operate and maintain a telephonic system in any district, and is desirous of obtaining 
a telephonic connection or communication with or within any station or premises of 
the company, in such districts, and cannot agree with the company with respect thereto, 
such municipality, corporation or incorporated company may apply to the board for 
leave therefor, and the board may order the company to provide for such connection or 
communication upon such terms as to compensation as the board deems just and expe- 
dient, and may order and direct how, when and where, by whom and upon what terms 
and conditions such telephonic connection or communication shall be constructed, 
operated and maintained.' 

No agreement was made between the municipal telephone companies and the Cana- 
dian Pacific Eailway. It is not my duty to inquire whose fault it is. I take the case 
as it is before us. The municipal corporations ask from the board authority to reach 
the stations of the Canadian Pacific Railway, and I understood from a question which 
I put the other day, that the aim of the corporations was to have a telephone in the 
passenger and freight stations. I am not discussing now the objections which were 
raised with regard to access to elevators. That may be another question, because, to 
a certain extent, these may be regarded as private property. But I have' always con- 
sidered that railway stations (passenger and freight) were to a certain extent for the 
use of the general public having to deal with railways. 

The chief has stated, o* suggested rather, in part of his elaborate remarks, that a 
building might be erected for the municipal telephone company near the station of the 
railway company. If there was no other remedy, that would be one which might be 
worse or equal to the evil. The public really want access to the stations, not by way of 
transmission through somebody who may misunderstand orders. When you correspond 



APPENDIX "A" 47 

APPENDIX No. 1 

with a person you want to know you are dealing with a responsible party. If you speak 
to somebody not being responsible, transmitting verbally what you intended to say, or 
what you wished to be done, errors would often occur, yet nobody would be responsible. 
It has frequently happened to me, also to many others, that we use the telephone from 
our own homes for the purpose of transmitting our messages by telephonic communica- 
tion to telegraph offices. Messages transmitted in that way in my own town are received 
by Loth the Canadian Pacific and the Great North- Western Telegraph Companiss. 
Therefore, I cannot concur in the remarks of my learned colleague with regard to the 
mode which might be adopted by municipal telephone corporations to reach railway 
stations. I interpret the law, perhaps, in its wider sense. I think this clause was 
introduced into the Act, not only for the benefit of railway, telegraph or telephone cor- 
porations, but for the benefit of the general public, and until my judgment or interpre- 
tation of that clause is reversed by a higher tribunal, that is the interpretation that I 
will give to that section. 

My conclusions are that : I admit that the contract is valid and binding between 
the corporations which took part in it. It is binding to a certain extent towards a cer- 
tain class of the public, and I will cite one instance. If, for instance, a bogus company 
were to be organized just for the purpose of causing damage or trouble to the company 
by way of introducing a short line which might have one or two or three subscribers, 
I would certainly in that case refuse to grant an order. But, it seems, in the present 
case a whole village is concerned, having a service, if I am not mistaken, of over 300 
subscribers. Am I correct? 

Hon. Mr. Blair. — Oh, yes. 

Mr. Cook. — Nearly 400. 

Hon. Mr. Bernier. — So you see the public interest in that sense. 

I therefore concur in the part of the judgment of my learned colleague which says 
that the order should go for permission to introduce the wires and telephones in the 
buildings of the Canadian Pacific Railway, that is to say, the freight and passenger 
stations in the towns of Fort William and Port Arthur. With regard to the compen- 
sation, that will have to be determined later on. I am not willing nor ready now to 
carry the principle by way of stating that the Canadian Pacific Railway or any other 
railway corporation is entitled, ipso facto, to compensation for damages, leaving that to 
be determined after hearing the case which may be presented by the Canadian Pacific 
Railway or any other railway company in support of damages. 

For these reasons, I will be ready to hear and consider the question of compensa- 
tion, not because of the fact that there is no agreement, but from the fact that nobody 
should take advantage of another party without giving compensation, if due. 

JUDGMENT BY DR. JAMES MILT.?. M.A.. COMMISSIONER. 

Dr. Mills. — After considering the evidence and arguments in this case, I regret 
to say that I am unable to concur in all the conclusions at which ijhe chief fcommis- 
sioner has arrived. Until yesterday morning I was of the opinion that I should simply 
vote non-concurrence in the argument and conclusion regarding compensation. Finally, 
however, I decided that it would perhaps be better for me to present even a hastily pre- 
pared statement for my reasons for taking the position which I have decided to take 
rather than simply vote in silence. 

The issue 1 in the case, so far as it has been heard, is evidently a question of law. 
Hence the opinion of my learned colleague, the chief commissioner, must prevail and 
be taken as deciding what the order of the court shall be. This is manifest from sec- 
tion 10 of the Railway Act, 3 Edward VII., c. 58; and on such a question it may be 
considered presumptuous for a layman to differ from so eminent and distinguished a 
lawyer as the chief commissioner. 

Nevertheless, I feel in duty bound to explain very briefly how it is that I 'have 
failed to reach the same conclusion as that reached by the chief commissioner. 



48 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In the citations set forth in the judgment of the chief commissioner, Lord 
Herschel quotes with approval the language of James V.C., who said that all restraints 
upon trade are bad unless they are natural and not unreasonable; also, with approval 
from a judgment of Fry, J., that unlimited prohibition is bad and consequently void, 
only when it is unreasonable ; and Lord Herschell then says that a restraint upon trade 
is not unreasonable when it fulfils two conditions : first, that it affords only a fair pro- 
tection to the party in whose interest it is imposed; second, that is it not so large as 
to interfere with the interests of the public. Lord Watson says that a restraint which 
is absolutely necessary to protect a transaction which the law permits in the interests 
of the public ought to be regarded as reasonable. 

The statement of Lord Watson agrees with the judgment of Lord Herschell; but 
two questions arise when we come to apply it to the telephone case now subjudt 

Firs I , was the agreement between the Canadian Pacific Railway and the Bell Tele- 
phone Company made ' in the interests of the public? ' Was it not rather for the con- 
venience of the railway and the benefit of the telephone company, — the public being 
incidentally benefited to a limited extent, while, by the terms of the agreement — in 
accordance with the avowed intention of the contracting parties — it was undoubtedly 
and materially restricted in its trade and business operations? It seems that a rail- 
way, under present conditions, cannot be successfully operated without the telegraph — 
the telegraph and the railway go together — but the telephone is quite different; it is 
a great con. co a railway; it saves time and labour for the company, but it 

adds very little to the efficiency of the service as far as the public is concerned. Hence 
I maintain that the agreement in question was made, not in ' the interests of the pub- 
lic,' but for lefit of the contracting parties, and for the express purpose of 
restraining and restricting the public from engaging in the telephone business, how- 
ever much it might benefit them in their business transactions. 

Second. — Ave the exclusive privileges to the telephone company and the conse- 
quent restraint upon public business ' absolutely necessary to protect ' the Bell Tele- 
phone Company in doing business with the Canadian Pacific Eailway? It will scarcely 
be contended that Lord Watson meant such a protection as would create a monopoly, 
unless it could be clearly shown that the monopoly so created was in the public interest 
and so intended ; and for the ordinary protection which a company requires to enable 
it to carry on a successful business under a system of free cumpetition, surely an ex- 
clusive privilege such as that given in this agreement is not necessary; much less is 
it ' absolutely necessary ' for the purpose. 

Hence I conclude that this exclusive privilege, with its consequent restraints upon 
the public in their business transactions is not ' reasonable ' in the sense intended by 
Lord Herschell or Lord Watson. 

In the judgment of Chief Justice Ritchie, re the telegraph case quoted, that the 
gist of the argument appears to be that the restraint placed upon trade by the argu- 
ment referred to in that case did not create a monopoly and so was not against public 
policy, because, notwithstanding the exclusive privilege given to the telegraph com- 
pany, effective and successful competition was still possible, that a competing telegraph 
line could be successfully run on either side of the right of way of the railroad, or 
lines on _ both sides, which line or lines would practically serve the same purpose and 
accomplish the same objects as if they were on the right of way, but such successful 
competition, I submit, is not possible in the means of gaining access to the stations 
of a railway for telephone service; and hence I conclude that this telephone case is 
not covered by the judgment of Chief Justice Ritchie. 

Further, it is shown that the Dominion government has made contracts with tele- 
graph companies, giving privileges similar to that in the case covered by the judgment 
of Chief Justice Ritchie; but for the reason stated above, these cases do not assist us in 
reaching a conclusion in the telephone case. They are different; thev do not apply 
and they cannot be taken aa establishing the ' reasonableness ' of the exclusive privilege 
given in the telephone agreement. 



APrENDIX " A " 49 

APPENDIX No. 1 

In all these cases, however, one thing is clear, viz. : that the fundamental and guid- 
ing principle is the public interest, and that no restraint upon trade or restriction upon 
legitimate business in any part of the country should be regarded as reasonable and in 
harmony with public policy, unless it can be clearly shown that it does not interfere or 
tend to interfere with rights and interests of the public in that locality. 

It may be said that an exclusive privilege, such as that in the telephone agreement, 
does not interfere with the public interest, because the public will be better served by a 
strong, well-equipped organization such as the Bell Telephone Company, than it would 
be served if free competition were allowed. That may ov may not be so. One thing 
we know, viz., that this is the argument of all monopolists. We also know that, gene- 
rally speaking, the people are the best judges of their own interests; and, on a well- 
established principle of government in free countries, they should be allowed to decide 
such questions for themselves — whether to depend wholly on an organization such as 
the Bell Telephone Company, or to establish a municipal system of telephones for their 
own use. 

It is also said that when this agreement was entered into there was nothing in the 
law to prevent it, and therefore it should be regarded as a natural and reasonable agree- 
ment under the common law of the country. If there was nothing in the law to prevent 
it then, there is nothing in the law to prevent it now ; so a\ the expiration of this agree- 
ment, a new agreement may be entered into and the prohibition against municipal and 
other competing telephone systems made perpetual, unless under terms of compensation, 
which, in large towns and cities, will be virtually prohibitive ; and who will venture to 
say that such a condition of things will be in the public interest ? 

So, taking the law as set forth in the judgment of the Chief Commissioner, and 
considering all the facts of the case, I am forced to the conclusion that the exclusive 
privilege in the agreement of the Bell Telephone Company and the Canadian Pacific 
Railway Company aims at creating a monopoly, is intended to prevent competition in 
the telephone business, interferes with the public interest, is against public policy, and 
as a consequence debars the contracting parties in the agreement from all claims for 
compensation against the municipality of Port Arthur, or any other municipality which, 
with the consent and approval of the Board of Railway Commissioners, may install 
telephones at its own expense in the stations of the Canadian Pacific Railway Company, 
upon payment of reasonable compensation for use of the premises occupied and the 
expenses of operating their telephones in the said stations. 



No. 31. 

Grand Valley, April 14, 1905. 
Sir Wm. Mulock, 

Chairman, Select Committee on Telephones, 
Ottawa, Ont. 

Sir, — In your reports I do not see any system arranged and worked as ours is, so 
that a few words regarding the operation and management may be of interest. 

A line thirteen miles long runs through the township of East Luther and ends 
in Grand Valley, a village of 900, the market place for said township. 

A co-operative association was formed having shares of $10 each, and this stock 
was subscribed by people in the village and the township to the amount of about $1,400, 
each subscriber taking from one to four shares. Having more money subscribed than 
was necessary, we only called for 60 per cent. 

A telephone was put in a convenient rural residence about every two miles, and 
any one wishing to use the line goes in and pays 15 cents for a talk. The time is not 
limited for the conversation. Messenger service is charged according to distance, 
usually 5 cents and 10 cents; or if a farmer two or three miles away is wanted it may 
be 25 or 50 cents. That is mutually arranged before the messenger goes. 

1— d— 4 



50 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The farmers were anxious to have the 'phone, so that we do not pay for the opera- 
tion of it. 

Reports from each office are sent in at the end of each month. We have blank 
form reports, one of which I will inclose. 

A dividend is declared at the end of each year according to the business of the 
year, and each year it has been 20 per cent of paid-up capital. 

Our cost of running the line is thus almost nothing, as there has only been one 
break during the last year. 

We have no one who has had any experience with telephones yet. In the three 
years there has been no complication that has not been remedied by an ordinary me- 
chanic. 

We are using No. 17 series 'phone, manufactured by the Chicago Telephone Supply 
Co. of Elkhart, Indiana, i.nd they have given us good satisfaction. 

We are connected with another company who has a line on the same plan 14 miles ; 
also two others having 5 and 15 miles respectively. 

The Amoranth Telephone Company with 5 miles of line are building an addi- 
tional 17 miles now, and connection is made here by means of a 3-line switch-board, to 
Grand Valley, the head office. 

Lines of short distance will be built across the township, but in series only a lim- 
ited number can be put on, as it complicates the selective rings. In rural districts 
switch-boards work all right to lessen the phones in series, but of course if the farmer's 
wife is not at home that cuts off a certain district from the market town. 

The farmers would not be without the line now at any cost. 

Any other information regarding the working of our line will be cheerfully given. 
Encourage building of rural lines, then the government might give us connection with 
the large commercial centres. 

Yours truly, 

G. I. CAMPBELL, 
President, East Luther Telephone Co. 

» 
No. 32 (abridged). 

The Yorktgn North-west Electric Co., Limited, 

Yorkton, Assa., April 17, 1905. 
To the Postmaster General, 

Ottawa. 

Sir, — The following is in answer to yours of March 28 (although it bears the im- 
pression of having been posted from the House of Commons on April 10). 

I first began installations of farmers' telephones about five years ago. It was at 
first very difficult to convince the farmer that the telephone was just as essential to his 
success as the latest agricultural implements, good roads, or any other improvements. 
To many of those who have not yet telephone connection it is still sometimes hard to 
bring conviction, but my experience is that once it is installed it is there to stay, in fact 
many subscribers have informed me that they would not be without it if it cost many 
times as much as it does now. The great drawback, however, is lack of capital. The 
average farmer is still struggling to get into an independent position, and is really not 
in a position to take enough shares in the company to run the line into his farm. We 
have now about 130 miles of farmers' lines. There is no doubt we were a little prema- 
ture in running out these lines so far , but as soon as capital is subscribed its ultimate 
success is assured. Not a day passes but one or more farmers come trying to prevail 
upon us to give them connection, but unless they are very near our existing lines we are 
not yet in a position to comply with their request. At present we have two lines each 
over 60 miles long and are easily and satisfactorily working 30 'phones on each line, 
but to enable us to do this we install nothing but the best bridging 'phones. 

You will readily understand that as our local system has been working over six 
years, that in those comparatively early days independent manufacturers were few and 



APPENDIX " A " 51 

APPENDIX No. 1 

those few in a small way of doing business; there were then no standard instruments 
and even those were of a very crude nature to what they are now, and then again tha 
independent manufacturers have gone on improving these every day since. Our system 
started with 24 subscribers, among whom Dr. Cash, M.P., was one, and just as the de- 
mand increased provision was made for new subscribers; again just as the different 
parts of 'phones were improved these replaced our obsolete parts. This, by the way, is to 
show how hard it would be to answer some of your questions, and if answered, how 
unfair it would be to compare the cost of this installation with a new one. Again, I am 
myself a practical man and all the separate parts of our whole plant have been pur- 
chased from so many different manufacturers and assembled here by my own hands. 

I am enclosing specification and drawings (which are practically the same as the 
Canadian patent granted me) of the local system that we have installed here. As to 
its working and the general satisfaction that it gives, I would advise you to call in Dr. 
Cash. Any further information that you might wish for I will only be too pleased to 
give on request. 

Yours truly, 

THOS. PAUL. 



No. 33. 

Stromberg-Carlson Telephone Manufacturing Co., 

Eochester, N.Y., April 21, 1905. 
The Hon. W. Mulock, 

Postmaster General and Chairman Select Telephone Committee, 

Ottawa, Ont. 

My Dear Sir, — We have the honour of acknowledging the receipt of your com- 
munication under date of April 6, addressed to our Chicago office, which has been for- 
warded to this office for attention. 

We have before us a number of the various press comments on the telephone situa- 
tion in your country, and are very pleased, indeed, to lend you any assistance possible 
in acquiring an accurate knowledge of the telephone situation as it exists in the States. 

There is, probably, no industry in the United States which has made such rapid 
development as the independent telephone industry, there having been less than one 
hundred thousand dollars invested in this industry in 1895. and variously estimated 
from two hundred and fifty to three hundred and fifty million dollars at this time. It is 
quite difficult to compile reliable statistics touching upon this subject, by reason of this 
rapid and enormous growth. 

Until recent years the independent movement developed along, what you might 
say, individual lines, each company organizing, building and operating without refer- 
ence to its neighbour; but in recent years the necessity of closer relations has led to 
the organization of a number of long-distance, toll-line companies, connecting the 
various local companies, so that in certain parts of this country to-day the independ- 
ents are able to give a long-distance service for a distance considerably exceeding one 
thousand miles ; as, for instance, it is possible to carry on a conversation from Kansas 
City, Mo., to Pittsburg, Pa., a distance of something over one thousand miles, over 
independent lines, all of which has been accomplished in less than ten years. 

We assume that it would be interesting to your Committee to know that in this 
country there are practically two telephone systems operating in a majority of the 
towns and cities. The only large cities which are not now connected with independent 
service in the United States are New York. Boston. Washington, New Orleans, De- 
troit, Milwaukee, Denver, San Francisco and Portland, Ore. In many of the cities 
mentioned, franchises have been granted by the municipalities; companies have been 
organized, and many of these will have exchanges completed and in operation within 
the next three or four years. The two systems mentioned are composed of, generally, 
the Independent and the Bell; the independent companies usually being made 

l—d—U 



52 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

up of local capital organized as a regular corporation, and may include but a 
single city or town, or even a number of counties; the Bell Telephone Company is 
always a branch of the American Bell Telephone Company, with headquarters at Bos- 
ton, and in every case the sub- licensee company are absolutely controlled by the parent 
or American Bell Telephone Company, they owning, at least, 51 per cent of the capital 
stock of all. These sub-companies usually cover an entire State, and in some cases 
three or four States ; but in every case they are compelled by the parent company to 
pay a rental of from two dollars and a half to three dollars per year for each trans- 
mitter and receiver in rervice. Their methods are usually the methods of all monopo- 
lies, and their competition easily met by the local or independent companies. 

The American Bell Telephone Company are the owners of the entire long-distance 
telephone system of the United States, and which operates in conjunction with all of 
the Bell sub-licensees and makes contracts with only such companies. 

The independents, as stated before, are usually organized by local people and the 
capital composed of local capital; and in certain areas certain independent toll-line 
companies have been organized, who make exclusive toll-line connecting contracts only 
with independent operating companies. The consideration and rules covering these 
connections vary largely, but the most favoured plan is a certain percentage allowed 
by the long-distance company to the local company on all tariff tolls originating with 
that exchange, the' said exchange handling all incoming business without cost to the 
long-distance company. This percentage or commission ranges from 20 to 50 per cent 
of the gross tolls originating from each station. 

The independent long-distance companies in this country have succeeded in form- 
ing what is known in the Central States as the ' Toll-Line Conference Committee.' 
This committee is composed of a number of long-distance companies, covering practi- 
cally all of Pennsylvania, Western New York, Ohio, Kentucky, Michigan, Indiana, 
Illinois and Missouri. They have succeeded in standardizing methods of construc- 
tion and apparatus used until the service is superior to that rendered by competitors. 

Until recent years the rural communities received no consideration whatever at 
the hands of the monopoly, or the Bell Telephone Company; but when the independ- 
ents came into the field, some of the newly-organized independent companies were wise 
enough to consider their demands and extended lines into the country, furnishing ser- 
vice to these districts at reasonable rates; the lines usually extending not to exceed 
eight miles from the nearest exchange, and were iisually metallic lines with not less 
than ten or more than fifteen upon a line, employing what is known as a ' bridging 
telephone.' The operation of this line was by means of a series of code signals, being 
one, two, three, and so on, rings, which, of course, limited the number of instruments 
which could be used on the line practically, by reason of the multiplicity of signals 
after a certain number had been installed. There are some objections raised, occasion- 
ally, to this system, viz. : that there is no secrecy in the conversation held ; but it is 
found that farming communities, as a general rule, do not object to this feature of 
the farm line, and it has. therefore, been generally adopted in this country and is to- 
day considered standard rural telephone practice. As stated before, in many cases 
the local companies build these lines and furnish the telephones, charging the farmer 
for such service from $12 to $24 per year, according to the locality and the length of 
the line from the central office. In other communities; the farmer builds the line up to 
the city limits, furnishes his own telephone and maintains the line and telephone, pay- 
ing tho local company for switching and exchange service a fee of from $3 to $8 per 
annum, according to .the number of telephones upon the line. In other cases, the entire 
community are connected with a mutual system. This includes not only the farm 
lines, but the central office and local exchange as well. These exchanges are usually 
built and operated upon the co-operative or mutual plan, that is, each subscriber to 
the exchange is a shareholder in the company, paying for such share a certain amount 
of money, ranging from $30 to $60, according to the locality and the character of the 
exchange which the company build. These companies are not as popular as they were 
some years ago, as it has been found that the telephone business has developed so 



APPENDIX " A 



53 



APPENDIX No. 1 

vapidly, and that there are so many people who demand telephone service, yet are not 
desirous of being stockholders in the company, that this plan frequently operated 
against the normal development of the enterprise. 

In the early stages of the independent telephone development, a number of mistakes 
were made by introducing inferior apparatus and cheap construction. These errors 
have, no doubt, proven very beneficial to the independent companies, for the reason that 
to-day the character of the construction is superior to that of the opposition, and it is 
universally conceded by the general public that the independent telephone service 
throughout the country generally is far superior to that of the Bell Telephone Company. 

A remarkable development has taken place in the rural telephone service in the 
States in the last three years, until to-day it is almost a necessity for a successful farmer 
to have a telephone in his residence. Considerable literature has been published from 
time to time touching upon this subject. Our company, as a manufacturing company, 
have done considerable along these lines. Inasmuch as this is one of the branches of 
this industry to which your committee are giving especial attention, we have the 
pleasure of inclosing you, under separate cover, several circulars which we regularly 
; .<nd to the farmers upon request, free of post. 

We note with very great interest your request that we supply you with a list of 
companies, co-operative associations or private individuals who have installed our sys- 
tems. We are a little bit inclined to believe that you do not quite appreciate the extent 
to which this business has developed in this country or the quantity of goods which we 
have sold in our history, when making this request. However, we will be glad to enu- 
merate herewith a few of the large companies to whom we have furnished apparatus, 
and if in your judgment it would be of service to the furtherance of your ends to have 
a complete list of all of the companies in the United States to whom we have furnished 
apparatus, and you will advise us, we will certainly be very glad indeed to furnish same. 
It would probably take us a week or ten days to compile this data and have it ready. 

The following exchanges are all what is known as ' full central energy ' systems, 
employing either lamp or visual signal, multiple or transfer switchboards. There is no 
effort made however, to enumerate these according to size or locality. (Here follow 
the names of 8C towns in which exchanges have been installed. 



Minneapolis and St. Paul, 

Minn. 
Duluth, Minn. 
Des Moines, Iowa. 
Kansas City, Mo. 
Boise, Idaho. 
Seattle, Wash. 
Fremont, Neb. 
Camden, Ark. 
Birmingham, Ala. 
New Decatur, Ala. 
Ft. Smith, Ark. 
Waco, Tex. 
San Antonio, Tex. 
Paris, Tex. 
Beaumont, Tex. 
Whitney, Tex. 
West, Tex. 
Orange, Tex. 
Salt Lake City, Utah. 
Ogden, Utah. 
Memphis, Tenn. 
Chicago, Ills. 
Kankarkee, Ills. 
Lincoln, Ills. 
Pittsfleld, Ills. 
Princeton, Ills. 
Rochelle, Ills. 
Rutland, Ills. 



Streator, Ills. 
Sycamore, Ills. 
Red Key, Ind. 
Winchester, Ind. 
Anamosa, Iowa. 
Atlantic, Iowa. 
Clinton, Iowa. 
Dennison, Iowa. 
La Porte City, Iowa. 
Marengo, Iowa. 
Oskaloosa, Iowa. 
Ottumwa, Iowa. 
Red Oak, Iowa. 
Shenandoah, Iowa. 
Great Bend, Kan. 
Marion, Kan. 
Olatha, Kan. 
Bowling Green, Ky. 
Henderson, Ky. 
Lexington, Ky. 
Louisville, Ky. 
Albany, Ind. 
Owensboro, Ky. 
Alpena, Mich. 
Benton Harbor, Mich. 
Mankato, Minn. 
New Prague, Minn. 
Hannibal, Mo. 
Liberty, Mo. 



Moberly, Mo. 
Geneva, Neb. 
Youngstown, Ohio. 
Aurora, Ills. 
Springfield, Ills. 
Elgin, Ills. 
Peoria, Ills. 
Bedford, Ind. 
Kokomo, Ind. 
Delphi, Ind. 
Ft. Wayne, Ind. 
Frankfort, Ind. 
Creensburg, Ind. 
Le Grange, Ind. 
Noblesville, Ind. 
North Vernon, Ind. 
Toledo, Ohio. 
Warren, Ohio. 
Wauseon, Ohio. 
New Philadelphia, Ohio. 
Delaware, Ohio. 
Greenville, Ohio. 
Akron, Ohio. 
Bridgeport, Ohio. 
Cadiz, Ohio. 
Circleville, Ohio. 
Jamestown, N.Y. 
Rochester, N.Y. 
Utica, N.Y. 



54 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The rates prevailing in the independent exchanges vary according to the size of the 
city. These rates average from $90 per annum for a single business and $72 for a 
single residence, down to as low as $24 for a residence and $36 for business in cities of 
200,000 and over. In cities of from 50,000 to 200,000 the rates range from $20 and $36 
to $42 for residence and $60 for business. In exchanges in cities having a population 
of under 25,000 the rates vary from $24 and $40 for residence and business rates down 
to as low* as $12 and $18 for residence and business per annum respectively. 

The independent development, in many cases, has reached a telephone to every ten 
of the population, and in one or two cases it has reached even a greater development 
tLan this. The average, perhaps, would run in the neighbourhood of one telephone 
to every twelve or fifteen persons. 

The cost to build such exchanges will vary from $60 per station for a 500-line 
exchange up to $200 per station for a 12,000-line exchange. This estimate, of course, 
is based upon the switchboard, power plant and all central office equipment, the under- 
ground conduit, underground and aerial cable, toll lines, telephone instruments, &c. — 
or, in other words, a complete telephone exchange equipment. 

It should also be borne in mind, in estimating the cost of construction of a tele- 
phone exchange and' the cost of operation, that the larger the exchange the greater the 
cost per station to construct, and the greater the expense per subscriber to operate, 
rs the number of calls per day depends largely upon the number of subscribers in the 
system. 

We sincerely trust that we have been able to give you such information as will be 
of service to your honourable body, and assure you that we will be pleased to serve you 
at any time you will call upon us. 

Yours very truly, 
STROMBERG-CARLSON TEL. MFG. CO., 

Per J. W. Stiger. 

No. 33a. 

April 25, 1905. 
Sm, — I have the honour to acknowledge the receipt of your favour of the 21st in- 
stant, and on behalf of the Select Committee on Telephone Systems, beg to tender 
ycu sincere thanks for your courtesy and kindness in furnishing the valuable informa- 
tion contained therein. 

I am, Sir, 

Tours faithfully, 

WM. MULOCK, 

Postmaster General, and Chairman of Committee. 
J. W. Stiger, Esq., 

The Stromberg-Carlson Telephone Manufacturing Co., 
Rochester, N.Y. 

No. 34. 

THE UNION OF CANADIAN MUNICIPALITIES. 

Hon. Sm Willum Mulock, KG, K.C.M.G., ^^^ ^ "' 1905 - 

Postmaster General, Ottawa. 

Dear Sm — By this mail I send you all replies received to date from municipali- 
ties m reply to the circular regarding telephones issued in .he March number of the 
Canadian Municipal Journal. 



APPENDIX "A" 55 

APPENDIX No. 1 

It appears to be a general impression that it was not necessary to answer these 
questions in all cases, in view of the petitions already signed by municipalities which 
were issued by the city of Toronto ; and also in view of the resolutions which have been 
unanimously passed by the various conventions of the union after discussion, as 
shown in its annual reports, copies of which have heretofore been sent you. If any- 
thing more were necessary, I am able to say that the general sentiment of municipal 
men through the country, particularly of those who have paid attention to the ques- 
tion, is unanimously against the telephone powers which infringe on local control of 
streets and franchises as being bases upon a very bad principle, and is also nearly un- 
animous in favour of government ownership of long-distance telephone lines, and local 
control of local telephone franchises in municipalities of any size. Of course control 
does not necessarily imply municipal ownership, a subject on which there is more differ- 
ence of opinion. 

There is a very widespread conviction, based upon which appears to me to be solid 
yiound of fact, that the Bell Company's rates are far higher than tney ought to be. 
if my own inquiries into the matter are of any use, and I may say I have followed it 
without any prejudice, weighing many statements, and much published matter on both 
sides, I consider that the progress of the use of the telephone as a home comfort among 
the mass of our people is immensely retarded by the present virtually monopoly, al- 
though the business service in the largest circles appear to be comparatively courteous 
fnd prompt, especially under the pressure of recent criticism. But in our climate and 
with the isolating conditions of our winters, and of our thinly settled country, every 
possible effort ought to be made by parliament to spread facilities for cheap and easy 
telephone communication. It appears to me that the matter is one not only of great 
advantage, but of justice to our more struggling citizens. And few things would be 
better for the advancement of the country than if it could be said of Canada, as it is 
everywhere said of Sweden, and can also be said of parts of the Western States, that 
the isolation of the farm is abolished, and good telephones placed within reach of the 
means of every class of household. 

As to the effect on the Bell Company, I do not think they would need really suffer 
any loss, inasmuch as they could do a splendid business by securing in fair competition 
long-term franchises from the principal cities and towns, a system I frequently advised 
them in the most friendly manner to voluntary adjust themselves. 

Trusting that the present remarks will not be found out of place connected with 
a subject of so wide and deep importance to our people. 

I am, dear Sir, 

Yours very respectfully, 

W. D. LIGHTHALL, 

Hon. Sec. Treas, U.C.M. 



No. 35. 

CANADIAN MANUFACTUKEKS' ASSOCIATION. 

Toronto, April 27, 1905. 
Sir William Mulock, 

Postmaster General, Ottawa. 

Dear Sir, — At the meeting of the executive council of this association held on the 
20th inst., I was directed to communicate with you, and to state that while this asso- 
ciation has not yet given expression to its views upon he subject of government control 
of Canadian telegraph and telephone systems, that this subject was one of great im- 
portance, and that the association appreciated the action of the Dominion government 



56 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

in investigating the whole question thoroughly, with a view to improving the condi- 
tions. 

Submitting their view upon this matter for your consideration, I have the honour 
to be, 

Your obedient servant, 

R. J. YOUNG, 

Secretary. 

P.S.— A copy of this letter is also being sent to the Right Honourable Sir Wilfrid 
Laurier. 



No. 36. 

Philadelphia, April 28, 1905. 

Sir William Mulock, K.C.M.G., 

Postmaster General. 

Ottawa, Canada. 

Dear Sir. — Replying to yours of the 28th ultimo, I beg to state that in general, 
there are three or four good systems of telephones and switchboards built in this coun- 
try, to wit : 

Kellogg Switchboard and Supply Co., Chicago, Illinois. 

American Electric Telephone Co., Chicago, Illinois. 

Stromberg-Carlson Telephone Manufacturing Co., Rochester, N.Y. 

These are three of the most prominent ones. 

In regard to the service: it is generally conceded that the independent companies 
give the best local service and have rr.ore telephones in the United States than the Bell 
companies have. The Bell companies being all under one management, probably give 
better long-distance service, especially between far distant points. We have no muni- 
cipal or government plants here. 

We know very little of the rural telephone business, except that it is not generally 
profitable to the operating company; the best earnings are made in the larger centres 
of population. 

In regard to the questions on the back of your communication : I shall endeavour 
to answer them to the best of my ability, taking them consecutively. 

Yours truly, 

C. E. WILSON. 



No. 37. 

The Board of Trade op the City of Guelph, 

Secretary's Office, Guelph, Canada, April 26, 1905. 

The Hon. Sir William Mulock, 
Ottav,p, Ont. 

Dear Sir. — I have the honour to enclose you a certified copy of a resolution relating 
to the Bell Telephone Co., passed by the Guelph Board of Trade at its last meeting and 
directed to be forwarded to you. 

And I have the honour to be, sir, 
Yours very truly, 

JAMES WATT, 

Secretary Q. B. of T. 



APPENDIX " A " 57 

APPENDIX No. 1 

Guelph Board of Trade. 
Moved by J. W. Lyon, 

Seconded by E. Simpson. 

That Whereas the contract existing between the city and the Bell Telephone Com- 
pany expires on July 1, 1905, and it is not expedient that the City of Guelph should 
renew the existing contract or make any other contract with the Bell Company for the 
following reasons : — 

First. — The House of Commons, by a Committee, are enquiring into all facts rela- 
tive to telephone ownership, operation and services ; it is therefore inexpedient that the 
City of Guelph bind itself with any new bargain with the Bell Company pending the 
report of this Committee, and the action of the Government to follow. A statement 
has been made before this Committee that Canada and the United States are paying 
twice as much for telephone service as any other country in the world. 

Second. — The towns of Port Arthur and Fort William have for two years owned 
and operated a municipal telephone system successfully, the rate being $12 for house 
telephones and $24 for business telephones per annum. We are informed that for the 
year 1904 the Port Arthur system earned a profit over and above working expenses, 
interest and sinking fund of some $400. We understand that Peterborough has refused 
to renew their contract with the Bell Company, and have granted a franchise to a rival 
company on much more advantageous terms ; that Brantford and Ottawa are agitating 
the question, refusing to re-contract with the Bell Company, and we believe it is wise 
for us to be in a position to take advantage of their experiences and results, it being 
evident that a contract with the Bell Company would be a serious handicap to our free 
action in the matter. 

Third. — The whole system of ownership and operation of telephones is now in an 
unsettled or transition state, with a distinct leaning towards Government ownership 
and operation, at least of the long-distance lines, coupled with government or municipal 
ownership or operation of city service. 

Therefore, for the above and other reasons, we put ourselves on record as strongly 
opposed to any new contract being entered into between the City of Guelph and the Bell 
Telephone Company under present conditions. This Board is also on record in favour 
of government ownership and operation of the long-distance telephone lines, coupled 
either with government or municipal ownership and control of city services. Further, 
that a copy of the resolution be sent to Sir William Mulock, Postmaster General of 
Canada, and chairman of the House of Commons Committee investigating the tele- 
phone service. 

Certified a true copy. 

JAMES WATT, 
Secretary Guelph Board of Trade. 
. Guelph, April 26, 1905. 

No. 38. 

Select Committee on Telephone Systems. 

Synopsis of letters received by the Chairman of the Committee from the follow- 
ing :— 

The Globe Automatic Telephone Co., Chicago. — Explains automatic system suitable 
for party-line working in rural districts, at a cost of $15 for telephone instrument and 
$11 per line for switches. Has sold instruments to about 200 exchanges in United 
States, and will send partial list of these. 

The Automatic Electric Co., Chicago. — Forwards descriptive matter and other book- 
lets relating to the ' Strowger ' automatic system. Gives list of 19 towns where it is 



60 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



N °' 41 ' Jordan, Ont., May 3, 1905. 

To the Honourable 

Sir William Mulock, 

Chairman of Select Committee on Telephone Systems, 
Ottawa. 
Dear SiR,-I am instructed by the Municipal Council of the Township of Louth in 
the County of Lincoln, to forward to you a copy of a resolution passed on the 1st mst. 

I herewith enclose such copy. 

Yours truly, 

M. A. BALL, 

Clerk, Tp. of Louth. 



Council Chamber, Jordan, May 1, 1905. 



Resolution No. 2. 

Moved by Camby Wismer, 
Seconded by Stewart Randall. 

That whereas this council views with approval the increasing public sentiment in 
favour of the acquisition and operation of all the telephone lines in the Dominion of 
Canada by the Government thereof ; 

Be it therefore resolved, that this council convey to the Honourable Sir William 
Mulock, Chairman of Select Committee on Telephone Systems, their sincere approval 
of such acquisition and operation of said telephone lines. 

E. W. FRY, 

Reeve. 



No. 42. 

House of Commons, 

Ottawa, May 2, 1905. 
Hon. Sir William Mulock, 

Postmaster General, Ottawa. 

Dear Sir William, — Your esteemed favour of the 20th instant re Special Commit- 
tee on Telephone Question reached me during my absence from the city. An early 
reply was therefore impossible. 

You ask me to inform the Committee as to the telephone facilities at present en- 
joyed by the people of my constituency, and what improvements, if any, may be con- 
sidered desirable. In reply, I desire to state that I think the telephone facilities of the 
city of Winnipeg meet fairly well the requirements of the people. As to the future of 
the telephone business in Canada, I am strongly of the opinion that the whole system 
should be nationalized. Government control of the long-distance telephones is a step 
in the right direction, but I do not think it goes far enough. It should, I think, embrace 
the whole telephone business of Canada. Government control of long-distance tele- 
phones and private control in cities and towns will lead to confusion, unless common 
laws are passed making uniform the methods of management in all cities and towns. 
The telephone business is essentially a monopoly, even to a greater extent than post office 
business, and I take the ground that a business that is a natural monoply should be con- 
trolled by the Government. If, for instance, encouragement was given to establish 
another telephone system in the city of Winnipeg, the expense and confusion would 
be infinitely greater than anything the people now suffer under monopoly. 

I therefore think the time is as ripe to-day as it will be any time in the future for 
the complete nationalization of the entire telephone business of Canada. 

Yours truly, 

D. W- BOLE. 



APPENDIX " A " 61 

APPENDIX No. 1 

No. 43. 

House of Commons, Deputy Speaker's Chambers, 

Ottawa, April 21, 1905. 

Dear Sir, — In answer to your letter of the 20th instant, I beg to state that there 
is no public telephone in operation in Bonaventure County. There has been some talk 
of extending the Bellechasse system along the Intercolonial, through a portion of Bona- 
venture County, as far as Campbellton, N.B. 

The Atlantic and Lake Superior Railway Company operating from Metapedia to 
New Carlisle, a distance of one hundred miles, owns and operates a private line, for 
railway purposes. 

The necessity of a telephone service has long been felt, and I hope it may not be- 
long before a system is established. 

Tours truly, 

CHARLES MARCIL. 
Hon. Sir William Mulock, 

Chairman Select Committee on Telephones, 
House of Commons. 

No. 44. House of Commons, 

Ottawa, April 26, 1905. 
Sir William Mulock, 

Ottawa. 
Dear Sir, — In reply to your hind letter of the 20th instant, about telephone ques- 
tion, I beg to tell you that the places in my constituency, St- Hyacinthe, Que., not yet 
advantaged with telephone system are St. Jude, St. Barnabe, St. Damase, Lapresenta- 
tion, St. Thomas d'Aquin, and I think Ste. Madeleine, and if the Government could do 
something to bring the company to put the telephone in those places, it would be a good 
thing. St. Damase and Lapresentation are just requesting telephones. 

Yours truly, 

A. M. BEAUPARLANT, M.P. 

No. 45. 

American Electric Telephone Company, 

Chicago, May 5, 1905. 
Sir William Mulock, K.C.M.G., 

House of Commons, 

Ottawa, Can. 
Dear Sir, — With further reference to your communication of the 28th ult., will 
say that we are to-day forwarding you, under separate cover, copies of all our cata- 
logue bulletins at present in print. These bulletins illustrate and describe very thor- 
oughly the equipment upon which you require information. In addition to this, we 
are mailing you our price-list, covering Bulletin No. 18, which will give you the quota- 
tions desired on rural apparatus. 

With regard to cost of rural telephone systems, will say that small exchanges 
should be constructed at a cost of approximately $55 per station, while a good copper 
metallic toll-line, with 30 ft. 6 in. poles, would cost in the neighbourhood of $200 per 
mile. The cost of maintaining such systems, as nearly as we can ascertain, is in the 
neighbourhod of $9 per station per year for exchange systems. A rural station would 
cost you in the neighbourhood of $6.50, exclusive of depreciation and taxation. 

Trusting this information will be of some benefit, and soliciting your further in- 
quiries, we beg to remain 

Yours very truly, 
AMERICAN ELECTRIC TELEPHONE CO., 
Per J. M. Embanks. 



62 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 46. 

American Electric Telephone Company. 

Chicago, May 4, 1905. 

William Mulock, Postmaster General, 

Chairman Select Committee on Telephone Systems, 
Ottawa, Canada. 
Dear Sir,— Eeplying to your favour of the 28th ult., it will give us pleasure to 
give you all the information in our power in reference to the telephone situation, as 
we find it in this ^cuntry, and especially in reference to the various types of appara- 
tus used' on farmers' party lines. 

We will compile this information for you at the earliest possible date. In the 
meantime, for your information, will state that the Bell Company in this country is 
leasing its very best transmitter and receiver at 50 cents per year each to small com- 
panies which they term ' sub-licensee companies.' We make a ti ansmitter of the same 
type and which by various tests we find superior to theirs. We sell the long distance 
transmitter outright for $1.50 each, and the receiver with cord at $1.25 each. 

We are prepared to show that our apparatus is more modern. We can find that 
the Bell Company has made very little improvement in its talking sets. In fact, they 
are using the same type of apparatus which they first put in use many years ago, with- 
out any apparent improvement. 

Yours very truly, 
AMERICAN ELECTRIC TELEPHONE COMPANY, 

Per P. C. Burns, President. 



No. 47. 

The Bell Telephone Company oy Canada, Ltd. 

Winchester Agency, May 5, 1905. 
Andrew Broder, Esq., M.P. 

House of Commons, Ottawa. 
Dear Sir, — In reply to your letter of the 20th ult., I have pleasure in complying 
with your request for information on telephone matters in Dundas county. 

We touch practically every village and hamlet in the county. The following list 
comprises most of the points served in Dundas : Bouck's Hill, Chesterville, Cass 
Bridge, Dundela, Hallville, Inkerman, Iroquois, Morrisburg, Mountain Station, More- 
wood, Melvin Settlement, Maple Ridge, Ormond', Reid's Mills, South Mountain, Win- 
chester, Winchester Springs. 

At this village we give unlimited service within the following boundaries: — 
Winchester Springs, 5 miles; Cass Bridge, 2£ miles; Maple Ridge, 2 miles; Mel- 
vin Settlement, 6 miles; Ormond, 4 miles; Vernon (in the County of Carleton) 8 
miles. Subscribers at these points have free service between each other, and with the 
subscribers at Winchester. 

Our rates are $15 and $20. The general public is served from any of the points 
named. 

The work is now under way of extending this free service to Dalmeny post office, 
which is distant 11 miles, and is also in the County of Carleton. There are also other 
extensions of a similar nature now under consideration. 

Yours truly, 

WM. GARDNER, 

Local Manager, Winchester. 



APPENDIX " A " 63 

APPENDIX No. 1 

No. 48. 

The Telephone Company of Prince Edward Island, Ltd. 

Charlottetown, P.E.I., April 29, 1905. 
Pra Wm. Mulock, 
Ottawa, Ont. 

Dear Sir, — In accordance with your favours of March 28, and April 11 last, I 
am enclosing herewith answers to the list of questions supplied by you. 

I am also enclosing a map of Prince Edward Island showing the company's lines, 
toll offices and exchanges, correct to March 1, 1905. If there is any further informa- 
tion that we can supply either by letter or personally, we shall be most happy to do so. 

Yours respectfully, 
W. A. WINFIELD, 



General Manager. 



No. 48a. 



The company has been in operation since 1885. Has a capital stock issue of 
$56,700. No bonds. Population of the Island is 103,259. Number of telephones on 
March 1 was 530, of which 420 are direct lines, having one telephone. 

The number of business telephones is : Charlottetown, 205 : Sumemrside, 32 ; 
other points, 40. Residence : Charlottetown, 130; Surnmerside, 6; other points, 5. 
In adition to these, there are nearly 100 toll offices throughout the Island. 

Subscribers' circuits in Charlottetown and Surnmerside are part metallic, but 
largely common return. In smaller places all are single grounded circuits. The sys- 
tem is ' Magneto,' the equipment being principally ' Bell,' ' Kellogg ' and ' Holtzer- 
Cabot.' 

The rates are: Charlottetown — separate lines, $45 per annum, business and resi- 
dence; two-party lines : business, $30, residence, $20 ; Surnmerside — business, $20 ; 
residence, $15; other places, business or residence, $15; with special rates for party 
lines, larger subscribers, &c. 

Rates for farmers' lines are $15, but have no subscribers of this class. 

The company has the following long-distance plant: — 434f miles poles and 5474 
miles wire, all circuits being single grounded. 

Long-distance rates are : 10 miles, 15 cents; over 10 miles, 25 cents, for five 
minutes' conversation or twenty-word message. Subscribers are entitled to 20 per cent 
discount on these rates. 

Cost of building the long-distance lines, with 25-foot cedar poles, No. 12 iron wire, 
costs all the way up to $125 per mile, depending on the cost of poles. 

The company pays a dividend of 6 per cent per annum. Sets aside 10 per cent 
per annum for depreciation. Has no surplus, except unexpended accident and depre- 
ciation fund. 

There is no competition. The ' Bell ' Company have always acted with the great- 
est consideration and have given every possible advice and asistance, particularly on 
technical matters, placing their information and experience at our service. 

We find a good demand for telephone service in Charlottetown, and as the business 
grows, we improve the plant. A few years ago, the system was changed from grounded 
to ' common return,' and now we are beginning to provide full metallic circuits, and we 
expect later on to install a central energy multiple switch-board. 

Our present board is a Kellogg express. We do not, as a rule, meet with objec- 
tions to our Charlottetown rates, though there are, of course, people who will demand 
lower rates, no matter what basis they were upon. We do not find our rates any too 
high, commensurate with first-class service. 

The element of depreciation is a very heavy one, especially in exchanges, as work 
can never be left up until it is worn out. Reconstruction has frequently to be under- 



64 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

taken every two or three years, owing to growth and extensions making different 
arrangements desirable. 

With regard to apparatus, depreciation is also heavy, owing to its becoming obso- 
lete. While instruments at present in service may be very satisfactory, the moment a 
new instrument is introduced, every one wants it, resulting either in friction with 
subscribers, or in acceding to their wishes as far as possible, resulting in a large 
amount of older apparatus being taken out of service. 

Outside of Charlottetown, we have very little demand for residence telephones, the 
people seeming to consider the telephone an expensive luxury, altough we consider our 
rates are reasonable. 

Regarding farmers' lines, we have canvassed the most promising sections of the 
country, without results. 

Last fall, we canvassed the ' New London ' district. This district (one of the 
best in Prince Edward Island) is without railway facilities. We offered a circuit, con- 
sisting of three branches, totalling about 25 miles of line; also, connection with 'Ken- 
sington,' the shipping point, a place with a population of nearly 1,000 people. We 
also offered to provide connection with railway station, post office, doctors and any 
other subscribers we might get there; also, our usual discount of 20 per cent on all 
long-distance business sent by them, or by any one whom they might let use their tele- 
phones. They would also save all ' messenger service ' charges, which they now pay 
when being sent for. 

We were unable to close a single contract in all this territory, though some four 
or five people said they might take an instrument, if we got enough. Our rates quoted 
were $15 per annum (best bridging 'phones, with 2,500 ohm ringers, solid back trans- 
mitters and bi-polar receivers), and we wished to secure 20 subscribers, exclusive of 
Kensington. 

We do not find the $15 rate profitable in rural districts. We usually have to 
pay a considerable amount for switching, and telephones have to be inspected three 
times per annum, besides when in trouble^; necessitating travelling expenses, horse- 
hire and man's time. We sometimes have to send a man 100 miles on one trouble. 

If we could get subscribers so closely located that we could afford to keep one man 
and an expert operator within a reasonable district, it would be better; but we have 
been unable to interest the rural residents so far, on our present rates basis, though 
we have been assured we might get a fair number at $5 per annum. 

However, every one desires to have a toll office nearby, and although we already 
have about 100 toll offices on Prince Edward Island, we are frequently in receipt of 
requests for extensions. When sufficient business can be obtained to make it pay, such 
offices are established. Otherwise, we cannot be expectd to provide service, unless, as 
in the case of some points, we receive some assistance from the provincial government. 
We have quite a number of such toll offices, which were strongly agitated for, which 
only take in from $2 to $25 gross receipts per annum. 

We inclose herewith a small map (to scale) of Prince Edward Island, showing all 
Our toll offices and exchanges (exclusive of rural subscribers). You will note by this 
that Prince Edward Island is well covered by lines, many toll offices being five miles, 
or less, apart. 

A company cannot be expected to give as cheap a service as by co-operation, foi 
in the latter case a subscriber will do his own repairing, when he can, and put up with 
inconveniences and poor service, which quite naturally he will not tolerate from a 
company which undertakes to keep his instrument in operation. 

Travelling expenses are a large item, and usually cost companies who, as the 
people express it, ' are well able to stand it,' high. 

But there is no doubt that a company can, in the long run, give a far superior 
service to that which can be provided by individuals, especially when, as always occurs 
sooner or later, troubles crop up, or sleet, lightning, or such like things, damage the 
lines and instruments. 



APPENDIX " A " 67 

APPENDIX No. 1 

No. 49. 

Sir William Mulock, The Albany and Vales Mill Telephone Company, 

Ottawa, Canada. Albany, Ohio, April 29, 1905. 

SiR, — In compliance with your request of March 28 ult, I herewith inclose my 
answers to your queries. 

Our investment on a small scale has been very profitable to us, but I think it would 
be better for the masses here if towns and cities would own their own telephone rights 
and property, and encourage the people to build lines all through the rural districts, 
and meet these lines at the corporate Hmit9, giving free exchange of service. 

A farmer can build and maintain a line cheaper than can a company. 

This is contrary to our practice, but experience has taught me that the statement 
is true. 

The construction and maintenance of rural lines is very simple, and can be dona 
within the reach of all. Very truly, 

S. D. WEBB. 

No. 50. 

La Cie de Telephone de Kamouraska, 
Sir Wm. Mulock, Fraserville, Que., May 8, 1905. 

Chairman of Select Committee on Telephone Systems. 

Sir, — We have the pleasure of acknowledging receipt of your inquiry of 28th last, 
and take pleasure in giving you herewith the information requested. 

You will please remark that our company has only two years' existence, and that 
the results obtained to this date in rural districts are quite satisfactory, allowing us to 
entertain fair prospects for future. 

Our report represents the work of only two seasons' construction, with limited capi- 
tal, while covering a relatively large district. We must also mention that our lines 
are in part parallel with other independent companies, namely: The Fraserville Power 
Company and the Bellechasse Telephone Company. As for the Bell Company, we have 
obtained an interchange of service over their lines, which is, we think, saying enough 
about the general construction and operation of our system. 

In order to obtain efficient service in these districts, we have adopted two separate 
metallic circuits, one iron for local business, the other copper for long-distance com- 
munications. We have experienced sufficient advantages to justify the first extra cost 
of this kind of construction. Respectfully yours, 

LA COMPAGNIE DE TELEPHONE DE KAMOURASKA. 

No. 51. 

Sir Wm. Mulock, Virginia, Ont., April 5, 1905. 

Ottawa. 

Dear Sir, — Reports of the proceedings of Committee re Telephone Systems to hand, 
for which I am thankful. 

I trust that when said Committee will have completed their labours that a remedy 
will be forthcoming for conditions such as at present exist in this part of Georgina 
township in old North York. 

What I refer to is that while a telephone line owned by the Bell Company passes 
up through one township right past the door of our post office, and while our postmaster 
Mr. Evans, has repeatedly endeavoured to get them to put an instrument in his store, 
even offering to do so at his own expense, providing he be allowed free use of the line 
for his private business, but apparently they are deaf to all requests or inducements, 
and the residents of this section have to go either to Sutton or Pefferlaw when they wish 
to use the 'phone, and these points, as you are aware, are nine miles apart. 

The council of Georgina township, when this line was building, tried to get an 
office at Virginia so that the farmers might derive some benefit in return for the privi- 
lege that the telephone company were getting by being allowed to plant their poles along 

1— d— 6 



68 SELECT COMMITTEE ox TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

the roadway, but in the deal we found out that while they could go along our highway, 
plant their poles just where they pleased, slash and cut trees, and leave the brush to rot 
just where it fell, that we could stand by and look on. 

Their last proposition to the people of Virginia is that if we purchase the wire to 
stretch along the poles from Sutton, that they will put it up and then we pay just as 
much to use the 'phone as if they built it entirely at their own expense. Truly they are 
a beneficent corporation. 

I might add that when this line was put up, it was a branch of The "Victoria Tele- 
phone Company's line, but was soon gobbled up by the Bell Company. 

I just give you these particulars so that you may more fully see the necessity for 
devising some scheme whereby farmers situated as we are may secure telephone privi 
lege)s without having to go on our knees to soulless corporations, and then having to 
comply with any whim or condition that they may see fit to dict;i 1 < ■- 

Yours truly, 

DONALD EGO, 

Clerk, Township of Georgina. 

No. 51a. 

Ottawa, May 9, 1905. 

Dear Sms. — I have the honour to acknowledge the receipt of your letter of the 5th 
instant with reference to the telephone conditions at Virginia, and can only express the 
hope that the inquiry which the Parliamentary Committee is conducting in regard to 
the whole telephone question may result in the amelioration of the existing grievances, 
existing not only at Virginia, but in very many parts of Canada. 

Yours sincerely, 
Donald Ego, Esq., WM. MULOCK. 

Clerk of the Township of Georgina, 
Virginia, Ont. 

No. 52. 

SYNOPSIS OF CORRESPONDENCE RECEIVED. 

From Andrew J. Taylor, Toronto, stating that Alexander Taylor, now living at 
690 Spadina avenue, Toronto, built up a telephone system in Edmonton, Strathcona, 
Prince Albert and other places in the Northwest, and owing-to the 'Bell' entering the 
field, was compelled to sell his system to the municipality of Edmonton. States that 
he can give much valuable information. 

No. 53. 

From W. H. Ferguson, secretary, Eeal Estate Owners' Association, London, Ont., 
communicating resolution passed by the association commending the work of the com- 
mittee and favouring municipal and government ownership of telephones. 

No. 54. 

From Dr. D. W. Boss, Florenceville, N.B., stating that while Canadian Pacific 
Railway agents answer the ' New Brunswick ' telephone promptly, some of them do 
not answer the 'Independent' telephone at all, claiming that it is not their work to 
o'o so. 

No. 55. 

Synopsis of letter from the Antigonish and Sherbrooke Telephone Company of 
Nova Scotia, to C. F. Mclsaac, M.P.: — 

The company has a capitalization of $10,000— $9,000 paid up; 160 miles of line 
in operation, mostly rural; iron grounded circuits costing $50 per mile without in- 
struments. Has 59 residence and 29 business 'phones. Rural lines have public 'phones ; 
tolls collected by subscribers. Rates charged are: partial line, residence, $15; business' 
$18 to $20. Whole line, residence, $18; business. ;$25. Few special lines at $30. Sub- 



APPENDIX "A" 69 

■APPENDIX No. 1 

-sciibers to partial line pay half rates beyond their limits (three exchanges). Toll rates 
vary from 10 cents to 50 cents, according to distance. 

The company connects with the Nova Scotia Telephone Company at Antigonish, 
our subscribers paying 5 cents for each conversation, in addition thereto the long- 
distance rates to points beyond. The company will not allow us to connect the county 
asylum, 11 miles out of Antigonish, on our line. They also prohibit us to run lines 
to Jones' river, Swan river, or any place along their line, although they have no 
'phones at these points. The Nova Scotia Company has also refused to give connec- 
tion elsewhere than at Antigonish and threatened to cut that connection; also if we 
extend' our lines far beyond the present limits, their manager stating that ' they did 
uot intend to let us grow too big.' They wished us to sign a contract limiting our 
territory, which we have declined to do. As a condition of connection with the Nova 
Scotia company, we are compelled to use ' Bell ' instruments costing from $1'9 to $25 
each. 

We use native poles 20 to 25 feet long. As an inducement to build, we received 
free poles and free labour in many places. Will extend some thirty miles further this 
spring to Port Dufferin in Halifax County. 

' The directors of this company humbly suggest that the government enable small 
struggling companies such as this one, which is trying to accommodate the public, 
to get connections with other companies in such places as will best accommodate the 
said public' 

No. 56. 

To Sir William Mulock, Senate Chamber, May 12, 1905. 

Chairman Telephone Committee, 

House of Commons. 
Dear Sir William, — In the evidence I gave yesterday to your Committee, I neg- 
lected to state the extent of our long line system in New Brunswick, if of interest. I 
now inclose it. 

Yours truly, 

FEED. P. THOMPSON. 

MEMO. 

Long-distance lines of the New Brunswick Telephone Company (Limited) consist 
of the following : — 

771 miles of cedar pole lines, upon which poles are installed. 
840 " copper metallic No. 12 standard wire. 
473 " iron " No. 9 " 

32 " " single No. 9 " 

F. P. THOMPSON. 

No. 57. 

The Black River Telephone Co., 

Postmaster General, Lorain, O., May 9, 1905. 

Ottawa, Canada. 

Dear Sir, — In reply to your letter of March 28, we wish to make the following state- 
ment : — 

We have issued $100,000 worth of stock and have a bonded indebtedness wf $75,000. 
Our company has been operating since 1894, in a territory increasing from 10 to now 
nearly 30,000 people. At the present time we have 1,800 telephones in operation, 1,200 
of which are residence telephones and the remaining 600 business telephones. We have 
no long-distance lines of our own, but make all long-distance connections over the United 
States Telephone Company lines. We have the Sterling electric equipment, central 

1—d—H 



70 SELECT COMMITTEE ON TELEPHONE SYSTEM* 

4-5 EDWARD VII., A. 1905 

energy; our subscribers' circuits are of iron and copper metallic, and we have one mile 
of underground cable. Our rates are as follows : $12 for four party line selective ring- 
ing telephones, and $20 for main line residence telephones, $18 for four party line selec- 
tive ringing telephones for business, $24 for two party line selective ringing telephones 
for business, and $30 for main line telephones for business. Our rates for rural service 
are $15 for four party lines. We pay a dividend of 6 per cent on our stock and 5 per 
cent interest on our bonds. We set aside 20 per cent of our gross receipts for deprecia- 
tion, and use all of our surplus for new work. The Bell Telephone Company had 16 tele- 
phones here before competition, and they still have those for long-distance work. We 
pay our superintendent $110 a month, our wire chief and trouble men $70 and $65 respec- 
tively, and our operators from $18 to $25 a month. Hoping this information will prove 
satisfactory, 

We remain, yours very truly, 

THE BLACK RIVER TELEGRAPH CO. 



No. 58. 

The following excerpt from the Indianapolis News, April 8, 1905, was received from 
the Citizens' Telephone Company, Columbus, Ind. : — 

INTERESTING TELEPHONE INFORMATION. 

What Happens when the People and not a Monopoly Control the Telephone Sitvation* 

The independent telephones of Indiana number 166,255 

The annual exchange rentals for these telephones amount to $3,048,885 
The same number of telephones, at the rates charged by the 
monopoly, before the independent movement began, 
would cost the people of Indiana annually 7,275,300 

The independent telephones, therefore, save the people of Indiana to-day : 

Annually $4,226,415 

Quarterly 1,056,603 

Monthly 352,201 

Weekly 88,050 

Daily 12,578 

Besides all this the independent movement has covered the field. 

In the Reign of Monopoly there were only 7,000 telephones in the State of Indiana, 
or one for every 350 of population, and not one in the house of a farmer. 

Now there are 166,255 independent telephones, or one for every 16 of population, 
and 30,000 of them in the houses of farmers. 

The new Long-distance Telephone Company has, upon its own lines, within a 
radius of 50 miles of Indianapolis, 61,286 subscribers, who use no other than independ- 
ent telephones. 

The Indianapolis Telephone Company has 11,591 subscribers in Marion County. 
Of these, 9,905 use no other telephone. 

During the quarter ending March 31, 1905, the company added new subscribers as 
follows : — 

January 353 

February 362 

March 345 



A gain for the quarter of 1,060 subscribers. 

A greater increase than for any corresponding period. 



APPENDIX "A" 71 

APPENDIX No. 1 

Ho. 59. 

CUMBERLAND TELEPHONE AND TELEGRAPH COMPANY. 

■NTiswvTT.T.i?.. TWn.. Ma.y IX. 1905 
Sir William Mulock, 

Postmaster General and Chairman Select Committee on Telephone Systems, 
Ottawa, Canada. 

Dear Sir, — Replying to your communication of the 1st instant, have to say that 
the Cumberland Telephone and Telegraph Company operates local exchanges and long- 
distence telephone circuits throughout the entire state of Louisiana, Tennessee, 
Mississippi and Kentucky, and the southern portions of the state of Illinois and 
Indiana. It has an investment of above $15,000,000, and an outstanding capital of 
$13,500,000. 

The company was chartered and has been operating since 1883. The population 
of the territory served is about 7,000,000. The number of telephones in operation is 
about 130,000. We operate Bell telephones exclusively. Besides our long-distance 
lines we operate over four hundred telephone exchanges in different cities and towns. 

Our switchboards, for the most part, are made in our own general shops at Nash- 
ville. 

We pay special attention to the extension of farmers lines and have various pro- 
positions which we submit for their consideration. One is where the farmers club 
together and desire and prefer to build and own their own lines, we connect with them 
at the corporation limits and charge them for connection and service $2 per year per 
telephone box. This entitles them to unlimited service to the exchange where they 
connect, just as our other subscribers receive. 

This company has competition in about seventy-five towns, most of them small 
towns. 

We have in many cases during the past ten years, due to the evolution of the 
business, been able to reduce the rates to our customers, and in the larger cities where 
the growth of the exchanges has been heavy and where the cost of operating is neces- 
sarily increased in proportion to the growth of the exchanges, we have been abfe, to 
continue to serve at the old rates without making any advances. 

Yours truly, 

LELAND HUME, 

Assistant General Manager. 



No. 60. A 

THE SANDUSKY TELEPHONE COMPANY. 

Sandusky, Ohio, May 13, 1905. 

Chairman* 

Select Committee on Telephone Systems, 
Ottawa, Canada. 

Dear Sir, — We beg to acknowledge receipt of your favour of the 1st instant, re- 
questing information on telephone service as applied in this locality. 

We are attaching hereto a little folder showing the telephonic 'status quo' in 
Ohio. This, we believe, will be of considerably more value to you, than a complete 
answer to all of your questions. 

This company is a quasi public corporation, incorporated under the laws of Ohio 
by private individuals residing in this locality. We have some 75 or 80 stockholders. 

We know of no municipally-owned telephone property in the United States and 
do not believe that municipal ownership in other forms of public service can be re- 



72 



SELECT COMMITTEE ON TELEPHONE SYSTEM* 



4-5 EDWARD VII., A. 1905 

garded as altogether successful, for the reason that it is difficult to keep out corrup- 
tion. 

Telephone facilities in rural districts are becoming more and more popular. 
There is, however, considerable difficulty in securing rates to justify the extension of 
lines for great distances outside of municipalities; the average farmer having no 
conception of the cost of construction, operation, or maintenance, nor of the benefits 
accruing to him from the use of the telephone. Where there is competition, the rural 
service greatly strengthens the local company, giving it a hold upon its subscribers 
that is very difficult for competition to break. So far the rural service with this com- 
pany at a rate of $18 per subscriber for ten party line service, distance not to ex* 
ceed five miles from the exchange, has been moderately profitable. 

Trusting this will be satisfactory, we are 

Very truly yours, 
THE SANDUSKY TELEPHONE COMPANY, 

By Carl C. Curtis. Manager. 



I (istbict (Counties. ) 



No. 1— 
Trumbull, Lake, Geauga, Medina, 
Lorain, Erie, Huron, Cuyahoga, 

Ashtabula 

No. 2— 
Columbiana, Carroll, Jefferson. Ma- 
honing, Portoge, Summit, Stark, 

Tuscarawas 

No. 3- 

Cothocton, Belmont, Athens, Guern- 
sey, (Pallia, Munroe, Morgan,Meigs 
Noble, Perry, Washington, Mus 

kiiigdum - 

No. 1— 

Pickway, Fayette, Vinton, Jackson, 
Scioto, Lawrence, Pike, Adams, 

Highland, Clinton, Ross 

No. 5— 

Butler, Clermont.Preble Warren 

No. 6- 
Green, Montgomery, Clark, Logan, 
Champagn, Shelby, Darke, Mian a, 

Madison 

No. 7— 

Marion, Wyandotte, Hancock, Put- 
nam, Paulding, Van Wert, Mercer, 

Allen, Auglaise, Harding 

No. 8- 
Defiance, Fulton, Lucas, Henry, 
Ottawa, Sandusky, Seneca, Wil- 
liams, Wood ... 

No. 9— 

Ashland. Crawford, Deleware, Frank- 
lin, Fairfield, Hocking, Holmes, 
Knox, Licking, Richland, Union, 
Wayne, Morrow 



Hamilton Count3'. 
Totals 



E.Xl HANGE. 



I tide 

I H m hi 



7'. i 



101 

103 

44 
33 

63 

69 

69 



109 

None. 



670 



Bell. 



23 
34 

14 

20 

7 

15 



21 



15 



Un- 
kn 'wn 



157 



Toll Si 


moNs 


Inde- 
pendent 


Bell. 


168 

183 

236 


107 
102 

84 



Telephone. Stockhoi 



174 
91 

174 

86 

176 

164 



80 
41 

112 

76 

80 

71 



None. Un 
kn'wn 



1,452 753 






j 


Inde- 
pendent 


Bell. 


37,006 


23,174 


22,769 


10,810 


19,770 


7,464 


12,214 


4,389 


6,904 


2,338 


24,020 


11,381 


20,08] 


6,139 


23,114 


(■,,0X5 


30,739 


12,599 


None. 


20,000 


196,617 


104,379 



Inde- 
pendent 



Bell. 



2,890 None. 



1,430 None. 



4.666' None. 



500 None. 
437 None. 



1,488 None. 



2,024 



None. 



2,130 None. 



1,464 


None. 


None. 


400 


17,029 


400- 



There are in Ohio a few holding a single share of stock in the Bell companies,, 
simply to enable them to qualify as directors- 



APPENDIX " A " 73 

APPENDIX No. 1 



No. 61. 

Cleveland, Ohio, May 5, 1905. 
Select Committee on Telephones, 
House of Commons, 
Ottawa. 

Honourable Sirs,— This company produces two distinct types of telephone ap- 
paratus : Magneto (local battery and hand generators at exchange and subscriber 
stations), and Central Energy (power generators and storage batteries at exchange 
only.) The Magneto type is used for small village exchanges and invariably in rural 

service. 

Its simplicity admits of repairs by the unskilled, and the Magneto generator is 
the surest signalling device on long lines loaded with a number of telephones and ex- 
posed to the elements. A result can be obtained, such as it is, with a line in an in- 
different condition; for it gives forth a 70 volts-alternating current, very penetrat- 
ing, while the central energy is less than 35 volts direct current. The action of the 
hand generator rings the bells of others on the line, or, if the line is connected with 
an exchange, it throws a shutter, exposing the line number, on the simple principle 
of an annunciator drop. 

Central Energy systems facilitate speed of service in towns and cities; the sub- 
scriber signals exchange by simply removing the receiver from the hook and the 
operator has more complete supervision of the line — busy wires and termination of 
conversations, by a system of electric light signals. 

Signalling current is thrown to line by power generators; the talking circuits 
are from storage battery used also as an auxiliary to the ringing circuits in case of 
break down or when the original source of power is dormant. This system should be 
employed for economy of maintenance, in installations above 450 line, in a radiu8 
of three miles, if a cheap and sure outside power can be obtained. An independent 
gas engine power plant will be justified in installations above 1,000 lines. It is not 
recommended for rural lines as it requires a construction absolutely free from ground, 
and its inaccessibility to competent inspectors. 



RURAL TELEPHONY. 

Telephones in farm communities have usually started by a farmer building a 
line from his own home to that of a son-in-law. Others saw the advantage and joined 
them. An appreciation of the rural telephone, as an institution, will be found in 
the pamphlet, ' The Voice of Progress.' The apparatus is of the simplest type, to 
admit of working under adverse conditions, adjustment and installation by the un- 
skilled — in the parlance of the trade, it is ' fool proof.' 

Farm lines are usually heavily loaded— sometimes as high as fifty instruments 
on a circuit. In such cases it is necessary that all ringer coils be wound to exactly 
the same resistance, and the generator have sufficient capacity (number of bars in 
the magnets) to operate all ringers. Type ' K ' is the one produced by this company 
for the character of service. Below is the various capacities with their price, fol- 
lowed by a detailed description. 



74 



BE LEVI COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD /ll., A. 1905 




APPENDIX No. 1 



APPEXD1X "A 



75 




o 



M 






O 



B 



76 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 32, 1,000 Ohm. ringer; 4-bar generator. 

For party lines where not to exceed 15 telephones are used. . $10 47 
No. 42, 1,600 Ohm. ringer ; 4-bar generator. 

For party lines where not to exceed 20 telephones are used. . 10 94 
No. 52, 1,000 Ohm. ringer; 5-bar generator. 

For party lines where not to exceed 30 telephones are used. . 11 25 
No. 62, 1,600 Ohm. ringer; 5-bar generator. 

For party lines where not to exceed 40 telephones are used. . 11 72 
No. 72, 2,000 ringer; 5-bar generator. 

For party lines where not to exceed 45 telephones are used. . 12 03 
No. 82, 2,500 Ohm. ringer; 5-bar generator. 

For party lines where not to exceed 50 telephones are used. . 12 19 
No. 92, 3,500 Ohm. ringer; 5-bar generator. 

For party lines where more than 50 telephones are used on 
one line, or where the character of the line is such as 
to require the use of the most powerful telephone ob- 
tainable 12 50 

It will, of course, be understood that the length of line has some influence upon 
the number of telephones which can be used on it. 

DESCRIPTION. 

The transmitter is permanently adjusted; loud and distinct. No side tones (for- 
eign noises in the room), no phonograph-like twang, but a reproduction ol the voice. 

Permanently-adjusted receiver; the diaphragm rests on a bell-shaped metal shell 
and is not thrown out of adjustment by unequal expansion or contraction of hard 
rubber and magnet metal. No exposed metal binding posts to break off or shock the 
user — the cords last twice as long. Easy to inspect — the cap unscrews by hand. 

The generator magnets are of a quality and treated to insure uniformity and per- 
mancy of magnetism. The armature is laminated ; (built up in sections) for higher 
efficiency both in quantity and quality of power. Wide face, tough brass gear wheels 
with special cut teeth — they run smooth and noiseless. An automatic shunt (switch) 
throws the generator on the line. 

The ringer is independent of the cabinet and is not affected by unequal expan- 
sion or contraction of wood and metal. The magnets are machine wound with silk 
insulated fine copper wire. The armature adjustment is by means of one screw with 
an ordinary wrench. 

German silver hook switch springs mounted in a hard rubber block and riveted 
pure platinum contacts — the only metal corrosion and spark oxidization proof. 

The exterior nickel plated mt-tal parts will not tarnish and the cabinet wood is 
quartered oak or walnut and given a rich rub finish. 

The cheapest on the market costs about two dollars less — this is saved in one 
trip to town for repairs. 

LINE CONSTRUCTION. 

The following diagram illustrates the best method of line construction : — 

COST OF CONSTRUCTION. 

In most cases, farmers furnish all labour and native poles for line construction. 
The following estimates will be found conservative : — 

One mile, 30 poles per mile, not including labour or poles, 
IBB galvanized iron wire No. 12, bracket construc- 
tion $ 8 41 

Two wires, bracket construction 16 82 

Cross arm construction, one wive 20 05 

Additional wire 7 88 



APPENDIX " A " 77 

APPENDIX No. 1 

For detailed prices and description, see pages 8 and 9, of ' Telephones in Farm 
Life.' 

One mile, 30 poles per mile; including all poles, material 

and labour, bracket construction $74 81 

Additional wire 17 50 

Cross-arm construction 86 45 

Materials for installing individual instruments, average. . 1 00 

Labour, average 78 

For detailed prices and illustrated construction methods see pages 19 to 29, ' The 
Rural Telephone.' 

CUT-IN STATIONS. 

On heavily-loaded rural lines, an equal division is frequently made to reduce 
the amount of ringing. For this a cut-in station is used — a semblance of exchange. 

They are screwed to the wall above or convenient to an ordinary tpye 'K ' tele- 
phone. By the shifting of the key, either side of the line is connected with the cut-in 
station. With the key in a normal condition the two lines are connected. By the 
auxiliary ringer it is impossible to divide the line as to leave either side without a 
ringing terminus. 

Cost, averaged, according to the winding of the ringer, governed by the number 
of instruments on the line, $4.80. 

SMALL EXCHANGES. 

Like the rural post office, the rural telephone exchange is a centre, and located 
usually at a cross-road store. In place of the cumbersome wall cabinet exchanges, a 
switching station is now used, up to 20 lines- They are made of exactly the same 
material as our large switchboards, in 5, 10 and 20-line units, encased in enameled 
cast iron boxes and screwed to the wall convenient to an ordinary type ' K ' telephone. 

Frequently an auxiliary cord and plug equipment is installed with a switching 
station, provided with ringing keys (levers in front of each cord pair that throw 
ringing current to line), listening keys (levers that throw operators' receiver and 
transmitter to any line), clearing out drops (indicating when conversations are ter- 
minated), and night bell and switch, forming in every way a complete exchange. 

COST OF SWITCHING STATION. 

For 5 lines $19 93 

For 10 lines 36 00 

For 20 lines 67 50 

Auxiliary plug and cord equipment '. 33 75 

Detailed description in Bulletin 26. 

DESK CABINET SWITCH-BOARDS. 

Desk cabinet switch-boards are installed almost universally 100 line ultimate capa- 
city with enough drops and jacks for immediate needs. The board is wired complete 
with all plugs, ringing and' listening keys. 

For detailed description see ' Modern Methods.' 

Cost, 50 drops installed, wired complete with all cords, plugs 

and ringing and listening keys $ 227 50 

Additional jacks in strips of 10 7 50 

Additional drops in strips of 10 20 00 

Labour installing, in strips of 10, both drops and jacks. ... 2 50 



78 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

AUTOMATIC RINGING. 

The labour is frequently so great in ringing subscribers on boards of 100 line 
capacity that a Warner Pole Changer is used. This changer is operated by two cells 
of Gordon battery and supplied with current from a chain of dry batteries of 60 cells. 
Its function is simply to transform the direct current naturally given out by the bat- 
teries to an alternating current like that produced by an ordinary hand generator. 

Cost, including cabinet and batteries, $45. 

TOLL LINES. 

Where it is desired to separate the toll lines from the regular switchboard, switch- 
ing stations are used as described on page 7 of this letter. They are screwed to the 
cabinet or to the wall at a convenient point. 

BRIDGING TELEPHONES WITH SPECIAL DEVICES. 

The following special telephones of the bridging type of the same general design 
as type ' K/ described on page 3 of this letter : — 

Type ' K' with grounding hey. — A simple device for ringing each other on the 
same line without signalling exchange. By depressing a key, the exchange is sig- 
nalled without ringing parties on the same line. Described, Bulletin 28. For cost 
add 25 cents to regular price of type ' K.' 

' North's Type ' K ' with Silent Ringer. — Another simple device for toll party 
lines, or where for any reason it is desired that exchange record the subscriber calls. 
Exchange is signalled without ringing other subscribers' bells on the same line. Can 
be used on party line with ordinary telephones, thus admitting of an inexpensive 
classification of toll and full service subscribers. Described in Bulletin 28. For 
cost add $1.25. 

'North's Type ' K/ Selective 1, 2, 8, or Party Ringer. — Still another simple de- 
vice, enabling exchange to call one of 2, 3 or 4 parties on the same line without 
ringing the other. The subscribers do not ring each other in calling exchange. Re- 
duces the ringing on heavily-loaded party lines. For instance, if there are 12 tele- 
phones on a line, it is reduced one-half by a two-party system; three-fourths ty a 
four-party system. For cost add $2 for two parties, and $2.50 for four parties. 

' North's Type ' K,' with Condenser. — For ringing through on a party line with 
one or more receivers off the hook. For cost add $1.50. 

GENERAL POLICY. 

The North Electric Company has built its extended and growing business among 
rural companies by a liberal policy. Every product is sold on an unconditional and 
unlimited time guarantee — should defects appear, they are made right without cost 
or quibble. We never ask any questions regarding the responsibility of a broken 
part. If a farmer breaks a ringer in trying to adjust it, we send him another and 
leave the payment to his conscience. 

No device is offered for sale until it is known to be out of the experimental stage. 
Even after it is tested in our own laboratory as far as it can be carried, it is then 
sent to some of our operating company friends and used under all conditions and 
classes of service. 

We are not mere assemblers of parts, but makers from raw material — we give 
the purchaser the cost maker's profit. The plant is on an economical basis, and like 
all large concerns, the individual profits are small — we depend on the annual volume 
for a net result. 

It is possible to enlarge any of our switchboards by adding units like a sectional 
book-case. All parts are interchangeable. They are milled and bored in jigs — ac- 



APPENDIX " A " 79 

APPENDIX No. 1 • 

curately to a thousandth of an inch. To own these jigs requires an outlay so large 
that it is warranted only where switchboard and telephone parts are made in large 
lots. We carry a large stock on hand of these parts and they are shipped out on re- 
quest by first express. Most manufacturers do not keep a supply on hand. They 
make a few telephone and switchboard parts at a time and change patterns frequently. 
To keep a stock of parts on hand, representing every change, would tie up a fortune 
of practical idleness. Then when you get the parts, blacksmithing and machine work 
is necessary; for where the parts are made by hand without jigs it is impossible 
to produce exact duplicates. 

The devices produced by this company in the evolution of years have reached 
the simplicity that their adjustments are practically permanent. 

Eespectfully, 

THE NORTH ELECTRIC COMPANY, 
By David Gibson. 



No. 62. 

Extract from a letter of Thomas Bcgley, of Egerton, Ont., to Mr. Thomas Mar- 
tin, M.P. :— 

' Thanking you for the copy of the evidence, but you will note on page 291 that 
the printer made a big mistake in saying the line cost $200 per mile; that should read 
to cost about $67 or $68 per mile.' 

Mr. Begley's evidence, as printed : — 

By Mr. Burrows : 

Q. What do you find the cost to be of putting up a mile of line, speaking gener- 
ally ?— A. Generally ? 

Q. Yes. — A. Well, in ours I think it was $200 and some odd it cost us for about 
23 miles altogether. 

As desired to be corrected by Mr. Begley : 

Q. What do you find the cost to be of putting up a mile of line, speaking gener- 
ally ?— A. Generally ? 

Q. Yes.— A. Well, in ours I think it was $67 or $68 per mile. 



No. 63. 

House of Commons, 

Ottawa, May 15, 1905. 

My Dear Sir William, — When I received your recent letter asking me to let the 
Special Committee appointed to inquire into the subject of telephones have particular 
information with regard to the telephone service in my constituency, I communicated 
at once with the mayors of the more important towns in West Assiniboia on the sub- 
ject. The first reply I have received is from Mr. W. R. Abbott, mayor of Maple Creek, 
which I attach herewith. 

Very sincerely yours, 

WALTER SCOTT. 
Sir William Mulock, 

Chairman Special Telephone Committee, 

Ottawa. 



80 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

» 4-5 EDWARD VII., A. 1905 

No. 63a. 

Maple Creek, N.W.T., May 10, 1905. 
Walter Scott, Esq., M.P., 

(West Assiniboia) — Ottawa. 

My Dear Sir, — In reply to your letter of May 6, 1905, re telephone facilities ia 
West Assiniboia generally and town of Maple Creek and district surrounding, would 
say: 

This town and district has not yet enjoyed such facilities, yet look forward 10 
the time when such will be within their reach. 

Why should not the Dominion of Canada through the Post Office Department 
operate the whole telephone system of the country for general good, and as a com- 
mencement erect and operate such, in what is at present known, as the North-wesx, 
there is not a doubt that such would be a paying proposition for the department pre- 
sided over by Sir Willi am Mulock. 

If such is not at present advisable, every encouragement should be given to muni- 
cipalities, town and county, to erect and operate, keeping in view that sometime they 
vvculd become part of a national system. 

No franchise should be given to any company unless subject to local authority of 
municipalities in whicfr erected in regards to erection, rates, &c. 

If such franchise has been already granted, such should be amended so as to 
bring them under such control at least in the many districts in the North-west and 
other portions of Canada, where up to the present no steps have been taken to give 
such facilities by erection or otherwise. 

But above all national ownership and operation is desirable. 

Yours respectfully, 

W. Tl. ABBOTT, 

Mayor. 



No. 64. 

House of Commons, 

Ottawa, May 15, 1905. 

Dear Sir William, — Keferring to your letter of the 20th ult., asking for infor- 
mation relative to telephone investigation, I wish to state that after waiting for 
several years for the Nova Scotia Telephone Company to build a branch line into my 
constituency, the people in the county of Antigonish and in the municipality of St. 
Marys took the matter up themselves and formed a joint stock company and com- 
menced the construction of an independent line which joins the main line of the 
Nova Scotia Telephone Company at the town of Antigonish. This company is called 
the Antigonish and Sherbrooke Telephone Company, Limited. Permit me to quote 
an abstract from the last yearly statement made to the shareholders of this company 
by the secretary, Mr. James K. MacDonald. It is as follows: 

' The company has now in operation 170 miles of telephone lines, with 83 tele- 
phones, including two instruments ordered and daily expected, and there is a constant 
demand, both for the extension of their lines, and for the installment of more in- 
struments in the territory already covered. The yearly rentals of the above 83 tele- 
phones aggregate $1,500 and the long-distance tolls earned will at a low estimate 
(based on the experience of the past months) bring the company's income, even with- 
out any extension beyond its present capacity, up to $1,800 a year. It is proposed to 
put $500 a year to the credit of a sinking fund, and it is estimated that $500 more 
will cover the ordinary yearly expenses of the company, leaving a surplus (besides 
sinking fund) of $800 a year. The capital already expended is about $7,000. The 
earning capacity is therefore very good.' 



APPENDIX "A" 81 

APPENDIX No. 1 

There is a proposed and probable extension for this spring from Marie Joseph to 
Port Dufferin, 26 miles, and a possible extension from Goshen to Isaac's Harbour, 
about 30 miles. These two connections would give at a low estimate 40 telephones, 
■which added to those already in operation, would increase the company's income very 
much.' 

I may point out that while this line is owned by a joint stock company the farmers 
residing in certain districts along the line contributed the poles and I am informed 
that in many cases erected them free, and in this way assisted the company in the 
construction of the line. The ordinary rate charged to householders is $18 per year 
and th<? lessee is permitted to collect rates from the parties in the vicinity using the 
'phone. 

I may further point out that the Nova Scotia Telephone Company, which has a 
practical monopoly in eastern Nova Scotia, at first declined to connect with the An- 
tigonish and Sherbrooke Telephone Company, at Antigonish or send forward their 
messages, and finally on complying imposed the condition that the new company would 
agree not to build along the western shore in the direction of Halifax, beyond Sheet 
Harbour, for a period of three years. 

I submit that the attitude of the Nova Scotia Telephone Company, in regard to 
this matter shows the necessity for legislation to compel existing telephone companies 
under proper regulations, to connect with new branch lines and transmit their mess- 
ages. I may further add that the whole of the eastern municipality of my con- 
si ituency is still without telephone connection and any arrangements by which the 
same could be extended to the important fishing and inland districts of eastern Guys- 
borough, would be very acceptable. 

I remain, yours truly, 

J. H. SINCLAIR. 



No. 65. 

House of Commons, 

Ottawa, May 12, 1905. 
Sir William Mulock, 

Postmaster General, 
Ottawa. 

Dear Sir William. — Your esteemed favour of the 27th ultimo, asking that I in- 
form the committee as to telephone facilities at present enjoyed by the people of the 
county of Annapolis, received. 

In reply would say that fifteen years ago a line was established to connect Tor- 
brook iron ore mines with Middleton and Margaretsville, and it proved so conven- 
ient, and was such an accommodation to the people of this section, that a company 
was formed called the Valley Telephone Company, and the line extended westerly 
to Digby, connecting with the Yarmouth Amalgamated Telephone Company, also 
eastwardly to Hansport, 135 miles, connecting with the Nova Scotia Telephone Com- 
pany and with the Central Telephone Company. The trunk line of the Valley Tele- 
phone Company carries two circuits, one metallic and one iron ground, return built 
on cedar poles fitted with four-pin cross-arms and cost about $250 (two hundred and 
fifty dollars) per mile. There is about 250 miles of side lines running over the moun- 
tain to villages which might properly be called trunk lines, as they connect these 
places with the main lines. 

The Valley Telephone Company system is divided into twelve circuits or ex- 
changes, viz. : — 



82 SELECT COMMITTEE ON TELEPHONE STSTEMS 

4-5 EDWARD VII., A. 1905 

Digby, with , 87 telephones. 

Bear River, with 18 " 

Annapolis, with 68 " 

Granville Ferry, with 30 " 

Bridgetown, with 64 " 

Lawrencetown, with 26 

Middleton, with , 100 " 

Berwick, with 28 " 

Port Williams, with 32 " 

Canning, with 45 " 

Kentville, with 97 " 

Wolfville, with 98 " 

A total of 693 

There are 25 telephones in the railway stations from which there is no revenue. 
The company charge its patrons for telephones in residence, $15 per year; telephones 
in business offices, $20 per year; telephones, long-distance desk, $25 per year. About 
333 are in residences and balance in business places. 

The capital stock of the company is $45,225, and a large amount of revenue has 
been expended on reconstruction and betterments to the line, so as to give the patrons 
an efficient and up-to-date service. It connects direct with the Nova Scotia Tele- 
phone and have an agreement by which this company receive, transmit and deliver 
messages with the Nova Scotia Telephone Company, charging the Valley Telephone 
Company same rates as its Windsor subscribers, less 5 cents, making rate from Hants- 
port to Halifax 20 cents, Hantsport to Windsor, 10 cents. The Valley Telephone 
Company charge to and from Berwick and points thereof, 15 cents; points west 
thereof, 20 cents. Neither parties are to compete with each other within the Terri- 
tory occupied by each other respectively, nor make connection with any telephone 
companies or corporations offering any competition with the Nova Scotia or Valley 
Telephone Company, also with Yarmouth Amalgamated, West Port and Digby, and 
the Central Company, with whom this company connect direct. 

The company has since its inception paid a dividend of 7 per cent until last 
year, when the dividend was reduced to 6 per cent, and the rest account, which the 
company had borrowed for reconstruction, was charged to that account. 

The following is the last years' statement of the business of the company. 

THIRTEENTH ANNUAL STATEMENT OF VALLEY TELEPHONE COMPANY, LTD., DECEMBER 31, 1904. 

Assets. 

By cost of exchange and plant $ 67,733 29 

" real estate and fittings 3,391 87 

" amt. accident reserve in building sect 1,972 23 

" bills receivable 116 10 

Cash on hand and in bank 1,672 96 

Liabilities. — 

To stockholders capital stock $ 46,225 00 

" supplies on hand, 1903 1,171 37 

" loan on head office buildings 2,500 00 

" amount spent on reconstruction to 

January, 1904 17,218 67 

" accident reserve fund 1,972 23 

" depreciation account, 1904 3,272 23 

" net profits for year 2.526 95 

$ 74,886 45 



$ 74,886 45 



APPENDIX "A" 83 

APPENDIX No. 1 

Cash accounts. — 

To balance on hand, January, 1904 $ 1,772 54 

" cash received from rentals, 1904.. .. 7,745 45 

" cash received from tolls, 1904 4,234 06 

" cash received from capital stock, 1904- 5,325 00 
" cash received from prem. on stock, 10% 532 86 

" loan on buildings 2,500 00 

" stores sold 15 80 

$ 22,125 65 

" by dividend paid February, 1904 $ 2,863 00 

" amount paid for head office and alterations 3.391 87 

" amount pairl on construction account 3,641 91 

" goods in stock for construction 978 25 

" amount of reconstruction account 3,272 23 

•" amount of expenses, maintenance of line 5,938 58 

" stores in stock for expenses account 241 75 

" bins receivable 116 10 

'• amount of balance in bank and on hand' 1,672 96 

$ 22,125 65 
Revenue account for the year 1904. — 

To cash received from rentals $ 7,745 45 

" cash received from tolls 4,234 06 

$ 11,979 51 

By expense account, maintenance of line. . $ 6,180 33 

" reconstruction account 3,272 23 

" balance net profits for year 2,526 95 

$ 11,979 51 

To balance net profits for year $ 2,526 95 

By balance for 1904, payable February, 1905 $ 2.567 07 

I believe that the people in the counties of Kings and Annapolis, served by the 
Valley Telephone Company, are fairly well satisfied with the accommodation and ser- 
vice they receive, but, I am afraid that the company will not be able to continue same 
rates to its patrons as in the past, and will have to ask its patrons and the government 
.of Nova Scotia to permit them to increase their rates as the expense of material and 
management, &c, are increasing rapidly. 

I am, dear sir, 

Yours most obedient, 

S. W. W. PICKUP. 



No. 66. 

Southport, P.E.I., May 9, 1905. 
Sir William Mulock, 

Chairman Telephone Committee, 

Dear Sir, — Concerning telephone communication in Prince Edward Island. (1.) 
The company collect very promptly, but a broken wire may remain in that state for 
days. (2.) Rates are very high; answers as well as messages to be paid. (3-) Very 
reluctant to build new lines unless handsome guarantees are assured. Example: 
When asked to build a line nine miles long, running through four or five splendid 
settlements — not one mile of woodland, and when half a dozen private 'phones were 
assured — the company only laughed and said. 'You will need to buy the 400 poles at $2 
each and have them put in position and then we will stretch the wire and collect pro- 

1— d— 7 



84 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

ceeds.' (4.) A monopoly subsidized by government exists and we wish this state of 
affairs to cease so that competition and cheaper 'phones may be possible. 

Yours very truly, 

GEORGE F. DEWAR. 



SUMMARY OF LETTERS RECEIVED. 

No. 67. 

From Dr. Ross, Union Telephone Company of New Brunswick, inclosing list 
of 42 questions which writers suggests should be submitted to the New Brunswick 
Telephone Company, bearing upon discrimination in rates, giving of free service and 
the refusal of the station agent at Florenceville to answer calls received over the 
Union Telephone Company's system. 

No. 68. 

Letter from Dr. Ross stating that his company have 46 subscribers who are not 
connected with the New Brunswick Company's exchange, instead of three, as reported 
by Senator Thompson. 

No. 69. 

From Mechanicsburg Telephone Company, Ohio, replying to questions and stat- 
ing that they have 700 telephones and population of 5,500. Four hundred and fifty are 
rural subscribers at $1 per month. Company earns 8 per cent dividend. Have 125 
miles of toll lines carrying from two to twenty wires; ten farmers are connected on 
a line. The manager and one troubleman keep the line in good shape. The writer 
considers with good construction and instruments, two men could take care of 1,000 
telephones nicely. Salary account for 1904, including operators, was $2,688. 

No. 70. 

From Leaf River and Egan Mutual Telephone Company, replying to questions. 
The company has 71 telephones in a population of 1,000; 25 being farmers. Each sub- 
scriber is a shareholder, paying $30, three subscribers to the mile required for rural 
lines. The subscriber pays 50 cents per month, 40 cents going to the central office 
and 10 cents held as a reserve fund. This nets $85.20 per year, which, with $120 toll 
receipts, makes a total of $205.20 per annum to pay $153.90 running expenses. Twenty- 
five cents extra per month gives subscribers free communication to all points in Osle 
county and all the neighbouring counties may be reached for a toll of 15 cents. 

No. 71. 

From the Cumberland Telephone and Telegraph Company, of Nashville, Tenn., 
stating that they operate ' Bell ' 'phones exclusively in Louisiana, Tennessee, Missis- 
sippi, Kentucky and southern portions of Illinois and Indiana. Investment, $15,000,- 
000; outstanding capital, $13,500,000. Have 130,000 'phones in population of 7,000.- 
000. Company pays special attention to farmers' lines, and where farmers prefer to 
build their own lines, connect them at the corporation limits, giving them unlimited 
service to one exchange for $2 per telephone per year. 



APPENDIX " A " 85 

APPENDIX No. 1 

No. 72. 

THE THOUSAND ISLANDS RAILWAY COMPANY. 

Geo. Taylor, M.P., Gananoque, Ont., May 15, 1905. 

House of Commons, 
Ottawa. 

Dear Sir, — Referring to your letter of April 26, regarding my opinion as to the 
telephone service in Gananoque, we have continued service here with the exception 
of one or two kours on Sunday, our telephones are kept in excellent repair, hy men 
who call once each week, and if we have any trouble all we have to do is to advise 
the local manager and he at once has a man sent to fix the line. I have read with 
great interest the reports you have been sending me, and personally, my opinion is 
that the municipality could not give one-quarter the service we are now enjoying from 
the Bell Telephone Comply. Their rates here are one year for business or residence, 
$25 per year, or three years' lease, $20 per year, for business or residence. 

Yours truly, 

E. R. CHAPMAN. 

No. 73. 

THE ANTIGONISH AND SHERBROOKE TELEPHONE COMPANY, 

LIMITED. 

Head Office, Sherbrooke, N.S., May 13, 1905. 
Sin William Mulock K.C.M.G., 

Postmaster General and Chairman Select Committee on Telephones, 

Ottawa. 

Dear Sir,— I have the honour of replying to yours of the 1st instant, requesting 
answers to a long list of questions inclosed. Our directors had this matter before 
them last week, and the full particulars, as far as we could give them, were sent to 
Mr. Mclsaac, M.P., for Antigonish, by the Rev. M. M. Doyle. I also wrote our re- 
presentative, Mr. Sinclair. Both of those gentlemen are well acquainted with our 
system, and the territory through which it operates. We did not commence operations 
until late in May of 1904, and many of your questions we could not answer, but we 
find that our farmers and fishermen in isolated sections are very anxious to have the 
line come as near to them as possible. I inclose a statement I sent out with our last 
call, which may be of some service. The Nova Scotia Telephone Company wish and 
have restricted us to certain territory, and we are practically bound to them by hav- 
ing to purchase our telephones, switchboards, &c, from them, in order to get connec- 
tions with their systems for long-distance work. If we have not already furnished 
all information necessary we will endeavour to answer any further questions you 
may ask. 

I have the honour to be, sir, 
Your obedient servant, 

JAMES R. MACDONALD, 

Secretary. 

No. 73a. 

STATEMENT. 

v The company has now in operation 170 miles of telephone lines, with 83 telephones, 
including two instruments ordered and daily expected, and there is a constant de- 
mand, both for the extension of their lines, and for the instalment of more instruments 
in the territory already covered. The yearly rentals of the above 83 telephones ag- 
gregate $1,500, and the long-distance tolls earned will at a low estimate (based on the 

l— d— n\ 



86 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

experience of the past months) bring the company's income, even without any ex- 
tension beyond its present capacity, up to $1,800 a year. It is proposed to put $500 
a year to the credit of a sinking fund, and it is estimated that $500 more will cover 
the ordinary yearly expenses of the company, leaving a surplus (besides sinking fund) 
of $800 a year. The capital already expended is about $7,000. The earning capacity 
is therefore very good. 

There is a proposed and probable extension for thi3 spring from Marie Joseph to 
Port Dufferin, 26 miles, and a possible extension from Goshen to Isaac's Harbour, 
about 30 miles. , These two connections would give at a low estimate 40 telephones, 
which added to those already in operation would increase the company's income very 
much. 

Yours truly, 

JAMES R. MACDONALD, 

Secretary. 



No. 74. 

Florenceville, N.B., May 13, 1905. 
Sir William Mulock, 

Chairman Telephone Committee, 
Ottawa, Ont. 

Dear Sir., — From the newspaper report I see that Senator Thompson states that 
he has about completed an ' amicable arrangement ' with Senator Baird on the diffi- 
culties between the Union and New Brunswick Telephone Companies. In my own 
evidence before the committee I tried to be fair as possible and to bring up nothing 
but well known facts. Since Senator Thompson has referred to the proposed ' amic- 
able arrangement,' I wish to state to the committee that the gist of the proposed 
' amicable arrangement '" is that the Union Telephone Company agrees to pay the New 
Brunswick Telephone Company the sum of $100 each year for the privilege of allow- 
ing the Union Telephone Company to install their 'phones in the Woodstock station. 
This may be a very ' amicable arrangement,' still the Union Telephone Company doe9 
not consider it an ' amicable arrangement ' and only considered it at all as a means 
of improving the Woodstock automatic service. 

Referring also to the reason that the Union Company are not connected by switch 
with the New Brunswick Company, he says the Union Company refuses. The New 
Brunswick Telephone Company made it a condition of allowing us to connect with 
them at Woodstock, that the Union Company close all their offices in Woodstoclc. The 
Union Company did not consider this a fair proposition. The Union Company has 
documentary proof of both of the above statements. The offer was submitted to the 
shareholders' meeting and was unanimously rejected. 

Yours truly, 
THE UNION TELEPHONE COMPANY, LIMITED 

Per D. W. Ross, Secretary. 



No. 75. 

Florenceville, NB.. May 13, 1905. 
Sib William Mulock, 

Chairman Telephone Committee, 

Ottawa, Ont. 
Dear Sir, — In reply to your letter of the 10th instant. I beg to say that before 
July 1, 1903, independent telephone companies would generally get a 'phone installed 
in the railway station through the influence of some large shipper. The Union Tele- 
phone Company before July 1, 1903. had 'phones installed in the following Canadian 
Pacific Railway stations: — Hartland, Florenceville, Bath, Andover and Grand Falls. 



APPENDIX " A " 87 

APPENDIX No. 1 

The 'phones were installed in the above places by the Union Telephone Company with- 
out any expense to the Canadian Pacific Railway and were installed there for the 
benefit of our patrons. The Canadian Pacific Railway Company's station agent at 
those places used the 'phone on their local circuit free of all charge and' they are a 
great convenience to the station agent and to the people. Since July 1, 1903, the 
Union Telephone has not been able to have any 'phone installed in the Canadian Paci- 
fic Railway station. In July or August, 1903, the Union Telephone Company applied 
to the Canadian Pacific Railway for permission to install a 'phone at Bristol station 
and received a letter refusing consent. And as the Union Company were at the same 
time trying to get 'phones into the Woodstock station they concluded that the agree- 
ment which the C ana dian Pacific Railway had with the New Brunswick Company 
must be an exclusive one. Now the agents all answer very well except one place. All 
the agents make more or less claim that it is not their place to answer the independent 
'pi one. In November, 1903, the New Brunswick Telephone Company installed a 
'phone in Florenceville station. The Union Telephone Company had a 'phone in- 
stalled in Florenceville station ever since 1901. Soon after the New Brunswick 'phone 
was installed' in Florenceville station the Union 'phone was not answered very well 
but it did not get so very bad until January or February 1, 1905, when the agent it 
Florenceville told our president Dr. F. M. Brown that he would not answer the Union 
Telephone call unless he was paid for so doing by the Union Company. Our president 
told him that he thought where the Union Telephone Company placed the 'phone there 
free of charge to the Canadian Pacific Railway and their agents used it on the local 
circuits freely, that he should answer it as a part of his duties to the public; that It 
was an agent's duty to answer all reasonable questions on railway business through the 
station wicket and that it was just as much the agents duty to answer the same ques- 
tions over the telephone. Now since that time the Canadian Pacific Railway agent at 
Florenceville has stated to different parties that he would not answer the Union Com- 
pany's 'phone. Since last January it is only once in a great while that he has answered 
at all. People have come to the Union line to get Florenceville station and after 
repeated ringing could not, and have then gone to the New Brunswick Telephone Com- 
pany's office and found that they were answered at once, promptly. 

On the day I started for Ottawa I waited in the Florenceville station one hour 
for the train. During that time the Union Telephone called a number of times and 
although there were two agents in the office neither of them answered the Union 'phon2 
at all. During the same hour the New Brunswick 'phone rang twice and each time the 
agents answered the first call. There can be no plainer case of discrimination. There 
are two agents there at Florenceville and during this hour they were both in the office 
and could have answered if they chose. It is common knowledge around Florenceville 
that the Canadian Pacific Railway agent at Florenceville station does not answer the 
Union 'phone but will answer the New Brunswick 'phone promptly. Every one here 
knows this. Our president, Dr. F. M. Brown has had more to do with this phase of 
the question than I have myself. I do not think there are any other places where both 
'phones are installed unless it is at Grand Falls, but I have received no complaints 
about discrimination from our people at Grand Falls. If you wish to know why the 
Canadian Pacific Railway agent at Florenceville will not answer the independent 
'phone, you might summon him, his name is A. B. Gaines. 

In any legislation about admitting the independent 'phone into a railway station 
unkss it is clearly expressed in the law about whose duty it is to answer the 'phone 
and that there shall be no discrimination all legislation would be useless. A little con- 
sideration will show all members lof the committee that to simply introduce the inde- 
pendent 'phone into the railway station will not be sufficient. The proposed legislation 
must also provide that the independent 'phone be answered promptly by the static a 
agent and without any discrimination. Discrimination is a very hard matter to prove 
as shippers and others having business with the Canadian Pacific Railway and its 
agents do not care to put themselves on record in any permanent form. They will 



88 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

complain verbally but do not seem to care to put anything in writing or to publicly 
state their complaint. 

Yours truly, 

D. W. ROSS, 

Secretary. 



No. 76. 

To the Honourable the Members of the Select Committee, appointed to inquire into 
the various Public Telephone Systems in Operation in Canada and Else- 
where : 

Gentlemen, — The Board of Trade of the Town of Woodstock, New Brunswick, 
desire, through a committee appointed for that purpose, to lay before your honour- 
able body some facts in connection with the telephone service in the town of Wood- 
stock and to express the opinion that the citizens of the town of Woodstock require 
that the Union Telephone Company, who have an exchange in said town, be permitted 
to place their instruments in the freight and passenger depots of the Canadian Pacific 
.Railway Company, which permission has been denied them by the said railway com- 
pany. The committee also wish to correct some of the statements made by Senator 
Thompson, of the New Brunswick Telephone Company, as it has been reported, and 
to state that the price of the New Brunswick telephones to new subscribers for some 
years before the advent of the Union Telephone Company in Woodstock, was fifteen 
dollars for each instrument, whether a subscriber took one or more instruments, and 
further, that the service was by a number of 'phones on one line, just the same then 
as now. The service rendered by the New Brunswick Telephone Company has been 
much improved since the Union Telephone Company have commenced doing business 
in Woodstock, but in our opinion the service rendered by the Union Telephone Com- 
pany is superior to that of the New Brunswick Telephone Company even now. 

We wish it distinctly understood that nothing in the above shall be construed 
as implying that the committee have any desire to find fault with the local employees 
of either company, but what we do desire to emphasize is that the system in use by 
the Union Telephone Company is very much superior to that of the New Brunswick 
Telephone Company. 

Dated this thirteenth day of May, A.D., 1905. 

Respectfully submitted, 

R. E. HOLYOKE, 
J. T. GARDEN, 
WILLIAM DIBBLEE. 

Committee of the Board of Trade of the Town of Woodstock. 



No. 77. 

House of Commons, 

Ottawa, May 18, 1905. 
Sir William Mulook, 

Chairman Special Telephone Committee, 
House of Commons, Ottawa. 

My dear Sir William, — I forward to you herewith a communication from Mayor 
F. G. Forster, of Medicine H&t, N.W.T., on the subject of telephones in relation to 
Medicine Hat and district. 

Very sincerely yours, 

WALTER SCOTT. 



APPENDIX " A " 89 

APPENDIX No. 1 

No. 77a. 

The Mayor's Office,, 

Medicine Hat, May 13, 1905. 
Walter Scott, M.P., Ottawa. 

Dear Scott, — Replying to yours of the 6th, re telephones. The system in opera- 
tion here is the Bell Company telephone. The system is entirely local, with no outside 
connection. The rates are : Business, $32; household, $20. The town would like to 
see the government take over the telephone business. There was talk at one time of 
the town putting in a system on municipal ownership lines. 

A rural system, connecting Dunmore, Irvine, Josephsburg,Woolchester and country 
points, with Medicine Hat, would be a great advantage, and would pay. 

Yours truly, 

F. G. FORSTER, Mayor. 

No. 78. 

BLAKE SBURG TELEPHONE AND TELEGRAPH COMPANY. 

(Incorporated.) 

Blakesburo, Iowa, May 15, 1905. 
To the Select Committee on Telephones, 

Ottawa, Canada. 

Messrs, — Enclosed you will find your queries of March 28th answered briefly. 

Will say that we find that the farmers are allowed to build and own their own 
lines; that they avail themselves of telephone privileges, whereas if they had to pay the 
prices that a company would have to charge them, very few would take hold. 

They build their own lines generally by a company of about sixteen. They can 
generally get to the central in 8 miles. Each then furnished about 16 poles (J mile) 
of burr or white oak poles 18 feet long with 4 inch top peeled and set in the ground 
about 3£ feet (with brackets and insulator and a wire purchased by the company). 
They use No. 12 BB or telephone steel wire, which costs them about $6 to $10 per mile, 
and they put it up themselves. This makes it cost them in cash from $3 to $5 each, 
the poles they cut from their own timber. 

The 'phones are 1,600 ohm. ringers, bridging, and cost them installed, with extra 
Victor lightning arrester, switch, and ground rod, with covered wire about 20 feet 
from house, all equipped in first class shape, $16 each. 

It is wonderful how the farmers have taken hold of this matter the last three year?. 
They pay central $3 per year for furnishing them the town and switching them on to 
other country lines and they also get switched on the toll lines by paying the customary 
toll rates. , 

Enclosed find one of our blank contracts for rural service. 

Any further information will be cheerfully furnished. 

Truly, 
BLAKESBURG TELEPHONE AND TELEGRAPH CO., 

Herman Snow, President. 



No. 78a. 



Contract for Connection with Rural Telephone Lines. 



It is hereby agreed by and between the Blakesburg Telephone and Telegraph Co., 
of Blakesburg, Iowa, first party and 

of County, Iowa, a voluntary association, second party, that in 

consideration of three dollars per annum, payable semi-annually in advance for each 



90. SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

and every member or subscriber of second party's company or association first party 
agrees to grant second party the right and privilege of making and maintaining con- 
nection with the line of first party at the corporate limits of Blakesburg in order to 
give the members of second party's company or association connection therewith and 
use of the lines connecting with first party's switch board. It is agreed that second 
party shall be responsible directly to first party for the payment of said three dollars 
per annum for each and every member of second party. And should other persons 
become members of second party's company or association, then second party shall pay 
for such member for the time in any one year that he has been such member. 

In consideration of said sum of three dollars per annum, seeond party shall have 
the right and privilege of using all lines connected with first party's switch board ope- 
rated by first party, not including toll lines. 

It is further agreed that second party shall be responsible to first party for all toll 
service and toll charges 'for each of its members or subscribers at the customary rate 
for such toll service and shall make settlement for all toll service at the beginning of 
the month next following such service. 

It is agreed and understood that during the period of this contract second party 
shall not make connection with any other rural line or other system of telephone except 
that of first party. 

This contract shall continue in force for the period of five years from the date of 
its execution, and second party shall at any time on request of the secretary or other 
officer of first party furnish first party a complete list of the names of all members or 
subscribers. In case second party does not pay said rental of three dollars per year 
promptly 'for each of its members or subscribers, first party shall have the option of 
declaring this contract forfeited and to disconnect from the line of second party on 
giving ten days' notice of intention to do so. 

Witness our hands by the authorized officers and agents of the parties hereto 
this day of , 190. . . . 



Sec'vf Telephone Company. 



.Pres.) Blakesburg Telephone and 
. Sec'yj Telegraph Company. 



No. 79. 

E. J. Harris, Mayor. 

J. W. Pattison, Secretary-treasurer. 

% Neepawa, AIw.. March 28, 1905. 
John Crawford, Esq., M.P., 

Ottawa. 

Dear Sir, — Tour letter of 22nd inst. to hand. The town of Neepawa commenced 
to operate its own telephone and electric light system on January 1, 1900. The sys- 
tems are to a certain extent run together, the same pole line being used as far as pos- 
sible for both purposes, the linemen also distributing their services where required. 
Our telephone plant, which is metallic circuit, when installed cost $8,000. We had 100 
subscribers, but the capacity of our switchboard was 150 'phones. We ran along with 
this plant until the beginning of 1904. Our switchboard being by this time overtaxed, 
it was decided to put in a larger board of 250 drops. Also it was found advisable to 
cable our lines running direct from the central office to certain points of distribu- 
tion. We also purchased some of the latest and most up-to-date 'phones, and otherwise 
placed our system in first class repair, entailing an additional expenditure of some 
$5,000, making total capital invested, $13,000. Up to the time of making the changes 



APPENDIX " A '• 91 

APPENDIX No. 1 

to our plant the system had been paying fairly well, our receipts on a capital expendi- 
ture of $8,000 being for the year 1901, $1,794; 1902, $2,125 and 1903, $2,140, and last 
year on an investment of $13,000 our receipts were $2,330. We have still 80 more 
'phones to put in. Our charges are $10 per annum for domestic and $20 for commer- 
cial. Our receipts are sufficient to cover all expenditures on account of operating at 
the present rate, but I want to point out to you that at these rates there is a consider- 
able saving to the people over the rates charged by the Bell Telephone Company. We 
not only run on a paying basis, but we save to the people $6 per year on each 'phone, 
which would on the number of 'phones now installed (170) effect a saving to the rate- 
payers of $1,020 per annum. 

The power to conduct this undertaking as a municipal work is conferred by Cap. 
121 of E.S.M. ; section 29 refers to town of Neepawa. If the Dominion government 
in course of time saw the advisability of building and controlling the trunk lines so 
that municipalities could connect with them, municipal ownership would be made 
very much more valuable, and would relieve the people of a very large outlay which at 
present finds its way into the hands of the Bell Telephone Company. The saving we 
effect to the people by our municipal 'phone will give one an idea of the enormous sav- 
ing which might be effected by the government control of trunk lines. 

I inclose herewith a copy of the Auditor's Beport for 1904. You will find it pretty 
complete, and by reference to page 19 you will find a statement of our electric light 
and telephone operations from the first starting of the plant, January 1, 1900. We 
have paid all interest, cost of operation, sinking fund alone not having been provided, 
but this we expect to do readily from now on. We have a surplus of assets to the credit 
of operating account of $1,612, but apart from any surplus the amount saved annually 
to the people by municipal ownership of these franchises is more than would be re- 
quired for sinking fund, but the latter we expect to provide also. 

Yours truly, 

JAMES W. PATTISON, 

Sec'y-treas. 



No. 79a. 

TOWN OF NEEPAWA. 

Statement of Electric Light and Telephone Operating Account from January 1, 1900. 

Receipts to December SI, 190k- 

Cash receipts, 1900 $ 4,474 04 

" 1901 7,238 91 

" 1902 8,797 58 

1903 9,085 91 

" 1904 11,251 71 

Total cash receipts $40,848 15 



Assets. 

Wood on hand (470 cords) $1,645 00 

Electric light arrears ' 290 96 

Telephone arrears 275 74 

Earnings for December 1,213 13 

$44,272 98 



92 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Expenditure. 

Cash expenditure, 1900 $ 5,437 77 

" 1901 " 5,776 22 

" 1902 7,665 34 

" 1903 10,163 68 

" 1904 13,542 69 

42,585 70 

Liabilities. 

Amount due Poison Iron Works 74 (0 

Surplus 1,612 58 

$44,272 98 

]SJo TE —All interest has been paid. The' sinking fund alone has not yet Veen pro- 
vided. 



No. 80. 

Queen Ann's Chambers, Broadway, Westminster, 

London, S.W., May 6, 1905. 
Sir William Mulock, 

Select Committee on Telephones, 
Ottawa, Canada. 

Sir, — I was in due receipt of your letter, date March 30, 1905, but owing to great 
preoccupation, have not had leisure to reply to it hitherto. I have now pleasure in 
replying cursorily. In a week or two the accounts of the local authorities I have men- 
tioned will be out, except Glasgow, which is not due until after May 31, and when this 
occurs I shall have pleasure in writing you again with the results. 

Several years ago I came to the decided opinion that telephone systems are best 
developed when in the hands of persons who understand local requirements. The 
requirements of various towns and cities, even of the same size, are frequently different, 
and this is truer still of small towns and villages. It therefore follows that a hard and 
fast system, such as is apt to be set up by a central authority, does not meet the wants of 
all places. In Germany the telephone system is in the hands of the Imperial Government, 
and the whole of it, with the exception of Bavaria, Wurtemburg and Baden, is managed 
from Berlin. The same rates and the same regulations apply to all places of all sizes, 
irrespective of location, so that no variation is possible to meet local characteristics. 
The ill-effects of this have been brought out prominently in Schleswig-Holstein, which, 
of course, is part of the German Empire, although geographically it is a portion of the 
peninsula of Jutland, the northern part of which belongs to Denmark. The telephone 
development of the German portion of the peninsula has been very slow and is decidedly 
behind, the number of exchanges being small and the number of subscribers to them 
far below the average for the sizes of the communities. This is owing to the fact that 
everything is managed from Berlin. On the other side of the frontier, in Denmark, a 
very different state of affairs exists. There every village has its telephone exchange, 
and there also every village is connected by trunk wires with the others, that telephone 
communication may be said to be universal. The rates charged are very much lower 
than on the German side of the frontier. This different state of affairs is due to the 
fact that the Danish towns and villages are managed locally, either by their own town 
councils or by little companies which are formed to operate in a particular district. 
The great difference on the two sides of the frontier led the Chamber of Commerce of 
Flensburg, which is the principal town on the Schleswig-Holstein side, to petition the 
German Government on the subject. 

During the last few years several local authorities in Great Britain have taken up 
telephone work, such as the corporations of Glasgow, Hull, Portsmouth, Brighton and 



APPENDIX " A " 93 

APPENDIX No. 1 

Swansea, and the states of Guernsey. These authorities have been working under 
license from the Postmaster General, and have all started telephone exchanges, which 
have grown with great rapidity and which are in a nourishing condition. In all these 
places, except in Guernsey, they have to compete with the National Telephone Com- 
pany, which may be compared with the American Bell Telephone Company in Amer- 
ica. The effect as regards numbers of telephones has been startling. The Island of 
Guernsey, which has only a population of 40,300, possesses 1,400 telephone stations, or 
one to every twenty-nine inhabitants, and the number continues to grow. In fact, 
Guernsey is the best telephoned area in the United Kingdom. Glasgow possesses some- 
thing like 25,000 or 28,000 telephones, whereas, before the corporation began to com- 
pete the number was only 5,000. The population of Glasgow is approximately the 
same as that of Liverpool and Manchester, but these last two cities, which are in the 
hands of the National Telephone Company exclusively, have only some 9,000 or 
10,000 telephones each. Similar great development has attended the opening of the 
municipal exchanges in the other towns I have mentioned. The town councils natur- 
ally know what the citizens require in the way of telephone facilities, and are able to 
meet these wants more accurately and more intelligently than a company working from 
London. In other countries, such as Sweden and Norway, a much greater develop- 
ment in telephony has occurred than in Great Britain, owing to the fact that in both 
these countries, as in Denmark, telephony has been for a good many years in the hands 
of local concerns, sometimes town councils and sometimes companies. But the prin- 
ciple of lpcal administration has been adhered to in both cases. Sweden, Norway and 
Denmark have more telephones in proportion to their populations than any other Euro- 
pean country. 

When we turn to countries in which the management in centralized, as in Ger- 
many, France, Austria, Belgium, Spain and Portugal, we find that the results are far 
more satisfactory, and that the development of telephony is slower. My views, there- 
fore, run counter to the establishment of any one central authority in Canada, unless 
the drawbacks which surely attend on centralization can be modified or neutralized 
by the appointment of local advisory committees possessing a voice in the rules and 
regulations under which telephones are administered in their several districts. 

I do not think that the conditions which prevail in Quebec agree at all with those 
which would have to be met, say in Halifax or Toronto. Each of these cities unques- 
tionably possesses its own particular requirements, and these could not be met by a 
central authority at Ottawa unless controlled, as I have suggested, by local committees. 
I am in consequence of my experience, opposed to the acquisition of all the British 
telephones by the post offices, as I am sure that the officials in London would not work 
with the advisory committees or with the Chambers of Commerce, and I doubt seri- 
ously whether the transfer of the telephones to the state would produce any better 
results than are now obtained under the National Telephone Company and the munici- 
palities. 

I am addressing to you under another cover a copy of a paper which I read at tbe 
Ipswich meeting of the British Association some years ago, in which the results of 
local control as compared with centralized control are set forth jn a striking manner. 
Since this paper was read there has been no occasion to modify my opinion, and I still 
adhere to it as strongly as ever. 

I have the honour to be, sir, 

Yours very faithfully, 

A. B, BENNETT. 



94 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 81. 

Bedford, N.S., May 10, 1905. 

Sir Wiu.iam Mulock, K.C.M.G., 

Chairman Select Committee on Telephone Systems. 

Sir, — I have your letter of the 1st instant, asking for information regarding the 
Hammond's Plains Telephone Company, and I have the honour to give you the fol- 
lowing information : — 

The company is a very small one and only operates over a very limited territory. 
I am a practising physician in this village, Bedford. We have had here telephone 
connection for several years -with the Nova Scotia Telephone Company, but all the 
outlying districts in which I practice, covering a radius of about fifteen miles from 
here, have never until recently had' any telephone service. Some of these rural parts 
have a daily and others a tri-weekly mail. About three years ago 1 approached the 
Nova Scotia Telephone Company and asked them to extend their lines to some of those 
places. They said there was not business enough to warrant them to build lines up to 
their standard of construction, but they, the (N. S. Company), suggested that we build 
these lines ourselves and they would give us connection at Bedford with their system. 
I went all through these rural districts and saw the people, and succeeded in getting 
enough money subscribed to build and equip nearly twenty-five miles of line ; we started 
from my office here in Bedford with two main lines in two directions, and as we got 
away from the village we branched off in other directions, so thai we have all or nearly 
all the outlying- rural districts connected with my office. I have a switchboard here and 
make connections with the Nova Scotia Telephone Company, for any point in its 
system or its connections. Our little local company lias been a success and is satis- 
factory in every way. our subscribers are all farmers, coopers, country store keepers, 
and small mill owners. We bought all our building material from the Nova Scotia 
Telephone Company. We have twenty-three miles of line, eighteen subscribers, (six- 
teen residence telephones and two shop telephones) and cover a territory that is served 
by eight post offices. The total cost of building and equipping the twenty-three miles 
|of line was about $1,200. We charge subscribers $5 per year for a telephone. This 
gives them free service over the local line. The toll rate over the local line is ten 
cents for non-subscribers. Wh<m connection is made with the Nova Scotia Company 
the toll rate is ten cents plus the Nova Scotia Company rate for subscribers and non- 
subscribers. We pay five per cent dividend to those who subscribed the money to build 
the line (last year ten per cent), and we are able to place from ten per cent to twelve 
per cent each year at rest as a reserve fund. This after paying all expenses. The 
country people are delighted with the service, and they really have a much better ser- 
vice than they would have had if the large company had built a line or lines to these 
places as I asked them to do at first. 

If there is any other information which I can give you I should be very glad to 
do so. I am, sir, 

Tours faithfully, 

A. McD. MORTON, M.D. 

■No. 82. 

Frederick S. Dickson, President. J. B. Rhodes, Secretary and General Manager. 
Sherman M. Granger, Vice-President. R. W. Judd., Treasurer. 

THE ZANESVILLE TELEPHONE AND TELEGRAPH COMPANY. 

Zanesyille, Ohio, May 23, 1905. 
Sir William Mulock, Postmaster General, 
Ottawa, Ontario. 

Dear Sir, — I have your favour of the 1st instant and note same carefully. T re- 
gret that I have not at this time facilities for answering in detail all of the questions 
included in your circular. 



APPENDIX li A " 95 

APPENDIX No. 1 

For your information I will say, however, that four years ago,* when we began 
building our telephone system in Muskingum county, the Bell Company was operat- 
ing about 750 telephones in the county. They had never developed service in the rural 
districts and in fact absolutely refused to furnish telephone service to the farmers. 

We began building our plant in 1901 and during the short period of time we have 
been operating our plant have very thoroughly developed not only the cities and vil- 
lages, but the rural districts within Muskingum county. 

The Bell Company charged $48 for a business telephone on individual line, and 
$36 for a residence 'phone. Our rates were established at $33 and $18 respectively. 
For the above prices a subscriber may have free service with more than double the 
number of subscribers formerly reached by the Bell Company, and for a 10 cent toll 
rate can talk to any town or toll station within the county. 

We have at the present time connections with more than 1,150 farm line subscrib- 
ers in their homes. 

Good service at reasonable rates has caused our list of subscribers to increase 
steadily, and at the present time every line on our switchboard at this point is in use, 
and we are just completing arrangements for a party line service, which will enable us 
to take care of at least 1,000 additional subscribers. 

Our rate for a two party business 'phone will be $2-4 per year, and for a four party 
line residence 'phone $12 per year. 

Our earnings are sufficient to pay from six to seven per cent interest on our 
capitalization. 

For further information concerning the various telephone plants in Ohio, I would 
suggest that you write to Mr. C. Y. McVey, general manager, Federal Telephone Com- 
pany, Cleveland, Ohio, who has charge of a number of extensive plants within this 
state. 

With kindest regards, and best wishes for the success of the movement in Canada, 
T am, 

Yours very truly, 
THE ZANESVILLE T. & T. COMPANY, 

By J. B. Khodes, 

General Manager. 



No. 83. 

Edward P. Baird, William T. Baird, 

President and Treasurer. Vice-President. 

BAIRD MANUFACTURING COMPANY. 

24 Michigan Street, 

Chicago, III., May 24, 1905. 
Select Committee on Telephone Systems, 
Ottawa, Canada. 
Sir William Mulock, Chairman. 

Dear Sir,— Inclosed find copy of our booklet describing our Secret Service Tele- 
phone Sy6tem, which we promised to send you in a previous letter. We are also sending 
you under separate cover \ dozen copies of the same booklet. 

As you will find described in the booklet, our Secret Service System not only gives 
the selective ringing and lockout but all locked out patrons have the privilege of giving 
in an emergency call without interfering with the conversation of parties using the line 
or being able to listen in. This we consider an important feature as it gives the locked 
out patron the privilege of calling the operator when a physician is wanted, or the fire 
department or for any other special reason. 



96 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 

As you will see by the testimonials in the booklet, our system has demonstrated 
itself a complete and unqualified success. 

We are almost daily receiving repeat orders from old customers, which is the most 

satisfactory and practical testimonial that can be given as to the merits of our system. 

If at any time your committee would like to have us send one of our salesmen with 

a complete system for demonstration we will be pleased to do so, and are confident you 

will be delighted with its workings. 

Meanwhile, any further information you may desire we will be pleased to furnish. 
Awaiting your pleasure, we are, 

Yours truly, 

BAIRD MANUFACTURING COMPANY, 

E. P. Baird, 

President. 



No. 84. 

Wm, Kellock, B.A., Advocate, Solicitor, Notary, Etc., 

Weyburn, Assa., May 10, 1905. 
E. S. Lake, Esq., M.P., 

House of Commons, Ottawa. 

Re Telephone Inquiry. 
Dear Sir, — I am in receipt of your favour of the 5th inst., inquiring about the 
telephone system in our district, and in reply beg to state that the system in use here 
is a local one and owned by a private company organized under the Companies' Act. 
The system at present is only in use throughout the town of Weyburn, but will be ex- 
tended to Regina and Minneapolis during the next two years. It is giving every satis- 
faction to all the parties who are using it. It is in use by all the business men in town, 
and the rates of charges are $1.50 for private residences and $2 for business purposes 
per month. I shall be pleased to give you whatever further information you may require 
in the matter. 

Yours truly, 

WM. KELLOCK, 

Mayor, Weyburn. 



No. 85. 



REGINA BOARD OF TRADE. 



Regina, N.W.T., May 19, 1905. 
Walter Scott, Esq., M.P., 
House of Commons, 
Ottawa, Ont. 

Dear Sir, — I have been requested by the mayor of Regina and by the chairman 
of the Business Men's Committee of the Board of Trade, to answer your letter ad- 
dressed to the mayor, dated the 6th instant. Your letter has reference to evidence 
to be submitted to a special committee of parliament which is at present inquiring into 
the subject of telephones. 

So far as Regina city is concerned the telephonic service is good, that is the 
local service, though the general impression is that it might be cheaper. We pay 
$20 a year for telephones in private houses, $35 in places of business and $38 a year 
for desk telephones. 

The general feeling here is that we ought to have a long-distance service, we have 
always been promised this, but the promise has not so far been fulfilled. It would be 
a great boon to a growing place like this, even the farmers in the district are ask- 
ing for telephones to their settlements, and indeed steps were recently taken to ex- 



APPENDIX "A" 97 

APPENDIX No. 1 

tend the Private Telephone Company that at present operates between Craven and 
Lumsden to different settlements and to Regina. The sum of $1,500 was guaranteed in 
Tregarva alone, and although the Bell Telephone Company propose to run lines to the 
district indicated, yet the fear is that the charges will be high. 

I will merely add that the feeling in favour of government ownership and opera- 
tion is very strong and has quite obliterated the desire for municipal ownership, which 
would be inconsistent with long distance telephones beyond city limits or town limits, 
and would be certain to lead to complications. 

I am, dear Mr. Scott, 
Yours truly, 

WM. TRANT, 

Secretary. 

Ho. 86. 

RESOLUTION OF THE OWEN SOUND BOARD OF TRADE. 

That, Whereas owing to the rapid growth of the Dominion of Canada the use 
«f telephones is becoming more and more an absolute necessity in commercial busi- 
ness and every day life; 

And That, Whereas, it has been elicited from witnesses examined by the Select 
Committee of the House of Commons relating to telephone systems that local co- 
operative telephone systems have been sufficiently tried to establish their feasibility, 
and the fact that the advantages of telephone service may be greatly extended at 
rates and on conditions much more favourable to subscribers than those at present 
exacted; 

And That, Whereas, the United States, England and other European nations 
have been giving careful consideration to the question of government ownership of 
telephones, and it is expected that such a policy will be generally adopted by these 
countries ; 

And That, Whereas, the Board of Trade for the town of Owen Sound is heartily 
in accord with the principle of government telephone ownership; 

Now therefore, be it resolved that in the opinion of this board the time is oppor- 
tune for the Dominion Government to assume the ownership and control of all tele- 
phone systems and lines in the Dominion of Canada, and that a copy of this resolution 
be forwarded to our representative, W. P. Telford, Esq., M.P. 

BEN. ALLEN, 

President. 
DAVID E. RITCHIE, 

Owen Sound, Ont., May 19, 1905. Secretary. 



No. 87. 

Northern Indiana Telephone Association, 

Office: Home Telephone Building!, 

Fort Wayne, Ind., May 24, 1905. 
Sir Wm. Mulock, K.C.M.G., 

Ottawa, Canada. 

Dear Sir, — Answering your inquiry under date of May 22, relative to telephone 
systems, &c, beg to say that the number of independent telephones in the state of 
Indiana is 175,009, the number of the Bell approximately 30 000; the Independent 
Company began operation in this state ten years ago, the Bell Company twenty-five 
years ago. 



98 SELECT COMMITTEE o.Y TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In the cities mostly common battery plants have been installed, the country dis- 
tricts using the magnetic system; most of the larger cities have rural lines extending 
out about eight to ten miles, beyond these points service is furnished to the farming 
districts by securing some central point and installing a small switchboard to which 
the country lines from the territory round-about centre, and a special circuit is sup- 
plied from this switchboard to the next largest city, and service is rendered in the 
latter case on a nominal toll basis. Where the rural lines connect directly with the 
switchboard, in the larger cities it is done on a rental basis at a price averaging $1.50 
per subscriber, with six to twelve telephones on one line, in accordance to the distance, 
seldom exceeding two subscribers to the mile. 

Although formerly railway companies objected to the placing of telephones in 
their waiting rooms, the condition does not now exist, and independent telephones can 
be found in the waiting rooms at nearly every railway station. 

Trusting that this covers the information desired, and with the assurance of being 
at your service on any other points, if more information in detail would be of value, 
I am, 

Yours very truly, 

WM. L. MOELLERING, 

President. 



No. 88. 

THE HOME TELEPHONE COMPANY. 

Plattsburg, Ohio, May 24, 1905. 
Hon Sir Wm. Mulock, K.C.M.G., 

Postmaster General, Ottawa. 

Dear Sir, — In reply to your inquiries concerning our telephone system, I have 
written briefly on the inclosed list. 

Our plant is small, but owing to the fact that we are operating one of the first 
automatic boards installed in this state (1901), and that our country lines from the 
start, four years ago, have been equipped with selective ringing lock-out telephones 
made under the patents of N. E. Norstrom, we have received many inquiries and many 
visits from telephone men in this and neighbouring states. It is perhaps the only plant 
whose country lines are all equipped in this manner, and we are giving to our rural 
subscribers an ideal service. The apparatus is now manufactured by the Baird Manu- 
facturing Company of Chicago. Their printed advertising matter will probably give 
you the desired information concerning it. It does all they claim for it. The first 
co ; t of the subscriber's station is about $6 more than where a common bridging instru- 
ment is used; the operating expenses are a little more and the rental should be higher. 
Owing to competition we have not charged an increased rental, but we have almost 
driven the opposition company out of our territory. As your committee is especially 
interested in rural telephone systems, I will be pleased to answer any further inquiries 
that you may make. 

Yours truly, 

CARLTON HENRY, 

Secretary and Manager. 



APPENDIX "A" 99 

APPENDIX No. 1 

No. 89. 

THE NEAV BRUNSWICK TELEPHONE CO., LIMITED. 

Head Office. 

Fredericton, N.B., May 25, 1905. 
The Hon. Sir William Mulock, 

Chairman of Select Committee on Telephone Systems, 
Ottawa, Ont. 

My Dear Sir, — In your report of the proceedings I find in Appendix ' A ' under 
No. 76, a communication from a committee of the Board of Trade of the town of Wood- 
stock signed R. E. Holyoke, J. T. Garden, William Dibblee, in which reference is 
made to my having stated that the prices of our instruments was $15 for a single in- 
strument and $25 for two instruments. The communication states that in that respect 
I was wrong. That our company had charged $15 for each instrument, whether a sub- 
scriber took one or more instruments. 

I am inclosing you at this time some several leases selected from those filed in the 
office for services rendered to our subscribers in the city of Woodstock, as follows : — 

Woodstock, Feb. 1st, 1893, Garden Brothers, 3 instruments at $35. 

Woodstock, April 1st, 1894, John McLaughlan, 2 instruments at $25. 

Woodstock, May 1st, 1896, George Anderson, 2 instruments at $25. 

Woodstock, Feb. 1st, 1897, Woodstock Carriage Co., 2 instruments at $25. 

Woodstock, Aug. 1st, 1901, F. B. Carvell, 2 instruments at $25. 

The above rates had not been changed before the advent of the Union Telephone 
Company in the town of Woodstock, 1905. 

The leases will confirm the statement that I made to the Committee as being abso- 
lutely correct in reference to the rates. 

I am quite sure that the eommittee of the Board of Trade has no desire to mis- 
represent these facts and it was simply inadvertently done. 

Yours very truly, 

FRED. P. THOMPSON, 

Managing Director. 



No. 90. 

Queen Anne's Chambers, 

Broadway, Westminster, 

London, S.W., May 16, 1905. 
Sir William Mulock, 

Select Committe on Telephones, 
Ottawa, Canada. 

Sir, — Referring further to your letter dated March 30, I find that in my reply of 
the 6th instant I did not say anything about your inquiry as to telephony in rural dis- 
tricts. Practically nothing has been done in this direction in this country. Many 
villages have now telephone exchanges through which it is possible for farmers to obtain 
telephonic communication by means of either direct lines to the exchange or by becom- 
ing subscribers to a party line. In each case they have to pay the usual tariff, the same 
as shopkeepers and manufacturers would do in similar circumstances. Of course, dis- 
tances in Great Britain are much shorter than in Canada, and the same occasion for; 
dealing specially with these calls does not arise. By referring to the pamphlet which 
I had the. honour to inclose with my letter of the 6th instant, you will see that the late 
Major-General Webber proposed a special system of rural telephones for Suffolk as far 
back as 1896. But nothing ever came of this practically, and such of the Suffolk farm- 
ers who possess telephones to-day do so under the conditions applicable to other classes. 

l—d—8 



100 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

I expect shortly to be in a position to forward you copies of the municipal tele- 
phone accounts for the year ending March 31 last. In the meantime, I inclose those 
of the Guernsey telephone system, as their financial year ends December 31. 
I have the honour to be, sir, 

Yours very faithfully, 

A. R. BENNETT, 



No. 91. 

The Bell Telephone Company op Canada, Ltd., 
Manager Ontario Department, 

Hamilton, May 29, 1905. 
Adam Zimmerman, Esq., M.P., 
Ottawa. 

Dear Sir, — My attention has been drawn to a remark which you made in committee 
the other day in reference to the rates charged by this company to their Hamilton sub- 
scribers as compared with the rates charged Ottawa subscribers and, as reported in the 
papers at any rate. I think you were under the impression that the company had not 
dealt fairly with the Hamilton people. 

I personally attended to the making of the contract with the city council here, and 
therefore am in a position to explain it to you and you will see that we were perfectly 
fair in every way. 

Perhaps you do not know that we have for some years here given subscribers a rate 
both at offices and houses of $25 a year and 2c. per call. This was originally intended 
for dwelling houses, where the instrument was to be installed more for the sake of pro- 
tection than anything else, and for small stores like corner groceries, and cabmen, &c, 
where their own calling rate was very small and most of the calls came to them from 
other people, and the rate saved these people a good deal of money. The agreement 
with the city contemplated extending these cheap rates, and we are now putting in houses 
on party lines (we have the privilege of putting four houses on a line, but rarely put 
more than two) for $20 a year, and we give them with this one hundred calls a month 
free. ,We also take places of business in the same way with two on a line for $35 a year, 
with one hundred calls a month. To make a long story short, I offered the committee 
that if they would give up these cheap rates and allow us to confine ourselves entirely 
to a flat rate for unlimited service for offices, anywhere within the city limits, of $45, 
and a flat rate for houses of $25, 1 would recommend the company to accept this. They 
refused to do this, as there were already before this agreement was made, I think, about 
240 subscribers at the lower rates, and they did not think these people would like to give 
them up. Therefore, of course, as some of the subscribers would be paying only $20 
we could not afford to allow the largest users to get off for less than $30 for their houses, 
and that is the reason of the present arrangement, which I think was just as fair to the 
city as the one we made in Ottawa. At any rate, I am sure you will do us the justice 
to explain, if the matter comes before you again, that if there was any difference 
between the two it was not our fault. I might add that there were also some minor 
advantages in the Hamilton contract to the city and the subscribers, which I think are 
not in the Ottawa contract. 

Yours truly, 

HUGH L. BAKER, 

Manager. 



APPENDIX " A " 



101 



APPENDIX No. 1 

No. 92. 



House of Commons. 

Ottawa, May 17, 1905. 



Sir Wm. Mulock, 

Postmaster General, &c, 

Ottawa. 

Dear Sir William, — In reply to your communication of April 20, in reference 
to the telephone facilities at present enjoyed by the people of the riding of Thunder 
Bay and Rainy River. 

The first telephone service established in that riding was in the town of Port 
Arthur, and was established by your humble servant. At that time the Bell Tele- 
phone Company claimed the right of erecting poles independently of the municipal 
authority. They had refused to put in a system at Port Arthur, stating that when 
they found the conditions suitable they would do so, and that in the meantime they 
had a patent on the telephone and nobody else could interfere. 

I found a Toronto company willing to sell telephones, and I purchased the neces- 
sary number for putting in a system, that company giving me assurance that the Bell 
people could not prevent its operation. No sooner had I started to put in a system 
than the Bell people also, a few weeks later, started to put in a system. I then ex- 
tended the Port Arthur Telephone Company (which company I had formed) system 
to Fort William, the adjoining town, about six miles distant. A month or so later 
the Bell Company extended their system to Fort William. After receiving from the 
Bell Company a number of threatening letters to bring action for damages for 
infringement on their patent rights, I had the case referred here to the Minister of 
Customs and showed clearly that they were not manufactured in Canada, but that 
their telephones were coming from the United States. The ruling of the commis- 
sioner was in our favour and against the Bell Company, so we were then relieved 
from that class of difficulty. The Bell Company then gave their telephones free to 
the customers, and the Port Arthur Company did likewise for two or three years. 
About this time the Bell Company made an offer to purchase the local company and 
their offer was accepted, and we went out of the telephone business with a heavy loss. 

As soon as the Bell Company had control of the local company the price of 
telephones went up to $35 or $40. I am not quite certain of the price, but they were 
very high. That condition of things existed until about two years ago, when the 
municipalities of Port Arthur and Fort William mutually agreed that they would 
install municipal systems in each town and that they would afford to each other equal 
facilities in each town over the respective lines. The systems have been installed and 
work exceedingly well. The citizens get a telephone service now for about one-half of 
what they had to pay formerly, and have a much better and more extended service. 

The only difficulty experienced is that the Canadian Pacific Railway — and I 
think the Canadian Northern Railway also — do not take the municipal 'phones into 
their railway station offices. The Canadian Northern, however, has a municipal 
'phone in its up-town office, and by that means communication with it is, I think, 
quite satisfactory. 

The Bell Company is now again furnishing free 'phones to those who will use 
them, but notwithstanding this, 95 per cent of the 'phones in use in both towns are 
the municipal 'phones. The Bell Company is really furnishing little or no service 
in either towns, and have been compelled to take their 'phones out, notwithstanding 
the offer of their free use. 

There is no long-distance service in that section of the country, and the success 
of the municipal 'phones is quite complete. 

The Bell Company has a telephone service at Rat Portage and Keewatin. 

These are the only telephone services of any consequence in the riding of Thunder 
Bay and Rainy River. Tours truly, 

JAMES CONMEE, 

1—d—Si Per O.H. 



102 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 93. 

New York Life Building, 11 Place d'Armes, 

Montreal, May 23, 1905. 
Hon. Sir Wm. Mulock, 

President Telephone Inquiry Committee, 
Ottawa, Ont. 

Sir, — I have followed with much interest the work of the committee upon telephone 
operation in Canada, the more so as for my part, I have had numerous reasons for com- 
plaint against the Bell telephone service in Montreal. I regret that I was away during 
the examination of Mr. Sise. Perhaps this gentleman could have given some explana- 
tion upon the following point. The statute 2 Edw. VII., ch. 41, sec. 2, says : ' Upon the 

application of any person the company shall with all reasonable despatch furnish 

telephones of the latest improved design then in use by the company in the locality, 

and telephone service for premises upon tender or payment of the lawful rate 

semi-annually in advance.' 

Now, the Bell Company claims that the best instrument is what they call the long- 
distance telephone, but the company does not furnish this instrument, as it is obliged 
to do, for the ordinary subscription price, but it charges for it $5 extra per annum. 

The company may say that this is the lagal rate, but it seems to me that since it 
must furnish only one kind of instrument, that is the best, it cannot have two sets of 
rates. 

More than that, the employees of the company absolutely refuse to accept subscrip- 
tions for the Blake, or ordinary telephone, for service in the east exchange in Montreal, 
where the subscription price for residences was formerly $30, but they require that the 
subscriber should take the long-distance instrument and that he should pay $35. 

This is only a few of the numerous abuses to which the Bell Company is subjecting 
the public, and for which, I trust, the committee will find a remedy. 

I remain, sir, your obedient servant, 

EMILE JOSEPH. 



No. 94. 

Michigan Independent Telephone Association, 

Grand Rapids, Michigan, May 25, 1905. 
Sir Wm. Mulock, K.C.M.G., 
Postmaster General, 
Ottawa, Ontario. 

Dear Sir, — Yours of the 22nd at hand. The telephonic condition in the state of 
Michigan is comparatively analysed as follows : — 

In 1896, previous to competition and the initial independent movement, the Bell 
Company had in this state about 13,000 telephones in the two peninsulas. Its rates in 
cities like Grand Rapids were $40 and up for residence 'phones, and $50 and up for busi- 
ness 'phones. Here it had less than 1,500 'phones in service. Toll line rates in the 
state, never less than 25c. for any service, averaged about one cent a mile. Most of 
the service was given with grounded circuits or common return, with what are known 
as Blake transmitters. 

With the inception of the independent movement a radical change in rates ensued. 
In this city the Citizens' Telephone Company, of which I am secretary, charges $36 a 
year for business 'phones and $24 a year for residence 'phones, where the prices formerly 
stated ranged from $50 to £115 on business and $40 to $65 for residence 'phones. Long- 
distance rates on the independent system are running at about one-half cent per mile 
for day service, with about a 60 per cent fee on sums in excess of twenty-five cents for 
night service. The service now is almost invariably full metallic, the transmitters be- 
ing of what is termed the granular carbon or long-distance tpye. The independents 
claim to have nearly 70,000 telephones in the lower peninsula of Michigan, with several 



APPENDIX " A " 103 

APPENDIX No. 1 

thousand in the upper peninsula. iThe Bell Company's report as of date January 1 last, 
claims 66,000 telephones in the state. In many cases Bell rates are lower than the in- 
dependents — they are $6 a, year lower than both varieties of service in this city. The 
explanation of the service above indicated hardly gives a clear idea of its value. The 
fact that the Citizens' Company has in this city 6,550 telephones in service, while the 
Bell Company has considerably less than 3,000 does not so well tell the story as the 
fact that there are scores of hamlets and small towns enjoying service now which form- 
erly had none, and that there are thousands of rural 'phones in farm houses where 
formerly there were not one thousand in the entire state; and villages formerly pro- 
vided with a single toll 'phone, a toll station, now enjoy complete exchange service with 
from thirty or forty to several hundred 'phones. The character of construction and the 
type of service has improved in almost the same ratio as the service has expanded. 

In rural districts there are three types of service. One is straight commercial 
service, built by some corporation connected with some nearby village or town exchange. 
Such exchange affords long-distance connections, of course, and the service is of the 
best quality. There are usually from six to ten subscribers on one party line and the 
rates vary from $10 to $20 a year, dependent upon the cost of construction and distance 
of service. The second type is a sort of combination, a co-operative line or lines built 
by the farmers themselves, entering some near exchange in the most desirable village 
or town, and rates, which we usually call switching charges, running from $3 to $6 per 
instrument. The third type of service is purely co-operative, built and owned bv 
farmers, managed by them, with switchboards or switching stations located at intervals 
in some farmer's or othsr residence, and operated upon an expense sharing basis 
While this type is not wholly desirable in its concrete results, it is inexpensive in its 
construction and maintenance, and, as its patrons aver, ' better than walking.' These 
co-operative exchanges frequently, nay generally, secure connection with commercial 
■companies obtaining long-distance service. Infrequently such long-distance connec- 
tions are made with the Bell Company. 

The matter to which you allude relative to railroad service perhaps can be explained 
in this way. Some years ago in anticipation of the independent movement and prob- 
ably with a view to defeating it or crippling it, the Bell Company entered into five year 
contracts with several of the railroad companies in the state to furnish exclusive tele- 
phone service to such companies. The thought being that a telephone company which 
could not furnish railroad service would be so seriously handicapped that it could 
not long be maintained. Not all of the railroad companies entered into such an ar- 
rangement. The independent movement, backed by the people themselves, grew so 
rapidly that various expedients in avoidance of the contracts mentioned were resorted 
to and most of the railroads soon had a dual of service. Some, however, did not. 
Their objection latterly has been on this theory. A telephone in a railway office must 
be answered by an intelligent clerk, a man who can earn a fair wage. In a way two 
telephones means two clerks, and for that reason a considerable increase of expense. 
However, in a general way the attitude of the railroads is changing and the inde- 
pendents are getting about as much of that sort of service as the Bell Company. In 
this city the Citizens' Company has substantially all of the railroad companies in its 
service. 

Trusting that these answers meet the points desired, and promising further infor- 
mation if at any time you would like it, we are, 

Very Sincerely, 

E. B. EISHEK, 

President. 



104 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 95. 

ORANGE AND SUSSEX COUNTY INDEPENDENT TELEPHONE AS- 
SOCIATION. 

Newburgh, N.Y., May 26, 1905. 
Sir William Mulock, 

Postmaster General, 

Ottawa, Canada. 
Dear Sir, — Your communication as chairman of Select Committee on Telephone 
Systems for Canada, has been received by us and in answer would' say that in this 
section of the country, the companies have in no case experienced any difficulties from 
placing the independent telephones in railway companies' passenger and freight depots. 
In a few instances these instruments have been placed at no charge to the railway 
companies, more of a convenience to the public, and in other cases the railroad com- 
panies pay the regular rates for them. 

It has come to the writer's knowledge in some extremely few cases that rail- 
road companies have made some objection to having the independent telephone placed 
in their offices, but this has been occasioned' only by strong influence of the Bell Com- 
pany through railroad under officials who were friendly with local Bell officials. The 
writer finds that in nearly all the railroad passenger and freight depot;- in this vicinity 
have both Bell and Independent Telephones, and in some cases the Independent only, 
this would apply to smaller towns and villages. 

Yours truly, 

GEO. G. OTIS. 



No. 96. 

DECATUR COUNTY INDEPENDENT TELEPHONE COMPANY. 

Greensburg, Ind., May 26, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General, 
Ottawa, Ont. 

Dear Sir, — We have the honour to reply to your list of questions as fully as xhe 
information at hand will permit. Our system operates in Decatur County, Indiana, and 
have been in existence four years. The amount of stock issued' is $29,000, and we have 
a bonded indebtedness of $27,000. The population of the territory served is 20,000, 
and total number of telephones in operation 1,435, of which 816 are rural subscribers 
and 620 are direct one station lines. The number of residence telephones is 1,282 and 
business 153. 210 subscribers have also the Bell telephone at the same address. The 
average cost, per subscriber, of the local plant is $62.50, the lines being iron wire, 
metallic circuits. The construction is pole throughout. The system is central energy, 
the central office equipment and telpehones being manufactured by the Stromberg- 
Carlson Manufacturing Company, Eochester, N.Y. The rates charged per annum 
are: stockholders, business, $18; residence, $9.60; non-stockholders, business, $24; 
residence, $15. The same rates, respectively, for rural. Six per cent interest is paid 
on bonds, and balance of profits are used in extending plant. 

The system interchanges service with the New Long-Distance Telephone Company 
of Indiana, through which we are in communication with 141 telephone companies in 
the state of Illinois, 1,503 in Indiana, representing over 160,000 subscribers, 206 points 
in Hlinois, 406 in Kentucky, 247 in Missouri and 2,552 in Ohio, for which privilege 
we receive 25 per cent of all tolls originating at this office or its sub-stations. 

The number of ' Bell ' telephones in our territory before competition is not known, 
but the number at this date is 285, of which 241 are residence, and 44 business. 



APPENDIX "A" 105 

APPENDIX No. 1 

The 'Bell' rates before competition were, business, $36 and $42; residence, $30, 
per annum. At this date they are, business, $24; and residence, $6 per annum. 

The wages paid are : foreman, $2 per day ; troublemen, $45 to $55 per month ; elec- 
trician, $85 per month; and operators $3 to $6 per month, according to efficiency and 
length of service. 

The cost of construction material is as follows: — 

Central office equipment, $500 per 100 lines, equipped by manufacturers; $361.15, 
equipped by ourselves. 

Subscribers wall telephones, central energy, $9 ; selective, for party lines, $13. 

Subscribers desk telephones, $9.50. 

Poles, from 90 cents to $9.05, the latter for 45 feet, 7-inch tops. 

Cross-arms, 6 pin, 12$ cents, 10 pin, 21 cents. 

Insulators, $12.50 per M. 

The system operates 213 miles of long-distance lines, which are iron wire, metallic 
circuits. The cost per mile of single wire is, $21.80. 

The charges per conversation over the long-distance lines are ten cents within thj 
county. It is impossible to give rates beyond, as long-distance connections cover many 
states. 

We are a stock company — stock limited to $30,000, divided into 1,200 shares at 
$25 each, sale to one person limited to four shares. At the present time we have 959 
stockholders — our stock is all sold with the exception of 200. Each stockholder ^ar- 
chases his telephone of the company at actual cost of instrument and cost of installa- 
tion, and in consideration thereof receives a rate of 80 cents per month for residence 
and $1.50 for business houses. 

Our authorized bonded indebtedness is $30,000. $28,000 was sold and $2,000 re- 
served. The bonds bear 6 per cent per annum interest, payable semi-annually. They 
run for fifteen years, $2,000 payable annually. 

Our income from all sources is about $20,000 per annum at this time, and our 
running expenses at last estimate about 50 per cent of receipts. 

The company was organized for the purpose of giving our people cheaper telephone 
service than the Bell Company and we made preparations to accommodate 300 sub- 
scribers, believing that would be our limit, but our growth has been phenominal and 
we now have over 800 telephones on farms and over 600 in the city — and the end is not 
yet in sight. 

Where parties in the country wish a line built to them they are required to take 
out stock sufficient to cover construction at the rate of $100 per mile. 

We have answered your questions as best we could with the data at hand and sin- 
cerely trust it may serve your purpose. 

Very truly yours, 

DECATUE COUNTY INDEPENDENT TELEPHONE COMPANY. 

Geo. H. Dunn, 

Secretary. 



No. 97. 

Clerk's Office, 

Village of Grand Valley, Ont., June 5 th, 1905. 
Sir Wm. Mulock, 

Chairman Special Telephone Committee, 
House of Commons, 
Ottawa. 
Dear Sir, — Replying to yours of 29th May re telephones, the system in operation 
here is the Bell Company telephone, with full connection outside. The rates are $15, 



106 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

house or business, or $25 metallic service. There are about forty subscribers, win 
have also free connection with Waldemar, a small village three miles distant. 

Two rural lines, the East Luther Telephone Company, and the Amaranth Tele- 
phone Association, have their head office here. The first-mentioned company's wire 
runs northerly, about 13 miles, with offices at Chatters' Corners, Legatt, Colbeck, 
Monticello and Wesley, and connects at Wesley with the Central Telephone Company, 
whose line runs to Shelburne, with offices at Keldon and Jessopville. 

The Amaranth Telephone Association line runs to Bowling Green, a distance 
of five miles, and this past month they have extended their wires southerly arnut 
10 miles to Orton, with intervening offices at Taylor's Corners, Price's Corners and 
Marsville. 

The rural lines are a great advantage, as connections can be made from any 
point on one line to any point on either of the others, and to show that they ara 
liberally patronized, the East Luther Company has paid a dividend of 20 per cent 
on the amount paid up on stock, yearly, since its erection. 

The present Bell system meets the present requirements of the village, giving 
good service, but we consider long-distance rates high in comparison with local 'phone 
rates. 

The present facilities for inter-communication with the rural districts are poor, 
as they have no connection with the Bell, especially is this so with parties on the 
rural lines wishing communications with outside centres. 

We would suggest that the government take over the trunk lines and give rural 
lines connection with large commercial cerjtres. 

These are the views of the council. 

Tours truly, 

WM. McINTYRE, 
Clerk of the Village of Grand Valley. 



No. 98. « 

Town Clehk's Office, Obangeville, Ont., June 6, 1905. 

Sir William Mulock, 

Chairman Select Committee on Telephone Systems, 
Ottawa, Ont. 

Hon. Sir, — Your letter of the 2nd inst., was submitted by me to the Town Council 
of the town of Orangeville at its meeting held last night. The following resolution 
was passed by the council : ' That this council considers that it would be to the best 
interests of the country for the government to take over and manage the long-distance 
telephone lines and that the clerk forward a copy of this resolution to Sir William Mu- 
lock.' 

There are 104 telephones in use in this town. The rate for business telephones is 
$20 per year and for residence telephones $15 per year. The service here is satisfac- 
tory enough, but if the government would take over the trunk lines it is likely that a 
local system would be established here, much cheaper rates secured and a larger number 
of subscribers obtained. 

I have the honour to be, sir, your obedient servant, 

A. A. HUGHSON, 

Town Clerk, 



APPENDIX " A " 107 

APPENDIX No. 1 

No. 99. 

CORPORATION OF THE TOWN" OF SUDBURY. 
Office of 

S. FOURNIER, 

Clerk and Treasurer. Sudbury, Ont., June 6, 1905. 

Sir W. Mulock, 

Chairman Select Committee on Telephone Systems, 
Ottawa. 

Sm,— In reply to your inquiry of the 2nd instant, I am instructed by the council 
to say: — 

That the Bell Telephone Company is doing business at Sudbury and Copper Cliff, 
the two places being connected. The subscribers have the privilege of the two ex- 
changes for $25 business and $20 residence 'phones per year. There are about 150 sub- 
scribers altogether. The service for day and night is good, but we have no long-dis- 
tance communication, as the towns east to Pembroke and west to Sault Ste. Marie 
are not connected by a through line. This cannot be remedied before some time, unless 
the government could get the C.P.R. Co. and the Telephone Co., ' Bell ' to have a tele- 
phone wire or more strung up on the C.P.B. telegraph poles in order to hasten the long- 
distance communications between Sudbury and the rest of the province, or by the gov- 
ernment obtaining the control of the telephone systems of the country and making 
the necessary connections between the principal centres and towns in the country. 

I have the honour to be your obedient servant, 

S. Fournier, 

Cleric, 



No. 100. 

MUNICIPALITY OF THE TOWN OF SIMCOE. 

Office of the Town Clerk, 

Simcoe, Ont., June 7, 1905. 
To the Hon. William Mulock, 
Ottawa. 

Sir, — In answer to your request of May 30, re telephones, I have been ordered 
to give what information you require, and transmit a resolution passed by the coun- 
cil at their regular meeting on the 5th instant. 

We use only the Bell system, who have 114 subscribers, and all-night service, 
and gives satisfaction as far as I can hear, the prices, $20 for one 'phone, and $35 
for two to the same person, and being a central switching station for a large district, 
the best of service for long-distance is attained, they have connected all the small 
places n the county, which has proved a great convenience to Simcoe, being the 
county town, and have given us a good fire alarm service at a very reasonable cost, 
the central service both as to long-distance and local is very satisfactory, having 
three operators. The all-night service has been in operation for something over a 
year, there has been some complaints as to the price of long-distance rates, but on 
comparison it was found to be fairly satisfactory. 

I am, sir, yours faithfully, 

W. 0. McCALL, 

Town Cleric, 



108 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 100a. 

Resolution No. 3. 

Council Chamber, 

Simcoe, Ont., June 5, 1905. 

Moved by George J. Kyerse, seconded by Charles Mason, That the municipal 
council of the town of Simcoe recommends, the full ownership and operation 'of all 
telephone lines by the Dominion government, and that the clerk be requested to reply 
to all necessary questions in connection with the communication from the Hon. 
William Mulock. 

ROBERT E. GUNTON, 

Mayor. 



No. 101. 

Brighton, Ont., June 5, 1905. 

Sir William Mulock, K.C.M.G., 

Chairman Select Committee on Telephone Systems. 

Sir, — In reference to your letter of May 29, asking for information regarding 
different telephone systems, &c, within this municipality. The Bell Telephone has 
an agency here and have 23 subscribers. They charge $15 a year for both business 
and resident 'phones, and $30 a year for desk 'phones; the instruments in use in most 
cases are not satisfactory for long-distance conversations, that is over 25 or 30 miles, 
but answer very well for local conversations. 

We also 'have the Wade Telephone Company, whose lines run north into the 
country and cover 50 miles altogether, they have only four subscribers in town, 
their 'phones are not suitable either, for long-distance, their charge is $10 a year 
with no extra charge fojr conversations on any part of the system. They have a 
central office here, but no connection with the Bell Telephone or any other trunk lines 
and are therefore under a great disadvantage. 

We also have within the municipality about 30 independent 'phones, most of 
which were made by the American Telephone Company of Chicajgo, and are the best 
'phones in use here for local conversations, and, as fap as they have been tried, for 
long distance. They cost about $10 each complete, that is with batteries, arrestors 
and switch. They hav» no central office, but nearly every one who owns an Independ- 
ent 'phone, has expressed the desire to be connected with a central exchange if they 
could also have a connection with the Grand Trunk station. Plans have "been under 
way for some time with a view of forming an independent company, and will be com- 
pleted as soon as the Railway Commission dispose of the question of compensation. 

This council, like many other councils, believe it will he of the greatest advant- 
age and convenience to the public if the government would take over the trunk lines 
and the different muncipalities the local lines and operate them in connection, with 
uniform rates and no discriminations. 

As to the rural telephone systems, they have passed the experimental stage, and 
are found to be good paying investments if run properly, a great boon to the farmers 
who have them and would be much more so if they could get connections with the 
main trunk lines, but so far, owing to the opposition of the Bell Company who con- 
trol most of the trunk lines, they have been unable to do so. 

Tours truly, 

TOM C. LOCKWOOD, 

Clerk. 



APPENDIX " A " 109 

APPENDIX No. 1 

No. 102. 

Mayor's Office, 
Owen Sound, Ont., June 3, 1905. 
Sir William Mulock, 

Chairman of the Select Committee on Telephone Systems, 
House of Commons, 
Ottawa, Ont. 

Dear Sir, — In reply to your letter of May 29, in reference to the telephone sys- 
tems in our town, I might say that our ratepayers in a body are in favour of gov- 
ernment control of the telephone systems. The Bell Company have about 350 sub- 
scribers in this town and the merchant pays $25 per year, and if he also puts one in 
bis residence it costs him $20, but otherwise the rate is $25. 

I do not think the people complain so much about the price, although they woulo! 
Ite iquite willing to have them cheaper, but what they do complain about the Bell 
Company is them having the power to dig up our beautiful streets and boulevards, 
just when and where they choose, after all the trouble and expense we have gone to 
in beautifying our town. 

Although I say it myself, we have the cleanest, finest and most beautiful streets 
of any town in Canada, and just as we have them completed' these people come along 
nnd dig up wherever they choose, and it seems according to their franchise they have 
the power to do so. Last year we threatened to call out the firemen and turn the 
hose on them, but we found out we would only be getting into troubjle by so doing. 

Hoping this information will be of value to you, 

I remain yours faithfully, 

MATT. DUNCAN, 

Mayor. 



No. 103. 

House of Commons, 

Ottawa, June 8, 1905. 
Hon. Sir William Mulock, 

Chairman, Telephone Committee, 

Sir, — In response to your communication regarding the telephone facilities m 
county which I represent, I beg to say that Mr. J. E. Valois, Mayor of Lachute, writes 
me as follows: — 

' The service gives satisfaction, but the rate charged, namely : $20 per year which 
is paid' for telephone service within our corporation limits, is too high considering 
the extent of business we do in our town. We have to pay, moreover, according to 
distance, the regular rates charged by the company when connections are made with 
out-of-town 'phones.' 

I have also a letter from Mr. Matthew J. Strong, Mayor of Mille Isles, in which 

he says : 

' We have no improvements to suggest regarding our telephone service because 
we have not any. If you could induce the Bell Telephone Company to extend their 
line from St. Jerome to Mille Isles we would consider it a great favour.' 

It certainly would be a great benefit to counties like Argenteuil if more telephone 
lines were built through the farming sections and there seems to be no reason why 
such lines would not pay a reasonable rate on the capital invested. 

Kespectfully yours, 

GEORGE H. PEELEY. 



110 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 104. 

Langton, Ont., June 9, 1905. 
Sir William Mulock, KC.M.G., 

Postmaster General, 

Ottawa, Ont., 
Sir, — In reply to your inquiry regarding telephones, I am sorry to have to in- 
form you that there is not a single telephone in our township, the nearest one being 
at Courtland (lately installed) seven miles from here. In a conversation with the 
members of our municipal council at our last meeting, I stated' that I had received 
a number of reports of the inquiries of the Select Committee on Telephone sys- 
tems and stated that it was contemplated by the Dominion Parliament to place 
the 'phones in the post offices and have them under the control (to a certain extent) 
')i the municipalities and the council were unanimous in the opinion that the scheme 
would be very advantageous. We are very much in need of a telephone service here 
and would welcome any scheme that would give us, at a reasonable expense, telephonic 
communication with other places. We also need an express office here. 

Your humble servant, 

C. B. ELLISON, P.M., 

Clerk and Treasure?. 

No. 105. 

Shirk Hall, Belleville, Ont., June 12, 1905. 
Sir William Mulock, K.C.M.G., 
Postmaster General, &c, 
• Ottawa. 

Dear Sir,— Your circular letter, dated June 2, 1905, in respect to telephone sys- 
tems in operation in Canada, came to me on the 8th instant, and' I placed it before 
the Hastings county council then in session. 

We have no system of telephones in this county, except the Bell system ; but 
a company is now being formed to erect a local system within this county, and the 
county is favourable to it. After considering your said letter the county council last 
week by resolution recommended: — 

' That such legislation should be enacted as would oblige controllers of the main 
telephone lines throughout the Dominion to give reasonable facilities to local com- 
panies to connect with and have the use of the same.' 

Your obedient servant, 

Wm. K. AYLESWOETH, 

County Cleric. 

No. 106. 

Municipality of Strathclaib, 

Elphinstone, Man., June 7, 1905. 
The Honourable 

The Chairman, 

Select Committee on Telephone Systems, 
Ottawa. 
Sir,— I have the honour to receive your letter of 3rd instant. The telephonic con- 
ditions of out district are as meagre as they can well be. There is no telephone of any 
kind within this municipality, nor in those of our neighbours, and we begin to feel 
the lack of these facilities. With two lines of rail running east and west through our 
midst (the N.W. branch of C.P.R. and a newly constructed portion of the C.N.R.- 



APPENDIX "A" 111 

APPENDIX No. 1 

system), the want of communication with markets, station houses, stores, doctors, &c, 
is most irksome, vexatious and wasteful of time — a social condition in fact that is 
altogether out of date in a prosperous, populous and progressive community, as ours 
is. Regarding the question of the controlling and administering power in any system 
that may be inaugurated, we prefer the Dominion Government. 

I have the honour to be, sir, 

Your most obedient servant, 

H. T. MORTON. 



No. 107. 

(Translation.) 

Batiscan, P.Q., June 9, 1905. 
Sir William Mulock, 

Postmaster General, Ottawa. 

Honourable and Dear Sir, — We have the honour to acknowledge receipt of your 
letter of the 2nd instant, and in reply : the Bell is the only telephone line established 
in our locality at the present time, with few subscribers, who are charged about $20 
per 'phone per year, and moreover they have to pay extra every time they use the 'phone. 
This kind of service and charges thereof is considered exorbitant to a superlative 
degree, and not available to our rural population. However, we hope to be more reason- 
ably dealt by, soon, both with respect to rates and facilities. An independent local 
company is just now being organized, with the object of establishing a service through- 
out all the parishes of our county, at reasonable fixed charges, and within the reach 
of all classes. 

We are of opinion that the government should control and operate, as owner 
thereof, all the telephone systems, but failing this, legislation should be enacted to 
protect the independent telephone companies, chiefly those which are not under con- 
tract! with the Bell Company, because these are the companies which render real 
service to the rural population of our district. 

We are of opinion also that a law should be passed permitting independent tele- 
phone companies to install 'phones in the railway stations, so as to facilitate com- 
munication with the interior part of the county. We have seven or eight parishes 
whose people are often obliged to drive to the railway stations to transact their busi- 
ness. Our County Telephone line will link together, from a telephony service point 
of view, all the parishes of the county as far as here, but it is not free to install its 
'phone in the Canadian Pacific Railway station of Batiscan, judging by a similar 
occurrence which happened a few stations from here. 

Again, we strongly assert, and repeatedly so, that although we have had a Bell 
Telephone service for many years, it does not give satisfaction owing to its exorbitant 
rates and the lack of particular communication with the interior part of the county, 
which the company repeatedly refuses to grant us. 

The Bell Telephone, which has been established here for many years, has only 
eight or nine subscribers, when it ought to have 150, according to our opinion. 

These, dear Minister, are our opinions on this question, all of which we respect- 
fully offer to your consideration. 

Yours truly, 

HECTOR HARDY, 

Secretary-Treasurer. 



112 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VI!., A. 1905 

No. 108. 

(Translation.) Ste. Louise, P.Q., June 10, 1905. 

Honourable Sir William Mulock, 

Chairman Select Committee on Telephone Systems, 
Ottawa. 

Honourable and Dear Sir, — In reply to your circular letter of inquiry addressed 
to me concerning telephone systems in our locality, I beg to say that the county of 
L'Islet is served by four companies, namely: The Bell, the Kamouraska, the Belle- 
chasse and the St. Pamphile. The first of these has its terminus at L'Islet East where 
it joins with the Kamouraska, whose line extends from L'Islet to Kamouraska. The 
main line runs along the bank of the River St. Lawrence. 

The Bellechasse Company's line extends from Campbellton through the counties of 
Loibiniere, Beauce and Megantic; its main line runs at an average distance of three 
miles from the river in L'Islet county. 

The St. Pamphile Company owns a line which extends from St. Aubert as far as 
the American frontier, a distance of 36 miles. 

All these companies' lines furnish an excellent service. The rates charged by the 
Kamouraska Company are $20 for business 'phones and $13 for residence 'phones. This 
includes a full telephone service without extra charge on the line which extends from 
L'Islet to Riviere du Loup, a distance of 87 miles. Subscribers, however, must pay 
extra fo; long-distance calls where messages are conveyed to another circuit. For in- 
stance, a three-minute conversation from Ste. Lou'se to Quebec will require an extra 
charge of 50c, 25 of which is paid to the Bell and 25 to the Kamouraska. These rates 
are considered too high. 

From $10 to $25 per 'phone, according to the extent of services rendered, is charged 
. to subscribers by the Bellechasse Company, with free connection with the Kamouraska 
circuit. For long-distance messages from Fraserville to Quebec — a five-minute conver- 
sntioi — 25c. is charged. 

The St. Pamphile Company charges 15c. on all its circuit for a three-minute con- 
versation to those who are not subscribers. The rate per year to subscribers is $5 on 
oil its circuit. 

This is about all the information which I can furnish respecting telephone service 
in our county. Hoping it will be of some use, 

I have honour to be, Mr. Chairman, yours very truly, 

JOS. ED. CARON. 



No. 109. 

WM. H. HARRIS, B.A., LL.D., 

Barrister, Solicitor, Notary Public. 

Port Perby, Ont., June 7, 1905. 
Sir William Mulock, Esq., K.C.M.G., 

Chairman of Select Committee on Telephone Systems,. 
House of Commons, Ottawa, Ont. 

Dear Sir, — I am instructed by the Port Perry Municipal Council in answer to 
your letter dated June 2nd, in reference to the telephone service in this neighbourhood, 
to say: 

That the Bell Telephone system operates here and have about forty 'phones and 
two rural 'phones. They charge $20 for business 'phones and $15 for house 'phones for 
local connections. Their system, as far as it goes, works fairly well, but they do not 
connect us sufficiently with the surrounding neighbourhood, in censequence of which 



APPENDIX "A" 113 

APPENDIX No. 1 

all the village doctors have installed their own 'phones, having probably 100 miles of 
line, which the citizens can use on paying 25c. per call. 

These lines are, however, very poorly installed and the service is therefore poor. 
This council is of the opinion that it would be an immense advantage to Canada, 
and certainly to this particular neighbourhood, if the telephone system was taken over 
by the government and run in connection with the Post Office Department. 

The council desires me to send you their thanks for the reports of the evidence 
taken before your committee. 

Yours truly, 

Wm. H. HARRIS, 

Clerk. 

No. 110. 

(Translation.) 

Arthabaska\ ille, P.Q., June 10, 1905. 
Sir William Mulock, 

Chairman Special Committee on Telephone Systems, 
Ottawa. 

Dear Sir William Mulock, — I have the honour to acknowledge receipt of your 
letter of the 2nd instant. The telephone companies doing business in the county of 
Arthabaska are: (1) the Bell Telephone Company, (2) the Godbout Tsiephone, (3) 
the Fournier Telephone, (4) the Belanger Telephone, (5) the Provencher Telephone. 

The Bell Company gives night and day, also week day and Sunday service on its 
circuit. We pay $15 for a 'phone in Arthabaska with privilege of telephony in the 
towns of Arthabaska and Victoriaville without extra charge, but for telephony to 
adjoining places we pay 15 cents for a three-minute message. We pay 50 cents for 
a message to Montreal and one-half this rate if calls are made after six o'clock in 
the evening. 

The four other companies, mentioned above, have their circuit exchanges among 
them, and by paying $15 per year for a Godbout 'phone we obtain connection with 
the other companies, and we have no extra charge to pay for service to all places on 
their system. 

But we are unable to speak to Montreal and Quebec. They are simply local lines 
and owing to the current being turned or at night for light it is somewhat difficult 
to receive a message and be heard. 

I have the honour to be, your obedient servant, 

L. LAVERGNE, 

Secretary-Treasurer, County Council, ArthalasJca. 



No. 111. 

County Clerk's Office, 

St. Thomas, June 12. 1905. 
The Hon. Sir Wm. Mulock, 
Ottawa, Ont. 

Dear Sir, — Your communication of the 2nd instant, requesting information re 
telephone services, was laid before the Elgin County Council at their last session. I 
am instructed to inform you that the council is in favour of government ownership 
and operation of main telephone lines, and also local services where private operation 
18 not satisfactory. 

Yours truly, 

K. W. McKAY, 

County Clerk. 



114 SELECT COMMITTEE ON TELEPHONE 8TSTEM8 

4-5 EDWARD VII., A. 1905 

No. 112. 

MUNICIPALITY OF BUBLEIGH AND ANSTRUTHER, 

Clerk's Office, 

Apsley, Ont., June 12, 1905. 
Sir Wm. Mulock, 

Chairman Select Committee on Telephone Systems. 
Dear Sir, — In reply to your circular of inquiry, I may say we have no telephone 
system in this municipality nearer than Burleigh Ealls, twenty miles distant. About 
five years since an effort was made to induce the Bell Telephone Company to extend 
their line to this place, and as an inducement a bonus of $100, free poles delivered 
along the route, and free quarters and service for two years in the post office building 
was offered, but declined. Again last winter an effort was made to obtain a service 
but without avail. I understand a private company is being organized at Lakefield 
to build a line from Burleigh Falls to Mount Julian and Apsley, connecting with the 
Bell Company at the former place. As we have only a tri-weekly mail, the necessity 
of such service is obvious, Peterboro' being the county town and all our trade and 
business being done through there or Lakefield. 

I am, yours, &c, 

ALEX. BELL, M.D., 

Clerk. 



No. 113. 



City Hall, Montreal, June 13, 1905. 



Sir William Mulock, K.C.M.G., 
Ottawa. 
Sir, — I have the honour to transmit to you, herewith, copy of a resolution adopted 
on the 12th instant, by the council of the city of Montreal, in connection with tele- 
phone service. 

I have the honour to be, sir, your most obedient servant, 

BENE BAUSET, 

Asst. City Clerk. 

Extract from the minutes of the city council of Montreal, monthly meeting, held 
on Monday, June 12, 1905: 

Submitted and read the following report of the Special Committee on Legisla- 
tion, anent the letter of the Select Committee on Telephone Systems. 

The Special Committee on Legislation respectfully report that they have con- 
sidered the communication, dated May 28, 1905, from the chairman of the Select Com- 
mittee on Telephone Systems, Ottawa, inviting the city to transmit any suggestions 
or recommendations anent the telephone service in Montreal. 

Inasmuch as the city, through its legal representatives, has already submitted to 
the honourable Select Committee of the House of Commons its representations in this 
connection, your committee recommend that the communication now before the coun- 
cil be filed of record and that a reply be sent accordingly. 
The whole respectfully submitted. 

S. D. Vallieres, L. A- Lavallee, L. A. Lapointe, H. B. Ames, F. E. Nelson, 
A. J. H. St. Denis, E. Lariviere, T. Bastien, W. J. Proulx, L. Payette, 
G. DeSerres, J. C. E. Levy. 

On motion of Aid. Sadler, seconded by Aid. Lariviere, it was resolved that said 
report be received and adopted. 

(Certified) EENE BAUSET. 

Asst. City Clerk. 



APPENDIX -A" 115 

APPENDIX No. 1 

SYNOPSIS OF LETTERS RECEIVED FROM CLERKS OF CITIES, TOWNS, 
VILLAGES, TOWNSHIPS AND COUNTY COUNCILS, BUT NOT 
PRINTED IN EXTEN80. 

No. 114. % 

MUNICIPALITY OF DRESDEN, ONT. 

Bell service appears to satisfy requirements of public fairly well. Rural facili- 
ties limited. Forty Subscribers at rate of $15 each, which some consider too high. 

No. 115. 

BRANDON, MAN. 

Hear little complaint regarding service. 420 subscribers at rates of $20 and $30. 
Bell Telephone Company. 

No. 116. 

WOODVILLE, ONT. 

Nothing to complain of, but think toll rate of 15c. for short distance might be 
reduced. At times have long waits owing to want of an extra line. 

No. 117. 

MAGOG, P.Q. 

Bell service satisfactory, but rates 40 to 50 per cent too high. 
No. 118. 

HENSALL, ONT. 

The Bell Telephone Company opened exchange two months ago and have 20 sub- 
scribers at $20 per annum. Long-distance charges too high and not enough wires to 
handle the bujsiness. 

No. 119. 

BOWMANVILLE, ONT. 

Bell gives fairly good satisfaction. Have 124 subscribers at $15, or $20 with long- 
distance equipment. Long-distance rates considered excessive. Poles very unsightly ; 
think wires should be placed underground in condensed part of town. 

No. 120. 

HUNTINGDON, QUE. 

Bell Company gives fairly good satisfaction: rate $15, which includes radius of 5 
miles. Several farmers have 'phones at $16 per annum. 

No. 121. 

NEW LISKEARD, ONT. 

Two local lines, the Haileybury & Cobalt Company and the Temiscaming Com- 
pany, the latter in course of construction. Rates, $20 business and $12 residence. The 
Temiscaming and Northern Ontario Railway is building telephone line from North 
Bay to New Liskeard. 

1— cl— 9 



116 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1 905 

No. 122. 

COOKSHIRE, QUE. 

Two companies, the Bell and Canadian, in township ; both susceptible to improve- 
ment. Have no night service, which is often urgently wanted. 

No. 123. 

TILBURY, ONT. 

Service satisfactory, except no rural connection. Council does not favour granting 
monopoly to telephone companies. 

No. 124. 

COUNTY OF STANSTEAD, P.Q. 

Bell have 100 subscribers at $15 per annum. Service excellent. People's Tele- 
phone Company have 300 subscribers at $15. Service very faulty. 

No. 125. 

BERTHIER, P.Q. 

Bell have 12 telephones at $15 and four at $25, with long-distance equipment, 
which is all the accommodation in eight municipalities. Rates too high considering 
that service is inadequate. Long distance rates also too high. 

No. 126. 

ST. EMIL1E DE LOTBINERE, P.Q. 

Have one system, the Bellechasse Company. Two telephones in parish, one being 
in office of Sir H. G. Joli de Lotbiniere. Long distance rates 15c. to $1.50. Line in- 
ferior; service unsatisfactory. 

No. 127. 

ST. CONSTANT, P.Q. 

Bell pay station only. No subscribers as rates of company are too high. Quoted 
rate, $20 for residence, $25 for business. If C.P.R. and G.T.E. stations and each end 
of parish had pay stations greater facilities would ensue if rates were moderate. 

No. 128. 

VANKLEEK HILL. 

Bell has 38 subscribers at $20. Service satisfactory. 
No. 129. 

TOWNSHIP OF WEST HAWKESBURY. 

Only two telephones in township, connected with Hawkesbury exchange. 
No. 130. 

TOWNSHIP OF LEEDS AND LANSDOWNE. 

The North American Telegraph and Telephone Company only system. Some years 
ago a local company built lines from Lansdowne to Rockport, but combined action of 
Grand Trunk in refusing railway connection, and N. A. Co. in paralelling lines 
crushed out local line. 



APPENDIX " A " 117 

APPENDIX No. 1 

No. 131. 

MINNEDOSA, MAN. 

Bell service fair while it is working, but no service on nights, Sundays or holidays. 
Kates, $25 business, $15 residence. Long-distance fair, but occasionally lines to other 
points not in working order. No rural connection. 



No. 132. 

POINT DU LAC, P.Q. 

No service. Bell requires 25 subscribers at $25 each or an annual guarantee of 
$200 by the municipality, although village comprises only forty houses. St. Maurice 
Telephone Company operates here, but having no long-distance its usefulness is limited. 



No. 133. 

BURNT RIVER, ONT. 

No service. Very great need of one; nearest doctor Fenelon Falls, 12 miles dis- 
tant. Have asked Bell to build line from Fenelon Falls to Kinmount, but they refuse. 
If writer had means would build line to Fenelon Falls as there is a good deal of busi- 
ness for such a service. 



No. 134. 

SAULT STE. MARIE, ONT. 

Bell have 425 subscribers at rates of $20 for business and $15 for residence; $5 
additional for long-distance equipment. Service satisfactory to council. 



No. 135. 

TOWNSHIP OF CLARENCE, ONT. 

Bell have few 'phones which appear to work with perfect harmony. 
No. 136. 

BIRTLE, MAN. 

Privately owned system. Operating for ten months. Giving satisfaction. 



No. 137. 

NO SERVICE AT THE FOLLOWING: 

Village of Labelle, P.Q. 

Municipalities Joli, Minerve, P.Q. 

Municipalities Odanah, Man., Minto, Man., Shoal Lake, Man. 

Parham, Hinchinbrook Township, Ont. 

Township of Strong, Ont. 

Chapleau, Algoma District, Ontario. 



1—d—n 



118 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

LETTERS RECEIVED FROM OTHER SOURCES. 

No. 138. 

(Translation.) 

THE MONTREAL CHAMBEE OF COMMERCE, 

Office, 83 St. James St., 

Montreal, 3rd June, 1905. 
To the Honourable 

The Postmaster General, 

Ottawa. 
Dear Minister, — In accordance with the wishes of the council of the Montreal 
Chamber of Commence, I have the honour to forward to you a copy of a resolution 
which was adopted at a meeting held the 31st ultimo, re nationalizing of telephones. 
Respectfully hoping that you will accept the assurance of our deepest interest, 

I am, &c, 

JOSEPH HAYNES, 

Secretary. 

No. 138a. 

(Translation.) 

THE MONTREAL CHAMBER OF COMMERCE. 

Meeting of Council, Wednesday, 31st May, 1905. 
• Presided by Mr. H. A. A. Brault, chairman. 

Nationalizing of Telephones. 

It was moved by Mr. D. Parizeau, and carried unanimously: — 

' Whereas, this Chamber of Commerce has supported the request for the nation- 
alizing of telephones; 

' Whereas, parliament is discussing at the present time this question and also 
the rates charged by the telephone companies; 

' This chamber congratulates the Honourable the Postmaster General for the 
general inquiry on the subject, and said chamber is confident that parliament will 
use every endeavour to protect the citizens in this important matter.'' 

seal. } JOS. HAYNES, 

chamber of commerce, I Secretary. 

Founded in [• 

1887. | 

DISTRICT OF MONTREAL. J 



No. 139. 



BOARD OF TRADE, 

Stratford, Ont., June 5, 1905. 



Hon. Sir William Mulock, 
Postmaster General, 
Ottawa, Ont. 

Dear Sir, — I beg to inclose you herewith copy of resolution passed by the Strat- 
ford Board of Trade re government ownership of telephone and telegraph lines which 
may be useful to the Special Committee who has telephone matters in consideration. 

Yours truly, 

J. STEELE, 

Secretary. 



APPENDIX " A " 119 

APPENDIX No. 1 

No. 139a. 

The following is a copy of a resolution passed by the Stratford Board of Trade 
at a meeting held on June 2nd, 1905 : — 

Whereas, it is desirable and necessary that the telephone service should be under 
one management and ownership in order to avoid the inconvenience and expense of 
two or more systems, and to ensure the full benefits of a cheap and effective service, 
and 

Whereas, for similar reasons the telegraph service should be under like, man- 
agement, and 

Whereas, both the telephone and telegraph services are public utilities that are 
necessary to the commercial and domestic life of the whole people, and should be 
furnished to them at the lowest possible cost, 

It is resolved, That the Dominion government be urged to take the necessary 
steps to place the complete telephone service, long-distance as well as local, and also 
the telegraph service, for the entire Dominion, under government control and man- 
agement; that the time is opportune for such action, which should be taken imme- 
diately before the situation is further complicated by the rapid growth of the Domin- 
ion, and the establishment of other companies, and that a copy of this resolution 
be forwarded to the Postmaster General. 

Certified, J. STEELE, 

Secretary. 

No. 140. 

Head Office, Toronto. Branch Offices in Toronto, Montreal, Vancouver, Halifax 

and Quebec. 

CANADIAN MANUFACTURERS ASSOCIATION. 
(Incorporated.) . 

Head Office, Toronto, June 12, 1905. 
The.Rt. Hon. Sir William Mulock, K.C.M.G., 
Postmaster General, Ottawa. 
Dear Sir, — I beg to acknowledge your favour of June 6, advising of the appoint- 
ment of a committee to inquire into the various telephone systems in operation, and 
asking for the views of the association upon this important question. 

I beg to inform you that your letter was received with appreciaton by the Par- 
liamentary Committee of our association at the meeting held this afternoon, and I 
have been directed to forward copies of the same to the different branches of the as- 
sociation, and' ask for an expression of their views. When these are received a report 
will be prepared and forwarded to you. 

Thanking you for this opportunity, I beg to remain. 

Yours very truly, 

J. F. M. STEWART,, 

Assistant Secretary. 

No. 141. 

THE SUPREME COURT, INDEPENDENT ORDER OF FORESTERS. 

Toronto, Canada, June 10, 1905. 
A. Zimmerman, Esq., M.P., 

Acting Chairman, Select Committee on Telephone Systems, 
Ottawa, Ont. 

Dear Sir, — Upon my return from Minnesota, where I have been for the last week, 
1 received your letter of the 6th instant, advising me that yon had received the news- 



120 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

paper clippings that I had forwarded to Sir William Mulock s.)me few days ago re 
telephones. I might just say that I was stopping in Pipeston 3 in south-west Minne- 
sota while absent, and found that the telephone system there vas a local one, and all 
that was paid for house telephones was $12 a year, office telephones being a little 
higher, and I found also that they readily got telephone communication through the 
Bell system outside. I found a similar state of affairs in Grand Valley, Minnesota, 
and I presume other towns and cities are' the same throughout that state. 

I trust that your committee will be successful in getting the public some relief 
from the present Bell Telephone monopoly. 

I am, yours sincerely 

JOHN A. McGILLIVRAY. 



No. 142. 

Subject. — Contract with Kichelieu and Ontario Navigation Company. 
THE BELL TELEPHONE COMPANY OE CANADA, (Limited.) 

President's Office, Montreal, May 31, 1905. 
Walter Todd; Esq., 

Secretary, Telephone Committee, 

House of Commons, Ottawa, Ont. 
Dear Mr. Todd, — I have just learned that it will be necessary for me to correct 
a statement I made, when I said that we had no contract with the Kichelieu and 
Ontario Navigation Company. I was informed at the office that the contract had ex- 
pired, but the clerks in going through so many, made an error in regard to this con- 
tract, which had not expired at the time I testified, but has since expired. We have 
to-day no contract with the B. & 0. Company. 

Will you please communicate this to the committee in order that the record may 
be correct. 

Yours truly, 

C. F. SISE, 

Pmstident. 



No. 143. 

T. B. EIDER & SON, GENERAL MERCHANTS. 

Fitch Bay, Que., May 26, 1905. 

My Dear Mr. Mulock, — Just note telephone inquiry is bringing out some in- 
teresting information re the Bell Telephone Company's method. Of course it is hard 
pulling to get anything from them or their interior methods. Will give you a bit of 
telephone history made near here. A few years ago a telephone company, known as 
' The Citizens' Telephone Company,' with head office at Waterloo, Shefford Co., 
P.Q., was started to give local service, giving farmers on party lines a rate of $10 
yearly. The Bell Company started in on a war of extermination through competition 
in rates, offering at $10 the whole district of Bedford. Comprising the counties of 
Shefford, Brome and Mississquoi, giving free connection. In consequence the Citizens' 
went to the wall. After stifling their principal competitor, the Bell advanced price 
from $15 to $25, giving subscribers connection only to and with their connecting 
central. Won't make rates any longer for district of Bedford. 

I know a farming section in Brome county where some eight or ten farmers had 
Bell 'phones under $10 rate; now only two remain under new rates. Mr. Parmelce, 
M.P., can give further details. Best wishes, 

T. B. RIDER. 



APPENDIX " A " 121 

APPENDIX No. 1 

No. 144. 

THE INDEPENDENT TELEPHONE ASSOCIATION OF WISCONSIN. 

Janesville, Wis., June 2, 1905. 
Sir William Mulock, 

Chairman Select Committee on Telephone Systems, 
Ottawa. 

Dear Sir,— Your favour of the 22nd is at hand. We have in the state of Wis- 
consin some 300 independent telephone companies, having more than 40,000 sub- 
scribers. Over 10,000 of said subscribers are farmers. The construction of rural 
lines is being extended very rapidly. We find farmers to be our most stable sub- 
scribers. It was always the policy of the American Bell Telephone Company to dis- 
courage the building of rural lines. Now that company is making efforts in that 
direction, but the independent companies are so far ahead that their efforts are futile. 

The statement made to your committee that American railway companies will 
admit but one telephone to their offices, is utterly false. Of the hundreds of inde- 
pendent telephone exchanges in the state of Wisconsin, I am sure there is not one 
but that has a telephone in the railway station. The Bell Telephone Company has 
7C exchanges in the state, while the independents have nearly 300. 

I shall be pleased to give you any further information you may desire and' I 
suggest that you send a committee to Chicago to attend the National-Interstate 
telephone convention, to be held on June 20 and 21. 

Yours truly. 

EICHAKD VALENTINE, 

Presidents i 



No. 145. 

Pekin, Illinois, June 9, 1905. 
Sir William Mulock, K.C.M.G., 

Ottawa, Canada. 

Dear Sir, — I am in receipt of your favour of May 22, 1905, and note your desire 
for information in this territory, regarding telephone conditions. More particularly 
regarding facilities in rural districts. Telephonic conditions will be viewed more 
particularly from a stand point of independents as we term those telephone interests 
which work in harmony and in opposition to the ' Bell ' interests. The independent 
interests have made rapid strides in development, particularly in exchanges, and are 
rapidly building long-distance toll lines to connect in numerous exchanges, which -Jiow 
largely outnumber the Bell Company in numbers of exchanges and 'phones. 

Rural lines have been well developed under two methods, first by companies 
owning exchanges, building out into rural districts, the rates charged for such service 
ranges from $15 to $20 per telephone per annum, on a basis of three 'phones per 
mile. 

Another method which seems quite popular is for rural neighbourhoods to build 
their own lines to a city's limit and contract with the company owning the city ex- 
change for city service, by the company picking up the rural line at the city limits 
and maintaining the line within the city limits for a rate equal to one-h?lf the city's 
residence rate pe. 'phone p n r nrnuffi. 

The railroads in our state, to the best of my knowledge, do not permit any tele- 
phone lines on their right of way, being prevented, even should they so desire, by 
previous contracts with the Western Union Telegraph Company, which prohibits 
competitive lines on the right of way, 

We do experience trouble in getting railway companies in some instances + o 
subscribe for telephones in their depots and offices, but we endeavour by such ex- 



122 SELECT COMMITTEE OX TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

cellent service to build up our exchanges in point of numbers, that they must, in order 
10 satisfy their patrons. 

I am. &c, 

GEO. II. GLASS, 
President Central Illinois Independent T< Association. 

No. 146. 

Morgantown, Pa., June 7, 1905. 

Sir William Mulock, K.C.M.G., 

Postmaster General and Chairman Committee Telephone Systems, 

Ottawa, Canada. 

Sir,— Your communication of May 18th to the Conestoga Telephone and Tele- 
graph Company was received, but as I was away it was held for my consideration. 

I inclose herewith a list of answers to the questions asked which I have compiled 
from our records, and trust that they may be of some use to you in making your in- 
vestigation. 

Ours is essentially a rural line, but has grown beyond anything we contemplated 
originally. Several farmers got together to get a line to the village of Morgantown. 
Others asked to join, until the mutual company was merged into a stock company with 
the Capital fixed at $5,000. 

In other sections farmers heard of it and wanted connections and if they were 
willing to take stock enough to cover expenses the line was extended. Each section 
wanted connection with some other business centre, and so we finally got to Birdsboro, 
with the idea of a line to Reading, the county seat of Berks. 

We had not intended the line as a money making investment in the usual sense 
of the word. If it paid expenses and had a surplus to keep it in repair our people were 
satisfied, but as the same operating expenses would cover twice the telephones on the 
same wires we found it had every prospect of a paying investment. 

There is no doubt about it now, but the point I wish to make is, to get a success- 
ful rural line the stock must be placed with as many individual? as possible and local 
interest aroused. If every one who has a 'phone feels he is personally interested in the 
company the line will get along with less than half the trouble or expense of a line 
owned and operated in the usual way. 

This is especially so in getting a right of way in a new territory. We have gone 
across meadows, along line fences, or in any other place we want to make a short cut, 
just because the owner was interested and saw that it was to his own interest to save 
expense for the company. This being the case, there is a big saving in the original 
cost, and should anything go wrong the subscriber has more patience than if he had 
no interest in the welfare of the company, and is often of great assistance in time of 
need. 

In this section this seems- to be the ideal way. If the farmers are interested, the 
towns will fall in line, but an outside corporation coming in will be put to all expense 
possible, and will have to charge according, with consequently smaller list of subscribers 
and poorer service. 

, ■ Very respectfully yours, 

H. B. BEST. 

Supt. Conestoga Tel. and Tele. Co. 

No. 146a. 

The Conestoga Telephone and Telegraph Company operates in a portion of Berks, 
Lancaster and Chester counties. 

Five thousand dollars of stock issued. No preferred stock or no bonds. We are 
about increasing our capital stock to $15,000. 



APPENDIX "A" 123 

APPENDIX No. 1 

Established four years in August. 

With the exception of Birdsboro (2,264) our lines merely pass the following pla*- 
the population of which was evidently computed from the families getting mail at the 
post office and not actual residence in the village : 

Morgantown, 264; Joanna, 286; Geigertown, 378; Beckersville, 320; Monocacy, 
107; Douglassville, 735. 

One hundred and eighty-two telephones in operation. 

Not over three or four have direct lines with one telephone. 

Perhaps three (bank, railroad station and rolling mill) have the Bell telephone 
well as ours. _ — 

Toll lines calculated at 31_miles. 

Our lines have cost us nearly $40 per subscriber. This includes everything. The 
company originally started by farmers getting together and putting up their own line, 
which cost $3.30 each for the original twenty-seven subscribers. They furnished 17 
poles each and did the work free. The $3.30 paid for the wire and insulators. 

We calculate that $16 will pay for a pair of steel wires with either pins or brackets, 
using No. 12B.B. quality, or $38 for a No. 12 hard drawn copper wires per mile. The 
work of putting this on the poles will vary according to conditions, but we think *4 
is a fair average. 

We use full metallic circuits all together. Copper in town, or in places subject 
to the action of coal gas as along the railroad, steel wire in the country, and especially 
at points where extra strength is required. 

We have no separate pole lines for toll, work, but in several instances rent space 
from the railroad company at $8 per mile. 

AW overhead construction. 

Magneto bridging system exclusively. 

We have experimented with various instruments, but we have settled on the tele- 
phones made by the Connecticut Telephone and Electric Company, of Mereden, Conn., 
as being the best suited for our work. The parts are readily interchangeable, the whole 
instrument very simple, and so far we have not seen the equal in all round good 
qualities. 

We have a switchboard made by the Ericcson Tel. Co. for our heaviest work, and 
for less important points use the Conn. Tel. and Electric board, merely on account 
of the price. The Ericcson is more compact and much faster, but is expensive. 

Fifty-one actual farmers connected to system. 

Our rates are twelve dollars per annum for residence or farm; $18 for business. 
Free service over our entire line. 

Long-distance rates are according to the connecting line, but figures based on 
actual air line mileage, as given by the Eastern Traffic Association of Philadelphia. 

No dividends have been paid so far, but are in position to pay at any time. 

Depreciation optional with the directors, but it is understood it is not to be less 
than 10 per cent of the earnings. 

All earnings to date, the exact figures of which I am not able to give at present. 

We exchange calls with three other companies at four points. The Bell com- 
panies have absolutely refused to give us a connection unless we use their instru- 
ments, which must be rented from them at about $5 per year. 

We connect with the United Tel. & Telg. Co., The Consolidated Tel. Companies 
of Pennsylvania, and the Enterprise Tel. Co. The rate is fixed as stated in question 
21, but short calls average about 5 cents for every exchange the message passes. 

When we first entered Elverson there were five Bell telephones. All were offered 
reduced rates, but four went out. Two pay-stations have since been located in the 
village. 

At Birdsboro' there were seven Bell telephones until we came. By putting on a 
force of canvassers and offering six months service free, the number was raised to 
fifteen. They have taken some out since, and the present number is not known 
exactly. 



124 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Information on these questions is hard to obtain. The truth could only be known 
by making a personal canvass of those whom the Bell people claim as subscribers. 
Twenty would surely cover every Bell telephone now in the territory covered by us, 
pay-stations and all, and it might be twice as many as there are. 

Bell rates before competition were: Residence, $72 per year; business, $110. 

Bell rates at this date are: Residence, $12 per annum; business, $18 on party 
lines, or automatic board. No free service except individual line. 

Wages paid are: Outside staff, 20 cents an hour and expenses; operators (girls), 
$15 per month. They are expected to be in position to answer a call from 6 a.m. to 
9.30 p.m., but actual business hours are much less. We pay two for service, but they 
arrange with each other as to the hours. 

Cost of equipment and material is as follows : — 

Ericcson indicator board, wired for two hundred lines, but with only fifty 1,600 
ohm. jacks installed, $300. This board has fifteen sets of keys and. cords, night bell, 
line pilots, test keys and hand generator. 

Connecticut board, same winding drops, but of fifty capacity only, with twenty 
drops installed", $90. 

We use ilif American Electric Fuse Company make of arresters and racks, cost- 
ing from ten cents a line up. 

$10.25 for Conn. No. 14 C. wall telephones, complete with batteries. 

$11.25 for type " A " desk telephones, complete, as above. 

Roeblings No. 12 B.B. steel double gal. wire, 3jc. per lb., delivered, less 2 per cent 
ten days. 

No. 10 H.D. copper cost us, last lot, 15Jc. per lb. Have bought as low as 12£c. 

25-ft. chestnut poles, 7 in. top, from 90c. in the woods to $1.50 to $2 delivered 
at the hole. 

Ten-foot, ten-pin yellow pine cross-arms, two coats creosote, 38c, delivered from 
South Carolina to our station. 

Six-foot, six-pin arms, similar to above, 22c. each. 

f x 11-in. gal. bolts, $5.35 per 100, f.o.b., Philadelphia. 

28-in. gal. braces, 28c. per pair, f.o.b., Philadelphia. , 

14 x 9-in. locust pins, $10 per M., f.o.b., Philadelphia. 

No. 9 Hemingway insulators, $12 per M., f.o.b., Muncie, Ind. ' 

We avoid cable as much as possible, and for substitute bunch rubber-covered 
weather-proof twin copper wire, and either hang to a messenger wive, or run in a 
•wooden box, or gal. iron conductor pipe. This costs about two cents a foot, per pair, 
but does not have to be fused, or require especial care in handling. 

We generally contract digging holes, and find 20 cents a hole about the average 
cost in this section. 

We also contract raising the poles, one of our stockholders having invented a 
portable derrick by which one man can handle the standard pole with cross-arms and 
all on, and put it in the hole. Two horses are used to move the derrick and two men 
generally go with it. They charge us eight or ten cents for putting a pole in the 
hole, according to situation, and have a record for a day's work of a pole every four 
minutes. Our other hands then tramp the dirt in at 12 cents an hour. We have 
tried raising by hand and find it averages six men twenty minutes to put a standard 
pole in the ground. 

No. 147. THE CUYAHOGA TELEPHONE COMPANY. 

Electric Building, 

Cleveland, O., June 6, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General and Chairman, Select Committee on Telephones, 

Ottawa, Canada. 
Dear Sir, — It gives me great pleasure to be able to furnish you with a list of the 
data requested by your committee, although it is not possible for us, at this time, 
to answer the last two questions. 



APPENDIX "A" 125 

APPENDIX No. 1 

No. 1. The Cuyahoga Telephone Company, Cleveland, Ohio. Operating in Cuya- 
hoga County. 

No. 2. $1,500,000 common stock. $763,250 preferred stock. $2,265,000 bonds. 

No. 5. Ihe company has been operating five years. 

No. 4. Population of territory served, approximately 500,000. 

No. 5. Number of telephones in operation May 1st, 16,501. June 1st, n'oout 
17,100. 

No. 6. Number of direct lines having one telephone per line, 5,400. 

No. 7. No data at hand. Probably about 8,000 have telephones of both systems. 

No. 8. Number of residence telephones, 7,249 May 1st, 1905. 

No. 9. Number of business telephones, 9,252 May 1st, 1905. 

No. 10. This company has no long-distance lines. About 20 miles of toll lines. 

No. 11. Average cost per subscriber, local plant, approximately $200. Includes 
cost of two exchange buildings. 

No. 12. This company has no long-distance lines. 

No. 13. Subscribers' circuits are of copper; all metallic. 

No. 14. This company has about 20 miles of toll pole lines. 

No. 15. See No. 12. 

No.16. Construction is about 63 per cent underground and 37 per cent aerial. 

No. 17. Type of system about 94 per cent central energy and 6 per cent magneto. 

No. 18. Central equipment and subscriber's telephones were supplied by Kellogg 
Switchboard and Supply Company, Dean Electric Company, North Electric Com- 
pany and American Electric Telephone Company. About 90 per cent manufactured 
by Kellogg Swithboard and Supply Company. 

No. 19. About 575 farmers connected with our system. 

No. 20. For rates charged for local service, see attached schedule marked " Ex- 
hibit A." 

No. 21. Rates charged for long-distance toll service based on §c. per mile; 
figured to the nearest multiple of 5c. 

No. 22. Rates charged farmers for unlimited service same as for other sub- 
scribers; for service with other subscribers in same exchange with which the farmer 
is connected, $18 per year, five on a line, and an additional charge of 5c. toll is 
charged for messages to other exchanges of the Cuyahoga Telephone Company. 

No. 23. Dividends are being paid on preferred stock only, at this time. 

No. 24. 5 per cent interest paid on bonds. 

No. 25. A 10 per cent depreciation is set aside on tools, furniture, fixtures, etc. 
Depreciation on telephone plant being taken care of by proper maintenance. Any 
part deteriorated or destroyed is promptly replaced and the expense charged to main- 
tenanee. This is true of equipment as well as other construction. 

No. 26. $91,000 surplus. 

No. 27. An interchange of service is had with the United States Telephone Com- 
pany, which company operates independent long-distance lines in Ohio and adjoining 
states. The United States Company takes care of all operating, maintenance and 
billing, and the Cuyahoga Company does the collecting only, and receives 15 per cent 
of the out-going messages. 

No. 28. There were 3,800 Bell telephones in this territory before competition. 

No. 29. Number of Bell telephones at this time approximately 19,000. 

No. 30. Number of Bell residence telephones before competition approximately 800. 

No. 31. Number of Bell business telephones before competition approximately 
3,000. 

No. 32. Number of Bell residence telephones at this time 10,200. 

No. 33. Number of Bell business telephones at this time 8,800. 

No. 34. Bell rates before competition $120 for business, and $84 for residence. 

No. 35. Bell rates at this time: see schedule attached, marked 'Exhibit B.' 

No. 36. Wages for foremen, $3 for eight hours; troublemen, $65 per month; 
general inspectors, $70 to $80 per month; wiremen, $2.50 and linemen $2.50 per day, 



126 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

eight hours; operators from $18 to $30 per month; operating monitors, $30 to $35 per 
month; assistant chief operator, $45 per month; chief operator, $60 per month. 

We also received your letter sent to the Collinwood Home Telephone Company, 
Collinwood, Ohio. The latter company was absorbed by the Cuyahoga Telephone 
Company January 1, 1905. Therefore its statistics are contained in the above. 

Yours very truly, 

O- F. FRENCH. 

General Manager. 



No. 147a, 

THE CUYAHOGA TELEPHONE COMPANY. 
(Independent) . 

HERE ARE OUR FOUR CARDINAL POINTS. 

1. Local Ownership — A Cleveland company for Cleveland people. 

2. Good Service — Made so by the best machinery and the most competent em- 
ployees. 

3. Fair Rates — From $21 for the limited user, to $72 for those who use the 
telephone most. 

4. Honest Wages — We pay standard wages. Then, too, every employee receives 
a share in the net profits of the business, in addition to salary. 

THESE ARE OUR RATES. 

(Quarterly). 
Unlimited Service. 

Business. Residence. 

1 Party $18 $12 00 

2 Party 13 50 9 00 

4 Party 9 00 6 00 

Desk extension, $8 per annum for business, $6 for residence. 
Extension Bell, $3 per annum. 

Measured Service. 

Business. Residence. 

1 Party $13 50 (375 calk) $9 75 (250 calls) 

4 Party 7 50 (250 calls) 5 25 (150 calls) 

No charge for incoming calls. 

Extra JS'ame Service. 
(Yearly). 

Business $10 Residence $5 Agents $3 ' 

Partners and officers free for four names. 

You will notice that we publish all our rates, not a portion only, and all users 
pay the same rate for the same service. Our aim is to do a big business by being 
fair. 

TELEPHONE. 

Bell's book for January, 1904, had 14,442 names. 

January 1905 book had 15,040 names. Increase, 598 names. Less than 50 a 
month. 

Cuyahoga book for March, 1904, had 8,300 names. 



APPENDIX " A 



127 



APPENDIX No. 1 

December book had 12,194 names. Increase 
Nearly 433 a month. 

Cuyahoga's new book shows still more names. 
Who's doing the business? 
Who's going to do it? 
Are you in the book? 
Have you wires enough ? 



for nine months, 3,894 names. 
Count for yourself. 



No. 147b, 



THE CLEVELAND TELEPHONE COMPANY (BELL), 

SCHEDULE OF RATES EFFECTIVE JANUARY 1, 1905. 

(Subject to change without notice. ) 



Measured Service. 



Number 

Calls 
Quarterly. 



Business — 

1 party line 

2 
Residence- - 

1 party line 

2 

4 



"Excess calls — 3 cents each. 
Discount, if paid during first month of succeeding quarter, ami 
amounting to — 

100 or more per quarter, 16§ per cent. 
500 
1,000 „ „ 50' 

Flat Rates. 
Business — 

1 party line 

Residence — 

1 party line 

2 „ 

Extension set, desk standard 

Extension set, wall style 



Measured Service. 



Private Branch Exchange — 

Trunk lines each 

Switchlioard and 700 calls. . . 

Inside stations, each 

Generator line, i mile or less. 



Flat Rate. 



Private Branch Exchange- 
Trunk lines, each 

Switchboard 

Inside stations, each 

Generator line, | mile or less . 



300 
225 

200 
150 

150 



Rate 
per Quarter. 



$ i.'ts. 

15 00 
12 00 

11 25 
9 00 

7 50 



Rebate if paid 
in full at the 
Company's of- 
fice during 
first month of 
quarter. 



21 00 



13 50 

10 50 

3 00 

1 50 


10 50 

15 00 

3 00 

6 00 


30 00 
9 00 
3 00 
6 00 



$ cts. 



50 

50 

50 
50 



1 50 



50 
50 



1 50 



128 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 148. 

UNION CARBIDE COMPANY. 

Sault Ste. Marie Works. 

Sault Ste. Marie, Mich., June 5, 1905. 

Sir William Mulock, Postmaster General, 

Chairman Select Committee on Telephone Systems, 
Ottawa, Ontario. 

Dear Sir,— I wish to acknowledge your inquiry of May 30th in regard to our tele- 
phone system which we have in use at this plant. 

It is the system known as the ' Automatic Electric ' and has a central station sys- 
tem with automatic central so that no operator is required. The system is adaptable 
for a small or a large number of 'phones, and is in use, not only in places similar to 
ours, but in comparatively large cities. 

Our system is comprised of a switch-board for twenty-five 'phones, but at present 
we are using only fifteen. 

I looked very thoroughly into the different systems of intercommunicating tele- 
phones before deciding on this kind, and I found that although this system was first- 
class and the 'phones more expensive than some of the other systems, yet, on the whole, 
it was the cheapest for our particular use. 

Most o'f the intercommunicating systems on the market require a separate wire 
from every 'phone on the system to every other 'phone, besides a ground connection, 
and where the 'phones are distributed over a considerable area the expense of wiring 
amounts to a very considerable item. 

Our plant is very extensive and some of the 'phones are nearly a half-mile apart, 
and, therefore, the sample wiring, two wires and a ground to each 'phone, which this 
system uses, makes it very desirable. 

I am inclosing a descriptive pamphlet covering this system which goes consider- 
ably into detail and which, I think, you will find interesting. 

The system which we have installed has been in use over two years, and we are 
very much pleased with its operation. The telephones are first-class and the talking 
qualities are excellent. It requires very little attention of any kind to keep it in good 
condition. It is operated by a bank of small storage batteries and about the only at- 
tention the system needs is what is required to charge the batteries about once a week, 
which is accomplished by throwing a switch and turning on the current for a period 
of a few hours, which does not in any way interfere with the use of the telephones. 

In short, our experience is that the claims that the manufacturers have made for 
their telephones are entirely fulfilled. 

There are a number of towns and cities which have adopted this system and if you 
are contemplating a city 'phone service I would recommend that you correspond with 
some of the cities where it has been tried. Grand Rapids, Michigan, started using this 
system about a year ago and the addresses of other cities can be obtained from the 
manufacturers. 

If I can be of any further service to you in this connection, I hope you will feel 
free to call upon me. 

Very truly, 

I. R. EDMANDS, 

Superintendent. 



APPENDIX "A" 129 

APPENDIX No. 1 

No. 149. 

Office of the Engineer-in-Chief, General Post Office(West.) 

London, E O, June 2, 1905. 
Sir William Mulock., K.C.M.G., 

Postmaster General and Chairman of the Select Committee on Telephone Systems. 

Ottawa. 

Sir, — I beg leave to acknowledge the receipt of your letter of the 1st of May, in 
which you ask for certain information in relation to the telephone service in the United 
Kingdom. The details relating to my department are being prepared, and they will be 
forwarded to you through the secretary, together with the traffic and other details 
dealt with by other branches. 

I am, sir, yours faithfully, 

I. GAVEY. 

No. 150. 

J. H. DICKSON, GENERAL MERCHANT. 

Drew Station, P.O., Ont., April 12, 1905. 
T. Martin, Esq., M.P., 
Ottawa. 
Dear Sir, — I see by the newspapers Sir Wm. Mulock is making a move re tele- 
phone service. As you know the telephone wires go right past my store and the post 
office here, and we tried to get telephone service but the only condition which we could 
get it was either to get five men to go twenty dollars each or guarantee the company 
a revenue of one hundred dollars per year, which we think is altogether too much 
and would be very glad if Sir Wm. Mulock would buy out the whole business and give 
the country a reasonably cheap telephone service, and I believe the country at large 
irrespective of party, would support him or the government in doing so. 

I am, sir, very truly yours, 

J. H. DICKSON. 

No. 151. 

Town Hall, Hull, Eng., June 1, 1905. 

Sir William Mulock, K.C.M.G., 
Postmaster General, 

House of Commons,, 
Ottawa, Canada. 

Sir, — I beg to acknowledge the receipt of your letter of the 3rd ultimo, and, as 
desired, I send you herewith replies to the various queries which accompanied the 
same. I also send a short account of the opening of the Hull Corporation Ex- 
change System on the 28th November last. 

I am, sir, yours faithfully, 

E. LAVERACK, 

Town Clerk. 



No. 151a. 

REPLIES TO QUERIES. 

Hull had a population of 240,259 last census. 

The term of the Postmaster General's license is from August 8, 1902, to Decem- 
ber 31, 1911. 

There are four switch-rooms. The Central, with 1,151 subscribers. Hessle, 21 



130 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

subscribers. Beverley, 8 subscribers. Cottingham, 9 subscribers. The two latter ex- 
changes have only just been brought into operation. 

The number of telephones working is 1,460. 

The number of residence telephones is 306. 

The number of business telephones is 883. 

There are no party lines. 

There are 160 extension telephones. 

The tariff is : Business telephones, £6-6-0 ($30.70) per annum for the first, £5-15-0 
($28) for the second. Residence telephones, £5 ($24.35). Extension telephones, £1 
($4.87). 

Measured rates: £3 ($14.61), and one penny (2 cents) per call. These charges 
cover service anywhere within the licensed area. The service is continuous. The 
cha;;ge to non-subscribers is one penny (2 cents) per conversation of five minutes. 

The long-distance charges are roughly, 3d per 25 miles to any point within the 
United Kingdom. 

The lines are metallic circuit, copper underground, bronze overhead. 

All lines are underground, except the spur into the subscriber's office from the dis- 
tributing point. 

£30,000 ($146,100) has been the capital outlay to date. 

The system has only been working six months. Print of the accounts to March 
31 last sent herewith. 

Three and a half per cent interest is paid on capital. 

Two and three-quarter per cent is provided for sinking fund. 

About £30 ($146.10) is paid, per annum, for way-leave privileges. 

The wages paid per week are: Foreman, 35s ($8.53) ; instrument men 25s ($6.09) 
to 30s. ($7.31) ; wiremen 25s. ($6.09) to 28s. ($6.84) ; operators from 7s. ($1.70) to 
£1 (4.87). 

The central switchboard cost £3,000 ($14,610). Present capacity 2,000 lines, 
ultimate capacity 5,000 lines. 

The sub-exchange switchboards cost £55 ($267.85) each. 

Subscribers' wall telephones cost 48s ($11.71) each. 

Subscribers' desk telephones cost 50s ($12.18) each. 

The price of other material is: Wire £90 ($438.30) to £95 ($462.65) per ton of 
2,240 pounds. Cross-arms Is 6d (36 cents) each. Insulators and pins 6d (12 cents) 
each. Duct pipe for cables 9d. (18 cents) per foot. 

We cannot give actual figures, but National Telephone Company's directory shows 
roughly 3,300 subscribers, both before we started competition and now. Practically 
the whole of our subscribers were once subscribers to their system, but have now left. 
and their list has been kept up by supplying party lines for the sum of 25s ($6.09) 
per annum. 

We have local inter-communication with National Telephone Company's sub- 
scribers, and also through the government trunk lines to any other system in the 
kingdom. 

We cannot give the exact number of subscribers using both systems, but it is al- 
most negligible. 

Toll charges are collected by means of monthly accounts. 

No. 151b. 

OPENING OE THE HULL (ENGLAND) CORPORATION TELEPHONE 
SYSTEM, ON NOVEMBER 28th, 1904. 

The object of the Hull corporation in establishing a municipal telephone service 
was two-fold— 1st, to provide a much cheaper service, and so place telephones within 
the reach of a larger number of users, and, 2nd, to introduce a more efficient service. 



APPENDIX " A " 131 

APPENDIX No. 1 

The question was first considered by the city council in the latter part of 1899, 
prior to which it was well known that considerable dissatisfaction prevailed, not only 
in Hull, but throughout the country, at the excessive cost and notorious inefficiency 
of the existing telephone service, the result of which was that parliament had been 
induced to take the matter up, and had passed an Act (the Telegraph Act, 1899) en- 
abling municipalities in the public interest to establish and work competitive tele- 
phone service in their own telephone areas. 

Upon the passing of this Act, a petition was presented to the city council by 
shipowners, merchants, and traders, bearing upwards of 800 signatures, urging the 
corporation to establish a municipal service in Hull, and on the 9th November, 1899, 
the council appointed a special committee to consider and report as to the desirability 
of doing so. 

In order to ascertain the cost for which a municipal service could be provided, 
the committee consulted the well-known telephone engineer, Mr. A. R. Bennett, 
M.I.E.E., and after a careful inquiry, came to the conclusion, in November, 1900, 
that the establishment of such a service was desirable, and their conclusion was 
adopted by the council. Before taking any steps, however, to carry the resolution 
into effect, a circular was issued to, and a canvass made of likely subscribers, so as 
to make certain that a sufficient number of persons were prepared to avail themselves 
of a corporation service at the rates offered, the result of which was in every way 
satisfactory. Resolutions in favour of the scheme were also passed by the Hull 
Chamber of Commerce, the Hull Guardian Society, the Hull Chamber of Trades, 
and other trading bodies. , 

The corporation applied to the Postmaster General for the necessary license, 
which was opposed by the National Telephone Company, but, notwithstanding such 
opposition, the license was granted in August, 1902. 

The corporation were anxious to avoid, if possible, the cost of laying down a 
duplicate telephone system, and, accordingly, negotiations were entered into with the 
existing company, with a view to the corporation acquiring the company's system, 
in Hull, but as the lowest price required would have precluded the corporation giving 
a cheaper service, no satisfactory arrangement for purchase could be made. 

Negotiations for purchase having failed, the corporation then endeavoured to 
arrange with the company for a substantial reduction of their rates, on condition 
that the corporation did not enter into competition, but they were unable to induce 
the company to agree to such rates as would have been acceptable. 

The negotiations above referred to extended over a considerable period, find have 
delayed the carrying out of the work, but the corporation felt they would not be 
justified in going to the cost of laying down a duplicate system until they had ex- 
hausted every effort to avoid it by obtaining, if possible, satisfactory terms from the 
existing company. One important result, however, of the negotiations with the com- 
pany must be mentioned, viz., that an arrangement was made by which the corpora- 
tion subscribers have free inter-communication with the subscribers of the National 
Telephone Company, both in Hull and in other towns. 

Tenders for the construction of the system were obtained and proved to be less 
than the engineer's estimate. The corporation had on their hands, a building known 
as the Trippett Baths, which were being closed through their becoming obsolete. This 
building with alterations, was admirably adapted for, and has been utilized as the 
central exchange, a course which has had the advantage of utilizing property, which 
was a charge on the rates. 

The best of plant and equipment having been advertised for, first class firms 
secured the contracts. 

Application was made to the local government board for their sanction to bor- 
row £43,202 for carrying out the work, and after a local inquiry, the sanction was 
given. Mr. Thos. Holme was appointed manager, and the work of construction com- 
menced in the middle of January of the present year, and has been carried on without 

1— <2— 10 



132 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

interruption. The alteration of the baths has been carried out under the city archi- 
tect, 19 miles of trenching have been excavated in the streets, wherein has been laid 
35 miles of stoneware ducts, which contain 4,910 miles of copper wire. All lines 
in the city are laid underground, with the exception of those brought up and dis- 
tributed to subscribers in the particular neighbourhood. The central exchange switch- 
board, with its quarter of a million soldered joints, is of the latest pattern, with all 
modern improvements, and has accommodation for 2,000 subscribers, which can be ex- 
tended to an ultimate capacity of 5,000. Sections are set apart for inter-communica- 
tion and for trunk lines. The system which is a silent one, is invaluable particularly 
for trunk line messages to other towns, a very important matter for the city. An 
exchange has been opened in Hessle, one at Cottingham will be open in a few days, 
and one at Beverley shortly. The area assigned to the corporation by their license 
is the same as that of the National Telephone Company. The whole of the construc- 
tion has been carried out in the course of the present year. 



APPENDIX " A " 



133 



APPENDIX No. 1 



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SELECT COMMITTEE ON TELEPHONE STSTEHS 

4-5 EDWARD VII., A. 1905 



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APPENDIX " A " 135 

APPENDIX No. 1 

No. 152. 

STATES TELEPHONE DEPARTMENT, CLIETON, GUERNSEY. 



Sir William Mulock, K.C.M.G., 

Postmaster General, 

Ottawa, Canada. 



May 19, 1905. 



Sir, — In reply to your letter of the 3rd instant, enclosing list of questions for 
the information of the committee appointed to inquire into questions of various 
telephone systems in operation, I have the honour to enclose herewith, answers to 
the various questions together with balance sheet for 1904, list of subscribers and 
map of the island all of which I trust the committee will find useful. 
I have the honour to be, sir, 

Yours faithfully, 

F. B. MAINGUY, Major General, 
President States Telephone Council. 



No. 152a. 



1911. 



Guernsey, Channel Islands. Population of the island, 40,300. 

Term of licenses from Postmaster General, December 31, 1897, to December 31, 

NUMBER OP TELEPHONES, APRIL 30, 1905. 



Switchrooms. 


Number 

of 

Direct Lines 

to 
Exchange. 


Number 

of 

Public 

Telephones. 


Number 

of 

Extensions. 


Number 

of 
Junctions. 


St. Peter Port 


618 

176 

105 

44 

139 

71 

19 


18 
9 
6 
3 

8 
2 
2 


83 
23 

5 

2 
1 
1 


21 
12 


Castel 

St. Peter Wood 


9 

5 




9 
6 




2 




1,172 


48 


115 


64 



Tariff A. 
" B. 
" C. 



Free (parish churches) . 
Public telephones . . . . 
Service 



Extensions . 
Private. . . 

Sundries. . 
Junctions. . 



No party lines in connection with system. 

Number of inside and outside extension telephones, 115. 



970 
91 

110 

1 

48 

6 

115 
20 
16 
32 



1,409 



136 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Tariff of charges is as follows : — 

A.— £1. 10. 0. ($7.31) per annum (payable half yearly in advance) with a toll 
of Id. (2 cents) per outward call (payable quarterly) until 250 calls in anj one quar- 
ter is reached, after which, for the remainder of the quarter, the charge is at the rate 
of Id. for five calls. 

B.— £2, 5 .0. ($10.96) per annum (payable half-yearly in advance) with a toll cf 
id. (1 cent) per outward call (payable quarterly) until 1,320 calls in any one year 
is reached, after which for the remainder of the year, the charge is at the rate of Id. 
for five calls. 

C— £5 ($24.35) per annum (payable in advance) to cover 3,200 outward calls in 
any one year, after Which for the remainder of the year, the charge is at the rate of 
Id. (2 cents) for five calls. 

The charges for extension instruments are: — 15s. ($3.66) per annum for wall 
pattern if inside same building as exchange instrument, 3s. 6d. (88 cents) extra for 
table set in lieu of wall. 

These charges cover the whole island. 

The Telephone Exchange System is open night and day (including Sunday.) Con- 
nections between the hours of 11 p.m. and 5 a.m. from 1st April until 30th September, 
and 11 p.m. and 6 a.m. from 1st October until 31st March, there is an extra charge 
of 5d. (10 cents) for each attendant called up. 

The charge to non-subscribers is Id. (2 cents) per call not exceeding five minutes 
duration. No trunk lines, outside the island, the tariff charges stated above cover 
communication over the whole island. We use Magneto generator for ringing pur- 
poses on the ring through system. Distinct button for signalling when conversation 
is finished. Iland combination listening and speaking instrument (granular carbon 
transmitters) lightning arrestor, mounted on porcelain base fitted with carbon ances- 
tors, high voltage fuse coils, and fuse wires, the lightning arrestor is generally fixed 
where the metallic circuit enters the building. 

Our lines are metallic circuit, bronze wire. 

The system is one-quarter underground and three-quarters overhead. 

The capital invested is £26,475 ($128,933) to December 31, 1904. 

Eevenue per annum, £4,546 ($22,139.) 

Total expenditure per annum £3,503 ($17,060) including 10 per cent post office 
royalty, £432 ($2,104.) 

Interest paid on capital, £758 ($3,691.) 

Surplus last year, £284 ($1,383.) 

The sinking fund and depreciation is 5 per cent, being 2 per cent for sinking 
fund and 3 per cent for depreciation. The latter we consider adequate as replace- 
ments and repairs are charged to revenue and it has been found that the plant can 
thus be always kept in an efficient state. 

The total cost for way leave privileges is 21s. ($5.12) per annum. State pro- 
perty is largely utilized. Private property owners recognize the benefits of the tele- 
phone system, which really belongs to the people, and is worked for their benefit, and 
readily grant practically free wayleave. 

Wages paid per week : — Foremen, 32s. ($7.80) ; instrument men, 25s. ($6.09) ; wire- 
men, 24s. ($5.85); operators, commencing at 6s. ($1.47), with annual increase of Is. 
(25c) per week ; manager, £260 ($1,266) per annum, with free house, &c. 

The cost of the central exchange equipment was £1,300 ($6,331) for 900 lines. 
Ultimate capacity, 3,000. 

Test jacks and lightning arrestors extra, Is. 9d. (42c.) per metallic circuit. 

Cost of sub-exchange switchboards £1 ($4.87) per metallic circuit, including 
lightning arrestors and test jacks. 



APPENDIX " A " 137 

APPENDIX No. 1 

COST OF OTHER MATERIAL IS AS FOLLOWS: 

Wall telephones £2-12-0 ($12.68). Table telephones £2-18-0 ($14.15). Wire lOld 
(214 cents) to lid (22 cents) per pound. 

Poles, 22' creosoted wood 17s 6d ($4.27) 

" 24 ' 18s 6d ($4^52) 

w 28 , 22s Od ($5.35) 

u 36 36s Od ($8.78) 

30 25s Od ($6.09) 

40 ' 49s Od ($10.71) 

Cross-arms, oak, 8-wire, 2s 4d (58 cents). 
Cross-arms, oak, 6-wire, Is lOd (44 cents). 

Insulators complete with bolts 6d (12 cents) to 7d (14 csnts) each. 
No ducts or pipes used. Lead covered cable protected by two wrappings of steel 
tape being used throughout. 

The States Telephone system is the only established system in the island. 
Toll accounts are rendered quarterly, and payable at the head office. 
A list of subscribers, together with copy of balance sheet for 1904 is sent here- 
with, and from these you will be able to glean that this system is supported by all 
classes of the community, and public telephones are liberally scattered throughout the 
island, as will be seen from small map which is also sent herewith. The balance sheet 
shows that notwithstanding the low charges the department is able to make a profit after 
meeting all charges. One heavy expense is that of 10 per cent post office royalty charged 
on the gross exchange line revenue, amounting in 1904 to £432 ($2,104). 

The extent and popularity of the system is no doubt partly due to the efficiency of 
the system. The ring through system, which is the one in use, enables subscribers to 
call each other without disturbing the operator. The method of signalling when a con- 
nection is finished is by pressing a distinct button attached to each instrument, which 
operates a special ring-off indicator at the switchroom. 

* The post office facilities mentioned on page 1 of the list are freely taken ad- 
vantage of by subscribers in all parts of the island, and the little notes mentioned on 
page 55 of subscribers' list are worthy of notice, showing that the department endeav- 
ours to make the telephone as useful to the community as possible, and to keep up-to- 
date. 

F. B. MAINGUY, 

Major-General. 

POST OFFICE CONNECTION, NO. 77. 

The post office, St. Peter-Port has been connected with the telephone exchange to 
enable subscribers to 

(1) Telephone telegrams for the purpose of being transmitted over the post office 
telegraphs to any part of the United Kingdom. The service may be extended to other 
countries by special arrangements with the States Telephone Department. 

(2) Dictate messages for the purpose of being written down and forwarded as 
letters, ordinary or express. 

(3) Engaging the services of post offices special messengers. 

(4) To enable the subscribers to have telegrams, which may arrive for them, tele- 
phoned to their offices or houses by the post office, special arrangements must be made 
for this. 

This service will be available to subscribers in all parts of the island. In many 
cases it should prove of great, value, as instead of depending on their local post office, 

*Post office facilities referred to on page 1 of Guernsey Telephone Directory. 



138 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

with its limited hours of service, the head post office, at St. Peter-Port, can be com- 
tamnicated with from 7 a.m. to 10 p.m. on week-days, and from 8 a.m. to 10 a.m., and 
5 p.m. to 6 p.m. on Sundays. Subscribers in distant parts of the island can catch the 
outgoing mails by telephoning messages to be posted as letters up to the time of clos- 
ing, 9a.m., and 9.25 late fee. 

Subscribers wishing to use this service must communicate with the States Tele- 
phone Department, which will notify the post office accordingly. To cover expenses of 
book-keeping, an additional fee of one half-penny will be charged on all communica- 
tions to or from the post office. Accounts for cost of telegrams, postage on letters, hire 
of messengers and the additional half-penny fees, will be collected monthly, as a general 
mile, but the department reserves the right to demand payment at any time, and to 
refuse further connections to subscribers whose payments are in arrear. 

All charges payable to the post office will be in British currency. 

Subscribers desirous of making use of the post office connection will please apply 
to the manager, States' Telephone Office, Clifton, for a special form. 



NOTICE. 

The central office is informed of the signalling of the mail steamers. Subscribers 
wishing to learn of their approach can obtain the information from the operator. 

Subscribers can also ascertain Greenwich time from the central office at any hour 
of the day. 

The charge in each case is the usual call charge, viz. : Id. on tariff ' A,' and id. on 
ta: iff ' B.' 

King Edward Sanatorium (Tel. No. 1799). For the comfort of patients and the 
convenience of their friends portable telephones have been installed and so arranged 
in the various wards that communication can be established with the. general exchange 
system. 



•Notes referred to on page 55 of Guernsey Subscriber's Directory. 



APPENDIX No. 1 



APPENDIX " A " 



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APPENDIX " A " 143 

APPENDIX No. 1 

No. 153. 

15 Dey Street, New York, June 5th, 1905. 

The Chairman, 

Select Committee on Telephone Systems, 
Ottawa. 

Sir, — I have pleasure in forwarding a statement which contains the information 
the Committee wanted regarding number of telephones in London. 

I think you will find the other figures in the statement also of interest. 

Yours sincerely, 

HERBERT LAWS WEBB 



No. 153a. 

TELEPHONES IN GREAT BRITAIN. 

December SI, 190^. 

Stations. 

National Telephone Company 315,829 

Post Office London System 22,181 

Post Office Provincial Systems (approximately) 8,000 

Municipal Systems (including Guernsey) 19,188 

Total 365,198 



Gain for 190J h 

National Telephone Company 38,240 

Post Office London System 7,880 

Post Office Provincial Systems (approximately) 1,700 

Municipal Systems (including Guernsey) 4,845 

Total 52,665 



Telephones in London. 

National Telephone Company 71,417 

Post Office 22,181 

Total 93,598 



Gain in London for 190k- 

National Telephone Company 8,836 

Post Office 7,880 



Total 16,716 



144 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Note by the Acting Chaiman. 
The above statement shows the percentage of increase based on the total number 
of telephones operated by each system to be as follows : — 

In Great Britain. 

Per cent. 

National Telephone Company 12*11 

Post Office London System 35 

Post Office Provincial Systems 21*25 

Municipal Systems (including Guernsey) 24*68 

In London. 

National Telephone Company 12*37 

Post Office 35 

No. 154. 

General Telephone Company, 

Stockholm, May 29, 1905. 
Sir William Mulock, 

Chairman of Select Committee on Telephone Systems, 
Ottawa, Canada. 

Dear Sir, — Director Cedergren being at presenl abroad has not been able to 
answer your letter of the 1st instant, and I therefore beg to give you inclosed informa- 
tions and I hope that it will be of some interest for you. 

I am, dear sir. 

Yours truly, 

CARL HALLEN. 

No. 154a. 

The system operates in Stockholm and vicinity up to 70 kilometres (about 45 
miles) ; the population of Stockholm at the beginning of 1905 was 318,398 ; there are 
two telephone systems of which one belongs to the Swedish State, and the other to the 
Stockholm Allmanna (Stockholm General Telephone Co.) and the Stockholm Bell 
Telefonaktiebolag (Stockholm Bell Telephone Company.) The information given is 
regarding the systems of the two companies only. The number of subscribers on Janu- 
ary 1st, 1905 was 37,445, of which 31,685 were inside and 5,760 outside the city limits. 
Within Stockholm there are seven exchanges, the largest having a capacity of 20.000 
lines. Outside the city there are 151 exchanges. Number of direct lines with ,one 
telephone in the city, 28,030, and number of extension lines, 3,541. Subscribers do not 
purchase instruments, the companies own the whole plant. Subscribers do not pay 
the cost of their lines, but some pay an entrance fee. (Fees and annual rates are pub- 
lished in subjoined reports.) Annual rate covers use of telephone within the city and 
a radius of 70 kilometres (about 45 miles). Exchanges are open day and night and 
Sundays. Country exchanges as shown in reports. Charge to non-subscribers for 
local conversations is 10 ore (2 \ cents). All subscribers can converse over whole of 
70 kilometre radius without any toll charge. All lines are metallic circuit. The 
aerial lines in Stockholm are bronze 1 m.m. ; outside Stockholm iron 3 m.m. or copper 
2 m.m. 

Sixty-four per cent of lines are underground. 

The long distance lines outside 70 kilometres radius from Stockholm belong ex- 
clusively to the State. No inter-traffic is arranged between our system net and the 
system of the State (Rikstelefon). 



APPENDIX " A " 145 

APPENDIX No. 1 

In Stockholm and within the 70 kilometres radius there has been competition be- 
tween the State and the companies for 16 years. 

GAEL HALLEN. 
Stockholm, the 29th of May, 1905. 



No. 154b. 

(Translation.) 

ANNUAL REPORT OF THE STOCKHOLM GENERAL TELEPHONE CO. FOR 1904. 

Stockholm General Telephone Co. : — 

As has been reported at the annual meeting of managers for 1904, the arrange- 
ment for purchase and exchange made by one of the Stockholm Telephone Companies 
with the Government Telephone Department on February 9 of the same year, has 
fallen through, on account of the decision of parliament, made on April 30, 1904; 
and thereby the agreement for resuming cooperation between the companies and the 
government has been cancelled. Consequently a most unsatisfactory condition of 
affairs exists for the telephone-using public, through all direct connection having 
ceased with the Government Telephone Bureau, the number of whose subscribers on 
December 31, 1904, amounted to 74,798 ; while the subscribers to the other telephone 
companies mentioned above were, on the same date, 37,445, and have increased on 
January 15, 1904, to 37,893. The public, therefore, desire that this unfortunate con- 
dition of affairs may be remedied. This desire has been specially expressed by the 
Stockholm Real Estate Owners' Union, to both the telephone systems in question. In 
replying to this appeal the telephone companies in question have expressed their will- 
ingness to enter into any arrangement with the Royal Telegraph Department which 
may not infringe the rights of either company. 

The General Telephone Company has made an arrangement to install a double- 
wire system in place of the old single wire in its establishments in Moscow and 
Warsaw. This arrangement was to be carried out in Moscow in December, 1904, and 
in Warsaw in July 1, 1905. This work has, in the meantime, been so urgently car- 
ried on that even at the end of last September the new buildings of the company were 
completed in both cities, so that messages could be sent, and wires connected with the 
cew central stations, which were opened and inaugurated, the station in Moscow on 
November 12, and the one in Warsaw on November 16, 1904. A number of repre- 
sentatites were present from the General Telephone Company, the Swedish-Danish- 
Russian Telephone Company, and the Cedergren Telephone Company, as well as a 
large number of prominent people who had been invited. 

At the end of the year the number of subscribers in Moscow was 7,744, and in 
Warsaw, 4,901. This number is much in excess of what was expected when the tele- 
phone arrangements were proposed. This condition of affairs is all the more remark- 
able from the fact that the present war in the east has necessarily seriously interfered 
with the increase of subscribers. 

After the announcement that the director of the company, H. S. Cedergren, was 
prepared to donate $37,500 to form a general telephone pension fund, the managers 
of the company, at their business meeting on May 28, 1904, decided that 500 shares at 
par should be transferred to this fund, and the management authorized to transfer 
the same. The amount was paid in, and the shares transferred, shortly after the meet- 
ing was held. 

During the year 1904, the increase in the number of subscribers to the General 
Telephone Company and the Bell Telephone Company was 2,685, which is somewhat 
greater than during 1903. The number of new telephone instruments set up by the 
company during 1904, was 6,003. As during the year 3,318 subscribers have ceased. 



146 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



in consequence of removal, death and other causes, the number of subscribers at the 
close of the year was 37,445, as against 34,760 at the beginning of the year ; as shown 
by the following list: — 



Within Outside 
Stockholm Stockholm 



Telephone with direct connection limited to General Telephone Com 
pany's system .... 

Telephone with direct, but unlimited connection with both tin 

the "General " and " Bell " companies 

Telephone with connection to, country stations 

Extension and side-telephones | 

Telephone with connection to railways exchange station 

M ii to Police exchange station 

Total number of subscribers to General Telephone Co. j 
Telephones within Stockholm with restricted right of use (Bell Com] 

Number for both Companies. Total 



9,219 



3,54] 
83 
31 



L9.409 
12,276 






140 



565 



5,760 



5,760 



Total. 



6,675 

9,219 

4,106 

31 



25,169 
12,276 

37,445 



The number of subscribers during the months of 1904 is as follows : — 
Number of subscribers on 15th 



1904. 



Within 
Stockholm. 



< tut- 

holm. 



Total. 



Number 
of Telephonists 
in Stockholm. 



January . . 
February . . 

March 

April 

May 

June ...... 

July 

August .... 
September . 
October . . . 
November. 
December . 



29,433 
29,553 
29,550 
29,740 
29,818 
29,845 
29,853 
29,832 
29,970 
30,237 
30,775 
31,370 



5, 100 
5,410 
:..442 
5,489 
5,538 
5 587 
5,597 
5,609 
5,670 
5,708 
5,722 



34,823 
34,953 
34,960 
35,182 
35,307 

35,440 
35,429 
35,579 
35,907 
36, 183 
37,092 



421 

420 
423 
4130 
450 
45« 
448 
443 
444 
429 
438 
450 



During the year two new exchange stations have been set up outside Stockholm, 
viz., in Kesaro and in Storangen; whereas, the exchange stations in Faringe and 
Ofver-Jarna have been removed. In consequence of this, the number of exchange 
stations, outside Stockholm, remained the same at the end of the year, viz., 152. 

The length of wires in the General Telephone Company at the end of 1904 was 
as follows: — 

Kilometres. 
Inside Stockholm. . . 42,309"01 

Outside Stockholm 15,172*27 



Total 57,4S1 - 2S 



APPENDIX "A" 

APPENDIX No. 1 

These 42,309'01 kilometres inside Stockholm are classified thus : — 

Kilometres. 

Overhead wires 4,196'01 

Underground wires 35,698*28 

Overhead connections 2,196'03 

Sub-marine cable connections 218*45 



147 



42,309*01 



The wires inside Stockholm on December 31, 1904, are classified thus :- 

In reserve. 



In use. 

Kilometres. 

Overhead wires 2,841'S5 

Underground wires . . . . 20,533'4S 
Overhead connections . . 2,146*0.''. 
Sub-marine cables . . . . 156'14 



Kilometres. 

Overhead wires 1,354"40 

Underground wires . . . . 15.164 Su 
Overhead connections . . 50 

Sub-marine cables 



Total 25,677'50 Total 16,631*51 

Of the subscribers' wires and connection wires leading from the central stations 
in Stockholm, 16,910 kil. were in use, and 15,890 kil. in reserve. Outside of Stockholm 
connections to sea cables were 132,68 kil. 

Note. — 1 Kilometre=l,093'6 yards, or about g of a mile. 
1. The number of employees was as follows: — 



Employees in counting office 

ii in business bureau 

H in central stations 

H for maintenance of wires . . . 

n for making new connections 

n outside city 

ii in Russia 

Telephone operators in central offices . . 

Foremen on line work 

Employees to set up telephones 

ip on the wires 

Inspectors and repairers 

Employees on cables and on under- 
ground wires 

Storekeepers. . . . 

Engineers and firemen 

Watchmen and errand boys 

Electric workers 

Employees in repair shops 



Totals. 



January 1, 1904. 



Men. 



13 
11 
90 

46 

8 
4 

4 
21 
26 

17 

267 



Girls. 



9 

13 

16 

8 



342 



391 



Total. 



9 

20 

18 

9 

7 
2 

8 
342 
13 
11 
90 
46 

8 

4 

4 

21 

29 
17 

658 



December 31. 1904. 



Men. 



13 

15 

114 

47 

12 
5 
4 

16 
21 
16 

290 






9 
20 
16 



363 



419 



Total. 



9 
26 

18 
9 
8 



363 
13 
15 

114 

47 

12 
5 
4 
16 
24 
16 

709 



1— d— 11 



148 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



The result of the company's business for 1904 is shown by the following abstract 
of profit and loss account: — 

PROFIT AND LOSS ACCOUNT. 

(Note — One Kroner=26'8 cents). 



Rents 

Wages to managers and 
other employees .... 

Taxes 

Building and improve- 
ments 

Carried over to Sinking 
Fund2 p.o. of the \ alue 
of Company's plant.. . 

Net profit fin year. . . . 



33 531 00 

5,954 00 
10,608 0(i 

21 .;<>" 00 



38,214 00 
175,899 00 



285,573 00 



Kr. 

134,124 23 

23,81 I 79 

12,430 08 

85,469 54 



152,857 12 

703,5! is II 



1,142,294 50 



[neome, after deducting 
nses of up] 

Profit from private work 
and materials sold. . . . 

Dividends from foreign 
shares 

Profits from property 
rented 

Profit fi 'in Insurance 
Fund ... 

Profit from Accident 
Insurance Fund . . . 

Sinking funds for re- 
building, &c 



184,989 00 

8,988 00 

67,788 mi 

525 00 

745 00 

1,167 00 

21, 37 1 00 



Kr. 

739,957 40 
35,955 32 

271,155 07 
2.105 76 
2,982 4i 
4,669 00 

85,40! i :.4 



285,573 00 1,142,294 50 



As on the foregoing year, 2 per cent of the company's profits have been carried 
over to the sinking fund; and from this fund the costs have been defrayed of the new 
buildings erected during the year. The following table shows the assets and liabilities 
of the company on December 31, 1904 : — 

Assets. 

Cash on hand and in bank $ 1,187 4,746 79 kr. 

Telephone plant in Stockholm 1,374,191 5,496,765" 05 kr. 

Country wires 595,395 2,381,581 62 kr. 

Tools and furniture, &c 26,844 107,379 50 kr. 

Materials 45,229 180,918 78 kr. 

Eeal estate and machinery 329,125 1,316,500 00 kr. 

Foreign shares 901,138 3,604,552 00 kr. 

Expenses for buildings in Moscow and Warsaw. . . . 339,849 1,359,399 49 kr. 

Obligations 7,736 30,947 00 kr. 

Various demands 819,140 3,276,562 34 kr. 



$4,439,834 17,759,352 57 kr. 



Liabilities. 

Capital in shares $ 712,500 

Building and property fund 750,000 

Reserve fund 125,000 

Reserved for company's future disposal 141,089 

Employees gratuity fund 10,000 

Fire insurance fund 7,500 

Accident insurance fund 7,500 

Sinking funds 110,790 

Instalment loans 160,000 

Mortgage loans 267,318 

Various persons (individuals) 1,032,734 

Goods supplied 939,229 

Unused profits ■ . . 275 

Net profit 175,899 



2,850,000 

3,000,000 

500,000 

564,356 

40,000 

30,000 

30,000 

443,163 

640,000 

1,069,273 

4,130,938 

3,756,917 

1,104- 

703.598 



00 kr. 
00 kr. 
00 kr. 
96 kr. 
00 kr. 
00 kr. 
00 kr. 
69 kr. 
00 kr. 
20 kr. 
79 kr. 
49 kr. 
00 kr. 
44 kr. 



$4,439,834 17,759,352 57 kr. 



APPENDIX " A " 149 
APPENDIX No. 1 

The profits for the year have therefore been, as shown: ($175,899) — 703,598 44 kr. 

They have been applied as follows: — 

Shareholders, $6 or 24 kr. per share $ 57,000 228,000 00 kr. 

Eeserve fund 17,750 71,000 00 kr. 

Building and property fund 37,500 150,000 00 kr. 

Fund set aside at the disposal of the company. . . . 63,649 254,598 44 kr. 



$175,899 703,598 44 kr. 

If these proposals are approved of, the company's funds stand thus : — 

Capital in shares $ 712,500 2,850,000 00 kr. 

Building and property fund 787,500 3,150,000 00 kr. 

Reserve fund 142,750 571,000 00 kr. 

Reserve fund for future disposal 204,738 S18,955 40 kr. 

Employees gratuity fund 10,000 40,000 00 kr. 

Fire insurance fund 7,500 30,000 00 ktr. 

Accident insurance fund 7,500 30,000 00 kr. 

$1,872,488 7,489,955 40 kr. 

Besides this there has been set aside for the sinking 

fund $110,790 443,163 69 kr. 

F. W. H. Pegelow, 

W. MoNTELIUS, 

Viktor Klemming, 
H. T. Cedergren, 
B. Hasselberg. 

No. 154c. 

(translation.) 

annual report made ry the managers and audit department of the stockholm bell 

telephone company. 

1904. 

a 

Bell Telephone Company: 

In presenting the yearly report for 1904, the managers have the satisfaction of 
being able to state, that the telephone business of the company has increased remark- 
ably; and also that the economic results of the business have been, in the very highest 
degree, satisfactory. 

The increase in the number of subscribers during the year has been 795, as 
against 779 during 1903, and 731 during 1902. At the same time, as shown by the 
balance account given below, the receipts, which amounted to 113,601.14 kr. ($28,400) 
for 1903, have increased to 123.343.58 kr. ($30,836) for 1904. 

In the previous reports, the managers have already made a statement regarding 
the negotiations, which, since the former agreement for common use of wires with the 
Government Telegraph Bureau has been cancelled, have been carried on with the Gov- 
ernment Bureau, regarding arrangements for co-operation. Since the proposal for 
selling the whole plant of the company was rejected by the resolution of parliament in 
-902, owing to the firm demand made by the telegraph managers that co-operation be- 
tween the wires should be free, and negotiations being made thereafter on the basis 
that the district should be equally divided between the three companies — an agreement 
of purchase and exchange was entered upon, on February 9, 1904, according to which 
the company should sell to the telegraph management the plant owned by it within the 
city, inside the bridges, as well as in Sodermalm and Kungsholmen ; and also that there- 



150 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 

after free co-operation should be arranged for between the company's subscribers in 
the other districts of the city, and the government telephone wires. The agreement in 
question was approved of by the King, but was vetoed by the parliament, April 30, 
^904. 

As the owner of the real estate in Kungsholmen, where the central station was 
located, refused to abide by the terms of the lease, we have just concluded a new agree- 
ment with him for 10 years ; and it is our intention during the present year to enlarge 
this central station by installing the requisite number of new switch-boards. The 
ether central stations of the company have also to be enlarged. 

Through improved arrangements in receiving and connecting the charges for 
subscribers have been somewhat decreased. 

During 1904 the company has made connections for 2,196 new subscribers ; whereas 
former subscribers to the number of 1,401 have ceased, through transfers, to the Gen- 
eral Telephone Company, through change of residence, death, and other causes. Not- 
withstanding this, however, the number of subscribers at the end of the year was 
12,276, as compared with 11,481 at the beginning of 1904. Details are shown by the 
following list: — 



Name of Station, 


Number of Subscribers, 
Dec. 31, 1904. 


Total. 


Brunkeberg 

Kungsholmen 

Ostermalm 


824 
1,957 

2H4 
1,887 
3,819 


812.06 

386 
68 

227 

74 

124 

227 


( lonnec- 

tion. 

14 
3 

14 
6 
3 

11 


2,738 

2,198 

374 

2,014 

4,057 






Total 


11,139 


1,086 


51 


12.270 





During the various months of the year, the number of subscribers has been 88 
follows. — 



1904. 



Number of Subscribers on Dee. 15. 



January . . 
February. . 

March 

April 

May 

•Tune 

July 

August . . . 
September, 
October . . 
November 
December. 





Kungs- 




holmen. 


2,629 


783 


2,636 


795 


2,642 


799 


2,C46 


797 


2,606 


S01 


2,585 


801 


2,541 


803 


2,530 


802 


2,553 


SOS 


2,516 


814 


2,590 


842 


2,703 


888 



Maria Ersta 


Stor- 


Tanto. 


kyrkan. 


1,972 


362 


1,997 


358 


2,003 


361 


2,011 


363 


2,019 


365 


2,025 


35S 


2,003 


356 


2,007 


359 


2,026 


360 


2,036 


359 


2,099 


364 


2,167 


375 



Vasa. 



1,780 
1,804 
1,810 
1,823 
1,809 
1,806 
1,785 
1,797 
1,824 
1,855 
1,914 
1.987 



Ostermalm. 



4,004 
4,012 
4.009 
4,007 
3,977 
§,959 
3,957 
3,916 
3,927 
3,962 
3,971 
4.05S 



Total. 



11,530 
11,602 

11,024 
11. ''.47 
11,577 
11.534 
11,445 
11.411 
11,498 
11,542 
11.780 
12,178 



APPENDIX " A " 151 

APPENDIX No. 1 

The length of the company's wires was on December 31, 1904: — 

Kilometres. 

Subscribers' lines 9,468.39 

Connecting lines 667.35 

Total 10,135.74 

The above 10,135.74 kilometres are classified thus: — 

kilometres. 

Overhead wires 1,083.65 

Underground wires 7,829.82 

Overhead wire connections 1,222.27 

Total 10,135.74 

(Note. — A kilometre equals about § of one English mile.) 

There were in the employ of the company at the close of the year 135 hands, as 
against 132 at the commencement of the year, as shown by the following table : — 



Employees in the Telephone Bureau 

ii it Cash 1 department . 

ii at the Central Stations, (including 5 ma- 
nagers) 

Employees for setting up instruments, repairing, and 
station-workers 

Employees in the work-sin >ps 

Watchmen, and < rrand-boys 



Total. 



Jan. 1, 1904. 



Dec. 31, 1904. 



Men. Girls. Total. 



11 

7 
11 

30 



2 
5 

95 



102 



3 
5 

95 

11 

7 

11 

132 



9 

5 

12 



Men. Girls. Total 



2 

5 

99 



106 



3 
5 

99 

9 

5 

12 

133 



In the accounts for 1904, the necessary deductions have been made for claims, 
and a small amount has been carried over to the sinking fund. After allowing for 
this, the company's balance account on December 31, 1904, shows the following assets 
and liabilities : — 

(Note. — I kroner = 26 -8 cents.) 



Telephone establishments $605,943 

Furniture and goods. . 3,134 

Instalments 5,043 

Material 1,122 

Foreign shares 5,000 

Detail business (miscellaneous) 1,336 

Tools 451 

Cash 325 

Scandinavian Credit Stock Company 2,576 

Various accounts 5,711 

$630,641 



2,423,773 

12,535 

20,171 

4,488 

2Q,000 

5,343 

1,805 

1,301 

10,302 

22.842 



07 kr. 
24 kr. 
93 kr. 
42 kr. 
00 kr. 
87 kr. 

95 kr. 

96 kr. 
06 kr. 
84 kr. 



2,522,565 34 kr. 



152 SELECT COMMITTEE <>\ TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Liabilities. 

Industry Credit Stock Co $ 14,800 59,200 00 kr. 

Various debts 42,189 168,75(5 47 kr. 

Bonds 162,500 650,000 00 kr. 

Acceptances 20,250 80,999 91 kr. 

Taxes 114 454 50 kr. 

Unredeemed profits 142 570 00 kr. 

Sick fund 64 255 04 kr. 

Shareholders holdings — 

Capital in shares 250,000 1,000,000 00 kr. 

Reserve fund 25,000 100,000 00 kr. 

Sinking fund. . 49,557 198,229 25 kr. 

Keserve account (rental reserve) 35,189 140,756 59 kr. 

The year's net profit 30,836 123,343 58 kr. 



$630,641 2,522,565 34 kr. 



The profit and loss acccount for 1904 is as follows: — 



Rents . 

Wages 

Taxes 

Sinking fund. . 
Net profit for year 



$ 

10,412 on 
3 '".l( mi 
2,171 00 
5,854 00 

30,836 mi 



52,367 00 



Kr. 

11,646 17 

1.2,378 2e 

8,684 96 

23,415 7 1 

123,34:; 58 



i deducting 

ml working 

. 

Profit from prii ate n < irk, 

rial Bold 



209,468 70 



Kr. 



< 



52,252 mi 

115 no 



209,008 52 
460 18 



52,367 00 i 209,468 70 



Concerning the year's net profit, the management has to report that it has been 
applied as follows : — 



$16.08 (60 kr.) per share to the shareholders, i.e.. 
Carried over to reserve fund • . . . . 



Stockholm, March 24, 1905. 



$15,000 
15,836 



60,000 00 kr. 
63,343 58 kr. 



$30,836 123,343 58 kr. 



W. MoNTELIUS, 

Emil. Egnell, 
H. T. Cedergrex, 
Carl Hallen. 



No. 154d. 



(translation.) 



Statement regarding the terms of subscription in the Stockholm General Telephone 
Joint Stock Company, and the Stockholm Bell Telephone Joint Stock Company. 

Note. — Kroner=26 :8c. ; Kilometre=about f English mile; Metre=3j feet. 

The Stockholm General Telephone Joint Stock Company furnishes service within 
Stockholm, and the surrounding district, extending to a distance of 70 kilometres from 
the centre of Stockholm. The Bell Telephone Company furnishes service only within 
Stockholm. The General Telephone Company furnishes unlimited service within 



APPENDIX "A" 153 

APPENDIX No. 1 

Stockholm. The Bell Telephone Company furnishes measured service only. 
As different facilities for subscribers are given by each company, there is no competi- 
tion in canvassing for subscribers, therefore the common use of both telephones has 
been arranged for. The companies' plants are therefore to be regarded as one tele- 
phone system; and the subscribers to the same comprised, on October 1, 1903, 33,227; 
i.e., 27,968 within the city of Stockholm, and 5,259 within the above mentioned district 
outside of Stockholm. 

TERMS FOR SUBSCRIBERS. 

I. Charges within the city of Stockholm : — 

A. 

General Telephone Company subscription, with unrestricted right of use over the 
company's entire system: 

Instrument with direct communication to central, 80 kr. ($21.44). 

Instrument with direct communication, combined with another, 60 kr. V $16.08). 

By paying a yearly sum of 100 kr. ($26.80) wihout entrance fee, direct communi- 
cation with the Central is obtained, with unrestricted right of use, to all the sub- 
scribers to tbe Bell Telephone Company, for the 45 kr. ($12.06) business telephone, as 
well as the 36 kr. ($9.65) house telephone. (*For particulars see below.) 

Such instruments are termed ' Star ' telephones, and are designated in the direc- 
tory with large type, with a ' star ' before the number. 

Subscribers who pay 80 kr. ($21.44), or 60 kr. ($16.08) yearly, have also to pay a 
separate entrance fee of 50 kr. ($13.40) once for all, or 10 kr. ($2.68) yearly for five 
years. This entrance fee, however, is not required, if the connection has been already 
made, or if the instrument is installed in the customer's residence. 

( imnection to the same residence, without entrance fee, yearly payment, 30 kr. 
($8.04). 

Connection to another residence, if wire does not exceed 500 metres, 40 kr. 
($10.72). 

This last does not include entrance fee of 25 kr. ($6.70) once for all. 

For longer connections than 500 metres, an entrance fee of 25 kr. ($6.70) is re- 
quired, as also a yearly payment of 10 kr. ($2.6S) for each additional length of wire 
exceeding a half kilometre. 

Note. — Connections are made only between instruments belonging to the same 
subscriber, and situated in the same district. 

B. 

Bell Telephone Company. Subscription, with restricted right of use: — 

Business telephone, with direct communication, 45 kr. ($12.06). 

This does not include entrance fee of 10 kr. ($2.68) once for all. 

If an instrument of an older type is installed, no entrance fee is required. 

House telephone, with direct communication, 36 kr. ($9.65). 

This does not include entrance fee, according to terms above stated, for business 
telephone. 

The subscriber has unrestricted right of communication with all the ' Star ' sub- 
scribers of the General Telephone Company, as well as 100 free calls, during each 3 
months, with the subscribers to the Bell Company. For further calls, a payment of 
10 ore* (2Jc.) is required. 

No payment is required for any incoming call to the subscriber's telephone. 

All the subscribers to both companies, in Stockholm, have the right without extra 
charge., to communicate with all the country subscribers, each in turn, according to the 
time that the call is made. When a call of this kind is made, with right of precedence, 



154 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

a charge of 10 ores (2}c.) is required for every period of 3 minutes, for such ' urgent 
calls. 7 

II. Charges for points outside of Stockholm— General Telephone Company:— 

A. 

Subscription for points outside: — 

Telephone with direct connection, and unrestricted free use, over the company's 
whole system, and without entrance fee, yearly subscription 50 kr. ($13.40). 

Telephone, with direct connection, and unrestricted right of use, in the same dis- 
trict ; and right to 100 free calls, every 3 months, to subscribers living outside of 
specified district; with 10 ores (2£c.) charge for each additional call, together with 
entrance fee of 10 kr. ($2.68) once for all. 

Yearly payment, 36 kr. ($9.65). 

Telephone with direct connection, and unrestricted right of use, within district; 
and 10 ores (2ic.) charge for each call made to subscribers living outside specified dis- 
trict ir with entrance fee of 10 kr. ($2.65), once for all, 25 kr. ($6.70). 

Telephone connection to any point, yearly 20 kr. ($5.36). 

Besides this, an entrance fee of 10 kr. ($2.68) is required, if connecting wire does 
not < xci ed 100 metres. For longer connections the entrance fee is regulated according 
to length of wire. 

\ R 

Subscription for country residences: — 

Telephone with direct connection to nearest connecting station, situated in dis- 
trict, yearly 50 kr. ($13.40). 

Besides this, the subscriber must either himself pay charges for making connec- 
tions at above mentioned station, or for this purpose pay a yearly sum of 15 kr. ($4.02) 
to the company. The entrance^fee is 10 kr. ($2.68) if the wire to connecting station 
does not exceed 1 kilometre. If the wire is larger than this, the entrance fee is re- 
quire'!, nnd 40 kr. ($10.72) for wire over and above 1 kilometre. 

Telephone connection, yearly 30 kr. ($8.04). 

Besides this, an entrance fee is required, according to the rules that apply for 
points outside of Stockholm. Charges for ' urgent calk ' are the same as for subscrib- 
ers living in Stockholm. 

All the company's subscribers have the right to telephone from their residences, 
telegrams and telephone messages, to a ' telegram bureau ' installed by the General 
Telephone Company for this purpose. Telegrams are forwarded by messenger to the 
telegraph station without any charges other than the usual telegram rates. Telephone 
messages sent in to the ' telegram bureau ' are written down and forwarded by bicycle- 
messenger to the address given, with a charge of 25 ores (6ft cents) for each message of 
not more than 10 words, the address not included. For longer messages, a charge of 
5 ores (1 cent) is made for each additional word. Telegrams sent to the company's 
' bureau ' addressed to subscribers are telephoned to subscribers, without any charges 
being made. 

Since the ceasing of direct connection with the government telephone wires, the 
company has installed an ' exchange bureau,' where, by a payment of ores 10 (2J cents) 
for each call, telephone communications are transferred to government wires. 

STOCKHOLM GENEKAL TELEPHONE JOINT STOCK CO. 
STOCKHOLM BELL TELEPHONE JOINT STOCK CO. 
Stockholm, October 19, 1903. 



APPENDIX " A " 155 

APPENDIX No. 1 

No. 155. 

(TRANSLATION.) 

THE ITALIAN GENERAL TELEPHONE AND ELECTRIC WORK CO. 



Head Office in Rome, with Agencies in Rome, Bologna, Catania, Florence, Genoa, 
Livorno, Messina, Naples, Palermo and Venice. 



Capital, 5,609,100 Lire ($1,121,820), all expended. 

Rome, June 6, 1905. 
Sir WiLLrAM Mulock, K.C.M.G. 

Honourable Sir, — In answer to your esteemed favour of May 1, we beg to inclose 
herewith our answers to your interrogations. 

Please note that our figures are approximate. 

Hoping that you will favour us with a copy of the general statistics which will be 
drawn up by your committee, 

We beg to remain, 

Yours very sincerely, 
ITALIAN GEN. TEL. AND ELECTRIC WORK CO. 



No. 155a. 

ANSWERS TO QUESTIONS OF THE GOVERNMENT COMMITTEE OF CANADA. 

The company owns and controls the rights of the telephone in the following 
cities and adjacent communes : Bologna, Catania, Florence, Genoa, San Remo, Oneglia 
and Port Maurice, Livorno, Messina, Naples, Palermo, Rome, Venice, Mestre. 

The approximate population is as follows : Bologna, 170,000 ; Catania, 150,000 ; 
Florence, 210,000; Genoa, 250,000; Livorno, 100,000; Messina, 160,000; Naples, 
550,000; Palermo, 360,000; Rome, 480,000; Venice, 160,000. 

The company owns and operates its whole plant. 

Subscribers: Bologna, 650; Catania, 230; Florence, 1,600; Genoa, 2,400; Livorno, 
350; Messina, 310; Naples, 1,200; Palmero, 550; Rome, 4,900; Venice, 1,100. 

The above were the numbers on January 1, 1905. 

In each city there is only one central office, to which all the subscribers are con- 
nected. 

The number of direct lines coincide with the number of the subscribers. 

About 10 per cent of the subscribers have outside extension telephones. 

About 10 per cent of the subscribers have inside extension telephones. 

The subscribers do not purchase their instruments or pay for the cost of the lines. 

The subscriptions are different in the various cities, and vary from a minimum 
of 120 lire ($23.16) to a maximum of 200 lire ($38.60) within the radius of three kilo- 
metres (2 miles). For longer distances an additional 6 lire ($1.16) per annum is paid 
for every 200 metres (620 feet). These rates apply to business and residence tele- 
phones. 100 lire ($19.30) per annum is charged for outside extension telephones. 30 
lire ($5.79) per annum is charged for inside extension telephones. Measured service is 
not in force. 

The average radius of connection is from 2 kilometres (1£ miles) to a maximum 
of 20 kilometres (12j miles). 

There is no entrance fee, but there is paid by way of compensation for this, a 
sum of about 40 lire ($7.72) for setting up the instrument. 

The service is continuous, day and night, and also on Sundays and holidays. 



156 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The charges for local conversations at the public offices are from 10 centimes 
(2 cents) to 15 centimes (3 cents) per call. 

The long distance charges vary greatly according to distance. The time allowed 
for conversation is 3 minutes. 

Over the long distance lines, which belong to the government, the greatest dis- 
tance reached is 1,700 kilometres (1062J miles). 

The telephone apparatus used are those of the Kellogg Company and the Antwerp 
Telephone and Electrical Works. 

City lines are of bronze, of 1.25 m.m. Those of the country are of steel, of 2 m.m. 
There are single and metallic circuits. 

The proportion of overhead and underground work varies a good deal between 
both. About one-third is underground. 

The total amount expended for the whole plant has been 9,700,000 lire 
($1,940,000). 

The revenue for the past year was about 2,200,000 lire ($440,000). 

The total expenditure for maintenance and operating expenses, not including 
depreciation, was 1,200,000 lire ($240,000). 

The profit depends greatly on the amount set aside for the sinking fund. In any 
case, this amount is always high, and consequently the profits are small. During the 
past year G per cent was paid to the preferred shares, and 4 per cent to the other 
shares. 

The rate of wages is as follows: Managers and foremen, from 5,000 lire ($965) 
to 18,000 lire ($3,474) yearly. Instrument men and wire men from 1,000 lire ($193) 
to 2,000 lire ($386) yearly. Switchboard operators, from 720 lire ($138.96) to 1,500 
lire ($289.50) yearly. 

The cost of the material is according to the normal rates, and varies somewhat; so 
that we find it difficult to give a detailed answer to this question. 

The long distance lines belong, for the most part, to the government, and are con- 
trolled by us only to a very small degree. 

Simultaneous telegraph and telephone wires do not exist. The government has 
decided to use the system of Brune and Turchi. 

The long distance lines are solely of metallic circuit, and are of bronze. The 
gauge is 4 m.m., and for the longest wires 5 m.m. 

The private companies are responsible to the government for the collection of 
long distance charges, and are obliged to collect and pay them in. 

A competitive system exists in Rome. This is a system with less than 500 sub- 
scribers. We do not think that it has any effect on the charges and service. 

We have no special system. The calling system is magneto. The multiple 
switchboards are vertical and horizontal — these last are of the Siemens type. The 
intercommunicating central wires are of our own special type. For the smaller 
exchanges we use the Standard switchboard of 100 numbers. All the inside wires are 
of double metallic circuit. 



APPENDIX " A " 157 

APPENDIX No. 1 

No. 156. 

(translation.) 

THE ITALIAN GENERAL TELEPHONE AND ELECTRIC WORK COMPANY. 



Head Office and Central Administration in Rome. 



Capital, 5,609,100 lire ($1,121,820). All invested. 

Bologna, June 13, 1905. 
The Honourable 

Select Parliamentary Committee for Telephones, 
Ottawa, Canada. 

We have the honour to acknowledge receipt of your esteemed letter of May 1, 
1905, to which we respond by stating that we herewith inclose the answers to the ques- 
tions contained in your above mentioned letter. 

We remain yours, 

With the highest esteem, 
THE ITALIAN GENERAL TELEPHONE AND ELECTRIC WORK CO. 

Bologna has a population of 147,898. The telephone system is owned and operated 
by the Italian General Telephone and Electric Company. 

The company has in Bologna 697 subscribers and 732 instruments. 
The service is continuous, including Sundays. 

The charges per annum are various, viz.: — 

Up to 1 kilometre from the central office 140 lire ($27.02) 

"2 " " 170 " ($32.81) 

"3 " " 200 " ($38.60) 

For longer distances, and for every 200 metres or fraction thereof, 6 lire ($1.16) 
In the adjacent districts, up to 4 kilometres from the central office, the above 
charges are required. 

Within a radius comprising 4 to 9 kilometres. .. . 240 lire ($46.32) 
Within a radius comprising 9 kilometres to the 

end of the line 280 lire (54.04) 

The following are the long distance charges : — 

Kil. (Miles.) Lire. (Cents.) 

Prom Bologna to Rome. .,.. . 499 310 2.00 40 for 3 minutes' conversation. 

' Naples .... 748 464i 2.00 40 

" Florence ... 133 82j 1.00 20 

" Prato. ... 103 64 1.50 30 " 

" Pistorio ... 99 61* 1.50 30 

Lucca. ... 144 89* 2.00 40 

" Pisa 211 131 2.00 40 

Livorno ... 230 143 2.00 40. " 

Ferrara ... 47 29 0.50 10 

Padua 123 76* 1.00 20 

" Venice .... 160 99J 1.00 20 

" GrevisV .... 190 118 1.50 30 " 

Mussa P. . . 250 155J 2.50 50 " 

Subscribers' instruments are magneto, with bi-polar receivers and granular car- 
bon transmitters of the ' Kellogg,' ' Solid-back,' and ' Grunenwald ' types ; the batteries 
are ' Leclanche,' with agglomerate blocks. 



158 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The subscribers' lines are of double and single wire, the greater part being of 
single wire. Inside the city they are of bronze, of 1*40 m.m. In the country they are 
of steel, of 2 m.m. 

Length of lines overhead 107,100 kil. 

Length of lines underground 8,000 kil. 

The long distance lines are partly owned by the Italian government and partly 
by the company. These lines are entirely of metallic circuit, of 2, 3 and 4 m.m., and 
are of bronze wire. 

The usual time allowed for long distance conversations is three minutes; the 
longest time allowed, six minutes. 

ITALIAN GENERAL TELEPHONE AND ELECTRIC WORK CO. 



No. 157. 

Ottawa, Ont., June 15, 1905. 
Sir William Mulock, 

Postmaster General, Pres. Tel. Committee, 
Ottawa, Ont. 

Honourable Sir, — In answer to your esteemed favour on the telegraph and tele- 
phone communication in my county, I have the honour to state that all the Saguenay 
district and part of Chicoutimi is served by the government telegraph system as far as 
Belle Isle. 

As to telephone, there are three companies now dealing in my district : 

1st. The Chicoutimi Electric Company, which operates town and seven parishes in 
the vicinity. 

2nd. The Co-operative Telephone Company of Lake St. John and Chicoutimi, 
which operates in the whole Lake St. John district and in Chicoutimi town and three 
parishes in the vicinity. 

3rd. The Roberval Telephone Company, which operates in Roberval only, but is 
in complete connection with the Co-operative one No. 2. 

The two systems of Roberval and Chicoutimi are the two oldest ones; but their 
rates being too high ($25 a year) for the general community, in 1895, I organized with 
the principal farmers and business men in the different parishes the Co-operative 
system, which covers the whole district now. 

This company does not sell telephones, and shareholders only can have them; the 
number of these increasing every year, every farmer or merchant who wants to have a 
'phone has it now. 

The company possess now 189 miles of main lines, operating 214 'phone boxes con- 
trolled by 21 switchboards, the whole cost of it being $8,000. 

The Roberval Company controls about 80 boxes worked by one switchboard, con- 
nected to the Co-operative system. 

The average price of the Co-operative boxes is $40 each, including the cost of all 
the constructions. 

Every shareholder has free access to any 'phone at any place of the system and 
their families from home have the same privilege. The rate for the public is 15 cents 
per three minutes conversation. 

The company raises once a year on the shareholders the amount necessary for the 
maintenance and repairs, which amounts from $3 to $5 a year, so that the cost to the 
shareholders is equal to this amount plus the interest on the capital, viz. : $40, less the 
revenue paid by the public. 

The rates charged by Roberval Company are $25 per year. 



APPENDIX " A " 159 

APPENDIX No. 1 

The rates charged by Chicoutimi Company are $15 per year in Chicoutimi town, 
plus extra charges for calls outside of the town, and in other places $12.50 without any 
extras. 

This company controls about 150 boxes in the town and the different parishes in 
the surrounding of Chicoutimi town. 

On account of misunderstanding on the rates between this company and the Co- 
operative system there is no communication at all between the two companies ; railway 
companies allow every company access to their stations. 

I am president of the Co-operative system since its organization. 

My experience in telephone business is that in rural places, to make it popular, 
rates ought to be very low ; and those generally asked by all speculative companies are 
exhorbitant. 

I believe that the government general management will be a first-class policy, and 
if it is not possible now all the long-distance lines should be in the government hands, 
giving to any local company access to these at the same charge; delivering so the public 
of the hard monopoly now exercised by some important firms. 

I inclose a map explaining the exact position in my district. 

I have the honour to be, sir, 

Yours truly, 

JOS. GIRARD. 



No. 158. 

Mink Cove, Digby County, N.S. 

Sir William Mulock, 

Ottawa, Ont. 

I received your letter and papers of inquiry concerning telephone systems. The 
Westport and Digby telephone line, 1 now represent, was organized by a company in 
1888, stock issued $2,000. The company ran the line 15 years. The government laid 
two cables, one across Grand Passage, the other across Petite Passage. The one at 
Petite Passage was carried away several times, vessels dragging down upon it, catch- 
ing it with their anchors and cutting it away. The government at last refused, or 
at least did not put another down. It remained without a cable for a long while; 
the company ran heavily in debt and they sold out to me ' personally.' I repaired the 
line and put a new cable down; the line then was forty miles iron wire, from Digby 
to Westport. I also ran an extra wire of copper from Sandy Cove to Westport, a dis- 
tance of 20 miles, exclusive of the two passages which were cabled with a one-core 
cable — that made half the distance from Digby to Westport copper. The other 20 
miles of iron wire, I connected with by-lines for business purposes. I do about all 
the work myself exceptirig the repairing of instruments, which I send away to manu- 
facturers. The poles I furnish (nearly) all myself. Other material I buy mostly 
in Montreal. 

The system operates in Digby county. The population of the territory served 
is 5,000, and total number of telephones in operation 40, of which 14 are direct one- 
station lines. The number of residence telephones is 14, business 12. The system is 
magneto, the central office equipment being manufactured by the Fisk, Newhall Tele- 
phone Manufacturing Company, of Chicago, 111., and the subscribers' telephones by 
the ' Bell ' Company, Couch & Seeley, Boston, and John Starr & Co., Halifax. The rates 
charged per annum are, business $15, residence $10. The system interchanges ser- 
vice with the Valley Telephone Company, the Yarmouth Amalgamated Telephone 
Company, and the Western Union Telegraph Company. 



160 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The system operates 40 miles of long-distance lines. The charges for conversa- 
tions over the long distance lines are 20c. per message, exclusive of delivery, and 
15c. per message when connecting on other lines, in addition to the usual tariff of 
the connecting companies. 

Yours truly, 

SAMUEL GIDNEY, 
Owner and Manager, Westport and Digby Telephone Line. 

No. 159. 

Established 1882. 

HELDERLEIGH FRUIT EAEMS AND NURSERIES. 

E. D. Smith, Proprietor. 

Winona, Ont., June 12, 1905. 
Mr. A. Zimmerman, 

Acting Chairman of Telephone Committee, 
Ottawa, Ont. 

Dear Sir, — Your favour to hand with regard to private telephone system. We 
started one here in the neighbourhood a great many years ago. I have not the date 
by me but should say at least fifteen years ago. The private system was being rapidly 
extended, but before it had become a strong competitor to the Bell Company, that 
company, through its agents, made us what we considered a fair proposal, to drop 
our system and go in with them. The terms were $15 per 'phone per annum. If the 
user of the 'phone required a line longer than half a mile he was required to pay 
double or allow another party to go on the same line. This system is in operation 
to-day. The rates have been gradually raised, however, until now they are $20 instead 
of $15. 

The patrons of the Bell Company have little to complain of except the service is 
not continued on after eight o'clock in the evening or before eight o'clock in the morn- 
ing, but of course everybody felt they were being imposed upon when the Bell Com- 
pany raised the rate above $15, feeling that if they could afford to continue the 
business at $15 each when only a few 'phones were in operation, they should better 
be able to do it now when almost every fruit-grower and farmer has a 'phone in his 
house. 

Your truly, 

E. D. SMITH. 

No. 160. 

NORTHERN ALUMINUM COMPANY, LTD. 

Shawinigan Falls, P.Q., Canada. 

. MAIN OFFICE, 

PITTSBURG, PA., U.S.A. 
CLEVELAND OFFICE, 

GARFIELD B'lVg, 

J. A. RUTHERFORD, 

MANAGER. 

Cleveland, O., May 29, 1905. 
Adam Zimmerman, M.P., 

Acting Chairman Select Committee on Telephone Systems, 
Ottawa, Canada. 

My Dear Adam, — I wrote you on Saturday a short letter relative to the telephone 
information which you asked for. 



APPENDIX " A " 161 

APPENDIX No. 1 

Answering your first question relative to the extent of the long-distance facilities 
afforded by the independent companies here and the names of the companies operat- 
ing the several companies, would state, that I inclose, herewith, a letter head show- 
the names of the different toll lines or long-distance lines over which the independent 
companies operate. 

There is connection by the independent system from Cleveland as far east as 
Syracuse; as far north as Grand Rapids, and south-east to Charleston and Wheeling, 
W. Va., south-west to St. Louis and to Kansas City, although the Kansas City line 
is not yet in complete operation, but up to the present time conversations have been 
had between Cleveland and Kansas City. 

Relative to the rules and regulations between the long-distance and the local 
companies, I inclose, herewith, a form of contract from which you will obtain con- 
siderable information, and would state further that the rates are made on the basis 
of an air-line distance, that is to say, if the route of a long-distance line is of a tri- 
angular or rectangular shape, the rate is made not on the basis of these shapes, but 
on the basis of an air-line distance between the different points. If there is any fur- 
ther information which you think I can give you, kindly advise me. 

Tours truly, 

J. A. RUTHERFORD. 



No. 160a. 

(Copy of Letter-head.) 

S. P. Sheerin, President. 

J. D. Powers, Vice-President. 

Jas. B. Hoge, Secretary. 

C. Marquard Forster, Treas. • 

H. B. Sale, Ass't Sec'y. 

M. H. Clapp, Consulting Engineer. 

CONFERENCE COMMITTEE OF INDEPENDENT LONG-DISTANCE 
TELEPHONE ASSOCIATION. 

members : MEMBERS : 

PITTSBURG & ALLEGHENY TELEPHONE CO. KlNLOCH LONG DISTANCE TELEPHONE CO. 

J. G. SPLANE., Pittsburg, Pa. C. MARQUARD FORSTER, St. Louis, Mo. 

INDEPENDENT LONG DISTANCE TEL. & TELG. CO. UNITED STATES TELEPHONE CO. 

col. J. D. powers, Louisville, Ky. jas. b. hoge, Cleveland, 0. 

NEW LONG DISTANCE TELEPHONE CO. KANSAS CITY LONG DISTANCE TELEPHONE CO. 

s. p. sheerin, Indianapolis, Ind. o. c. snider, Kansas City, Mo. 

No. 160b. 

COPY OF TELEPHONE TOLL CONTRACT. 

This Agreement, entered into by and between The United States Telephone 

Company, of Cleveland, Ohio, a corporation organized and doing business under the 

laws of the State of Ohio, first party, and the • 

Telephone Company, of 

second party. 

Witnessetii : That Whereas, the first party is organized for the purpose, cmong 
others, of building and maintaining telephone toll lines, and proposes to connect 
principal points in Ohio as soon as practicable, by means of first-class, full metallic, 
copper lines, and arrange for the interchange of business with independent or opposi- 
tion exchanges or toll lines in said state, and if desirable and practicable, extend such 
service beyond said state of Ohio, under such arrangement as will he advantageous. 



162 SELECT COMMITTEE O.V TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Now, Therefore, the parties hereto, for themselves, their successors and assigns, 
in consideration of the mutual promises herein made, covenant and agree as follows, 
to wit: — 

First. The first party agrees to build or maintain a telephone line or lines to the 
corporate limits of the 



and thence upon the poles of second 

party, to its exchange or central office at 



for the purposes herein specified. 

Second. The second party hereby grants to said first party a license to use the 
top cross-arm of second party's poles within the corporate limits of said city or vil- 
lage of 



upon which to string and maintain its toll line wires, which said second party ' ereby 
agrees to keep clear, free from obstructions, and in good working ordei 1 , within tha 
corporate limits of . ., . . . 

and furnish such material as may be necessary for the repair thereof, at actaal cost, 
tr be paid by first party, and second party hereby grants a license to said first party 
to connect with the telephone exchange or system of second party through its switcli- 
bcfrrds, so that an interchange of business may at all times be carried on between 
said parties. Such connection to be completed on or before the 



It being understood and agreed that the lines of both parties hereto shall be so oper- 
ated that service may be given from all lines owned, controlled or connected with, 
the lines of either of the parties hereto, over the lines of the other and its connec- 
tions. And said parties agree not to enter into any contract with any other person, 
firm or corporation, whereby any of the rights, privileges or advantages herein acquired 
by either party, may be impaired, except as provided in paragraph (4) hereof. 

Third. The apparatus used by second party in connection with the line.? of first 
party, shall be of such character and efficiency as to afford facilities for first-cla«s 
service at all times, and first party hereby reserves the right to refuse to receive or 
transmit messages from or to any connecting line or apparatus when service rendered 
thereby is not reasonably efficient. 

Fourth. First party agrees to transmit all messages destined to points en the 
lines of second party not reached by its own system of wires, to and over the lines 
owned or controlled by said second party. It being further agreed and und? "stood 
that where a point on the line of second party is also reached by another independent 
or opposition line or lines, said first party hereby agrees to distribute the business 
destined for such common point as equally as practicable between second party and 
such other independent or opposition line or lines, but said first party reserves the 
right to transmit all business destined to such common point over such line or lines 
as will enable first party to render the best service. And the second party in consid- 
eration of the benefits to be derived by it or him from the toll service herein provided 
to be furnished by first party, agrees to transmit all business to points not now reached 
by its or his own line or lines, over the lines of first party. The plan hereto attached 



APPENDIX "A" 163 

APPENDIX No. 1 

shows the existing lines of the second party, and the points now reached thereby, and 
is hereby made a part of this contract. 

Fifth. Each party hereto agrees to receive from the other, all messages destined 
to points within its territory or on connecting lines, which may be delivered to it by 
the other party hereto, subject to all the conditions herein contained. 

Sixth. It is agreed and understood that where a message originates at an ex- 
change or other point upon the lines of second party, for transmission thence over 
the lines of first party, the second party shall receive twenty-five (25) per cent of all 
toll charged for such message by the first party, and its connecting lines, other than 
those of second party, over which the same may be transmitted, as full compensation 
for its services in connection therewith, and shall account for and remit the balance 
to first party on or before the tenth day of each month for the next preceding calen- 
dar month. Provided that the amount which second party shall receive shall not 
exceed twelve and one-half (124) cents for any one message of not exceeding five 
(5) minutes duration. And second party further agrees to make a daily report of 
all joint business transacted, to first party, on blanks furnished by it for that pur- 
pose. 

Seventh. It is further understood and agreed that, in the division of tolls charged 
for interchanged business, passing in part over the toll lines of both parties hereto, 
each party shall receive a share of the total toll charged, for each message in propor- 
tion to the ratio existing between the land air line distance, from the point of origin 
to the point of transfer and the land air line distance from the point of transfer 
to the point of destination, and in fixing the toll charge for any message the mileage 
shall be taken and deemed to be the land air line distance between the terminal 
points of such message, and unless otherwise agreed the charge shall be not to exceed 
two-thirds of one cent per mile, for not exceeding five (5) minutes' conversation, 
excess time to be charged for and divided, as provided in paragraphs six (6) and 
seven (7) hereof. 

Eighth. It is further understood and agreed, that at all competitive points (that 
is points reached by lines in competition with either of the parties to this agreement), 
where the competing rate is lower than the joint rate of the parties hereto, as pro- 
vided in paragraph seven (7) hereof, such competitive rate shall be met by each party 
hereto, bearing a share of the reduction necessary to meet such rate, in proportion 
to the ratio existing between the whole land air line distance from the competitive 
point to the junction point, and from the junction point to the originating or ter- 
minating point of such message, and the toll charge for such message shall be com- 
puted on the regular standard base rate of first party, as provided in paragraph seven 
(7) hereof. 

Ninth. It is further agreed and understood that second party will receive and 
deliver to the proper parties all messages destined to points on its lines and delivered 
to it over the lines of the first party, without compensation therefor, except its pro- 
portion, if any, of the total toll charge for such message, as provided in paragraph 
seven (7) hereof and except also when a messenger is necessary, in which case the 
actual cost of such messenger service shall be paid to second party by first party. 
And second party agrees to connect the wires of first party for the purpose of trans- 
mitting messages from the lines of first party to points beyond the exchange or lines 
of second party, without compensation therefor, except its proportion, if any, of the 
total toll charge for such message as provided in paragraph seven (7) hereof. 

Tenth. It is further agreed that if first party finds it desirable or necessary from 
the amount of business, or the nature of the service, to establish a separate switch- 
board in the exchange of second party, and employ an additional operator or opera- 
tors, that it shall have the privilege of so doing, in which case the division of toll 
charges shall be as follows : The first party shall receive 85 per cent and the second 
party 15 per cent of the sum charged for such message, in the manner hereinbefore 
provided. 

l—d—12 



164 SELECT COMMITTEE n\ TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Eleventh. It is further agreed that each party hereto shall save the other harm- 
less from any damage or injury caused or occasioned by its negligence or default, or 
the negligence or default of its agents or employees, as to all matters covered by the 
terms of this contract. 

Twelfth. It is further agreed and understood that first party shall adopt such 
rules and regulations governing the transmission of messages over its lines and the 
transfer of the same to and from other lines as shall be by first party deemed just 
and reasonable, and the agents and employees of second party shall observe and en- 
force such rules and regulations at all times. 

Thirteenth. It is agreed and understood that each party will do all things neces- 
sary to give full force and effect to the spirit of this agreement, without further com- 
pensation or conditions than those herein specifically set forth. 

Fourteenth. This contract shall be and remain in force, for and during the period 
of ninety-nine years from date hereof, and thereafter until one year's written notice 
shall have been given by either party to the other of its intention to terminate the 
same. 

Witness our hands and seals in duplicate this day of 190 . 

THE UNITED STATES TELEPHONE COMPANY, 

By Prest. 

Attest Secy. 



No. 161. 

A. E. Bennett, M.I.E.E. 

Telegraphic address: Telephraze, London. 

Telephone: Post Office, Victoria, 1546. 

Queen Anne's Chambers. 

Broadway, Westminster, 

London, S.W., June 5, 1905. 
The Secretary to the 

Select Committee on Telephone Systems, 
Ottawa, Canada. 

Sir, — A correspondent in Ottawa informs me that it has been stated before the 
Select Committee on Telephone Systems, by one or more witnesses in the ' Bell ' in- 
terests, that I was dismissed from the position of general manager and chief engineer 
to the Glasgow Corporation Telephone department, owing to extravagant waste of 
money, and that subsequently the system had to be reconstructed. I think it due to 
myself to bring to the notice of the Select Committee that these statements are false 
in every particular. When the Glasgow Corporation Telephone System was commenced, 
in 1900, it was proposed in the first instance that I should be appointed as chief en- 
gineer and electrician, but subsequently, owing to the difficulty in finding an indepen- 
dent telephone manager of prolonged experience, I consented, at the request of tjha 
telephone committee, to act as general manager for a period of three years. At the 
expiry of this period I also, at the request of the telephone committee, consented to 
occupy that position for another term of twelve months, and again on the expiry of the 
second period for a third term of six months. I may explain that during the whole of 
this period I, with the consent of the corporation, was acting as engineer to all the 
other corporations owning telephone systems. This involved my absence from Glasgow 
very frequently, and as Glasgow was not a good centre from which to travel, most of 
the other corporations owning telephone systems being in the south, I did not see my 



APPENDIX " A " 165 

APPENDIX No. 1 

way to renew the special engagement in Glasgow longer, and accordingly reminded the 
telephone committee that I had in the first instance only consented to act as general 
manager to oblige them, and regretted that I did not see my way to continuing in that 
position any longer. I, therefore, gave up my duties on June 1, 1904, after an en- 
gagement of four years and a half, during which the exchange had started from zero 
and had connected up over twelve thousand lines, and had been placed in a thoroughly 
remunerative position. On my leaving, the town council passed a resolution thanking 
me for my services. At the request of the telephone committee I consented to continue 
my connection with the department as consulting telephone engineer for one year. 
This year terminated on May 31st last, and at the request of the telephone committee 
I have again consented to act for them for another year. It will, therefore, be seen that 
all such statements are absolutely false, and if any doubt remains I would be glad if 
you would communicate with the town clerk of Glasgow. 

The further statement that the expenditure has been extravagant and that the 
system has to be reconstructed are also false. A modification of the switch-room 
has been discussed, and the telephone committee have agreed to alter experimentally 
one of the small switch-rooms at a cost of £1,500, and that is all. 

l£ is necessary for the Select Committee to be extremely careful about statements 
which are made from the monopolistic side, as the telephone interests both in Great 
Britain and the United States, have a secret service staff which controls newspapers and 
expert witnesses, packs public meetings and influences municipal elections for the pur- 
pose of obstructing the progress of independent telephony. 

I should be glad if you would bring this before the Select Committee on Telephone 
Systems at the earliest possible opportunity, and have the honour to be, 

Yours very faithfully, 

A. E. BENNETT. 



No. 162. 

A R. BENNETT, M.I.E.E. Queen Anne's Chambers, , 

Broadway, Westminster, X 

London, S.W., June 1, 1905. 
Sir William Mulock, . 
Postmaster General, 

Ottawa, Canada. 

Select Committee on Telephones. 

Sir, — In consequence of paragraphs appearing in the London papers that Mr. 
H. L. Webb had given evidence before your Committee in a sense damaging to the 
telephone undertakings of the post office and the municipalities in the United king- 
dom, and that this evidence had produced a considerable impression on your com- 
mittee, I took the liberty of cabling you on May 29 to the effect that Mr. Webb is 
a salaried officer of the National Telephone Company, and that he is also connected 
with American telephone interests. Mr. Webb is retained specially by the National 
Telephone Company to combat the municipalities and has been in the habit of giving 
evidence against them at the various local government board inquiries, with a view of 
preventing any further loans for telephone purposes being sanctioned. The tenor 
of Mr. Webb's evidence on these occasions is that the municipalities employ obsolete 
plant, that their systems are badly engineered, that their tariffs are on unremunera- 
tive scales, and generally that the municipal telephone systems are badly conceived 
and worse executed. Notwithstanding Mr. Webb's evidence in this sense, the local 
government board have never yet refused a loan to municipalities for telephone pur- 
poses, and it is notorious that the evidence runs counter to the experience of the sub- 

1— d— 12J 



166 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

scribers to the municipal systems who, generally speaking, express the opinion that 
the service given by the municipalities is greatly superior to any with which they 
were acquainted under the National Telephone Company's monopoly. Furthermore, 
every municipality working has secured handsome balances of profit after paying 
interest and sinking fund on the capital outlay. As a rule, the loan is only granted 
for twenty-five years, Glasgow, which has thirty years, being an exception, so that 
the amount which has to be set aside for sinking fund every year is very consider- 
able. Under these circumstances, it appears to me that the value of Mr. Webb's evi- 
dence is very greatly discounted and should be received by your committee with the 
greatest caution. The National Telephone Company's monopoly has been hardly hit 
in this country by the action of the municipalities, and if a large number of the 
municipalities had had the courage to undertake telephones the company would have 
been altogether destroyed, as experience shows that it is quite unable to hold its own 
in competition. The company, therefore, evince the greatest anxiety to discredit 
municipal enterprises, and as there is a strong link between the British and Ameri- 
can telephone interests, it can be understood that every effort will be used and no 
expense spared to prevent municipal telephony taking root in Canada or the United 
States. 

I would respectfully submit, therefore, that if your committee have any doubts 
as to the complete success of the British municipal systems, you should hear evidence 
from some witness qualified to speak authoritatively on all aspects of municipal tele- 
phony. As I stated before, I trust soon to be in a position to forward you copies 
of the various municipal accounts for the year ending March 31. These have not yet 
all been confirmed by the town councils, but I trust they will soon be confirmed and 
printed. 

I have the honour to be, 

Yours very faithfully, 

A K. BENNETT. 



No. 162a. 

15 Dey Street, 
New Yory, June 17, 1905. 

The Chairman, 

The Select Committee on Telephone Systems, 
House of Commons, Ottawa, Ont. 

Sot, — I notice there has been published a letter addressed to the committee by Mr. 
A. R. Bennett, making various personal references to myself. It seems to me that the 
tone of these remarks requires no comment or reply. I stated in my evidence before 
the committee that I was retained as consulting expert by the National Telephone Com- 
pany, and stated my qualifications in full. 

I have only to say, in commenting on Mr. Bennett's letter, that his statement that 
experience shows that the National Telephone Company has been unable to hold its 
own in competition with the municipal systems is contrary to the facts. In every town 
in Great Britain where there is municipal competition the National Company's system 
is much the larger of the two, and is gaining new subscribers at a more rapid rate. 

Very truly yours, 

HERBERT LAWS WEBB. 



APPENDIX "A" 167 

APPENDIX No. 1 

No. 163. 

E. J- HARRIS, J. W. PATTISON, 

Mayor. Sec.-Treas. 

Neepawa, Man., June 12, 1905. 
To Sir Wm. Mulock, 

Chairman Select Committee on Telephone Systems, 
Ottawa. 

Sir, — I have the honour to acknowledge receipt of your letter of 2nd instant, de- 
siring to obtain the views of the council of the town of Neepawa regarding telephonic 
conditions in this locality. The town of Neepawa owns and operates its own telephone 
system. Your communication was placed before the council at its first meeting, the 
matter was discussed and a select committee of the council appointed to prepare a 
report thereon, which was presented and adopted by the council. Following is a copy 
of the report, also additional information directed to be furnished by the council: 

' The select committee of the council of the town of Neepawa appointed to con- 
sider the letter from the select committee of the parliament of Canada appointed to 
consider the telephone systems, beg to report as follows: 

' That having considered the letter referred to, they would suggest that the 
secretary-treasurer be instructed to furnish the committee with any and all infor- 
mation they desire. That they view with pleasure the fact of the government taking 
up this question, the outcome of which they hope may be a recommendation looking 
toward government-owned trunk long-distance lines. That we do not think, judging 
from experience with the Bell Telephone Company, that an arrangement between any 
municipal system and that company would be a satisfactory one to the municipality. 
In our case the municipal system has proved very satisfactory, as to service, cost and 
profit. 

' Upon motion of Councillors Dinwoody and Gossell, report was adopted. 

E. J. HARRIS, 

' Mayor.' 

You are already in possession of certain information relating to this system, 
which has been furnished from this office and is printed in your reports. The system 
in use is metallic circuit and was installed five years ago. It is run to a certain 
extent in connection with our electric lighting system. The cost up to the present 
time on capital account is $12,000. We have a switchboard of the manufacture of 
International Company of Chicago, 200 drop. Number of 'phones installed, 180; 
charges are $10 per annum for domestic, and $20 for commercial. The average cost 
per 'phone installed and in operation is $70. Cost of maintenance is $16.50, which 
includes interest and sinking fund. At these rates the system is just self-sustaining. 
We have no long-distance or party lines in connection with our system. The Bell 
Company operate a long-distance line. They have about nine subscribers; they are 
building lines to the neighbouring localities. 

Yours truly, 

JAS. W. PATTKON, 

Secy.-Treas. 



No. 164. 

Parkhill, Ont., June 20, 1905. 
Sir William Mulock, Ottawa. 

Hon. Sir, — Your communication to our clerk re telephone system, has been referred 
to me to reply to, by motion of the council. 



168 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In 1894 five men— myself among the number— obtained a charter lor a telephone 
company to be known as the Parkhill Telephone Company. We had 22 instruments 
in use, and had put up a line to a pleasure resort called Grand Bend, on Lake Huron, 
14 miles north of this town, and had 5 instruments working on this line. We were 
charging $1 per month for use of 'phones, and were making a little money when Mr. 
Scott, a special agent of the Bell Telephone Company, appeared upon the scene and 
told us we had to sell out to the Bell Company or they would put in instruments and 
put up a parallel line to Grand Bend and run it free. This we could not stand, so we 
had to sell out at less than it cost us. I was the secretary of the company. 

Re CHARGES. 

Now we pay $15 each for our 'phones, and do not get very good attention, for the 
boy who attends to it is clerking in the store, and though there are 35 subscribers here, 
we have to wait until he waits upon his customers and then he answers the 'phone or 
call. 

Re LONG-DISTANCE 'PHONES. 

The price we consider almost prohibitive; 70 cents for 3 minutes to Toronto, 100 
miles; and 15 cents per minute over time. 

Three minutes is not long enough where breaks occur frequently. We are not 
satisfied with the charges for long-distance messages, nor with the time given. 

Yours respectfully, 

A. W. HUMPHRIES, 

Mayor. 

No. 165. 

City Clerk's Office, Hamilton, Ont., 

City Hall, June 15, 1905. 
Si:- William Mulock, K.C.M.G., 

Postmaster General and Chairman of 

Select Committee on Telephone Systems, 
Ottawa. 

Sir, — In reply to your circular letter of the 7th instant, respecting telephone 
systems, I have the honour to subjoin a memorandum submitted to the Minister of 
Justice on the question by representatives of the Ontario Municipal Association on 
February 3, 1903. The memorandum expresses fully the views of the association, and 
if legislation could be secured along the lines suggested therein we believe that it would 
greatly improve existing conditions. 

I have the honour to remain, 

Yours faithfully, 

S. H. KENT, 
Secretary, Ontario Municipal Association. 

memorandum. 

It is submitted that in any measure that may be passed by the Dominion parlia- 
ment, provisions should be inserted to the effect following : — 

1. That no telephone system should be established or any existing system extended 
in any city or town without the consent by by-law of the council of the municipality, 
which should have power to impose such terms, conditions and restrictions as to the 
use of its streets, the placing of poles and conduits and of wires and other appliances, 
in all streets and public places, and the rates of service to be charged, as the municipal 
council deem reasonable. 



APPENDIX "A" 169 

APPENDIX No. 1 

2. That any company having a trunk line should be compelled to permit any such 
local telephone company or any municipality owning a telephone system to use such 
trunk line for long-distance messages or conversations, and to transmit the messages 
or permit the use of its long-distance system for such conversations upon terms to be 
mutually agreed on between the local company or municipality and the owners of the 
long-distance line, or in the event of their failure to agree, then upon such terms as 
might be imposed by order of the Governor General in Council, and that such trunk 
line company shall upon like terms deliver to or through such local telephone company 
any messages received for it or its customers over the trunk line or permit conversa- 
tions to be had from the trunk line or over the lines of the local telephone company. 

3. It would be still better in the public interest that the Dominion government 
should own and control all the long-distance lines, and permit them to be used by all 
local telephone systems under a reasonable tariff of rates to be fixed by the government. 

4. Provision should be made that all telephone companies incorporated by or under 
the authority of the parliament of Canada should be subject to the expropriation of 
their local systems by the municipalities in which they are respectively situated, upon 
such terms and conditions as may be imposed by the legislature of the province in 
which any of such systems may be located. 

5. That the lines of any telephone company now existing or hereafter established 
shall be placed underground in any city or town in such manner and to such extent as 
the council of the city or town may by by-laws require, the terms and conditions upon 
which such change in the companies' lines shall be made to be determined by by-law 
of the council, subject to appeal to the High Court of Justice of the province, if they 
are deemed by the company to be oppressive or unreasonable. 

6. It should be declared in the proposed Act that nothing therein contained shall 
be so construed as to extend the existing rights of any telephone companies, or as re- 
cognizing that such companies now have rights, independently of the consent or con- 
trol of the local municipalities in which their lines are constructed.' 

No. 166. 

E. F. McTavish, D. M. Ure, 

Sec.-Treas. Mayor. 

CORPORATION OF THE TOWN OF MORRIS. 

Morris, Man., June 16th, 1905. 
Sir Wm. Mulock, K.C.M.G., 
Ottawa, Ont. 

Dear Sir, — I am duly in receipt of /our favour of the 2nd ultimo re information 
in regard to the telephone system. I may say that at our last regular meeting, the 
matter was fully taken up by the council and a committee appointed to give you all 
the information that could be got. Two years ago the Bell Telephone Company put 
in the local system, the long-distance a year previous. In the beginning they had 
32 subscribers, and at the present time they have 42. Their rate for places of business 
and residence are respectively $25 and $20 per annum paid in advance, semi-annually 
and under a contract for three years. So far as the working of the Bell Telephone 
Company is concerned, local or long-distance, everything is in first-class condition, 
but we feel that the rates are exorbitant, and that one-half of the present rates should 
be sufficient. In long-distance the rate for three minutes to Winnipeg, a distance of 
42 miles from this point is 40c. for day and 25c. after six p.m., and to St. Jean, a 
distance of six miles from this point, the rate for three minutes is 15c. At offices 
where the day rate is 25c. there is no reduction after six. From data at my disposal I 
infer that the revenue of the Bell Telephone Company at this office can not be less 



170 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

than $3,500 per annum. The expense is small, they employ a local manager, one girl 
and one man as inspector, or what they call their trouble man. He takes care of 
the company's lines, and puts in new 'phones that may be required in his district. 
He has full charge of all the 'phones from Morris to La-Salle and Gretna, on the 
Canadian Pacific Eailway, and Rose-Bank, Emerson and Ridgeville, on the Canadian 
Northern Railway, a total mileage of some one hundred miles. Thus you see the 
cost for maintenance is very small. Should there be any extra work, such as erect- 
ing poles, &c, they have an extra man to do it, but this hundred miles, at the present 
time, is solely under the charge of the trouble man. Now, what our council think 
is this: that if the 'phone system could be taken over by the Dominion government 
and managed similar to the Customs and Post Office Departments, we believe the 
present rates could be reduced one-half, and that it then would be a paying revenue 
to the government, perhaps better than from any other department. 

Tours respectfully, 

D. M. URE, 

Mayor. 



SYNOPSIS OF LETTERS RECEIVED FROM MUNICIPALITIES. 

No. 167. 

Township of Draper, Ont. — No system in operation, council of opinion that tele- 
phone system in connection with post office would be a great convenience, but owing 
to the sparsely settled state of many townships does not consider municipalities could 
successfully establish and operate a system. 

No. 168. 

Municipality of Denibeigh, Abingfield and Ashby. — No railway, express, telegraph, 
or telephone facilities in this locality. Any one of these systems would be hailed with 
delight. 

No. 169. 

Municipality of Plum Coulee, Man. — ' Bell ' toll station only. Complain that ser- 
vice is slow. A customer may have to wait several hours to get tfhe desired leonnjeo- 
tion — there being only one line. Two wires could be fully employed. 

No. 170. 

Township of York, Ont. — ' Bell ' rates excessive. More residents wouli use tele- 
phones if rates were moderate. Council believes in government ownership of all long- 
distance lines within the Dominion. 

No. 171. 

Tarentorus Township, Algoma.—No telephone service here. 'Bell' line from 
Sault Ste. Marie to Thessalon passes through. Farmers asked for connection, but 
price demanded prohibitive. 

No. 172. 

Municipality of the County of Quebec, P.Q. — Secretary-treasurer writes, 'Bell' 
pay station, but no subscribers here. Charge to Quebec, 3£ miles, 10 cents for three 
minutes. Company quoted $60 per year for telephone in writer's house. System 
gives satisfaction, but would be more telephones used if rates were lower. 



APPENDIX " A " 171 

APPENDIX No. 1 
No. 173. 

Municipality of Pipestone, Man.—Tso system here. Council forwards resolution 
favouring government ownership of telephones. 

No. 174. 

St, Andrews, 2V..B.— New Brunswick Telephone Company have 42 subscribers at 
$20 per annum. Town council favours legislation giving municipalities protection in 
regard to use of streets, and favours government ownership of long-distance lines. 
Local rates are too high for service limited to the hours between 7 a.m. and 9 p.m. on 
week days only. Long-distance rates also too high. No rural service. "Writer states 
that in Woodstock where there is competition, lower rates and all night service are 
given. 

No. 175. 

Dartmouth, N.3.— Board of Trade committee interviewed manager of Nova Scotia 
Telephone Company on subject. Service now fairly satisfactory. 140 telephones in 
use at $40 business, and $25 residence. $5 extra for long-distance instrument. Mer- 
chants consider these charges out of proportion for the value received. It would be 
regarded as a great benefit if cost of service could be cheapened. 

No. 176. 

Township of Toronto Gore, Ont. — No service. Council very strongly favour any 
scheme to give service in rural districts at reasonable cost. Such service to fill re- 
quirements should have long-distance connection. 

No. 177. 

Township of Tumberry, Ont.— Bell' service here. No further information. 

No. 178. 

Township of Derby, Ont. — ' Bell ' pay station in "Kilscyth, no complaints or sug- 
gestions. 



No. 179. 

\\ etaskiwin, Alia. — ' Bell ' operating 'here, at rates of $30 business, $20 residence, 
on three year contracts. 80 subscribers ; no franchise. Council very much in favour 
of municipal ownership. I resent system does not satisfy public requirements, both 
as to service and rates. All night service and considerable reduction in local rates 
desired. No rural service. 



No. 180. 

Essex, Ont. — ' Bell ' operating here. Unanimous opinion of council that local 
and long-distance rates so high that service is beyond reach of majority of people. 
Council believes if Dominion Government operated lines, public would willingly pay 
such rates as would be remunerative. 

No. 181. 

St. Boniface, Man. — Satisfied with ' Bell ' service, but charges too high. Have 
50 subscribers which form part of Winnipeg system. 



172 SELECT COMMITTEE OX TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 182. 

Sandwich, Ont.— Subscribers not at all satisfied with ' Bell ' service. Very little 
rural inter-communication because company has not encouraged farmers to take tele- 
phones. 40 subscribers. 

No. 183. 

Elizabethtown, Ont. — No service. Nearest telephone at Addison, six miles distant. 
Telephones much needed. Offered to furnish North American Telephone Company 
with poles to Glen Buell, 2| miles distance where main line passes through, but with 
no results. 

No. 184. 

LennoxviUe, P.Q. — ' Bell ' and ' People's Company ' operate here. ' Bell ' has 40 
telephones with free service to Sherbrooke. ' People's ' have not so many. Service 
very good, but long-distance rates too high. Council considers free service should ex- 
tend to nearby towns and that all telephone companies should be allowed connection 
with railways on equal terms. 

No. 185. 

Secretary-Treasurer, Maskinonge, Que. — Two companies here. 'Bell,' which gives 
long-distance and ' Maskinonge ' having local service connecting to parishes and county. 
' Bell ' long-distance satisfactory. No local subscribers at the present time. Maski- 
nonge Company's service not always satisfactory. These two systems are of great 
convenience to the public. 

No. 186. 

Municipality of Pembina, Man. — ' Bell ' long-distance only service. Kate to Win- 
nipeg 102 miles 60 cents. Company has been canvassing for local subscribers at $24 
per year. Council considers these rates too high by half. Improvement of service also 
needed. Patrons frequently have long waits. 

No. 187. 

YorMon, Assa. — System operated by local company for seven years. Highly satis- 
factory, but proprietors cannot supply would-be subscribers for lack of capital. Council 
appoints one director on board of company. Have 130 miles of rural lines, with 60 
telephones; also 100 local subscribers. Rates: $12 residence, $25 business. Holders 
of $25 stock have reduced rates. Ordinary service 6 a.m. to 10 p.m. Doctors, fire and 
police departments have continuous service. Subscribers have free service over rural 
lines. Non-subscribers pay 25 cents and $1 for night service per conversation. 

No. 188. 

St. Scholastique, P.Q. — Public very well satisfied with 'Bell' service. 41 sub- 
scribers, rates from $15 to $25. 

No. 189. 

Township of Rama, Ont. — Line being built by ' Bell ' Company from Orillia to 
Longford, on extreme west of township. Council considers a line with pay stations, 
through centre of township connecting other municipalities and towns would be great 
benefit, and would facilitate the selling of farm produce and the securing of medical 
aid, &c. Council also favours establishment of national telephone system. 



APPENDIX " A " 173 

APPENDIX No. 1 

No. 190. 

Brooke Township Council, Ont.— Clerk of council writes : ' Bell ' Company has 25 
miles of lines in township, but no connection with a single farm house. Eates too high. 
When company were building from Wattford to Alviston they asked the writer $80 
for connection, and very little reduction for service. Line passed' 200 feet from house. 
Have private line connecting doctor, cheese factory and a farm house and writer's 
house. This is not much used except for doctor and veterinary surgeon. Farmers 
need rural free delivery of mail more than rural telephone service. 

No. 191. 

Ailsa Craig, Oni. — Council recommends in the strongest possible manner govern- 
ment ownership of the long-distance lines. Also object to companies having control 
of public highways. ' Bell ' monopoly give fair local service at reasonable rates, but 
inflict antiquated telephones and single lines. Charges for metallic lines with long- 
distance telephones unreasonable. Company refused to establish office at Clandeboy, to 
which line runs, because inhabitants would not donate $50, 'this being only one in- 
stance of unfair manner in which monopolies conduct their business.' 

No. 192. 

Killarney, Man. — Telephone system not installed long enough to decide as to quality 
of service. Long-distance rates too high. Local rates business $24, residence $13. 

No. 193. 

Riverside, Man. — Council forwards resolution objecting to monopoly in telephones, 
and desiring that municipality should have a voice as to the placing of 'phones, &c. 

• 
No. 194. 

Weston, Ont. — Council recommends government ownership of long-distance lines. 
' Bell ' service good, but does not go far enough without you pay well for it. Fifteen 
telephones at old rates of $15 per year. New ones being charged $20 per year. Charge 
of 15 cents for three minutes' conversation with Toronto, five miles distant, too high, 
hence there are few residence telephones. 

No. 195. 

Peterborough, Ont. — ' Bell ' system has 660 subscribers at rates of $25 for business 
and $20 for second connection for same subscribers, $5 extra for long-distance equip- 
ment. Residence party line rates, $20, $18 and $15, with 2, 3 or 4 subscribers on same 
line. The Canadian Machine Telephone Company's exchange will be operating in a 
few days. Bates: business $20, residence $15, or $30 for the two combined. Since 
franchise has been given to the Machine Company, the ' Bell ' Company has been active 
in extending lines to rural districts and reducing local residence rates. Council strongly 
recommends government ownership of long-distance lines, and that municipalities be 
given control of streets. 

No. 196. 

Chatham, Ont. — ' Bell ' system has 490 subscribers. Rates : business, $25 ; resid- 
ence, $20, $5 extra for long-distance equipment. $5 extra also charged on one-year con- 
tracts. Service given by local staff is of best quality. Company operate two rural lines 
and is installing a third, at local rates, if not less than six telephones on same line. 
City council considers long-distance rates too high, and that ' Blake ' equipment should 
be replaced by modern appliances, without increasing charges, if not at lower rates. 



174 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 197. 

Raglan, Out— Council believes government should control telephone system. No 
service in locality at present. 

No. 198. 

Dalhousie Lake, Ont.—Kas 14 miles of line built by people and managed by com- 
mittee running through part of Dalhousie, North Sherbrooke and Palmerston, giving 
good satisfaction. Have connection with North American Telegraph Company. Have 
fairly good terms and very good service. 

No. 199. 

Township of Ryerson. — No telephones in township, but if put in and charges low 
would be largely used. 

No. 200. 

Portneuf County. — The Portneuf Telephone Company is extending wires in this 
parish, but people not satisfied as th^re is no communication with Quebec. ' Bell ' office 
three miles distant. 

No. 201. 

County of Rouville, Que. — Service satisfactory, but three-minute limit of con- 
versations too short, considering rate charged. 

N/>. 202. 

County of PontiaCj Que. — Council believes more people would have telephones if 
rates were lower — ' Bell ' operator refused any information regarding rates, &c. Two 
years ago local company operated in part of county at $12 per year, including service 
over whole district. Bell acquired this system — now charges $15, with service limited 
to one town only. The old company had more 'phones than the ' Bell.' The ' Bell ' 
Company give good service but have so few telephones that subscribers complain that 
service is practically useless at $15 with such limited connections. In this parish, 
Bryson, there are only two telephones, one in each hotel. 

No. 203. 

New Glasgow, N.S. — Nova Scotia Telephone Company charges $30 for business, 
$25 for residence, which is considered too high. No complaint as to service. The 
Egerton Company was organized recently; since then the Nova Scotia Company have 
put in an up-to-date telephone. No rural service as yet. A local company, mostly 
farmers, recently organized to connect this exchange with farming district as far as 
East River, St. Mary's, 35 miles distant. 

No. 204. 

Maple Creek, N.W.T. — Has no service, but council is unanimously in favour of 
a national system. 

No. 205. 

Bixley, Ont. — ' Bell ' operating in west of township. The eastern part requires 
service. Long-distance rates too high. 



APPENDIX " A " 175 

APPENDIX No. 1 

No. 206. 

Halifax County, Nova Scotia. — Council is in favour of government ownership of 

Icng-distance lines. Service of rural systems connecting with the Nova Scotia Com- 
pany is satisfactory. 

No. 207. 

North Plantagenet, Ont. — 'Bell' service not satisfactory — rates high. Too long 
waits for connection. Bates $25, limited to this village at present. One subscriber in 
village, two at the station. Kural facilities much needed. Writer suggests that if 
Plantagenet had free service with all stations in same township, it would benefit rural 
districts. 

No. 208. 

Beaverton, Ont. — ' Bell ' service fairly satisfactory. Business and residence, $20 ; 
farmers, under existing contracts, $15; under new contracts, $20. Fifty-eight tele- 
phones, including eighteen farmers. No night service. Contracts being only taken 
for one year, which leads council to believe that it is intended to increase rates. For- 
merly a local company operated here, but sold to the ' Bell.' 

No. 209. 

Duoro, Ont. — ' Bell ' service gives general satisfaction, but writer considers 
charge of 15c. to Peterborough, 6 miles, excessive. The farmers furnished the ' Bell ' 
Company with poles free, for this line. 

No. 210. 

Sullivan Township, Ont. — Privately owned line operating between Chelsea and 
Desboro. Charges 25c. per message. Is a convenience when working, but is often 
out of order. Favour government control of telephone systems. 

No. 211. 

County of Halton, Ont. — ' Bell ' Company has 38 subscribers. Service satisfactory 
but limited for want of greater facilities in rural districts. 

No. 212. 

Dysart, Ont.; Byde, Ont; Batter and Dunnet, Ont.; Eanley, Ont. — No service. 



SYNOPSIS OF GENEEAL LETTEES EECEIVED. 

No. 213. 

H. H. Millie, Government Telegraph Agent, Kelowna, B.C. — Twelve telephones 
here, owned by private individuals. Cost of maintaining same 80c. per telephone per 
year. Government owns long-distance line which operates here and gives perfect 
satisfaction. 

No. 214. 

J. B. Melcher, Melcher's Distillery Company, Berthierville, Que. — Stating that 
the 'Bell' Company is neglecting its business at Berthierville and charging too high 
rates, considering the number of telephones. Complains of delay in providing writer 
with service, and trusts there will be change before long. 



176 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 215. 

Arthur H. Burton, Montreal Que.— Stating that 'Bell' Company compelled his 
sister-in-law to take the long-distance instrument at increased rate, and also refused 
to supply writer with ' Blake ' instrument until he pressed the matter by complaining 
to the city hall and calling at the head office of the company. Also subsequent letter 
stating that if the ' Bell ' Company deny the facts he will send an affidavit and other 
proofs. 



No. 216. 

M. H. Overholt, The Fernside Fruit Farm, Jordan, Ont. — Stating that private 
line has been running for 15 years over a distance of 12 miles, connecting with St. 
Catharines. The line had connection with the 'Bell' Company, but was cut out and 
further connection refused. Two years ago a company was about to be formed, when 
the ' BeK ' Company promised service at $15 and blocked the scheme. The ' Bell ' 
Company have taken all the subscribers of this line with the exception of the writer, 
who is keeping it up alone. The ' Bell ' Company are now charging $20 per year. 
The writer asked Mr. Sise to give him connection and he would bear the cost, but 
was refused. The writer states that the ' Bell ' Company asked Mr. Rittenhouse to 
visit Ottawa and testify that the company was giving good service; they did not, 
however, give any in the Pelham district until they were compelled to do so. The 
writer asks for a grant of $200 or $300 to complete all the private lines and get new 
'phones and he would furnish the rest to put this line in good running order. He 
also asks what power he has to put telephones and whether the ' Bell ' Company is 
compelled to give him connection. When he was running the private line, the tele- 
phone did not cost him over $3 per year. 



No. 217. 

I. R. Edmands, Union Carbide Co., Sault Ste. Marie, Mich. — Enclosing news- 
paper clipping giving notice of the incorporation of the Home Telephone Company, 
jf San Francisco, with a capital of $10,000,000, for the establishment of an automatic 
telephone system in San Francisco. 



No. 218. 

F. V. Warmal, Seeley Manfg. Co., Montreal, Que. — Contradicting statement made 
by the Bell Company that a five-cent piece is never lost when using slot machine 
telephones. The writer states that he loses money in this way three or four times 
daijj, and explains that the operators refuse by order of the company, to obtain the 
person required as in the case of long-distance service, hence if the man wanted at 
a subscriber's is out, the coin is lost. 

No. 219. 

Home Telephone and Telegraph Co., San Diego, California. — This company 
operates the Strowger Automatic System. Has 1,350 subscribers and trouble depart- 
ment only reports average of 7 or 8 cases of trouble per day. From standpoint of first 
cost, operation, expense of maintenance, the system is very satisfactory. 

No. 220. 

Lafleur, McDougall & Macfarlane, Montreal, Que. — Enclosing copy Journal Tele- 
graphique, containing Swedish Telephone Tariff. 



APPENDIX "A" 177 

APPENDIX No. 1 

No. 221. 

Hector Champagne, St. Gabriel, de Brandon, P.Q. — Writer is one of 12 shareholders 
owning system which has been operating for 12 years at St. Gabriel de Brandon, Que. 
The circuit extends six miles, and has 25 subscribers, paying $8 per year, with a charge 
of 10 cents for conversation to adjoining parishes. The company pays forty per cent 
of revenue to central office employees, the balance pays for repairs and 6 per cent in- 
terest on capital. The Canadian Pacific has telephone in same central office. Has 
offered to buy this system ,but shareholders do not care to sell, as telephones are need- 
ed, and they fear higher rates. 

No. 222. 

From H. A. Turner, M.D., MiUbrook, Ont. — The writer built this line for private 
practice and it was used by community, without charge, up to May, 1903, when a con- 
tract was made with the ' Bell ' Company for interchange of service which has been 
found satisfactory. Local charge on this line, 10 cents per conversation. All instru- 
ments and supplies purchased from Bell Company. 



No. 223. 

Dr. Fisher, Vittoria, Ont.— The writer states he is under contract with the ' Bell ' 
Company for three years for interchange of service. The general feeling is that the 
present service is too expensive and that government service at lower rates would be 
hailed with satisfaction. A number of farmers and others in locality would like rural 
service and connection with the nearest town. This system connects Vittoria with 
Fisher's Glen, Ont., 3\ miles distance, and has four telephones. 



No. 224. 

J. A. SPEAGUE, J. G. SPEAGUE, 

Pres. and Manager. Supt. and Constructor. 

SPEAGUE TELEPHONE COMPANY. 

Demorestville, Ont., June 13, 1905. 
Sir Wm. Mulock, 

Postmaster General and Chairman Telephone Committee. 

Dear Sir, — In compliance with your request I herewith, so far as I can, furnish 
you with information asked for. We are doing business in a small way with our own 
private capital, and a start in the telephone business was made necessary on account 
of being unable to get telephone connection from the companies doing business here, 
(' Bell ' and ' North American ' companies. Practically one undeT the ' Bell ' manage- 
ment). We are living about three miles from the post office, telegraph and telephone 
offices and we wanted telephone communication, but were unable to get it, so we de- 
cided to put up a private line to connect our residence with the post office, which we 
did, and applied to the American Company to go into their office, which they refused. 
We then put an instrument in the two doctors' offices, and in the grocers. We were 
not long in finding the benefit, and other firms wanting telephones, we started put- 
ting in different lines and connecting with the village of North Port. We soon^found 
out that the ' Bell ' Company were after us and our subscribers were notified by the 
' Bell ' Company's solicitor, of Toronto, threatening prosecution for infringement of 
patent on their bridging system. However we kept on doing business, and will con- 
tinue to the extent of our finances, and we are now connected with the 'Bell' sys- 
tem, which we find a great advantage. 



178 SELECT COMMITTEE OK TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The name of our company is the Sprague Telephone Company, it is a private en- 
terprise confined to myself and son. We started first in the year 1901, and operate in 
two townships, having a population of about 5,000. We have installed 190 instruments 
and have 52 more ready to install. We have no one station lines, neither have any 
of our subscribers ' Bell ' telephones. We have one hundred and sixty-three residence 
telephones, and 52 orders now under construction; also 5 doctors, 11 grocers and 
general stores, 4 post offices, 3 cheese factories, and 4 ministers of different denomi- 
nations. We have 30 miles of toll line. The average cost per subscriber's station is 
$50, and the average cost per mile of toll line is $65. All our line as yet are grounded 
single iron wire. We have no subscribers on toll line, of which there are 30 miles. 
We use nothing but long-distance instruments (Bridging) manufactured by the 
Chicago Company of Elkhart, Ind., the Wm. Abbott Company of Cleveland, Ohio, and 
the Farr Company of Chicago, 111. The number of rural telephones is one hundred 
and sixty-three, also 52 partly equipped. Non-subscribers pay 5 cents, and if swi 
on other lines 10 crmts, which gives them conversation with any of our subscribers. 
We have only one toll line connecting our system with the ' Bell ' over which we have 
joint control, and by arrangements we have a 15 cent rate which gives connection with 
the ' Bell ' subscribers in the town of Picton. We charge a yearly rental of $10, which 
entitles the subscribers to the use of the whole system. We pay no dividend, but put 
the revenue into the business. We have no bonds. We estimate the depreciation at 
3% per cent. We have no funds, except private capital. 

We have a contract with the Bell Telephone Company to connect with their system 
at the town of Picton by a toll line from our central office, the charge being 15 cents 
for three minutes' conversation. This gives our subscribers connection with the Bell 
system by paying their regular rate, which is a great advantage, because we have access 
to their trunk lines, which all independent companies should have. I trust the gov- 
ernment will see the importance of this matter. 

Before we started the Bell Company had only two instruments installed in the 
township of Sophiasburg. They were toll offices, one at North Port, one at Demorest- 
ville. They had one in the township of Ameliasburg, making three altogether. They 
have now two in township of Sophiasburg and ten in the township of Ameliasburg. 

They had no subscribers before competition. Now they have eight residence tele- 
phones. The Bell rates were, and still are, $25 per year. 

We manage largely our own business and our own installing. Our labourers we 
pay $1.25 per day, with board. At the main central office we have one of our own 
family, in the other we have a lady, at $50 per year. 

We use the plug switchboard, and have two centrals, one with eleven lines and 
the other with five lines, the two centrals being connected by a trunk line. Our system 
is ' party line,' that being the only practical one for rural telephone service. We have 
from 12 to 14 subscribers on each line. More than that number would make confusion, 
and would prevent prompt service. We use nothing but the best long-distance instru- 
ment 1,600 ohm. Bridging, which cost us about $15 each duty paid. We are somewhat 
handicapped by the duty, which I think should be removed, as the ' Bell ' people are 
connected with the only manufactory of instruments in Canada, and they keep the 
prices equal to foreign manufacture, duty added. I think it would be better for the 
government to help the people instead of protecting the manufacturer. Our lightning 
arrestors, insulators, side block and pins we get from Chicago cheaper, duty added, 
than we can here. Poles we use (cedar) which are scarce in this part of the country, 
although we have been able to get, so far, what we have used at prices ranging from 
50 cents to 80 cents apiece, 25 feet, 5-inch top. Side arms we get here at about 18 cents 
apiece, 3x4, five feet long. 

I hope and trust, for the benefit of the people of this country, the government will 
take over the trunk lines or control them in some way so that independent companies 
can get connection, which would do more for the telephone service than anything else. 
Independent companies could then connect with trunk lines and give all the advantages 



APPENDIX " A " 17 g 

APPENDIX No. 1 

that the companies owning the trunk lines now do. Independent companies would be 
operating all over the country, and the farming community could then have telephone 
service at a reasonable rate. It would allow competition to step in and regulate prices. 
Farmers must have cheap telephone service, as the average farmer cannot pay more 
than $10 per year. On our lines we are getting 50 per cent of the farmers, and if the 
cost was $15 or $20 per year you could not get 10 per cent. In the township of Sophias- 
burg the 'Bell ' Company charge $20 per year and have only one subscriber, whilst we 
are charging $10 per annum and we have 125 subscribers, and orders for more. So 
you see it is necessary to give cheap service to farmers, and yet there is no class of the 
community that require the telephone more than the farmers. Hoping your labour 
may result in good for the people of this county, 

I remain, yours, &c, 

SPEAGUE TELEPHONE COMPANY, 

Per John A. Sprague, Pres. 

No. 225. 

Office of the County Clerk, 
The Hon. William Mulock, Welland, Ont., June 13, 1905. 

Postmaster General, 
Ottawa. 

Sir, — By resolution of council of the county of Welland I am instructed to for- 
ward you the inclosed report of the council, setting forth their views, as requested by 
communication received from you re ' the telephone service.' 

Yours respectfully, 

ROBERT COOPEE, 

County Clerk. 

No. 225a. 

To the Warden and Council of the County of Welland : 

Gentlemen, — Your special committee appointed to consider the communication 
from the Postmaster General re telephone service, beg leave to report as follows . — 

Telephone service in this county is entirely by the Bell Telephone Company, 
whose charges are too high and hours too short in villages and towns. Service is not 
good in the rural municipalities, there being on many lines too many subscribers. 
There are also many complaints as to lack of promptness in service. Bates were in- 
creased recently and time of communication shortened from five minutes to three 
minutes. Were service improved and rates lowered on both long and short-distance 
seivice, list of subscribers would be largely increased. Residents in rural municipali- 
ties would greatly appreciate good telephone service. 

Port Colborne and Welland subscribers on one side of canal are charged five 
dollars more for service than subscribers on the opposite side per year. The tele- 
phone company's excuse being because of cable across the canal, which they must 
have in any event. The placing of wires, whether above ground, in cities, towns and 
incorporated villages, should be entirely under the control of the municipality, as 
well as the placing of poles in rural municipalities. 

All of which is respectfully submitted. 

J. HARRISON PEW, Chairman. 
OHAS. HENDERSON, 
J. K. HENDERSON, 

Certified a true copy. C. E. STEELE. 

Robert Cooper, 

County Clerk. 

1— d— 13 



180 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 226. 
(Translation.) 

Office of the Municipal Council of the County of Labelle, P.Q. 

Thurso, P.Q., June 22, 1905. 
The Honourable 

Sir William Mulock, 
Ottawa. 

Honourable Sir, — A meeting of the municipal council of the county of Labelle 
was, as mentioned in my letter of the 14th instant, held on the 10th instant. The 
request made by your honourable committee was duly communicated to his honour 
the warden and to the several mayors of the county of Labelle. 

The county of Labelle not being favoured with telephone systems, the council 
did not, under the circumstances, deem it expedient to adopt any resolution authoriz- 
ing me to transmit to your honourable committee the desired information; and de- 
plore that the, county has, up to this date, through failure on the part of the tele- 
phone companies, been neglected, and venture to express the hope that the federal 
government will, if possible, endeavour to ameliorate present conditions. 

Your list of questions was given consideration by certain mayors whose muni- 
cipalities are favoured by a telephone system which is confined to restricted and 
limited distances, such as in the villages of Papineauville, Masson, St. Andre Avelin, 
Ripon, Cheneville and Mxmtebello, and th Suffolk, Portland, Hartwell 

and Ponsonby, whose municipalities will communicate to your honourable committee 
the information which it desires to obtain from each of th 

I have the honour to be, honourable and dear sir, 
Tour devoted servant, 

J. EOBILLARD, M.D., 

Sec.-Treas. 



No. 227. 

Brighton Corporation Telephone Department, 

Town Hall, Brighton, June 15, 1905. 

Sir, — I have received your letter of the 3rd ultimo, and have pleasure in for- 
warding herewith replies to the list of questions enclosed with your communication. 

I enclose herewith print of a report of the Telephones Committee, dated the 15th 
August, 1902, which gives a brief history as to the reasons which prompted the cor- 
poration to establish a telephone system. The principal reasons which prompted the 
corporation to apply to the Postmaster General for a license to carry on a telephone 
undertaking was the excessive charges of the National Telephone Company and the 
inefficiency of the service. 

I also enclose copy of the balance sheet for the first complete year of the Cor- 
poration Telephone Undertaking. 

I am, sir, your obedient servant, 

HUGO TALBOT, 

Town Clerk. 
Sir William Mulock, K.C.M.G., 
Postmaster General, 
Ottawa, Canada. 



APPENDIX " A " 



181 



APPENDIX No. 1 

No. 227a. 



BRIGHTON CORPORATION— Continued. 



The system operates in the municipality of Brighton, England. Population: 
Census, 1901, 123,478; estimated to middle of 1904, 126,286. 

The term of the Postmaster General's license is from May 1, 1901, to April 30, 
1926. 



Brighton 

Burgess Hill . . . 

Portslade 

Shoreham 

Steyning 

Hurstpierpoint . 



No. of 
Subscribers. 



1,213 

68 

28 

12 

I 

9 



No. of 
Public 

Telephones, 



83 
5 
5 
2 
2 
1 



No. of 

Extension 

Telephones. 



Nil 



291 
6 




The total number of telephones is 1,888. The number of party lines 43. The 
number of telephones on party lines 78. The number of inside extension telephones 
144. The rates are: Business and residence, £5 10s. Od. ($26.79) per annum for un- 
limited service; £3 0s. Od. ($14.61), four party line; £4 4s. Od. ($20.46), two party 
line per annum unlimited. Inside extensions, £1 3s. 3d. ($5.67) per annum. Measured 
Bervice, £3 10s. Od. ($17.05) per annum and one penny (2 cents) per outward call. 

These rates are for subscribers up to two miles from exchange. 

Tbe service is continuous, day and night, including Sunday. One penny per 
call is charged to non-subscribers for local conversations. 

Subscribers can converse throughout the United Kingdom by means of the post 
office trunk lines, on payment of the usual long-distance charges. 

Wall and desk instruments fitted with combination transmitter and receiver are 
used by subscribers. 

Subscribers lines are metallic circuit. Copper underground and bronze overhead. 

The whole of the main routes are underground and are distributed to the sub- 
scriber's premises overhead. 

£49,753 7s. 9d. has been expended on the system up to date. The revenue per 
annum is £7,788 8s. 6d. The expenditure per annum is £6,374 2s. 6d., including man- 
agement, operating expenses, maintenance, sinking fund and depreciation. Three per 
cent interest is paid on capital, and 3^ per cent sinking fund is set aside, leaving a 
surplus of £413 14s. 4d. (first year of working). The surplus is set aside for deprecia- 
tion. As the whole of the loan is re-payable within the life of the plant it is con- 
sidered unnecessary to have any further depreciation fund. 

About £80 per annum is paid for way-leave privileges. 

The wages paid are: Manager, £300 per annum. Assistant manager, £150, rising 
to £200 per annum. Superintendent of outside engineering, £156 per annum. Super- 
intendent of inside engineering, £130 per annum. Gangs' 'foremen, 35s. per week. 
Instrument men, 25s. to 30s. per week Wiremen, 24s. to 28s. per week. Operators, 6s. 
to 20s. per week, according to service and ability. 

The cost of material is: Central exchange equipment, £4,356. Present capacity, 
2,088 ; ultimate, 5,000 ; lines connected, 1,296. 30 line switchboards ultimate capacity 
50 for sub-exchanges, £31 each. Wall telephones, £2 6s. 3d. Desk telephones, £2 9s. 
9d. 312 pr. 22s. D.C. cable 7s. 7d. per yard; 312 pr. Is. 20d. D.C. cable at 9s. lid. per 
yard. Bronze wire 10-l-d. per lb. Creosoted Norwegian fir poles, 28 ft. 20s. 9d.; 70 ft. 
£9 15s. Od. Karri wood cross-arms at £90 per thousand. Straight long bolt insulators 
at 31s. lOd. per thousand. Two ft. octagonal porcelain duet, 4 inches at lid. per 
length. Nine ft. cast iron pipes. 3 inches, at 4s. 7jd. per length. 
1—d—m 



182 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The National Telephone Company has 2,061 telephones, 724 party lines. Before 
competition they had about 1,100 telephones, and no party lines. 

Municipal subscribers. — No connection locally with 'National' Company's sub- 
scribers, but they connect with ' National ' in other towns through the post office 
trunk lines. A terminal fee is charged on each call varying from 3d. to 6d., according 
to the amount of trunk fee. 

Four hundred and seventy-five subscribers have the telephone of both systems. 

Accounts for long-distance charges are rendered monthly by post and payment is 
received by post. 

The system is central battery calling and clearing. The subscriber calls the ex- 
change by putting a temporary earth on one leg of the line, thus dropping the calling 
indicator, on replacing the telephone on the cradle the temporary earth is again put 
on, thus dropping the clearing indicator. 



APPENDIX " A " 



183 



APPENDIX No. 1 



Ho. 227b. 

I. — Statement as to Loans Authorized for the Purposes of the Undertaking prior to 

March 31, 1905. 



Amount sanctioned. 


Amount borrowed. 


Amount 
repaid. 


Amount 


Date 

of 

Sanction. 


Amount. 


Cash. 


Discounts and 

Costs of 
issuing Stock. 


Total Debt 
created. 


Sanctioned 
but not 
. Borrowed. 


1902 


£ s. d. 

42,000 

4,666 


£ s. d. 
42,000 

42,000 


£ s. d. 
3,859 9 1 


£ s. d. 
45,859 9 1 


(Sec Balance 
Sheet No. VI.) 


£ s. d. 


1904 


4,666 






46,666 


3,859 9 1 


45,859 9 1 




4,<;us o o 



184 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 






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188 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

' 4-5 EDWARD VII., A. 1905 

No. 227c. 

COUNTY BOROUGH OF BRIGHTON. 

REPRINT OF THE REPORT OF THE TELEPHONES COMMITTEE OF THE 10TH APRIL, 1901. 

The telephones committee report that with a view to carrying into effect the license 
about to be granted by the Postmaster General, empowering the council to carry on 
telephone exchange business in the Brighton area, they have obtained from Mr. Bennett 
an estimate of the cost of installing the necessary system. 

The council will remember that in June last, the committee submitted a pre- 
liminary report prepared by Mr. Bennett in accordance with the instructions of the 
council, of the cost of the provision of a 1,200 and 2,000 line exchange respectively, 
for the purposes of the application to the Postmaster General for the necessary license, 
and that the Council adopted the committee's recommendation thereon, which was as 
follows : — 

' That application be made to the Postmaster General, for a license to the corpora- 
tion to establish and carry on a system of public telephonic communication in the 
Brighton Telephone Exchange area for a period of 25 years, the maximum rates of 
charges for exchange subscribers to be as follows: — 

' For unlimited service £7 

' For limited service 3 10 and toll of Id. a call. 

and that the councils of the several districts included within the proposed exchange 
area be requested to give their consent to the application.' 

In the same report, estimates, furnished by Mr, Bennett, were submitted, of the 
probable income and expenditure in respect of a 2,000 and 1,200 line exchange re- 
spectively. The particulars of which, for a 2,000 line exchange, are as under : — 

Estimate of Revenue. 

2,000 subscribers at £5 5s. per annum, average receipt. . . . £10,500 

80 public telephone offices, at 3s. per week, average receipt. . 624 

Extra mileage charge on long lines, say 80 miles at £4. . . . 320 
Commission on telegrams, express letters, &c, telephoned 

to the post office 25 



£11,469. 



Estimate of Working Expenses. 

Staff. 

Manager and engineer £250 

Assistant engineer 130 

Outside superintendent 117 

Inside superintendent 117 

Storekeeper 91 

3 inspectors, at £78 average 234 

2 improvers, at £26 '. 52 

4 clerks, at £65 260 

2 boys, at £26 52 

Chief operator (lady) 91 

Assistant operator (lady) 52 

44 girl operators, at 10s. per week average 1,144 

5 night and Sunday operators, at 12s. per week 156 

Travelling and allowances ' 50 
























































































APPENDIX " A " 18 g 

APPENDIX No. 1 

General. 

Rent of central switch-room and offices or interest on 

cost of site and building 20C C 

Kent of 4 branch switch-rooms at £20 80 

Post office royalty, 10 per cent on £11,4 H 1,144 8 

Local assessments 527 ,1 () 

Corporation establishment charges 200 

Stationery, printing, stamps, office sundries 100 

Light, heat, water, cleaning, insurance 200 

Way-leaves and roof repairs at 4s. 6d. per line per annum. 478 8 

Repairs and shifts at 5s. 6d. per line per annum 582 8 

Interest at 3 per cent on £38,480 1,154 8 

Sinking fund at 3 per cent on £38,480. This, with in- 
terest on accumulations at 2J per cent, will pay off 

the whole capital in 25 years. 1,154 8 

Depreciation and renewal fund, 2i per cent on £38,480— 
3 pe"r cent, with interest on accumulations at 2% per 
cent would renew the whole system in 25 years. But 
the old material taken out would be worth at least 
\ per cent, so that 2J per cent will renew the whole 

system in 25 years 962 

Income tax 100 

Commission on public telephone receipts 52 

Contingencies 250 

£9,981 
Add on account of lines partly constructed: — 

Interest at 3 per cent on £4,800 144 

Sinking fund at 3 per cent on £4,800 144 

£10,269 
Net revenue £1,200 

The committee have decided that it is desirable to adopt the 2,000 line exchange 
and have obtained from Mr. Bennett an estimate for its construction. 

The committee also report that they have interviewed Mr. Bennett with regard 
to the terms upon which he would act as engineer for the construction of the muni- 
cipal telephone system, and have ascertained that he would undertake the duty at a 
commission (in which will be mcged Mr. Bennett's charge of £52 10s. for his prelim- 
inary report) of five per cent on the actual cost of the works, limited to the sum 
of £41,392. Such commission will amount to a sum of £2,069 12s. if the total of 
the estimate is expended. 

The following is a copy of Mr. Bennett's report and estimate: — 

(copy.) 

' BRIGHTON. 

' Scheme and Estimate for a Metallic Circuit Telephone Exchange in the Brigh- 
ton Telephone Area of 2,000 Completed Subscribers, with the Necessary 
Junction, Public Telephone and Spare Lines. 

' To give effect to a scheme for 2,000 subscribers, it is necessary to provide a 
margin of public telephone and junction lines, and, also, in order to avoid reopening 



190 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

of streets, a number of partially-constructed lines which can be brought into use from 
time to time with little trouble or expense. 

' I propose to provide lines of these different descriptions as follows : — 



Shoreham 

Steyuing 

Hurstpierpoint. 

Rottingdt-au . . 



Totals 






Brighton — (Including Hove, Preston, Kemp Town, &c.) 1,890 



30 
20 

30 

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IS 

8 

is 

18 



600 



' Tbe junction lines to branch switch-rooms would consist of: — 

Junction Lines. 

' Brighton to Rottingdean 4 

Shoreham 6 

' " Steyning 2 

Hurstpierpoint 4 



Total. 



16 



' Room would be provided on the poles for additions to these as future develop- 
ments might require. 

' I do not propose to have any sub-exchanges in Brighton or Hove, but to bring 
all the subscribers in Hove, Preston, Kemp Town, &c, direct to the central exchange, 
wbich I have assumed to be located in the neighbourhood of Church, Bond or King 
streets. 

' The method of construction estimated for is underground in the chief streets 
with overhead distribution from fixed points, although in some cases it will probably 
be more convenient and economical to distribute underground. 

' The conduits, which would consist of cast-iron socket and spigot 3 in. pipes 
jointed with lead, would be laid under the roadways when these are macadamized, and 
under the footpaths where wood pavement exists. 

' The accompanying plan shows the proposed main underground routes. Advant- 
age is taken of the approaching tramway construction to lay ducts along the tram- 
way routes. In the estimate the cost of this is taken at the price of an independently 
laid conduit, except as regards restoration of surface, which is assumed to be covered 
by the tramway construction. 

' The plan of distribution may be understood by regarding the main underground 
routes as backbones from which ribs or spurs will extend overhead to the right and 
left for the purpose of serving the districts on either side. Where the existing sub- 
scribers of the National Telephone Company lie thickest, and around the Hove town 
hall, I have provided for underground spurs from the main line. 

' The overhead wires would not be much seen from the main streets, which would 
be but rarely crossed by them, as they would go away over the houses to the right and 
left. The plan I adopt would also render it unnecessary to cross the tramway trolley 
lines with overhead wires, and dangers arising from accidental contacts between tele- 
phone and tramway wires will thus be avoided. 



APPENDIX "A" 191 

APPENDIX No. 1 

' The following are the numbers of underground lines leaving the central ex- 
change on the various routes : — 

' Western route (red on plan 720 

' Eastern route (brown on plan) 384 

' Tramway route (yellow on plan) 408 

' King street route (green on plan) 312 

' Dyke road route (blue on plan) 384 

' Bond street route (purple on plan) 312 



: 2.520 



' The number of underground lines taken to various points is shown in figures on 
the plan. Thus 264 lines are taken as far as Hove town hall; 120 as far as the town 
depot, Hove; and 48 as far as St. Philip's church, Hove. On the eastern route it is 
proposed to take 240 lines as far as Devonshire Place; 96 as far as Paston Place; 36 
as far as Sussex Square; and 24 as far as the gas works. 

' The total mileage provided comes to 2,300 miles of metallic circuit, equal to 
more than an average of one mile for each subscriber. In all probability this is in 
excess of what would be required, as the National Telephone Company lines do not 
exceed an average of three-quarters of a mile. 

' The cables would consist of copper wires, insulated with paper and covered with 
lead, so as to make a compact, strong and air-tight cable possessing the electrical 
properties most suitable for telephonic transmission. They would be drawn into the 
iron pipes, and would be tapped for distributing purposes at manholes or equivalent 
devices placed at proper intervals. 

■ ' The overhead distributing wires would be of silioium bronze weighing 40 lbs. 
to the mile and of great tenacity. The junction wires to the branch exchanges would 
be of hard-drawn high-conductivity copper, weighing 100 lbs. to the mile, supported 
on stout creosoted Norwegian red fir poles furnished with cross arms of American oak 
and porcelain insulators. The whole of the construction work would be in conformity 
with the specification annexed to the post office license. 

' The instruments would be of handsome design and best workmanship, similar 
to those now being supplied to the Corporation of Glasgow for the purposes of their 
exchange. Each instrument would bear the arms and motto of the Brighton corpora- 
tion. If desired, sample instruments can be forwarded from Glasgow for the in- 
spection of the telephone committee. 

' The following construction estimate is based on recent experience in Glasgow, 
and its prices are consequently quite up-to-date. As the price of iron is showing a 
downward tendency, a saving on the estimate might be made in respect to the con- 
duits and some other items. 

' Construction Estimate. 

' 2,080 instruments, at 55s. 6d £ 5,772 

' Conduits with manholes 6,600 

' Eestoration of roadways and footpaths 2,734 

'Main cable, including drawing in and jointing 7,841 

'Branch cable, and laying 2,000 

' Switchboards, one for 2,550 lines and four for 50 lines 

each 4,000 

'200 distributing poles and standards, at £12 2,400 

'450 miles of overhead distributing wire, at £8. . .. 3,600 

' Carting and distributing material . . . 300 

' Tools 150 



192 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

' Ornamental iron poles. 500 

' Labour, fitting up switchboards and subscribers' in- 
struments 1,000 

' Switches, bells and miscellaneous instruments. . . . 100 

' Testing instruments 100 

' Junction lines to Rottingdean, Shoreham, Steyning 

and Hurstpierpoint 2,200 

' Adapting exchange premises to telephonic requirements. 500 

' Salaries of manager and inspectors during construction. 705 

' Rent of office during construction 200 

'Printing, stationery and miscellaneous 150 

' Travelling expenses 200 

£41,052 
' Add cost of extension to Burgess Hill, not included in 

above 340 

£41,392 

' Engineer's fees, 5 per centum on £41,392 2,069 12 

< Total €43,461 12 



The committee have been in correspondence with the Hove Town Council with 
reference to the terms on which the Brighton Council shall be privileged to construct 
telephones in the Borough of Hove, but as yet have had no definite reply. 

Provision has been made in the case of the roads in which tramways are to be 
constructed in the Borough of Brighton for laying underground ducts for telephone 
wires, and the Hove Council have been requested to make n similar provision in 
Church Koad, Hove, at the cost of the corporation, in connection with the wood paving 
now about to be laid. 

The committee have also obtained a grant from the pavilion committee of rooms 
at the pavilion (Palace Place) for offices and central switchroora, on terms to be here- 
after arranged. 

The committee now beg to recommend that Mr. Bennett's report and estimate be 
approved, and that he be appointed engineer to the corporation to carry out the work 
specified therein, on the terms agreed to by him, subject to satisfactory agreements 
being previously entered into witli the several local authorities having the control of 
roads, under, over, or along which it is necessary that telephonic circuits shall be con- 
structed, and subject to the sanction of the local government board being obtained to 
the loans required to defray the cost of the works. 

The committee recommend that application be made to the several local authorities 
within the Brighton telephone area for permission for the corporation to construct 
telephones in their respective districts, either underground or overhead, as Shey may 
be advised by their engineer. 

• The committee also recommend that application be made to the local government 
board for their sanction to the council borrowing the sum of £45,000 required for the 
purposes of the work (including interest during the construction of the works), such 
loan to be repayable within 25 years, but the council to have the right to defer the pay- 
ment of sinking fund charges for a period of three years from the date of borrowing. 

On behalf of the committee, 

JOHN C. BTJCKWELL, 

Chairman. 
10th April, 1901. 



APPENDIX " A " 193 

APPENDIX No. 1 

Note. — The members present at the meeting- at which the above report was agreed 
to were :— Councillors Buckwell, Garden, Galliers, Holder, Hollis, Neale, Jarvis and 
Wilson. 



No. 227d. 

COUNTY BOROUGH OF BRIGHTON. 

REPRINT OF THE REPORT OF THE TELEPHONES COMMITTEE OF THE 10TH DECEMBER, 1901. 

The telephones committee beg to remind the council that at a meeting of the 
council held on the 18th April last, the committee submitted a report recommending 
the construction of a municipal telephone installation within the Brighton telephone 
area for 2,000 subscribers, at an estimated cost of £43,461 12s., and that the council 
then passed the following resolutions upon the subject: — 

' That Mr. Bennett's report and estimate be approved, and that application be 
made to the several local authorities within the Brighton telephone area for permission 
for the corporation to construct telephones in their respective districts, either under- 
ground or overhead as may be advised by the corporation telephone engineer.' 

' That application be made to the local government board for sanction to borrow 
a sum of £45,000 to defray the cost of construction (including interest on capital dur- 
ing the period of construction) a system of municipal telephones within the County 
Borough of Brighton and the several other towns and parishes comprised within the 
Borough telephone area, such loan to be repayable within 25 years, but the first pay- 
ment to a sinking fund for the liquidation of the debt to be deferred for three years 
from the date of borrowing.' 

' That subject to the sanction of the local government board being given to the 
required loan, and to satisfactory agreements being previously entered into with the 
several local authorities having the control of roads under, over or along which it is 
necessary that telephone circuits shall be constructed, Mr. A. R. Bennett be appointed 
telephone engineer to the corporation to carry out the work specified in his report, and 
that he be paid for his services a commission (in which shall be merged his charge of 
£52 10s. Od. for his report and estimate) of 5 per cent on the actual cost of the works, 
but not exceeding a total sum of £2,069 12s. 0d.' 

Since the above mentioned date, the committee have been in negotiation with the 
county councils and the several urban authorities comprised within the exchange area, 
with the following result : — 

East Sussex County Council. — 1. The council to consent to the erection of poles 
and wires on the main roads and district roads within their area, subject to tbe pay- 
ment of an annual rental of 5s. per mile of road on which poles or wires shall be erected. 

2. All poles erected on main roads to be of such kinds and descriptions as the 
county surveyor shall approve, and all works are to be carried out to his satisfaction. 
The poles to be used on rural district roads to be similar to those used by the Tun- 
bridge Wells corporation, or alternatively of such description as the county surveyor 
shall approve. 

3. All poles and wires are to be removed within six months after notice. 

4. The charges to subscribers within the county area are not to exceed those for 
the time being made to subscribers within the County Borough of Brighton in respect 
of similar services. 

5. Wires passing across the line of any tramway or light railway worked by means 
of overhead electric wires, are to be placed underground. 

The agreement embodying these terms has not yet received the approval of the 
county council, but the committee believe that the county council will agree to them. 

West Sussex County Council. — The committee believe that the terms when agreed 
to by the East Sussex County Council, will also be accepted by the West Sussex County 
Council. 



194 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Hove. — No answer has yet been received to the committee's application, but the 
committee are advised by Mr. Bennett that in the event of terms not being agreed 
with Hove for underground wayleaves, the Hove subscribers can be supplied by 
means of overhead wires erected upon poles placed on private premises. 

Portslade. — Terms similar to those offered by the committee in the case of East 
Sussex have been agreed to, and the committee have agreed to provide an exchange 
so situate with regard to the Portslade urban district that subscribers in that district 
shall not be liable to the extra mileage charges which the corporation are entitled to 
make in the case of subscribers situate more than one mile from the nearest ex- 
change. 

Southwiclc. — Terms similar to those arranged by the committee in the inse of 
Pr.uslade have been offered, but the agreement has not yet been settled. 

?'ew Shoreham. — Terms similar to those offered by the committee in tho case of 
East Sussex have been arranged, subject to the further conditioa that the council 
shall establish and maintain an exchange and call office at New bhceham. 

Burgess Hill. — The same terms have been offered to Burgess Hi'l as in the case 
of Fts+ Sussex, but no reply has been received. Unless these term? are accepted, 
the committee would recommend that Burgess Hill be excluded from the operation 
of the scheme. 

The committee think that, though the agreements with several of the loial 
authorities are not yet completed, the negotiations are sufficiently advanced to justify 
the council in proceeding with the installation of the exchange, as they understand 
from Mr. Bennett that, in the event of any local authority unreasonably refusing to 
grant wayleave rights, the Postmaster General would authorize the exclusion of that 
area from the scheme. 

The canvass which the council have caused to be carried out has resulted in the 
obtaining of 662 applications for telephones on the municipal exchange (including 
13 in respect of corporation departments), and the committee think that it is advis- 
able that steps should now be taken for carrying out the installation of the exchange 
in accordance with the scheme and estimate prepared by Mr. Bennett and approved 
by the council on the 18th April last. 

They therefore recommend that application be made to the local government 
board for sanction to the loan of £45,000 for the period of 25 years, in accordance 
with the resolution of the council of the 18th April last. 

Also that advertisements be published inviting tenders for the performance of 
the work in accordance with specifications now being prepared by Mr. Bennett, the 
execution of the work to be subject to the sanction of the local government board 
to the loan being obtained. 

On behalf of the committee, 

HEKBEET GARDEN. 

Chairman. 

10th December, 1901. 

Note. — The members of the committee present at the meeting at which the fore- 
going report was agreed upon, were: The Mayor, Alderman Buckwell, and Council- 
lors Burberry, Garden, Galliers, Jarvis and Lintott. 

No. 227e. 

COUNTY BOROUGH OF BRIGHTON. 

REPORT OF THE TELEPHONES COMMITTEE. 

In accordance with the promise given to the council, the telephones committee 
beg to present the following report with reference to the present position of the tele- 
phone undertaking : — 



APPENDIX " A " 195 

APPENDIX No. 1 

It will be convenient first to remind the council of the steps which have been 
taken with a view to the establishment of the undertaking. 

On the 5th of April, 1898, a letter was written to the Postmaster General asking 
for the grant of a license for a municipal telephone service in Brighton, and on the 
21st April, 1898, the Postmaster General replied that the government had appointed 
u select committee to consider the question of whether any changes in the law were 
desirable in order to enable municipalities to transact telephone business, and that 
pending the report he was unable to take any action in the matter. 

The select committee reported on the 9th August, 1898, and in the session of 
1899 the Telegraph Act of that year was passed for the purpose of giving effect to the 
recommendations of the select committee. 

On the 14th August, 1899, the Postmaster General wrote inquiring whether, in 
view of the provisions of the Act, the council desired to renew their application for 
a license. 

The council appointed a special committee to consider the question, and on the 
6th June, 1900, the committee reported recommending that application be made for 
the grant of a license. This recommendation was approved by the council, and 
on the 27th July, 1900, application was made for a license. 

The license authorises the council during the period of 25 years from the 1st 
May, 1901, to carry on telephone exchange business within the Brighton exchange 
area, and it provides that if the council do not within two years from the 30th April, 
» 1901, establish an exchange system, the Postmaster General may revoke the license. 
On the 10th April, 1901, the committee reported to the council with recommen- 
dations for carrying the license into effect, and on the 18th April, 1901, this report 
was adopted by the council, subject to satisfactory agreements being entered into 
with the several local authorities included in the exchange area with regard to way- 
leaves, and subject to the sanction of the local government board being obtained to 
the loans required to defray the cost of the works. 

A copy of the committee's report of the 10th April, 1901, is sent herewith for 
the information of the council. 

On the 10th December, 1901, the committee reported to the council with a state- 
ment of the wayleave agreements obtained, and recommending that steps should be 
taken for carrying out the installation of the exchange in accordance with the scheme 
and estimate which had been approved by the council on the 18th April, 1901. A 
copy of the committee's report of the 10th December, 1901, is sent herewith for the 
information of the council. Since the date of that report, Burgess Hill has accepted 
the terms as to wayleaves offered by the council. 

With the authority of the council, application was made to the local government 
board for sanction to a loan of £45,000 to defray the cost of the execution of the 
work, and tenders for the installation of the exchange were invited. 

The tenders for the work have been received, but the committee have deferred 
bringing them up to the council pending the receipt of the sanction to the loan. 

The committee are, however, advised by Mr. Bennett that the cost of execution 
of the work in accordance with the tenders which he would recommend for accept- 
ance will be well within the amount of his estimate for the work. 

With regard to the sanction of the local government board to the loan, a diffi- 
culty has arisen, in consequence of the refusal of the corporation of Hove to consent 
to the execution of works within that borough. 

As stated in their report of the 10th December, 1901, the committee were advised 
by Mr. Bennett, that in the event of terms not being agreed with Hove for under- 
ground wayleaves the Hove subscribers could be supplied by overhead wires placed 
on poles erected on private premises. 

At the local inquiry, with reference to the application for the loan of £45,000, this 
view was urged upon the inspector, but the representatives o'f the Hove corporation 
then put forward a claim to prevent the erection of overhead wires across streets of the 
1— d— 14 



196 SELECT COMMITTEE OX TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

portion of the Borough of Hove comprised in what was formerly the area of the Bruns- 
wick Square and Terrace district, i.e., about one-sixth of the area of the present 
Borough of Hove. On behalf of the council it was contended that the Hove Corpora- 
tion could not lawfully prevent the erection of overhead wires across any of the streets 
in Hove, and that there was nothing to prevent the supply of telephonic communication 
to subscribers in the Borough of Hove by means of overhead wires, as advised by the 
engineer. 

Whatever the merits of the contention on the part of the Hove council may be (and 
the committee do not for one moment admit the right claimed), the local government 
board have refused to sanction any loan in respect of the execution of works in the 
Borough of Hove until the consent of the Hove council has been obtained. 

The decision of the local government board was communicated to the committee 
in the following letter : — 

(Copy.) - 

'Local Government Board, 

' Whitehall, S.W., 5th June, 1902. 

' Sir, — I am directed by the local government board to state that they have had 
under consideration the report made by their inspector, Colonel Slacke, after the inquiry 
held by him with reference to the application of the town council of Brighton for sanc- 
tion to borrow £45,000 for the establishment of a municipal exchange in the Brighton 
telephone area. 

' The board approve generally of the scheme, but unless the consent of the town 
council of Hove is obtained, they will not be prepared to sanction any loan for the execu- 
tion of works in that borough. 

' If therefore, the town council are unable to obtain such consent, the board should 
be furnished with a revised estimate of the cost of the scheme, excluding all works in 
the Borough of Hove. 

' I am further to ask for a copy of a resolution of the town council applying for the 
board's consent to the use of the building on the pavilion estate as the central exchange, 
under the provisions of the Brighton Pavilion Estate Act, 1850, as amended by the 
Brighton Pavilion Acts Amendment Act, 1876, and the Provisional Order of 1891. 

' I am at the same time to draw attention to the last paragraph of the board's letter 
of the 3rd of March last, as regards the payment of interest on capital, and to state 
that no item on this account should be included in any revised estimate which may be 
submitted. 

■' I am, sir, your obedient servant, 

< JOHN LITHIBY, 

'Assistant Secretary. 
< The Town Clerk, Brighton.' 

The committee requested the local government board to grant them an interview 
with reference to the matter, but the board did not accede to the request, and the matter 
of the loan has since remained in abeyance. 

The committee do not consider that the refusal on the part of Hove to grant under- 
ground wayleaves constitutes any reason why the council should not proceed with the 
installation of the exchange elsewhere than in the Borough of Hove. They are in- 
formed that the corporation of Glasgow have encountered a somewhat similar diffi- 
culty but have, nevertheless, proceeded with the execution of their scheme and have 
brought it to a successful issue. 

Neither do the committee regard the refusal of their consent by the corporation 
of Hove as final, inasmuch as it appears from the following letter received from the 
town clerk of Hove that they intend to apply for parliamentary powers to construct 
underground conduits in the next session of parliament: — 



APPENDIX " A " 197 

APPENDIX No. 1 

(copy.) 

Borough of Hove, Town Clerk's Office, Town Hall, 

Hove, Sussex, 1st April, 1902. 
Telephones. 

Dear Sir,— I am directed by my council to inform you that, after full considera- 
tion, they are of opinion that it is undesirable that they should at present commit them- 
selves to any scheme for telephones which will involve underground works. 

Their present intention is to apply for parliamentary powers to lay ducts under 
the roadways for the purpose of telephone and other wires should they deem it desirable 
to take this course at any future time. 

Yours faithfully, 

H. ENDACOTT, 

Town Clerk. 
F. J. Tillstone, Esq., 

Town Clerk, 

Town Hall, Brighton. 

The committee have received from Mr. Bennett the following communication 
embodying the results of his experience as engineer to the Glasgow and Tunbridge 
Wells Municipal Exchanges. 

(copy.) 

65 Renfield Street, Glasgow, 

August 13, 1902. 
The Telephone Committee of the Town Council of Brighton. 

Gentlemen,— With regard to the position created by the refusal of the Local Gov- 
ernment Board to sanction any expenditure in Hove, I am strongly of opinion that the 
circumstance does not warrant the abandonment of Brighton's telephone scheme. 

The number of subscribers to be obtained in Hove must be but a small proportion 
of the total to be obtained in Brighton itself, without reckoning outlying places in 
the area. In any case, I believe that Hove could be telephoned overhead by means of 
private wayleaves in the same way as it is now telephoned overhead by the National 
Telephone Company. If it were found impossible to use the security of the Brighton 
rates for the purpose, I believe that contractors could be found who would erect the 
necessary plant on the security of subscriptions payable by Hove subscribers, which 
could be assigned to them for a certain period. The necessary expenditure in Hove 
would not exceed from £2,000 to £3,000, as the routes to Portsdale, Southwick and 
Shoreham have been arranged so as to avoid the Borough of Hove in any case. The 
post office could not object to this arrangement if the work were. carried out in accord- 
ance with the post office specification, which of course would be arranged for. 

I may state that in connection with the Glasgow corporation telephone enterprise 
a similar difficulty cropped up in the case of the Burgh of Clydebank, which refused 
to grant underground wayleaves in much the same manner as Hove has done. But the 
Glasgow corporation have telephoned Clydebank overhead, in defiance of the council 
of that burgh, and have secured a large measure of support amongst the Clydebank 
citizens. 

Although the Glasgow corporation telephone system is not a year old, 6,184 sub- 
scribers had been connected up to the last Monday evening, while 1,530 orders remain 
on hand to be executed. From 6 to 12 new orders are received every day, so that an 
exchange of 20,000 is being looked to in the near future. This is in face of the keen- 
est competition by the company, who have entirely reorganized their system and 
replaced their old and inefficient plant by the latest devices, and that altogether regard- 
less of expense. They are also giving their subscribers facilities which at the date of 
the inquiry in 1897 were derided as impossible. In Tunbridge Wells when a corpora- 
1— d— 1U 



198 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

tion system was first mooted the company had only 92 subscribers in the whole telephone 
area; their rates were very high and their service was so bad that out of 92 subscribers 
some 85 signed a memorial to the Postmaster-General vouching for the general ineffi- 
ciency of the service. After a year's work the Tunbridge Wells Corporation had at 
August 7 no fewer than 834 lines at work. The company are supposed to possess some 
600 others, so that the effect of a corporation system has been to provide the Tunbridge 
Wells Telephone area with 1,434 telephones in lieu of the original 92. 

Brighton presents a field for telephonic development which is out of all proportion 
greater than that at Tunbridge Wells. The Brighton corporation have very wisely 
kept the company out of their routes. Overhead wayleaves are more difficult to get in 
Brighton than in most other places, so that the corporation, with power to make an 
unlimited use of the roads for underground work, would be out of all proportion in a 
better position to give a telephonic service than the company. The company's present 
Brighton system is single wire, and to meet the corporation competition two wires would 
have to be placed overhead where one is now. Under these circumstances, there can be 
no reasonable doubt that the corporation, with the additional advantages of the most 
modern plant, which they would be able to command, would create a large exchange 
in a very short time; so much so that Hove might be left entirely out of the question 
in the meantime, as the Hove citizens would only be too glad later on to take advan- 
tage of the cheaper rates and better service that the Brighton citizens would be in 
possession of as a consequence of the corporation system. 

I would venture to point out that if Brighton town council gave up the telephone 
scheme now they would not only sacrifice all the time, trouble and money which have 
been expended in bringing it so successfully so far, but they, will have to abandon for 
the future all hopes ef the low rates for telephones that were intended to be charged, 
and will burden their burgesses permanently with telephone rates far in excess of any- 
thing that the circumstances call for. In the future the action of the council in aban- 
doning their scheme will unquestionably be condemned, as, with the examples of other 
towns before them, the Brighton citizens will consider themselves very badly treated 
by having to pay £10 for telephones when other towns will be getting them for £6 or £5. 
I venture to predict that the act of abandoning, if it should be decided upon, will here 
after be characterized as timid and short-sighted. 

If the scheme be dropped, the council will have to face the contingency of grant- 
ing underground wayleaves to the company. If they once get into the hands of th« 
company they will find them severe masters. The town clerk of Hull will tell you that 
his corporation granted the N.T.C. underground wayleaves some few years ago. Kecently 
the Hull corporation went to parliament for power to effect some street improvements 
and they found themselves opposed by the N.T.C. on the ground that the improvements 
would necessitate a deviation of the company's telephone pipes, and they asked parlia- 
ment to order that such deviations should be carried out at the expense of the corpora- 
tion. It would seem, therefore, that even a change in the tramway routes could not 
be carried out without arrangement with the company. On another ground the Hull 
corporation have been threatened with litigation in consequence of this grant of way- 
leaves, and the same grant has been the cause of the N.T.C. introducing a Bill in par- 
liament which the corporation had to oppose at great expense. Tunbridge Wells cor- 
poration granted the N.T.C. underground wayleaves. This has already led to one action 
at law which was carried through several courts, and a second action arising out of a 
different cause, but growing out of the same wayleaves, is threatened. The states of 
Guernsey had to fight the company through all the courts, including the Privy Council, 
and you may depend upon it that Brighton will not be singular if they place their necks 
under the yoke. 

I would also commend to the consideration of the council those contractors who 
tendered for the carrying out of the work in conformity with the elaborate specifica- 
tions which were prepared and advertised widely. 



APPENDIX " A " 199 

APPENDIX No. 1 

All the best electrical firms in the United Kingdom, as well as some foreign 
ones, sent in tenders which in some cases cost much time, trouble and money to pre- 
pare, as I know that some of the contractors sent representatives to Brighton from 
long distances in order to obain local information; so that if Brighton decides to stay 
its hand, unquestionably these contractors will feel aggrieved, although of course the 
council did not pledge themselves to actually accept tenders. 

The financial results obtained in Glasgow for the first nine months are considered 
by competent and unbiassed critics to be of an exceedingly favourable character, and 
I am sure that Brighton can reckon upon similar results there, especially as the rate 
proposed to be charged in Brighton is £5 10s. Od. instead of the Glasgow rate of 
£5 5s. In conclusion I may say that I see nothing in the action of Hove to compel 
Erighton to change its attitude in connection with the telephone scheme, which in my 
opinion should be gone on with without further delay. 

I am, gentlemen, • 

Yours very faithfully, 

A, R, BENNETT. 

The expenditure incurred by the council, with a view of carrying their license 
into effect, amounts to £3,507 13s. Id. in respect of underground ducts and £203 
8s. 6d. for miscellaneous expenses. 

They have also agreed to pay Mr Bennett a commission of 5 per cent on the cost 
of the work, subject to a maximum limit of £2,069 12s. 

Provision is also being made, in accordance with the direction of the council, for 
tie laying of underground ducts in connection with the new tramways routes in Old 
Steine and London Road. 

The number of persons who have promised to become subscribers to the municipal 
exchange is 831, viz., 146 in Hove, and 685 in the other portions of the area, exclusive 
of the corporation connections; and there is no doubt that subscribers will join in 
large numbers as soon as the exchange is an accomplished fact. 

The committee have no hesitation in recommending the council to proceed with 
the installation of the telephone exchange as soon as possible, and they recommend 
that Mr. Bennett be instructed to revise his estimate as required by the local Govern- 
ment Board by excluding therefrom the cost of all works in the borough of Hove, so 
that the application to the board for their sanction to the loan may be renewed. 

The committee also recommend that a resolution be pasoed applying for the con- 
sent of the local Government Board to the use of the building in Palace Place, part 
cf the Pavilion Estate, for the purposes of a central exchange, such use of the build- 
ing having already been sanctioned by the council on the recommendation of the 
Pavilion Committee. 

On behalf of the Committee, 

HERBERT CARDEN, 
Chairman. 
Town Hall, Brighton, August 15, 1902. 

Note. — The members of the committee present at the meeting at which the fore- 
going report was agreed upon were: The, Mayor, Councillors Allen, Garden, Jarvis, 
Lintott, Robinson and Stringer. 



200 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



No. 228. 

City of Victoria, B.C., June 7, 1905. 

The Honourable Sir William Mulock, K.C.M.G. 

Postmaster General and Chairman Parliamentary Committee re Telephone 
Systems, Ottawa. 

Re Telephone System. 

Sir, — In reply to your circular of the 29th ult., with reference to this matter, 
I have the honour, by direction, to state for the information of the Parliamentary 
Committee that the only system of telephones operating in Victoria, is that of the 
Victoria & Esquimalt Telephone Company, which is an organization subsidiary to, 
and forming part of, the British Columbia Telephone Company, Limited. 

The number of telephones in use is 1,350, and the number of subscribers is a 
little less. The charges are $4 per month for business, and $3 per month for resi- 
dential use, excepting where party lines are installed in rnsidences, and then the 
charge is $2 per month. 

The system is well managed and gives general satisfaction as far as the operat- 
ing part is concerned, though there are instances in which telephones fail to re- 
produce distinctly the words of the speaker, but these conditions are remedied 
promptly upon complaint. 

The business section of the city is well -supplied with long-distance telephones 
and through them has connection with Nanaimo, Vancouver, New Westminster, 
B.C., and Seattle and Tacoma, Wash., also with points on Vancouver Island be- 
tween Nanaimo and Victoria and throughout the Saanich Peninsula. 

Generally speaking the company has proved enterprising in supplying localities 
with telephonic communication wherever business warranted extensions. 

There is little doubt that if the rates were reduced there would be a correspond- 
ing increase in the number of telephones used and in the extension of the benefit of 
this convenience to many who decline to incur the expense involved under the pre- 
sent rates. 

The council has already expressed its approval of the principle of municipal 
ownership and control of this public utility, by endorsing a resolution passed by the 
municipal council of Fernie, B.C., in January last, which reads as follows : — 

' Whereas, the Municipal Clauses Act now contains powers authorizing muni- 
cipal ownership of all public utilities except telephones, Therefore be it resolved : 

' That, in the opinion of this council, the Municipal Clauses Act should be 
amended so as to empower city municipalities to construct, maintain and operate 
telephone systems throughout such municipality, and that a copy of this resolution 
be forwarded to our member, Mr. W. R. Boss, the Fernie Board of Trade, each board 
affiliated with the Associated Board of Trade, each city, municipality and each mem- 
ber of the legislature, asking their support in securing the necessary legislation.' 



I have the honour to be, sir, your obedient servant, 



W. J. DOWLER, 

C. M. 



APPENDIX " A 



201 



APPENDIX No. 1 

No. 228a. 

City of Victoria, B.C., June 14, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General and Chairman Parliamentary Committee re Telephone 
Systems, Ottawa, Ont. 

Sir, — In further reference to my letter to you of the 7th instant, and in addi- 
tion to the information contained therein, I beg to transmit herewith the following 
enclosures : — 

1. Map showing the lines and connections of the British Columbia Telephone 
Company's systems. 

2. Schedule of long-distance telephone rates. 

3. Directory of the British Columbia Telephone Company. 
I have the honour to b«, sir, your obedient servant, 

W. J. DOWLEK, 

0. M. C. 



No. 228b. 



British Columbia Telephone Company, Ltd., 

Bank of Montreal Building, 

Victoria, B.C., June 14, 1905. 



long-distance telephone tariff from victoria. 

Lines owned and oper*ate\d by the British Columbia Telephone Co. 

Cts. 

Keating's Crossing 25 

Saanichton 25 

Sidney 25 

Goldstream 25 

Strathcona 25 

Koenig's 25 

Duncans 30 

Crofton 30 

Chemainus 35 

Ladysmith 40 

Nanaimo 50 



For conversations of two minutes or 
>■ fraction. Half-rates for each addi- 
tional minute or fraction. 



Lines owned and operated by American Companies, but connected with the British 

Columbia Telephone Line at Victoria. 



Cts. 

Vancouver 50 

New Westminster 50 

Chilliwack 60 

Ladner 60 

Steveston 60 

Friday Harbour 50 

Bellingham 50 

Everett 50 

Seattle 60 

Tacoma 80 _ 

For other places call up ' long-distance ' operator. 



For conversations of one minute or 
fraction. Ten cents for each addi- 
tional quarter minute. 



202 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



No. 228c. 



HAP SHOWING LINES AND CONNECTIONS OF THE BRITISH COLUMBIA TELEPHONE 

company's SYSTEM. 




APPENDIX " A " 203 



APPENDIX No. 1 

No. 229. 



Corporation of the City of Kaslo, 

Municipal Clerk's Office, 

Kaslo, B.C., July 8, 1905. 
The Chairman, 

Select Committee on Telephone Systems, 

Ottawa. 

Sir, — I have the honour to acknowledge your communication dated 2nd ultimo, 
and to inform you that the council of this city having duly considered said communica- 
tion, have instructed me to reply as follows : — 

This is only a small city of about 1,200 inhabitants, the telephone system is owned 
by 1he Bell Telephone Company and leased to a private individual. 

There are two miles of poles and about six miles of line. 

The charges are $2.50 per month to business houses and $1.50 per month to private 
houses, there being altogether about twenty subscribers. 

There is a private line (owned by the person leasing the local line) to Lardo, 25 
miles north of Kaslo, the rate for messages being 25 cents each. 

The facilities for inter-communication are practically nil, there being no telephone 
communication with any of the towns and cities on lake and river, or with Sandon, 
Slocan City, Silverton, Nakusp, &c. 

Trusting the above is the information you require, 

I am, sir, 

Your obedient servant, 

A. W. ALLEN, 

Clerk of the Municipal Council. 



No. 230. 

The Corporation of the Municipality of Hilton, 

Clerk's Office, Marksville, P.O., Ont., July 10, 1905. 
To the Honourable 

Sir William Mulock. 

Sir, — In reply to yours re information as to telephone system in operation in this 
township and adjoining townships, I beg to say that I have carefully read over the* 
statements contained in Mr. Young's examination before the Select Committee, and I 
have read over the statements of Mr. Young to the Reeve of this township, who was one 
of the management committee at the time this division known as the Hilton and 
Jocelyn Farmers' Telephone line was constructed. Mr. Young's statements corroborate 
the Reeve's in nearly every particular, with exception to a slight difference in the cost 
of construction. 

This division, consisting of 15 miles, cost for constructing $390. There are 43 
subscribers, each subscriber was assessed $9; this sum entitled him to purchase and 
install a 'phone in his house or place of business, the actual cost of building the line 
was about $26 per mile, including material and construction. 

Last year we assessed every subscriber owning a 'phone $1 per annum for repairs 
to line and $1 for switches, subscribers not owning 'phones were assessed 50 cents per 
annum for repairs and 50 cents for switches. All 'phones to be kept in repair at the 
cost of the owner. 

The 'phones in use in this division are the same as described by Mr. Young. The 
line works well, with perhaps one exception, we have too many 'phones for one wire. 



204 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In a conversation between the Reeve and Mr. Burrows, Mr. Burrows in speaking 
of an arrangement whereby his company might take over the Farmers' line, said he 
thought the company would be willing to lease the line for a term of years by each sub- 
scriber paying $11 per annum in addition to paying their regular schedule of rates. So 
far the committee are not in favour of such an arrangement. 

The Bell Company have a 'phone in the post office, as formerly, and one_ in the 
Ottawa House, for which the proprietor pays $25 per annum in addition to their rates 
as charged the public. 

As far as I understand the situation, if we wish to do business over the_ Boi 1 
Telephone Company line we must pay well for it; if they, on the other hand, wish to 
do business over the Farmers' line, as I am given to understand they would like to do, 
then we must still pay them well for the privilege, there is no give and take. I don't 
think I can say anything more. Mr. Young's testimony covers the ground^ what he 
has stated in regard to his division applies also to this division. Trusting this will be 
satisfactory. 

I am yours respectfully, 

W. E. WHYBOURNE, 

Clerk. 



No. 231. 

MUNICIPALITY OF THE TOWNSHIP OF PICKERING. 

Whitevale, Ont., July 10, 1905. 
Sir W. Mulook. 

Postmaster General and Chairman Select Committe on Telephone Systems, 
Ottawa, Ont. 

Dear Sir, — We are directed by the municipal council of the township of Picker- 
ing, in reply to your favour of the 2nd ult., to say that in this township the telephone 
service is very good, the Bell Telephone Company and several independent organiza- 
tions being in operation. To the council it seems a great waste of money to have 
the Bell Telephone Company duplicating independent lines and the independents 
duplicating the Bell lines. The council wish respectfully to submit that telephones ar,; 
now as necessary as post offices, and that the telephone system should be a monopoly 
in the hands of the Dominion government. The council is of opinion that a better 
service would then be had, the public better served and at much less cost than now, 
and that the telephone system could be made a success if placed under the control 
of the post office department. 

Previous to the advent of independent lines the telephone service in this town- 
ship was very limited and charges were high, but now the rates are more reasonable, 
the Bell Company charging a rental of about $15 per annum for a 'phone, and a fee 
of 15 cents for a 3-minute talk in the local zone. The local companies charge an 
annual rental of from $12 to $15 per 'phone and from 10 to 15 cents for 5-minute?' 
talk. 

The usefulness of the local telephone systems would be much increased if they 
had a long-distance connection and the privilege of installing telephone instrument* 
in the railway stations. 

JAMES McBRADY. 

Reeve, Township of Pickering. 

DONALD R. BEATON, 

Cleric, Township of Pickering. 



APPENDIX " A " 205 

APPENDIX No. 1 

No. 232. 

COUNTY CLEEK'S OFFICE, UNITED COUNTIES OF STOKMONT, DUN- 
DAS AND GLENGARRY. 

Cornwall, Ont. June 29, 1905. 
Adam Zimmerman, Esq., M.P., 

Chairman pro tern, Select Committee re Telephone Systems, 
House of Commons. 

Sir, — I beg to advise you that the circular letter of 2nd June of Sir William 
Mulock, chairman, was duly received and laid before counties council of these united 
counties at their session last week, being referred to committee on communications. 
In their report, which was adopted in council, appears the following, after referring 
to the letter of Sir William, dealt with : — 

' We recommend that the clerk be authorized to communicate the following in- 
formation to the chairman of committee in question: 

' 1. That the Bell Telephone system is the only one in operation in these counties. 

' 2. Its present charges are $15 for house, and $20 for business 'phones, New 
and improved 'phones are to be shortly installed, when the rate is to be increased to 
$20 and $25 respectively. 

' 3. The committee tried to procure information from the local office as to the 
number of subscribers in these counties, but we were informed that such information 
could only be had from the head office. There are about 300 'phones in town of 
Cornwall. 

' 4. That the committee considers the present message rates and annual rentals 
much too high. 

' 5. The committee favours government control for long-distance, and either 
government or municipal control for local business. 

' 6. Some years ago a new company, known as the Dundas Telephone Company, 
was formed to compete with the Bell, and for a time did business with satisfaction to 
the subscribers at rates of $10 and $15 for annual rentals, and their ordinary mess- 
age rates being about the same as the Bell Company. They were eventually driven 
out of business by the Bell Company's opposition, and were obliged to dispose of their 
business, at a great sacrifice, to the Bell Company. This was brought about by the 
latter company giving free 'phones where those of the others were in use, and by 
instituting an action for damages alleged to have been caused to their line by the 
placing of the Dundas Company's poles and wires in too close proximity to the Bell 
Company's line. Intimidated by this course of " competition "(?) the Dundas Com- 
pany succumbed, one of its principal promoters being ruined and others financially 
crippled to a greater or less extent. 

' 7. The present rentals of the Bell Company are too high to enable people in 
the rural districts to take advantage of this means of intercommunication. If the 
rates were reasonably reduced no doubt many additional subscribers would be the 
result. For $15 or $20 a farmer or rural resident is placed in a very small circuit, 
and is charged extra for any. service extending beyond that circumscribed limit. 

' The foregoing suggestions embody all your committee think necessary to com- 
municate.' 

I trust this may reach you in time to be of some service to the special com- 
mittee. 

I have the honour to be, sir, your obedient servant, 

ADRIAN I. MACDONELL, 

Clerk, 8. D. & Q. 



206 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 233. 

Winfield Brewster, 'Phone 50. 

Conveyancer Insurance Loans. 

Hespeler, Canada, July 4, 1905. 

Sir William Mulock, K.C.M.G., 

Postmaster General, Chairman of Committee, 
Ottawa, Canada. 

Sir, — Acknowledging receipt of your favour of the 2nd of June, I beg to inform 
you as follows: — The Bell Telephone Company have about 57 subscribers in the town 
of Hespeler. They are installing long-distance telephones at a charge of $20 per 
annum, and give us also a rate of $15 on party lines. They have promised shortly tc 
give us night service, but at present we have no such services. 

The council of the town of Hespeler appear to be under the impression that the 
Bell Telephone Company does not deal fairly with its subscribers. I inclose you 
herewith a copy of resolution on the matter of government control of the telephones 
which our council are of the opinion to be advisable. It was at Hespeler that the 
central office of the Farmers' line was located concerning which you will remember Dr. 
Ochs gave evidence before your committee at Ottawa, in this case the Bell Telephone 
Company appears to have gobbled up the Farmers' line. 

Any information which you may require I shall be very much pleased to give you 
if it in my power so to do. I inclose herewith a copy of resolution, and I have the 
honour to remain, 

Your obedient servant, 

W. BKEWSTEE, 

Per E.D.M. 



No. 233a. 

Hespeler, Canada, July 4, 1905. 
Winfield Brewster, 'Phone 50. 

Municipal Council of the Town of Hespeler, 

Resolved, That in the opinion of this council the government of Canada should 
take over the Bell Telephone system or if that be not deemed advisable at least the 
trunk lines. — Carried. 

GEORGE D. FORBES, 

Mayor. 



No. 234. 

County of Waterloo, 

Berlin, June 30, 1905. 
Sir William Mulock, K.C.M.G., 

Chairman, Select Committee on Telephone Systems, 
Ottawa. 

Hon. Sir, — The municipal council of the county of Waterloo appointed a com- 
mittee to aid in obtaining cheaper and more general telephone service, especially 
for the rural districts, which we considered had been neglected by the Bell Telephone 
Company. At one time there was a private telephone service which was eventually 
scquired by the Bell Telephone Company, the particulars of which you have already. 

The committee of the county council held two public meetings and much interest 



APPENDIX " A " 207 

APPENDIX No. 1 

was taken in the proceedings by the farmers of the county, but it was deemed best 
to postpone further action, awaiting the decision of parliament. 

The county council, at its recent session, authorized me to again express their 
approval of national ownership, or at least control of all telephone systems in the 
country, and trust the day is not far distant when so desirable an end may be reached. 

Signed on behalf of the municipal council of the county of Waterloo. 

ANTHONY OCHS, 

Chairman, Special Committee on Telephone Services. 



No. 235. 

Translation. 

Laprairie, P.Q., July 4, 1905. 
To the Chairman of the Select Committee on Telephones, 
House of Commons, Ottawa. 

Dear Sir, — In accordance with instructions received from the municipal coun- 
cil of the village of Laprairie, and in reply to your letter of June last, I have to say 
that the telephone system of the Bell Company is not what it ought to be or might 
be in this municipality. That company is the only one here and the price which 
they charge to subscribers per annum is so high that the number is reduced to two 
or three. These subscribers pay $20 per annum for a telephone, and 'besides they 
have to pay the long-distance rate the same as non-subscribers. The charge for long- 
distance telephone is also too high; for example, 15 cents for three minutes to Mont- 
real, and 5 cents for each additional minute. A tariff of 15 cents for five minutes 
and a yearly rate of $10 for a telephone would be reasonable and quite sufficient. 



Your obedient servant, 



A. F. GRONDIN, 

Secretary-Treasurer. 



No. 236. 

Mayor's Office, 

Edmonton, Alta., June 16, 1905. 
Sir William Mulock, Postmaster General, 

Chairman Select Committee on Telephones. 

Sir, — We have to-day endeavoured to answer as fully as possible your questions 
re telephone, and are glad to assist you in this or any other way. 

As has been pointed out already, this system came into our possession only at the 
beginning of this year, and, under municipal control, is working out quite as satis- 
factorily as was expected. The system as taken over by us was capable of considerable 
extension and improvement. We have not as yet fixed upon any definite policy further 
than a general advancement under municipal control ; and though we are contemplating 
the installing of a modern and up-to-date system, the particular system has not been 
decided upon. In any case we are about to proceed with the standardizing of the 
system so that we may be able to make satisfactory connection with outside systems 
when the opportunity presents itself. 

We experience some difficulty in carrying on the work outside the municipality 
that had been commenced by the private company from whom we purchased the plant,, 
being more expensive and much less satisfactory. Moreover, we are not connected with 



208 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

the Bell long-distance system, and this is a great inconvenience to us. The Bell people 
axe anxious to connect with us, and, of course, failing any other solution of the diffi- 
culty we must freely connect our systems on the best terms we can get. We are deeply 
interested in the work of your committee, and are looking for good results. 

If there is anything we can do for you further than this we will be always glad 
to do it, and in the meantime beg to remain, 

Yours very truly, 

K. W. MACKENZIE, 

Mayor. 



No. 236a. 

Mayor's Office, 

Edmonton, Alta., June 27, 1905. 
Walter To^d, Esq., 

Clerk of the Select Committee on Telephones, 
Ottawa, Ont. 

Dear Sir, — In reply to your communication of June 21, I beg to say that although 
the Bell Telephone Company, through their agents, have shown a desire to connect 
freely with our municipal system, we have not received from them any definite pro- 
posal as to the terms upon which such connection could be effected, and on our part 
since our system is not standardized we are not in a position at the present time to talk 
business, thus the matter stands for the present. 

I regret that by an oversight my communication to you of the 16th June went 
forward unsigned. 

Yours very truly, 

K. W. MACKENZIE, 

Mayor. 



No. 236b. 

The Select Committee on Telephone Systems. 

In reply to the committee's inquiry, the mayor of the city of Edmonton reports 
as follows : — 

The system operates in Edmonton, Strathcona, Eort Saskatchewan, St. Albert, 
Leduc and Beaumont, with long-distance connections, also connections with govern- 
ment lines, Edmonton and St. Albert to Spruce Grove, Stony Plain, Ray, Riviere 
Qui Barre, Morinville and St. Emile. The amount of debenture stock issued is 
$27,000. The population of the territory served is about 16,000, and total number 
of telephones in operation 460, of which 448 are direct one station lines. The num- 
ber of residence telephones is 124; business, 324; and rural, 12. 

The lines are No. 12 iron wire grounded circuits. The construction is pole entirely. 
The system is magneto, the central office equipment being manufactured by Bell 
Telephone Company and Strombjerg-Carlson Telephone Manufacturing Company, 
and the subscribers' telephones by Stromberg-Carlson Company (with a few excep- 
tions by other manufacturers.) 

The rates charged per annum are : business $30, residence $20, rural $20. The 
system was only acquired by the city in January last, and the question of deprecia- 
tion, etc., has not yet been determined. The system was acquired by purchase from 
the Edmonton District Telephone Company, Limited. 

The number of ' Bell ' telephones in our territory before acquisition was 1, viz., 
the Edmonton toll office. The number at this date is 2, viz., the Edmonton and Le- 
duc toll offices. 



APPENDIX " A " 209 

APPENDIX No. 1 

The Edmonton District Telephone Company rates before sale to city were: 
Business $36, residence $25 per annum. The wages paid are: Foremen $75 per 
month; troublemen, none; inspectors, none; wiremen 25 cents per hour, operators 
-$20 to $40 per month. 

The cost of construction material is as follows: Central offices equipment 
$2,000, capacity 525 lines, subscribers wall telephones $14, subscribers desk telephones 
$14 to $15, iron wire No. 12 5 cents per pound, poles, $3 to $5, cross-arms, 35 cents each 
(spruce), insulators and pins, 6 cents each. 

The system operates 85 miles of long-distance lines, the mileage of poles being 
60. These lines are iron wire, grounded circuits, the cost per mile of single wire 
being $8. 

The charges per conversation over the long-distance lines are rated according to 
distance from 5 cents to 40 cents for 3-minute connection, with charge of 5 cents 
ppr minute beyond this limit. 



No. 237. 

E. MALCOLM YOUNG, 

Barrister, Solicitor, Notary, &c. 

picton, ontario. 

Solicitor for the 

County Prince Edward. 
The Honourable William Mulock, 

Postmaster General and Chairman Telephone Committee, 
Ottawa, Ont. 

Honourable Sir, — I have the honour to inclose a recommendation from the 
county council of Prince Edward re telephone system as asked in your circular of 
a former date. 

I have the honour to remain, your obedient servant, 

E. M. YOUNG, 

County Clerk. 
Picton, June 30, 1905. 

No. 237a. 

To the Honourable Wm. Mulock, 
Ottawa. 

We, the committee appointed by the county council of Prince Edward to 
memorialize the government re telephone service, beg leave to say after inquiry and 
careful consideration that the general sentiment of the county council, and the 
people, particularly of those Who have paid attention to the question is unanimous 
in favour of the government having control of the trunk or long-distance telephone 
lines. There is a very widespread conviction based upon solid facts, that the Bell 
Company's rates are far higher than they should be, and we consider that the pro- 
gress of the use of the telephone as a home convenience among the mass of our 
people, is immensely retarded by the present monopoly, and with the isolated con- 
dition of our rural population, every possible effort should be made by parliament to 
better facilities for cheap telephone communication. 

We further believe, owing to the very large amount of business required in giving 
our rural population telephone communication, that we must have companies operat- 
ing all over this country, and those companies should be in a position to give a cheap 



210 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

and a complete service which cannot be done as long as the trunk lines are con- 
trolled by large companies, who prohibit smaller companies connecting with their 
trunk lines. 

Therefore we, the committee of the county council of Prince Edward would 
recommend that the government of Canada take over or control the trunk lines and 
give all telephone companies connection with said trunk lines with a fair tariff per 
mile. All of which is respectfully submitted. 

• D. H. YOUNG, Warden. 
D. T. STAFFORD, 
B. F. WILSON, 
W. S. BENSON. 



No. 238. 

Summerside, P.E.I., July 3, 1905. 
Sir William Mulock, 
Ottawa. 

Sir, — The telephone system in Summerside is operated by the Telephone Com- 
pany of Prince Edward Island who control the telephone business throughout Prinze 
Edward Island. 

This company's trunk lines cover all parts of the island thoroughly. Their long 

distance charges are 25 cents for five minutes' conversation, or a twenty-word mess- 

,age to any point on Prince Edward Island. For distances under 10 miles the tariff 

is 15 cents. Subscribers are allowed an additional 20 per cent discount from the 

above rates. 

There are at present about 50 subscribers to the Summerside exchange. The 
rates charged by the company for local service in Summerside are as follows: Busi- 
ness telephones $20 per annum; residence telephones, $15 per annum. 

They render a very fair service, and are rapidly improving their plant. They 
have almost completed the installation of new bronze wire circuits for all sub- 
scribers, so that when this is finished we may expect a thoroughly good service. I 
don't think that any change in ownership, or competition would benefit us in any 
way, as we could hardly expect to get the present scale of charges reduced. I am of 
the opinion that perhaps it would be wise to lay down some general method or sys- 
tem of arranging the pole lines of electric, telegraph and telephone companies, to 
apply to future extensions or reconstruction, with the view of keeping them as far 
apart, and with as few intersections as possible, as there seems to be an ever present 
danger from accidental crosses between those lines. Rural service is not rendered 
to any extent to individuals throughout this country, as there seems to be little de- 
mand for such among the farmers. The telephone company, however, maintains a 
large number of toll offices all over the country, and I believe that a great number 
of these even are operated at a loss. 

. It is difficult to see how any legislation would benefit us, and the telephone 
being a natural monopoly, competition would simply mean largely duplicating the 
present system, and putting us to the expense of two telephones instead of one, with- 
out corresponding benefit. 

As the telegraph system touches only a few points here, comparatively speaking, 
while the telephone operates in all the outlying sections, it would almost seem that 
the latter should receive government assistance for the maintenance of their non- 
paying points, and for the further extension of the system among small communities. 
I believe the telephone company receive a small subsidy for a limited time from the 
provincial government for the maintenance of some of their smaller offices. We at 



APPENDIX " A " 211 

APPENDIX No. 1 

present have no telephonic communication with the mainland, but I presume that 
this would be a work of such great cost that it would not be self-supporting, and that 
it therefore cannot be undertaken without help from the Dominion government, 
though it would be a great benefit, not only to us, but also to the neighbouring pro- 
vinces. 

Yours truly, 

WM. T. HUNT. 

No. 239. 

City Clerk's Office, 

Fredericton, N.B., July 6, 1905. 
Sir William Mulock, 

Chairman, Select Committee on Telephones, 
Ottawa. 

Dear Sir, — By direction of the city council, I inclose a copy of the report of the 
special committees of this council in reply to your communication of May 29 last, 
respecting telephone system. 

I have the honour to remain, 

Tours very truly, 

J. W. McCREADY, 

City Clerk. 



No. 239a. 

To His Worship the Mayor and Members of the City Council: 

Gentlemen, — Your committee appointed to make inquiries concerning the tele- 
phone system in the city of Fredericton for the benefit of the telephone commission 
at Ottawa, after careful inquiry beg leave to submit the following report : — 

The telephone company doing business in our city is known as the New Brunswick 
Telephone Company, the number of instruments in use being 410, and the service and 
rates are evidently satisfactory to all parties, as we never hear of any complaints. The 
arrangement between the city and the said company is of a most satisfactory nature. 
The company are supplying the city with all necessary telephones for one-half of their 
regular rates, also allowing city free use of their poles for fire alarm service. 

Considering the vast number of shade trees in our city, and the fact of two electric 
companies operating a system of high voltage, there are certain times, such particularly 
as spring and fall, when local troubles arise through grounds and induction, and with 
the view of eleminating those troubles as much as possible, the telephone company at 
their last general meeting decided upon many large and expensive improvements. We 
may add they have decided upon an estimated expenditure of $25,000 to include a new 
exchange building, cabling, conduit W.R.R., and the installation of central energy 
system which will give a service of the most improved and up-to-date kind. 

We understand that the commission is already in possession of the long-distance 
rates of the New Brunswick Telephone Company, and you undoubtedly find said rates 
are much lower than rates charged by other companies with the same service, this com- 
pany's line being equipped with copper metallic circuits, and whose staff is of efficient 
size and possessed of the required knowledge to keep the system in general in a satis- 
factory working order. 

Any further information or inquiries you may require which the committee can 
furnish we most cheerfully offer. 

l—d—15 



212 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The committee urge the wisdom of underground wiring, especially on business 
streets of cities, for the sake of appearances as well as for greater ease of fighting fires. 

W. H. McGLNN, 
D. J. STOCKFORD. 
J. A. EDWARDS. 
Fredericton, N.B., July 1, 1905. 

No. 240. 

Secretary-Treasurer Rural Municipality of Springfield, Man. — One private line to 
neighbouring village here, charge on same being 10 cents per message. Two years ago 
had Bell connection with Winnipeg, 16 miles distant, but the message rate and rental 
were prohibitive to rate payers and the service was discontinued. Connection with 
Winnipeg and rural districts much needed. 

No. 241. 

Township Clerk of Municipality of Starrington, Ont. — No system here. Greatly 
feel the need of telephone service, which would be far better than rural mail delivery. 
Would no doubt give bonus and hopes the government will take action in the matter. 

No. 242. 

Cleric of Houghton, Ontario. — No service here. Think government should assist 
in the matter. 

No. 243. 

County Council of Soulanges, Que. — Council satisfied with service in general, but 
suggests that local pay stations be not established in hotels and that installations at 
local offices in the county be free. At present they are charged $25 per annum, and do' 
not realize that amount. 

No. 244. 

Clerk of Municipal Council, Township of Huron, Ontario. — Bell pay-station only 
here. Long-distance rates too high. If service was cheaper rural population would use 
it more, at present do not appreciate its usefulness. 

No. 245. 

Secretary-Treasurer, City of Prince Albert, Sash. — Bell has 93 subscribers at rates: 
residence, $20 up to one mile, $4 each additional one-quarter mile. Business, $30 up 
to half mile, beyond, $4 each additional quarter mile. No long-distance or rural service. 
Service was most unsatisfactory, but since the metallic lines installed is better. 

No. 246. 

Town Clerk, Wetland, Ontario. — Bell has 101 subscribers, $15. No night service. 
Several complaints of charges being too high to suit public. Placing of unsightly 
poles, digging up of streets, cutting down beautiful shade trees, also complained of. 

No. 247. 

Town Clerk of Hantsport, N.S. — Nova Scotia Telephone Company giving good 
service, charges reasonable, six subscribers. 



APPENDIX "A" 213 

APPENDIX No. 1 

No. 248. 

Secretary-Treasurer, Bestigouche County Council, N.B.—No service. 

No. 249. 

Clerk, Rochester Township, Ontario.— Four villages in township and two Bell 
offices. Company was bonused to install these. Service fair, but rates too high to 
permit much use of it. People suffer for want of service at reasonable rates. 

No. 250. 

Clerk of Township of Cardiff, Ontario.— Only service private wire of I. B. & 0. 
Railroad. Word telephone has no meaning to many inhabitants. Weekly mail only 
communication with outside world. 

No. 251. 

Town Clerk of Kincardine, Ontario. — Bell system. No complaint. 

No. 252. 

THE INDEPENDENT TELEPHONE ASSOCIATION OF WISCONSIN. 

Officers— Richard Valentine, President, Janesville; H. G. Slater, Vice-President, 
Waupaca; H. C. Winter, Secretary and Treasurer, Madison. 

Janesville, Wis., July 3, 1905. 

Chairman Select Committee on Telephone Systems, 
Ottawa. 

My Dear Siit^Enclosed I hand you a copy of Bill 263 — A, which was lately 
made a law of the state of Wisconsin. I also send you a part of the Senate Journal, 
in which is given the opinion of the Attorney General on the constitutionality of 
the measure. 

Sincerely yours, 

RICHARD VALENTINE, 

President. 



No. 252a. 

A BILL 

To prohibit discrimination in the charges of telephone rentals in different cities 
and villages and fixing a penalty for the violation thereof. 

The people of the State of Wisconsin, represented in Senate and Assembly, do 
enact as follows : 

Section 1. There is hereby created and added to the statutes of 1898 a new section 
to be known and to read as follows: Section 1791a-l. It shall be unlawful for any 
individual, company, partnership or corporation, owning, controlling, or operating 
telephone exchanges in two or more cities or villages in this state to charge any in- 
dividual, company, partnership or corporation in one city or village, a greater or a 
lesser rental for exchange telephone service than he or it charges any other individual, 
company, partnership or corporation residing in any other city or village of the same 
class, as denned herein, for like telephone exchange service. It shall be unlawful for 
any individual, company, partnership or corporation, owning, controlling or operating 

1— d— 15* 



214 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

telephone exchanges in cities and villages of different classes, as herein defined, to 
charge a higher rental for exchange telephone service in any city, or village, of a lower 
class than he or it shall charge for a like service in any city or village of a higher 
class. For the purposes of this section, cities and villages shall be classified as fol- 
lows, according to the last preceding state or federal census, to wit : 

Cities of the first or highest class, those above 100,000 population. 

Cities of the second class, 75,000 to 100,000 population. 

Cities of the third class, 50,000 to 75,000 population. 

Cities of the fourth class, 40,000 to 50,000 population. 

Cities of the fifth class, 30,000 to 40,000 population. 

Cities of the sixth class, 25,000 to 30,000 population. 

Cities of the seventh class, 20,000 to 25,000 population. 

Cities of the eighth class, 15,000 to 20,000 population. 

Cities of the ninth class, 10,000 to 15,000 population. 

Cities of the tenth class, 7,000 to 10,000 population. 

Cities of the eleventh class, 5,000 to 7,000 population. 

Cities of the twelfth class, 3,000 to 5,000 population. 

This section shall not apply to telephone exchanges owned, controlled or operated 
by any individual, company, partnership or corporation in cities or villages having a 
population of less than three thousand according to the last state or United States 
census. Any individual, company, partnership or corporation violating or failing to 
comply with any of the provisions of this Act, shall, for each and every such violation 
or failure, forfeit not less than fifty dollars nor more than five hundred dollars, one- 
half thereof to belong and be payable to the person prosecuting. 

Section 2. This Act shall take effect and be in force from and after its passage and 
publication. 



No. 252b. 

OPINION OF ATTORNEY GENERAL 

May 31, 1905. 
To the Honourable Senate of Wisconsin: 

Gentlemen, — I am in receipt of the request of your honourable body that I give 
you my opinion as to the constitutionality of Bill No. 263, A., entitled : ' A Bill to 
prohibit discrimination in charges of telephone rentals in different cities and villages, 
raid fixing a penalty for the violation thereof.' 

The Bill classifies cities, according to population, into twelve classes, and for- 
bids telephone companies operating telephone exchanges in two or more cities from 
charging greater or less rental for exchange telephone service in any city of the same 
class, and also prohibits a higher rental charge for exchange telephone service in any 
city of a lower class than shall be charged for a like service in any city of a higher 
class. 

The purpose of the Bill is said to be to prevent telephone companies having ex- 
changes in more than one city from levying tribute on the people of one city in the 
form of higher rentals for the purpose of driving a competitor in another city out 
of business. In other words, the purpose of the Bill is said to be to prevent a 
monopoly in the telephone business. 

A telephone company is a common carrier of messages and enjoys those rights, and 
must perform those duties that exist in all cases where private property is used in a 
business in which the public has a common interest. 

A telephone system is simply a means for the transmission of intelligence and news. 
In other words, it is a common carrier of information. 

It is an undisputed proposition that the legislature has the power to regulate the 
charges of, and to prescribe reasonable regulations for all common carriers. The tele- 



APPENDIX " A " 215 

APPENDIX No. 1 

phone, by the necessities of commerce and public use, has become a public servant — a 
factor in the commerce of the nation and a great portion of the civilized world. It has, 
and must be held to have, taken the place by the side of the telegraph as a common 
carrier. 

State vs. Neb. Telephone Co., 22 N. W., 237, 239. 

See also Western Union Telegraph Co. vs. Call Pub. Co., 44 Neb., 326. 

State ex rel. vs. Delaware Telephone Co., 47 Fed., 633. 

Telegraph Co. vs. Tex., 105 U.S., 460. 

A common carrier is bound to serve the public at reasonable rates and without 
unjust discrimination, either as to price or the manner of service. 

Gardner vs. Telephone Co., 7 Am. Elec. Cases, 867. 

Munn vs. 111., 94 U.S.. 113. 

' A telephone system is simply a system for the transmission of intelligence and 
news. It is, perhaps, in a limited sense, and yet in a strict sense, a common carrier. 

The moment it establishes a telephonic system here it is 
bound to deal equally with all citizens in every department of business, and the moment 
it opens its telephonic system to one telegraph company, that moment it put itself in 
a position where it was bound to open its system to any other telegraph company ten- 
dering equal pay for equal service.' 

State ex rel. vs. Delaware Telephone Co., 47 Fed., 633. 

Under the form of regulation, however, the state cannot deprive a telephone com- 
pany of a reasonable compensation for services performed. 

Smith vs. Ames, 169 Wis., 466. 

It follows, therefore, that if telephone companies are common carriers, they are sub- 
ject to reasonable regulations and their charges may be controlled by the s tate. Indeed, 
the legislature of this state has already enacted statutes recognizing the right of super- 
vision and control. Section 1791a was enacted to prevent discrimination in rates in 
certain cases. Section 1778, as amended by chapter 319, laws of 1901, grants to such 
corporations the right of eminent domain. It is claimed, however, that this Bill does 
not provide for such regulation as the legislature is authorized to impose. It has been 
argued against its validity that the Bill will result in class legislation, discriminating 
against some and favouring others ; that it denies to some telephone companies the equal 
protection of the law guaranteed by the constitution ; that it imposes butdens and lia- 
bilities upon some which are not cast upon others similarly situated. 

It is a maxim of constitutional law that the legislature can not pick out one indi- 
vidual or one corporation and enact that one shall be subject to certain burdens, while 
others situated in the same circumstances are exempted from the operation of the law- 
It must be admited that the legislature can make a classification of individuals or co-- 
porations and impose upon such class special burdens and liabilities; but it cannot 
make a selection obviously unreasonable and arbitrary if the discrimination is based 
upon matters which have no relation to the object sought to be accomplished. 

If this Bill is subject to these criticisms, of course it would be void if it became a 
law. It is permissible to classify, but the classification must be founded on real dif- 
ferences. Our court has said : 

' It is a trite expression that classification, in order to be legal, must be rational. 
It must be founded upon real differences of situation or condition which bear a jusi 
and proper relation to the attempted classification and reasonably justify a difference of 
relation.' 

State vs. Black, 113 Wis., 205. 

It is not proposed by this Bill to fix the rates which may be charged by telephone 
companies. It is a Bill to prevent discrimination in rates, not by all companies in al' 
cities, but by telephone companies doing business in two or more cities. The rates 
which may be charged by any telephone company are not attempted to be fixed or regu- 
lated by this Bill. The Bill is designed to prevent: 

1. A telephone company from discriminating in rates between cities of the same 
class. 



216 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

2. To prohibit telephone companies operating in cities of different classes from 
charging a higher rental for telephone services in a city of a lower class than it shail 
charge for a like service in a city of a higher class. 

The rates, however, to be charged, are left to the discretion of the telephone com- 
pany. 

The question which arises is, whether the discrimination in charges between one 
city and another is such a matter of public interest and concern as to authorize the 
legislative action to prevent it under the police power of the state. The claim is made 
that a telephone company strong enough to have exchanges in several cities may and 
does make its charges very high in cities where it has no competition, for the purpose of 
reducing them to a minimum in cities where there is competition, and by this means be 
enabled to drive the lesser company out of business, and thus obtain a monopoly which 
it may use thereafter to extort higher rates from its patrons. 

]f this is a matter fraught with danger to the public welfare, then the classificaliOii 
of companies operating in two or more cities may be justified. If no public interest 
or concern can be subserved by such a classification, then the legislature would have no 
power to act in the premises. In other words, if no reason or just basis exists for tbj 
fixing of uniform rates between cities as classified by the Bill, then there is not a con 
-titutional classification. 

I have not the information concerning the telephone business such as will enable 
me to judge of this matter as well as the committee having this Bill in charge, who no 
doubt are informed as to the necessity of regulating the matters by law and, as to this 
matter of public concern, you are better able to judge than I. 

Our court has sustained the right of the legislature to classify in many cases, for 
the purpose of taxation, for the purpose of municipal government in classifying cities, 
and in other matters too numerous to mention. Whether or not the classification is 
arbitrary or unreasonable depends upon the nature of the danger threatened or th. 1 
wrong to be remedied. Courts will not set aside a classification as unreasonable be- 
cause they may not think the classification the best that might have been adopted, but 
only when they can see that, beyond all rational doubt, the classification is arbitrary, 
unreasonable and unjust. 

' Of the propriety of legislative interference within the scope of the legislative 
power the legislature is the exclusive judge.' 

Munn vs. 111., 94 TJ. S., 113. 

It is also a maxim of constitutional law that a legislature is presumed to have 
acted within constitutional limits, with full knowledge of the facts and with the pur- 
pose of protecting the interests of the people as a whole, and the courts will not lightly 
hold that an Act duly passed by the legislature was one in the enactment of which it 
had transcended its powers. 

The provisions of the Bill seem to violate no vested rights; it does not impair the 
obligations of contracts, nor do its provisions deny to any person or company the equal 
protection of the laws, and there seems to be no deprivation of property without due 
process of law. I am unable to see that the classification made by this Bill is unjust 
and unreasonable, or that the discrimination in telephone rentals, which the Bill designs 
to remedy, is without the police power of the state, and therefore not the subject of 
legislative action. If, in fact, there is a wrong to be righted, then, in my opinion, there 
is nothing in the Bill which makes it obnoxious to any constitutional provision. 

The classification is based on population, and a further classification is made to 
depend on whether or not a telephone company does business in two or more cities. 

Discrimination in charges between two cities cannot be in the nature of things 
enforced as to a telephone company doing business in only one city. And therefore, if 
discrimination in rates between cities is to be prevented, the classification of telephone 
companies doing business in two or more cities is a natural classification based on a 
situation made necessary by the situation, and cannot be said to be an arbitrary one. 



APPENDIX " A " 217 

APPENDIX No. 1 

Classification based on the population of cities has been sustained by tlie highest 
court of this state, as well as by the United States Supreme Court in the great case 
of Munn vs. Illinois, 94 U. S., 113. 

Kespectfully submitted, 

L. M. STURDEVANT, 

Attorney General. 

No. 253. 

THE MUNICIPALITY OF THE COUNTY OF SHERBROOKE. 

E. B. Worthington, Secretary-treasurer. Sherbrooke, P.Q., June 30, 1905. 

To the Chairman, 

Select Committee on Telephone Systems, 
Ottawa. 
Sir,— Your circular letter of June 2 last in reference to the efficiency of 
tiie telephone systems in this section, and asking if same gave general satisfaction, 
was laid before the general quarterly session of this county council held on the four- 
teenth day of June last, and the following is an extract from the minutes :— 

It was moved by Mayor Joseph Allard, seconded by Mayor Alfred Gauthier, and 
resolved, that the secretary be instructed to write the commission, explaining that 
we are satisfied with the telephone systems in this locality, but that we believe that 
the Bell Telephone Company should not have the monopoly in connection with the 
Railway Stations, and that other companies should have the same privileges. 

I remain, 
Your truly, 
E. B. WORTHINGTON, 

Secretary-treasurer. 

No. 254. 

THE UNION OF CANADIAN MUNICIPALITIES. 

President, Hon. Secretary-treasurer, 

Thomas Urquhart, Esq., W. D. Lighthall, M.A.. 

Mayor of Toronto. Ex-Mayor of Westmount. 

G. S. Wilson, Asst. Secretary, L. N. Senecal, 

Bureau of Information. Sec. de la Prov. de Que., 

107 St. James St., Montreal. St. Henri. 

Hon. Sir William Mulock, K.C.M.G., Montreal, August 28, 1905. 

Postmaster General, Ottawa. 
Dear Sir, — I have the honour of transmitting you herewith a copy of a resolution 
on the subject of the Dominion Telephone Committee, which was passed xmanimously 
at its fifth annual convention at Winnipeg, July last. 

Yours respectfully, 

W. D. LIGHTHALL, 

Hon. Sec.-Treas., U.C.M. 

No. 254a. 

resolution. 

Moved by Controller Ward, of Toronto, seconded by Mayor Emerson, of Calgary, 
That this convention hails with satisfaction the inquiry into the telephonic conditions 
at present existing in Canada, carried on during the past session of parliament by the 
Select Committee on Telephone Systems, under the able chairmanship of the Post- 
master General; and congratulates the government upon the voluminous and valuable 
information regarding this important question which has been secured by the Com- 



218 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

mittee and placed at the disposal of the municipal and other public bodies in the 
Dominion. 

This convention is strongly of opinion that the time has arrived when the long- 
distance telephone service should no longer be operated as a monopoly for private gain, 
and that this service should be owned and operated by the Federal government under 
conditions which will enable every telephone user to have unrestricted intercommuni- 
cation between all local systems now in operation, or which may be hereafter 
established. — Carried unanimously. 

No. 255. 

To the Honourable Sir William Mulock, 

Chairman of the Telephone Committee, 

and Members of the House of Commons of the Dominion of Canada, 
in Parliament assembled. 

The Petition of the County Council of the County of Bruce, humbly sheweth : 

That in the opinion of this council the time has arrived when the telephone sys- 
tems of the country should become national institutions under the management and 
control of the Post Office Department. Every private or company owned institution is 
conducted with a view to profit, and it follows, as a matter of course, that the Bell 
Telephone Company, which is virtually a monopoly, must charge high, if not exhorbi- 
tant rates, for the services rendered, in order to produce dividends for the stock- 
holders. That there should be no tax on knowledge is a recognized principle of gov- 
ernment in this country, and it is upon this principle that our postal service is not 
expected to produce a revenue. There is a close parallel between communication by 
mail and communication by wire, and if one should be maintained at the bare cost of 
operation, why not the other? We would, therefore, urge upon the Dominion govern- 
ment the importance of assuming as speedily as possible the management and control 
of the telephone business of the country, believing that if the idea of profit were elim- 
inated, the cost to the public would be materially reduced, and as a natural conse- 
quence this means of communication brought within the reach of a much greater num- 
ber of people. And the clerk is hereby instructed to forward a copy of this resolution 
to Sir William Mulock, Chairman of the Telephone Committee now in session at the 
House of Commons, Mr. P. H. Mackenzie, member for South Bruce, and Mr. L. T. 
Bland, member for North Bruce. 

And your petitioners will ever pray. 

WM. MACDONALD, 

Warden. 
W. S. GOULD, 

Clerk. 

No. 256. 

EEPORT OF COMMITTEE RE TELEPHONES. 

Council Room, Sarnia, Ont., June 13, 1905. 
To the Warden and Councillors of the County of Lambton: 

Your committee appointed to prepare an answer to the circular from the Hon. 
Sir William Mulock, beg leave to report as follows : — 

1. The system in use is that operated by the Bell Telephone Company, and there 
is no other in use in the county. 

There are seven different, exchanges in the county, viz. : Sarnia and Point Edward, 
400 subscribers; Petrolea, 150; Forest, 50; Oil Springs, 17; Watford, 17; Brigden, 10; 
Alvinston, 1; Sombra, 2; Inwood, 1. Total of 648 subscribers. 

There are other telephone stations connected with the system in the county, as 
follows: Camlachie, Ravenswood, Aberarder, McCormicks, Wyoming, Oil City, Mar- 
thaville, Florence, Edy's Mills, Courtright, Weesbeach, Bunyan, Osborne. 



APPENDIX " A " 219 

APPENDIX No. 1 

Rates : For long distance equipment in Sarnia, $30 for business offices ; $25 for 
residential places. 

The above is for individual metallic circuit line. Blake equipment, $5 less for 
each in Petrolea, $5 less than in Sarnia. In the smaller places, $15 per annum. 

The company will give telephones to farmers and residents in the rural districts 
at $20 per annum, provided there is one subscriber for each mile of line outside the 
limits of a municipality have a regular exchange. The Bell Company has never 
been requested to put in rural service except in two instances, and service was imme- 
diately installed. They have met all demands for service thus far. The present system 
seems to satisfy the public so far as it is possible under the circumstances. There are 
points in the county which should, in our opinion, be connected with the long-distance 
lines, viz.: Rutherford, Oakdale, Corunna, Aberfeldy, Wilkesport and other places. 
With these exceptions, the county is fairly well covered. 

This county council would approve of a well matured scheme for managing the 
telephone service of the country by the government in much the same manner as the 
post office department, and would approve of having the same fully extended through 
the rural districts at as reasonable rates as the actual cost will permit, if after investi- 
gation such should be deemed feasible and advisable. 

All of which is respectfully submitted. F. C. WATSON, 

Chairman. 

No. 257. 

J. R. McNeillie, Clerk and Treasurer. 

The Chairman, Lindsay, Ont., July 19, 1905. 

Select Committee on Telephone Systems, 
House of Commons, Ottawa. 

Sir, — I have the honour, by instructions from the council of the county of Vic- 
toria, to reply to your letter of June 2, asking for information respecting the 
telephonic conditions in this locality. 

It was present to the mind of the committee appointed by the council to deal 
with your communication, that some years ago there had been a contest between the 
Bell Telephone Company and some private individuals respecting the extension of 
telephone service to various points in the county of Victoria, and that Mr. J. G. Eyres, 
now of Lindsay, was an active combatant on the side of the public. An interview with 
Mr. Eyres shows him to be the historian of an event in telephone affairs which is 
worthy of being recorded in the proceedings of the Select Committee of the House of 
Commons. Mr. Eyres and those who were associated with him won a notable victory. 
The leader is, naturally, not desirous of being called before the Committee, but should 
the taking of evidence be continued at the next session of parliament, the testimony 
Mr. Eyres could give would throw a flood of light on the methods of the company in 
preventing and withholding service from what the company may declare to be non- 
paying points, unless forced by the enterprise and courage of interested persons. 

To Mr. Eyres and his colleagues is owing the result that the service given by the 
company extends to almost every village and grain-buying station in the county of 

Victoria. 

Besides the service given by the company, there is a private system covering the 
southern portion of the township of Mariposa, with which the company gives connec- 
tion at the village of Little Britain. 

On the main' question, the council adheres to the terms of their petition to His 
Excellency the Governor-General in January last, that the long-distance telephone 
business of the Dominion should be owned and operated by the government. 

I have the honour to be, sir, 

Your obedient servant, 
J. R. McNEILLIE, 

Clerk, County of Victoria. 



220 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 258. County Clerk's Office, County of Halton, 

Milton, Ont., August 18, 1905. 
Sir William Mulook, 

Chairman, Select Committee on Telephones. 
Sir, — The county council of Halton has instructed me to say, in answer to your 
letter of June 2 last, that, while no special complaint is offered as to the efficiency of 
the system in this county, the use of the telephone would be much more general, and 
the service to the public made thereby more efficient if a substantial reduction were 
made in the charges that now prevail. The council believes that a general adoption of 
the telephone throughout the rural districts would be of great benefit to all concerned. 

I have the honour to be, sir, 

Your obedient servant, 

WM. P ANTON, 

County Clerk. 

No. 259. 

York County, N.B. 

To the Honourable Chairman of Select Committee on Telephone Inquiry, Sir William 
Mulock. 

Sir, — In response to your letter addressed to the municipality of York, under date 
of June 3, last, through its secretary, F. St. John Bliss, the Committee appointed by 
the warden of York county at the semi-annual session of the county council, held on 
Tuesday, July 4, 1905, beg leave to report as follows: — 

We have within the confines of our county two systems of telephone connection, 
the New Brunswick Telephone Company of some years' standing and operation, doing 
a long distance business entirely through pay stations at toll rates located at a few 
scattered points, the said company operating a fairly good service of its kind, i.e., one 
controlled by a private corporation, which has enjoyed up to last year a monopoly ^>f 
the telephone business of this county at rates that in many cases must show a large 
margin of profit for the company over and above a fair return on their money invested. 
The pay stations of the New Brunswick Company in the county outside of the city 
of Fredericton exchange, at present number about nineteen (19), which covers but a 
small portion of the rural field. The New Brunswick Company do not lease 'phones 
anywhere, operating solely on the pay station toll rate system, outside of cities and 
towns. 

In contrast with the New Brunswick Company, a new company known as the 
Union Telephone Company, entered the western end of our county in the month of 
May, 1904. This company is operated solely on a mutual co-operation basis. Tiny are 
seeking to ruralize the telephone system of York county, they have in a large measure 
done in the counties of Carleton and Victoria to the north. They built and operated 
last year a circuit, covering some fifty miles in York county, on which they have 
leased twenty-six 'phones, many of them in farmers' houses, and they are now con- 
structing a main line of thirty-seven miles following the St. John river to Fredericton, 
the capital of the province, and will commence work on two branch lines of fourteen 
and sixteen miles respectively to connect with main line in a few days. All of these 
three districts are now without telephone connection, and a number of telephones have 
been subscribed for on each circuit — more of course will doubtless be taken when con- 
struction is completed. 

They are building these new extensions in York county in a substantial manner, 
and putting on the latest improvements and appliances known to the business. Their 
main line is to be number 12 copper wire, continuous circuit of two wires for long- 
distance business, and for local circuits two number 9 copper wires will be used, mak- 
ing metallic circuits throughout. The instruments used are to be the newest and best 
made. All the people are asked to take stock, for purposes of extension of the system 
through their individual territory, thus participating in profits as well as privileges, 



APPENDIX " A " 221 

APPENDIX No. 1 

and making the system thoroughly mutual. As to rates : They are charging $15 per 
annum for f armers'_ 'phones with free use of circuits and a small switching charge in 
addition for long distances outside of the circuits, which average 35 to 50 miles. 

From inquiry among the people who are now stockholders and lessees of tele- 
phoney on the lines of the Union Telephone Company, we would report that the great- 
est satisfaction exists with the new system, and it is being adopted and called for in 
new districts more rapidly than the company at present can build, though everything 
we are assured will be done to expedite the work of connecting the different parishes 
in the county, and linking all the different districts together. 

In regard to government ownership of telephone lines, we have to say that, that is 
a matter that in our limited scope of time for consideration, we do not care to hazard 
an opinion further than to say we do not think that our county with the development 
of telephone work going on at present, could be better served by government owner- 
ship. 

Eespectfully submitted. 

HEDLEY F. GEOSVENOE, 
M. BYEON McNALLY, 
Certified. Committee. 

F. ST. JOHN BLISS, 

Secretary-Treasurer, 

York County, N.B. 



No. 260. 

Yarmouth, N.S., July 28, 1905. 
Sir Wii. Mulock, 

Chairman of Select Committee on Telephone Systems, 
Ottawa. 

Dear Sir, — I am instructed by the town council of the town of Yarmouth to sub- 
mit the following regarding telephonic conditions in our town : — 

The principal telephone operating in this section is a joint stock company, witb 
237 subscribers. 

The rate charged to- business people is $22 per annum ; if Blake sets are used, the 
charge is $5 additional, giving complete long-distance service. Eesidences are $17 per 
annum. 

The service is as efficient as can be expected from a grounded system which is out 
of date. 

Owing to the present rate charged, and the small number of subscribers, it is 
plain to be seen that the revenue would not be adequate to warrant the instalment of 
an up-to-date metallic system. 

Eegarding the long-distance service, the same might apply, as the grounded system 
is still in use. Sections of the long-distance lines are owned by small companies, and 
are probably not what they should be. These different companies are not in a position 
to expend what would be required to furnish an up-to-date service. 

The present town system has connections with all towns and villages of any size. 

The fee for outside messages, 20 cents for five minutes conversation. 

The quality of outside service depends to a certain extent on atmospheric condi- 
tions, lines being grounded. 

In conclusion, I might say the system may be as good as we can reasonably ex- 
pect from the present conditions, but is very much inferior to towns of our size, say 
for instance in the United States. 

I am, dear sir, yours truly, 

HIEAM GOUDEY, 

Town Clerk. 



222 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
No. 261. LETHBRIDGE BOARD OF TRADE. 

M. Young, President. L. M. Johnstone, Vice-president. F. H. Barnes, Secretary. 
Hon. Wm. Mulook, Lethbridge, Alberta, July 20, 1905. 

Postmaster General, Ottawa, Ont. 
Dear Sir,— Referring to your circular letter of June 2, I beg to advise you that 
I have obtained the following information concerning the telephone system in this 
town: — 

Business rate in town $35 

Residence rate in town (with business 'phone also) 20 

Residence rate without business 25 

Desk 'phone, $3 extra ; extension 'phone, $10 extra. 
There are 130 telephones in Lethbridge. 

I have also been instructed by the board to state that we found the service very 
satisfactory, but that in our opinion the rates are excessive. 

Yours truly, 

F. H. BARNES, 

Secretary. 

No. 262. TOWN OF INNISFAIL. 

James Jenson, Secretary-treasurer. Innisfail, Alta., August 8, 1905. 

Be Select Committee on Telephone Systems. 

Sir William Mulock, K.C.M.G., 

Postmaster General, Ottawa. 

Sir, — I have the honour to inform you that the above subject was discussed last 
evening at the meeting of the town council, and the resolution was passed that I 
should inform you that: 

The Bell Telephone Company are operating the local and long-distance telephone 
in the district of Innisfail, that they are just commencing operations in this district, 
and that we are not in a position to speak of the success or non-success of the system 
at present. 

The following are the rates : — 





Call. 


Toll 


Da-s 


Toll Night. 


< ImOK. 


Day. 


Night. 


:; Minutes. 


Per Minute 

< >\c TtillH'. 


3 Minutes. 


Pet Minute 
Overtime. 




cts. 


cts. 


cts. 

50 
30 
30 
25 
25 
30 
30 
50 
50 
60 
60 
70 
70 


cts. 

15 
10 
10 
05 
05 
10 
10 
15 
15 
20 
20 
20 
20 


cts. 

25 
25 

25 
25 

■s< 

25 

25 
25 
25 
30 
30 
35 
35 


cts. 
05 






05 


Didsbury 

Olds 





05 
05 






05 






05 
05 








05 


Wetaskwin 






05 


Millett 






10 
10 








10 








10 













I have the honour to be, sir, 

Yours truly, 

JAS. JENSON, 

Secretary-treasurer. 



APPENDIX "A" 223 

APPENDIX No. 1 

No. 263. 

Macleod, Alberta, July 18, 1905. 
Sir William Mulock, K.O.M.G., 

Chairman Select Committee on Telephone Systems, 
Ottawa. 
Sir,— We, the undersigned, appointed a committee by the council of the town of 
Macleod for the purpose of answering your letter of date June 2, 1905, referring to 
the telephone system of this locality, beg to reply to the same as follows :— 

(1.) The Macleod telephone system is owned and operated by a local company, 
and has no long-distance connection. 

(2.) There are about 62 subscribers, and the rates are $30 per annum for business 
service, and $18 for residences. 

(3.) The service of the present system is found to be satisfactory to the extent of 
its present limits. 

(4.) There is immediate and pressing need of long-distance connection with Cal- 
gary, Lethbridge. Pincher Creek and elsewhere, and we believe that a company that 
would be satisfied with a reasonable profit would have ample business to justify the 
outlay. We have been informed that the present company has considered the matter, 
but are deterred by the practical certainty of later being crushed out by the Bell Tele- 
phone Company. 

We are, sir, yours faithfully, 

C J. REACH, 
ARTHUR YOUNG. 

No. 264. 

CORPORATION OF THE CITY OF NANAIMO. 

Office of the City Clerk, 

Nanaimo, B.C., July 12, 1905. 
The Honourable Postmaster General, 

Chairman, Select Committee on Telephone Systems, 
Ottawa. 

Sir, — Your communication of June 2 re telephone matters in this city, was laid 
before the municipal council, and was referred by that body to a committee for report. 
At the last meeting of the council a report was presented, from which I was directed 
to send the following : — 

1. The system in this city is controlled by a private company, and the service is 
fairly good. There are about 175 subscribers. 

2. The charges are, for 'phones in business houses, $3.50 per month, and in resi- 
dences $2 per month. 

The charge for use of the trunk line to Victoria and elsewhere on the Island, is 
from 25 to 50 cents, according to the distance, for two minute conversations. 

The council considers that these rates are higher than they should be, and they 
strongly favour government ownership of all telephone lines, as then communication 
may be had with outlying sections, which under the present system might not be con- 
sidered profitable, but which would be of great mutual advantage. 

The council would also like to see some measure of municipal control, especially 
with regard to the placing of pole lines in the streets. 

And they would also suggest that every private corporation using the streets for 
their business should provide the members of the council and municipal officers with 
'phones free during their terms of office. 

I have the honour to be, sir, 

Your obedient servant. 

S. GOUGH. 

City Cleric. 



224 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 265. 

RICHMOND MUNICIPALITY. 

A. B. Dixon, C.M.C. 

Eburne, B.C., July 13, 1905. 

Sir William Mulock, K.C.M.G., 

Postmaster General, Ottawa. 
Sir, — In reply to yours of June 2, re inquiry into telephone systems in operation 
in this locality, I have the honour to submit the following : — 

This locality is served by a branch of the system operated by the N. W. & B. I. 
Telephone Company, of Vancouver, B.C. 

This company has two central offices, and have about twenty subscribers. The 
charge to subscribers is thirty-five dollars per year, which does not include long-dis- 
tance charges. 

The rates charged the public is 10 cents, with about one cent per mile added for 
long-distance messages. 

The Richmond council would much prefer the government ownership of the tele- 
phone systems. 

I have the honour to be, sir, 

Your obedient servant, 

A. B. DIXON, 

C. M. 0. 

No. 266. 

MUNICIPALITY OF MATSQUI. 

Abbottsford, B.C., July 29, 1905. 
The Hon. Sir William Mulock, K.C.M.G., 

Postmaster General, and Chairman of the Select Committee on 
Telephone Systems, Ottawa. 
Hon. Sir, — I am directed by the Matsqui council, at its meeting held to-day, to 
acknowledge the receipt of your circular letter of June 2 re telephone systems existing 
in our locality. 

I beg to say that our municipality is about ten miles long by about eight miles 
wide, and has just one telephone line, running through its centre, or nearly so, east 
and west, and in the whole length it has but one 'phone the public can use, one in- 
stalled at the post office at Abbottsford (which is the Canadian Pacific Railway depot). 
Last year the charges were for short distances, ten cents; now the minimum price is 
25 cents. This is considered exorbitant, and deters many from its use. Our council 
tried some time ago to better this state of affairs by asking the Bell Company to install 
a system to Mt. Lehman, which would be a great benefit to that part of the district, 
and upon inquiries the council was informed if the public would erect the poles the 
company would string the wire, but a guarantee of $8 per month must be made, and 
all other expenses met. The public would readily have erected the poles if these un- 
reasonable charges had not been made. The long-distance rates are also too high. It 
is very evident the company prefers a slow shilling to quick pennies, and the public 
will welcome the inauguration of another line that will remedy the present state of 
things. We maintain that where there is, as I remark, only one 'phone in existence 
in this ten miles there ought and would be a dozen if the charges were more within 
the reach of the public, and I am instructed to inform you that the council is in favour 
of government ownership and operation of main and local telephone service, seeing 
that private ownership in so many cases is so unsatisfactory. 

I have the honour to be, sir, 

Your humble and obedient servant, 

JOHN BALL, 

Clerk. 



APPENDIX " A " 225 

APPENDIX No. 1 

No. 267. 

THE CITY OF ROSSLAND. 

City Clerk's Office, 

Rossland, B.C., July 31, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General, and Chairman of Committee on Telephone Systems, 

Ottawa, Ont. 

Sir, — In reply to your communication of June 2 last, I am instructed to say that 
the British Columbia Telephone Company operate in this city, and give very good 
satisfaction. The municipal council appreciate very much your kindness in -having a 
copy of the proceedings of your committee forwarded to them for perusal. 

Through the kindness of the company here, they have given us the following 
figures : — 

Telephone Rates per Month. 

Individual business $4 00 

" residence 3 00 

Party line business 3 00 

" residence 2 00 

Charge for connections, $5, or six months' rental in advance. 
No telephone installed for less than twelve months. 

Long-distance Trunk Line Rates per Minute. 

1st minute. 2nd minute. 

To Nelson, B.C 30c. 30c. 

" Trail 10c. 10c. 

" Northport. Wash 25c. 20c. 

" Grand Forks, B.0 55c. 50c. 

" Greenwood, B.C 65c. 60c. 

" Phoenix, B.C 60c. 60c. 

" Spokane, Wash 55c. 50c. 

" Colville, Wash 50c. 50c. 

We have to regret the delay in obtaining this information for you. We trust your 
investigation will have good results. 

I have the honour to be, sir, 

Your obedient servant, 

wm. McQueen, 

City Clerk. 

THE WINNIPEG PRINTERS' BOARD OF TRADE. 

O. H. Pollard, Manager. 

175 McDermott Ave., 

Winnipeg, July 18, 1905. 
The Chairman, Telephone Committee, 
Ottawa, Ont. 
Dear Sir,— I am authorized to send you a copy of a resolution passed at a meet- 
ing of our board held July 11, 1905, and which reads as follows :— 

' Resolved, that this board deplores the unsatisfactory service given by the Bell 
Telephone Company, and we hereby endorse the principle of municipal ownership of 
telephones, with government ownership of trunk lines.' 

I beg to remain, sir, yours respectfully, 

O. H. POLLARD. 



226 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 269. 

THE UNITED STATES TELEPHONE COMPANY. 

801 Electric Building, 

Cleveland, Ohio, July 11, 1905. 
Sir William Mulock, 

Postmaster General, Ottawa, Ont. 
Dear Sir, — Your letter' of June 9, attaching a number of questions, has been re- 
ceived and referred to me for reply, and you will find the questions referred to 
answered below. 

This company has pole lines over most all of Ohio, and a portion of Michigan and 
Indiana. Its capitalization and bonds are as follows: — ■ 

Common stock $2,000,000 

Preferred stock. 363,200 

Bonds 2,085,000 

It has been operating six years, and is a toll line only, connecting with the various 
independent exchange companies, furnishing them with their long-distance service. 
It has 15,000 miles of circuit, costing an average of $80 per mile of circuit. The 
length of pole routes is 2,600 miles. The company does not own any switch- 
boards, but has a number of toll boards connecting with all manner of systems, 
including magneto, central energy, central signalling and local talking; also 
automatic. The toll boards were manufactured by the Stromberg Carlson 
Telephone Manufacturing Company, the Kellogg Switchboard Supply Company, 
the North Electric Company and the Sterling Electric Company. The company has 
no telephones at all. Our rates for long-distance service arc measured on the air-line 
basis, and are made not to exceed 1 of a cent per mile, excepting for short distances, 
when the rates are made up as follows: — 

10 miles or less 10c. 

10 to 20 miles 15c. 

20 " 30 " 20c. 

30 " 39 " •. . . . 25c. 

39 " 48 « 30c. 

48 " 56 " 35c. 

The company pays 5 per cent on its bonds and 6 per cent on the preferred stock. 
Nothing is set aside for depreciation of property, but is kept in good shape each year 
and is charged to maintenance. Any re-building of lines is taken care of right out of 
the earnings and charged up to maintenance expenses. The company has a surplus 
of $70,270.39. 

The United States Telephone Company connects with all local exchange com- 
panies in the state of Ohio, and also makes connection with the long-distance com- 
panies in the states of Indiana, Michigan, Pennsylvania, West Virginia and Kentucky, 
so that it has connection with all companies in those states. We pay the local com- ■ 
pany originating a call 25 per cent, and not to exceed 12£c. on any three minute con- 
versation. If the message is carried over some other company's long-distance line, in 
addition to our own, after the commission is deducted, the balance is divided pro rata 
according to the air line distance carried by each company. Before competition the 
Bell had about 25,000 telephones in Ohio. At this date they have about 90,000. The 
Bell Company does not seem to have any regular rates, and charges whatever it can 
get. If there is no competition it charges a great deal ; if there is very strong competi- 
tion it gives the service away. 

In our construction department we pay our foremen from $60 to $75 per month; 
the linemen $40 ; the groundmen $25 and $30 per month, and in addition to the above 
wages we pay their expenses. 

You will understand, of course, that all of our work is outside of towns and cities. 
Our troublemen who are stationed at various points along our line receive from $60 to 



APPENDIX "A" 227 

APPENDIX No. 1 

$65 per month, and their expenses when they are away from home. Our inspectors 
receive from $60 to $80 per month, depending on their ability and the class of work 
they are on. We have no wiremen in the strict sense of the term. We have but a few 
operators, as the local exchanges operate our lines in most cases. There are a few 
cases, however, in which we pay the operators, and their wages run from $15 up to $50 
for the chief operator. Where the United States Telephone Company employs its own 
operators it pays the local company 15 per cent instead of 25 per cent. The United 
States Telephone Company has general supervision, of course, and has contracts with 
all of the local exchanges, and the local exchanges operate toll lines as directed by the 
long distance company. 

If there is any further information that you may need, I will be glad to furnish it 
for you if I can. 

Tours very truly, 

M. B. OBEELT, 
General Manager. 

No. 270. 

WEST VIEGINIA WESTERN TELEPHONE COMPANY. 

Fourth Street, 

Parkersburq, W. Va., July 7, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General, Ottawa, Ont. 
Dear Sir, — Replying to your communication of June 9, permit me to give you 
the following information concerning our telephone equipment. 

This company operates in the counties of Wood, Ritchie, Doddridge, Tyler, Plea- 
sants, and a part of Lewis, Gilmer and Jackson. 

The amount of stock is $225,000 and bonds $125,000. The company has been 
operating for twelve years in territory having a population of 85,000, not all fully 
developed. The number of telephones in operation is 5,146, of which 2,645 are direct 
lines with one telephone each. 125 subscribers have also Bell telephones. The number 
of residence telephones is 2,260 and business 2,886. The company has 5,592 miles of 
long-distance wire on 931 miles of pole, or 2,796 miles of metallic circuit. The cost 
oi the Parkersburg plant was $96.75 per subscriber. The country system, while not 
fully developed cost $172. Cost per mile of single wire as follows : — 

Copper $25 54 

Iron $6 25 to $12 50 

All circuits are metallic; all lines copper, except rural farmer line construction. 
With the exception of Parkersburg, which has an underground plant, all construction 
is over-head. The system at Parkersburg is central energy; elsewhere magneto. The 
plants were manufactured by the Stromberg-Carlson Telephone Manufacturing Com- 
pany, the American Electric Company, North Electric Company, &c. The company 
has 1,246 rural telephones, including small rural exchange service. 
Rates vary in districts as follows : — 

Business $24 00 to $36 00 

Residence 12 00 to 25 00 

Long-distance charges, 15c. to 75c. for three minutes' conversation. The rates 
charged on farmers' lines are same as local rates, with 8 to 12 telephones per linie, the 
rates being based on distance from local exchange. The company pays 6 per cent 
dividends and 6 per cent on bonds. Ten per cent is set aside for depreciation of rural 
lines and smaller exchanges; 7 per cent on city plant. The company has a surplus 
of $81,275. The company exchanges service with 31 companies in the state of West 
Virginia, and connects with the United States Long Distance Company of Cleveland, 
Ohio, giving service throughout Ohio, Indiana and all other United States territory. 

1— d— 16 



228 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Before competition, the Bell had about 1,675 telephones ; at this date, 497 telephones, 
of which latter 206 are residence and 291 business. 

Before competition the Bell rates were $78 business, $56 residence; at this date 
they are business $15 to $30 per annum, residence, $7.50 to $20 per annum. 

Wages paid are: Foremen, -$75 per month; troublemen and inspectors, $55 to $60; 
wiremen, $2.50 per day; operators, rural exchanges,' $20 to $25 per month, city ex- 
changes, 6 cents to 10 cents per hour; the merit system being used in city exchanges. 

Cost of apparatus : Magneto switchboard, about $2.50 per line, equipped ; wall 
telephones, $6.25 to $11.50 each; desk telephones, $8.50 lo $14.50. 

We are jobbers in materials and supplies, hence our figures would not, perhaps, 
give you the information you desire. 

The city of Parkersburg comprises the largest exchange we have on our system, 
and is one of the most complete and up-to-date small telephone plants in the United 
States, the cable equipment being of the John A. Roebling's Sons Company of Tren- 
ton, N..I., make. The switchboard and telephones are all of the Stromberg Carlson 
Tel. Manufacturing Company make of Rochester, NY. All of the wire, both interior 
and exterior, are of the Roebling make. We operate a number of small magneto ex- 
changes outside of the city of Parkersburg. Our system began as a farmers' mutual 

company, but was i rporated in 1895 and entered into the commercial field, and has 

been more than successful in its operation. The West Virginia owns 90 per cent of 
i ! ii ■ .-link hi' the Marietta Telephone Company, operating the city of Marietta, Ohio, 
and Washington county. However, this plant is not reckoned in the above statement, 
but is operated independent as an underlying corporation. The company also controls 
directly or indirectly a number of smaller companies in the state, which, when taken 
in conjunction with the original plant, makes il the Largest independent company 
operating in this section of the Ohio valley. Since competition the Bell Company 
have reduced their rates, and have always given lower rates of service than we do. The 
fight has been aggressive, and taking the whole territory the ratio is ten (10) to one 
in favour of our company. We have been able to pay fixed charges, repairs, main- 
tenance, and improvements and betterments (which are always charged up to main- 
tenance account, and not to improvements or betterments), and pay 6 per cent on our 
stock and bonds, and carry a large amount annually to our surplus fund. We have 
never earned less than 15| net on our common -tock, but invariably pay but 6, carry- 
ing the residue, after depreciation charges have been deducted, to surplus account. 

* When we began operation in this field our competitors stated that our rates were 
too low, and that we could not maintain ourselves in the field at the prices we charged 
However, it is true that they immediately reduced their own prices, and have been 
giving service for less money than we do. We can say that our success has been far 
ahead of our expectations, and our business constantly growing and increasing. 

Yours very truly, 

A. C. DAVIS. 

No. 271. 

NEWARK TELEPHONE COMPANY. 

Harry Swisher, President. C. E. Hollander, Manager. C. H. Spencer, Secretary. 

Office, 38J Hudson Avenue, 

Newark, Ohio, July 13, 1905. 
Sir William Mulock, K.C.M.G., 

Postmaster General, Ottawa, Canada. 
Dear Sir, — Your circular letter of June 9 at hand, and in reply we would say that 
the amount of our stock issued is $100,000. and with a bonded indebtedness of $40,000. 
This company has been operating for ten years in a territory of 25,000 population, 
and has now in service 1,935 telephones, of which 900 are on independent line and 
the balance on party lines. The Bell people have in this territory about a thousand 
telephones, as near as we can ascertain. We have in service about 1,200 resident tele- ' 



APPENDIX " A " 229 

APPENDIX No. 1 

phones, and about 700 business telephones. We have about 125 miles of toll line. Our 
average cost per subscriber in our local plant is about $77; the average cost per mile 
of toll lines about $30. We have both iron and copper metallic circuits. We have no 
underground construction. We are operating a full central energy Sterling Electric 
Company switchboard and telephones of the same type. There are about 150 farmer 
line telephones, for which we charge the rate of $18 per year, and give all subscribers 
a 10 cent toll rate between exchanges in this county. We are paying at the present 
time 6 per cent interest on our bonds, 6 per cent interest on our preferred stock, and 
8 per cent per annum on our common stock. We are laying aside 5 per cent for de- 
preciation on our plant per annum, and the surplus at the present time we are using 
for the growth of the plant, which amounted last yew to about $10,000. There is no 
interchange of service between this system and any other company except on a toll 
basis. In regard to the Bell telephones in service in this territory before this plant 
was constructed, we will say that there were 200, as ten years ago telephones were not 
in demand as they are at the present time. We cannot tell you anything in regard to 
the number of Bell telephones in residences and business houses before competition 
and at the present time, except that probably the Bell have no more than 300 business 
telephones in this city at this time. We pay our city foreman $80 per month, our 
wire chief $75 per month, our troubleman $60 per month, our day operators $18 per 
month, our relief operators $12 per month, our chief operator $30 per month and our 
chief toll operator $20 per month. Our switchboard cost us with protection practically 
$10 a line. It has an ultimate capacity of 4,000 lines, and an installed capacity of 
1,200 lines. We have paid all kinds of prices for cable according to the market prices 
at the time thai it was purchased. We pay 3f cents a pound for No. 14 B.B. galvan- 
ized iron wire and the market price on copper. Our poles are all cedar and chestnut, 
with prices according to length. We have no underground. Our system seems to be 
giving the best of satisfaction, and investors in the plant seem to be more than satis- 
fied with the returns they are getting on their money. 
Any further information we will cheerfully furnish. 

Yours very truly, 

THE NEWAKK TELEPHONE COMPANY, 

By Cha?. E. Hollander, Mgr. 



No. 271a. 

Ottawa, Ont., July 15, 1905. 

Charles E. Hollander, Esq., 

Manager, the Newark Telephone Co., Newark, Ohio. 

Sir, — I have the honour to acknowledge the receipt of your letter of the 13th in- 
stant replying to inquiries submitted by this Committee, and assure you that your 
kindness and courtesy in furnishing this information is much appreciated. 

Might I, however, venture to ask if you will be good enough to furnish me with 
particulars as to the rates charged for business and residence telephones by your com- 
pany. The farmers' rates are stated, but in order to have the information complete it 
is desirable to have the local exchange rates. 

Thanking you for your kindness in this matter, and anticipating your further 
reply, 

I am, sir, yours faithfully, 

WM. MULOCK, 
Postmaster General, and Chairman of Committee. 

i—d—m 



230 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 271b. 

Newark Telephone Company, 

38i Hudson Street, 

Newark, Ohio, July 25, 1905. 
Sir William Mulock, 

Postmaster General, Ottawa, Canada. 
Dear Sir, — Replying to your favour of recent date. I would say that our rates are: 

$2.00 for direct line business per month. 
1.50 " 4 party business per month. 
1.50 " direct line residence per month. 
1.00 " 4 party residence per month. 
Any other information desired I will be glad to furnish you. 

Yours very truly, 

CHAS. E. HOLLANDER. 

Mgr. 

No. 272. 

THE CHILI TELEPHONE COMPANY, LIMITED. 

42 Old Broad Street, 

London, E.C., July 20, 1905. 
Sir William Mulock, K.C.M.G., 

House of Commons, Ottawa, Canada. 

Sir, — Our general superintendent at Santiago-de-C'hili has forwarded to us your 
communication of May 1 last, and we have pleasure in furnishing you with the follow- 
ing information regarding our system : — 

The company operates in all important cities and towns throughout Chili, and has 
about 6,400 subscribers. 

The rates are $100 to $150 per annum Chilian currency ($36.50 to $54.75), for 
unlimited service day and night, including Sunday. 

The long-distance rates are fixed according to distance and time occupied, the 
greatest distance over which such service is given being about 130 miles. . 

The apparatus used is 'Western Electric' (Chicago) and Ericsson's (Sweden). 

The local lines are single, bronze. The trunk lines, single and metallic, iron and 
copper. All overhead. 

We also inclose copy of our last report, in which you will find further particulars 
which may be of use to you. 

I am, sir, your obedient servant, 

EDMUND PETLEY. 

Secretary. 

No. 273. 

CHINA AND JAPAN TELEPHONE AND ELECTRIC tOMPANY, LIMITED. 

Alderman's House, Alderman's Walk, Bishopsgate, E.C., 

London, August 2, 1905. 
The Chairman of the Select Committee on Telephones, 
Ottawa, Canada. 
Sm, — We beg to hand you herewith replies to certain of the questions asked by 
you with reference to the Telephone Exchange at Hong Kong. As in the case of the 
Telephone Company of Egypt, the undertaking is at the moment in a transition stage, 
and is undergoing practically entire reconstruction, so that under the circumstances 
we fear that we cannot afford much information which is likely to be of service to you. 
In this case, also, any information is likely to prove misleading unless due regard is 
paid to, and allowance made for, the peculiar circumstances governing this class of 



APPENDIX " A " 



231 



APPENDIX No. 1 

business in an oriental country, and methods in vogue there must not be taken as 
necessarily suitable for application in other countries. 

I am, sir, yours faithfully, 

A..B. CHALMERS, 

Secretary. 



No. 273a. 

THE CHINA AND JAPAN TELEPHONE AND* ELECTRIC COMPANY, 

LIMITED. 

The China and Japan Telephone and Electric Company, Limited, has one ex- 
change in the city of Victoria, Hong Kong. 

Ten pounds ($48.70) per annum up to a radius of one mile and £2 10s. ($12.18) 
per annum for each one-half mile beyond. Extension instruments according to cir- 
cumstances and distance. No message rate in force. The service is continuous, day, 
night, and on Sundays. There are no public call offices, and no trunk or long-distance 
lines. 

Some of the older subscribers' telephones are Western Electric Standard Magneto 
instruments. The later patterns are by Ericsson & Company, Stockholm. The lines 
are single bronze wire. At present all lines are overhead, but the work of converting 
the system to metallic circuits in underground cables is now in hand, and will be com- 
pleted by the end of the year. 

There is no competition. 

The system at the moment is the ordinary magneto, but is now in process of con- 
version, outside, from overhead single grounded lines to metallic circuits in under- 
ground cables, and inside to a central energy lamp signalling multiple board and 
accessory apparatus. 



No. 273b. 

Telephone Statistics of the Hong Kong Exchange, operated by the China and Japan 
Telephone and Electric Company, Limited. 



Name of Town. 


Population. 


Total 

Number of 

Exchange 

Lines 

say. 


Number 

of Lines 

with one 

Telephone. 


Number 
of Extension 

(or Extra 
Telephones). 


Hong Kong \ 
"\ ictoria . . . ) ' 

• 


181,918 


(533 


589 


44 



232 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 274. 

THE TELEPHONE COMPANY OF EGYPT, LIMITED. 

Societe Anonyme des Telephones d'Egypt. 

Alderman's House, Alderman's Walk, Bishopsgate, E.C., 

London, July 31, 1905. 

The Chairman of the Select Committee on Telephone Systems, 
Ottawa, Canada. 

Sir,- — In reply to your inquiry of May 1, 1905, we beg to hand you herewith replies 
to certain of the questions put by you with regard to the working of this company in 
Egypt. 

The reconstruction and extensions necessitated by the sudden access of prosperity 
in Egypt, and the consequent stimulus to trade and commerce, have combined to place 
the undertaking in a stage of transition, and this coupled with the peculiar conditions 
obtaining in that country, render any information at the present juncture somewhat 
deceptive, and not of a nature upon which to base conclusions for the establishment of 
similar undertakings in other parts of the world. 

With regard to rural telephones, there is at present no appreciable demand for 
such a service, as there is no large class who would patronize it, nor are the distances 
sufficiently great. The company is, however, installing for the government an exten- 
sive system of ' provincial telephones,' joining up the chief towns of provinces with 
the outlying towns and villages, these lines being used by the government for adminis- 
trative purposes. 

I am, sir yours faithfully, 

A. B, CHALMERS, 

Secretary. 



No. 274a. 

EGYPT— Continued. 

The Telephone Company of Egypt, Limited, has an exchange in each of the towns 
named in the attached statement. 

The rates vary according to many circumstances from about £8 ($38.96) up- 
wards, all for unlimited service, within an area extending roughly to the outskirts of 
the towns, say 2 to 2£ miles. 

In Alexandria, Port Said and Suez continuous service is given. Other exchanges 
close at midnight and open at 7 a.m. Open Sundays everywhere. 

The fee for local conversations, to non-subscribers, is one piastre=2id. (5 cents) 
per communication of any reasonable length. 

The long-distance fees on the Cairo-Alexandria trunk line are 5 piastres up to 3 
minutes and 10 piastres up to 8 minutes, equal to aboTit Is. Jd. (26 cents) and 2s. Id. 
(52 cents) sterling. 

About 160 miles (Cairo to Alexandria) is the greatest distance spoken over. 

All instruments are made by L. M. Ericsson & Company, Stockholm, and are of 
their standard magneto patterns. 

The local systems are now in course of conversion from overhead earth circuits 
to metallic circuits in dry core underground cables, with overhead distribution. The 
change is about half completed. 



APPENDIX " A " 



233 



APPENDIX No. 1 



The only trunk line at present existing in Egypt is owned and maintained by the 
Egyptian government, and leased to and worked by the Telephone Company. It is 
metallic circuit of No. 11 copper. 

Payment of long-distance charges is covered by deposits from subscribers, and by 
cash payments at the time of speaking from call offices. 

In regard to competition, there has been nothing that can be seriously considered 
as such. , 

The system at present in use is the ordinary magneto, with ' multiple ' switch- 
boards. 



No. 274b. 

EGYPT— Concluded. 
Telephone Exchanges operated by the Telephone Company of Egypt, Limited. 



Name of Tow n. 


Population. 


Total 

Number of 

Exchange 

Lines 

say. 

2,020 


Number 
of Lines 
with one 


Number 

of Extension 

(or Extra 






Telephone. 


Telephones). 


Alexandria 


320,000 


1,807 


213 




570,000 


1,7-17 


1,569 


178 




-12,000 
36,000 


38 

J 32 


31 
114 


7 


Mansourah 


18 




42,000 


211 


166 


45 




17,000 
57,000 


105 
152 


84 
126 


21 




26 


Zagazig 


36,000 


76 


58 


18 



No. 275. 



COKPORATION OF GLASGOW. 



Castle Chambers, 65 Renfield Street, 

Glasgow, July 5, 1905. 

The Hon. Sir William Mulock, 

Postmaster General, Ottawa, Canada. 

Dear Sir, — In answer to your request addressed to the town clerk for information 
concerning the telephone undertaking of this city, I have pleasure in forwarding you 
a statement containing replies to your questions. 

In addition to the statement, there is forwarded by same post: 

(1) Map of Glasgow telephone area, showing corporation switchboards and main 
routes. 

(2) (a) Statement of financial statistics. 

(b) Statement of telephone tariffs in Great Britain and the continent. 

(3) Corporation telephone directory. 

If additional information be desired I should be pleased to be of further service. 

Yours truly, 

JOHN MACFEE, 

General Manager. 



234 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 275a. 

GLASGOW. 

TELEPHONE I EPARTMLNT-— ABSTRACT STATEMENT OF REVENUE 
AND EXPENDITURE AND CAPITAL EXPENDITURE ACCOUNT FOR 
YEAR ENDING MAY 31, 1905, AND CAPITAL ACCOUNT AND BALANCE 
SHEET, AS AT MAY 31, 1905. 

MEMBERS OF THE COMMITTEE ON TELEPHONE SERVICE. 

The Lord Provost (Sir John Ure Primrose, Bart) ; Bailie Shaw Maxwell, Bailie 
Stewart, Bailie Forsyth, Bailie J. P. Maclay, Hugh Alexander, James Alexander, 
W. F. Anderson, William Borand, Hugh Brechin, A. Scott Gibson, Robert Harvie, 
Jas. H. Mathieson, Hugh J. Miller, Alex. Murray, Wm. F. Russsell, D. M. Stevenson, 
William Wallace. 

James Alexander, Convener; D. M. Stevenson, Sub-convener; William Borland, 
Convener of Finance Committee; John Macfee, M.I.E.E., General Manager; A. R. 
Bentu-tt, M.T.E.E., Consulting Engineer. 

Fourth ,\wi w, Report by the Committee on Telephone Service to the Corpora- 
tion of the City of Glasgow. 

The committee beg to submit to the corporation of Glasgow the abstract statement 
of revenue and expenditufe for the ydar from June 1, 1904, to May 31, 1905, together 
with the capital account and balance sheet as at May 31, 1905. 

SUMMARY OF REVENUE AND EXPENDITURE. 

Proportion of rentals brought from last year £24,170 19 9 

Rentals received and outstanding for the year from 

June 1, 1904, to May 31, 1905 £54,051 2 6 

Less proportion of rental applicable to year 1905-06 

carried to suspense account 25,165 7 

■ 28,885 15 6 

Sundry receipts (including terminal fees, £473 17s. Id.) 2,369 8 9J 

Revenue, applicable to 1904-05 £55,426 S 9£ 

Working expenditure (including post office royalty, £5,538 15s. 5d.; 

and terminal fees, £673 18s. 4d.) 34 ggo g 3 

Net revenue £20,746 6J 

Out of which the following requirements had to be met: — 

1. Interest on loans £ 9,188 7 11 

2. Sinking fund 10,053 6 8 

19,241 14 7 

Leaving a surplus on the year's operations of £1 504 5 11} 

which has been carried to general depreciation fund. 

This amount, together with the sum of £5,743 7s. 5£d. standing at the credit of 
the account as at May 31, 1904, makes the total sum laid aside for general deprecia- 
tion purposes, £7,247 13s. 5d. 

GLASGOW. 



APPENDIX " A " 235 

APPENDIX No. 1 

MAINTENANCE. 

The whole plant is being efficiently maintained out of revenue. 

BORROWING POWERS. 

Borrowing powers authorized under section 2 (2) of the Telegraph Act, 1899 •— 

1. On April 12, 1900 £120) 000 £ 

2. On February 19, 1902 100 000 

3. On February 23, 1903 80 'ooo 

4. On March 15, 1904 5 ',000 

Total. . . _ £ 350)000 

Deduct amount of sinking fund for year to May 31, 

1902 £ 1,960 

Deduct amount of sinking fund for year to May 31, 

1903 5,806 13 4 

Deduct amount of sinking fund for year to May 31, 

1904 8,343 6 8 

Deduct amount of sinking fund for year to May 31, 

1905 10,053 6 8 

26,163 6 8 

Net .amount of borrowing powers as at May 31, 1905 £323,836 13 4 

Amount borrowed and not repaid as at May 31, 1905 . . 302J36 13 4 

Amount iof unexhausted borrowing powers as at May 31, 1905 £20,900 

SINKING FUND. 

The following table shows the payments out of revenue to sinking fund at the 
rate of 34 per cent per annum : — 





Year of Boi rowing. 


( !toss Amount 
Borrowed. 




Sinking Fund. 






Amount paid as at 
May 31, 1904. 


Amount paid 
during year to 
May 31, 1905. 


Total amount paid 

as at May 31, 
1905, and applied in 
reduction of debt. 






£ s. d. 


£ s. d. 


£ s. d. 


£ s. d. 


Year to May 31, 1001 . . . 


58,800 


5,880 


1,960 


7,840 




31, 1902 


115,400 


7,G93 8 


3,846 13 4 


11,540 




31, 1903 


715,100 


2,530 13 4 


2,536 13 4 


5,073 6 8 




31, 1904 


51,300 




1.710 


1,710 










301,600 


16,110 


10,053 6 8 


26,163 6 8 



CAPITAL EXPENDITURE. 



The capital expenditure for the past year has been incurred in completing the Bell 
street exchange, laying down new cables in various districts, and extending the system 
generally hy the construction of lines and apparatus for new subscribers — it amounted 
to £2,949 14s. lOd. ; adding the sum of £320,782 12s. previously incurred, there is a 
total capital expenditure of £350,273 16s. lOd. 

GLASGOW. 



236 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

1'he switch-rooms at present in operation are as follows : Central, Bell exchange, 
Western, Bridgeton. Kinning Park, Queen's Park, Govan, Maryhill, Springburn, Miln- 
gavie, Shettleston, Clydebank, Kuthcrglon, Kirkintilloch, Stepps, Clarkston, Oambus- 
lang, Bearsden, Duntocher and Balmore. 

The following statement shows the work which was contemplated under the orig- 
inal scheme and the work actually completed : — 



\V,>rk. 



Completed instruments 

Part lallj completed lines. . . . 

Sw itchboard accommodation. 

Pairs of cable wires under- 
ground. 

M ileage of pairs of w 
cililes. 

Length of trenching 

Pipes going out of exchanges 

( !apacity of pipes going out 
■ >f exchanges. 

i j> )if_ri li of pipes 

Length of underground cable. 

Ground poles, 

Roof standards 



Original 
Scheme. 



5,250 

1,200 

(1,050 lines. 
6,450 

4,938 miles. 

22 miles. 
32 
6,900 pairs 
of wires. 
.'12 miles 

HI l.llles. 

2,326 

17.11 



1 ml 02 



5, 17!) 
8,787 

7,(i(ii) lines. 
1 1,572 

11,061 miles. 

94 mile.-.. 
12^1 
2r,i)im i m'hs 
of wii es. 

]0t'. miles. 
I 1 if miles. 
091 

2JS 



Ac! ually ( lompleted 
L902 03. 



9,122 

7,387 

in,,«20 lines. 
18,171 

1 i,i 2'.>1 miles. 

127,' miles. 
135 
31,000 pairs 
of wires. 
127 ! miles. 
1(12 
1,799 
243 



1903- 


04. 


11,405 




'.l.iiil.i 




12,062 


lines. 


21,874 




17,597 


miles. 


143 


miles. 


150 




36,000 


pairs 


of wires. 


1 Id 


miles. 


20.-.', 


miles. 


2,544 




239 





1904-06 



12,362 
10,293 

13.334 lines. 
24,618 

19,001 miles. 

152 miles. 
162 

40,000 pairs 
of wires. 
157 miles. 
221 miles. 
3,00(1 
239 



The following tables indicate briefly the financial operations of the department: — 



3. 
4. 

5. 
6. 
7. 
8. 

9. 
10. 
11. 

12. 
13. 
14. 
15. 
16. 



17. 



21 



Total capital expenditure 

Average gross cost per station 

■ ( Total capital'expenditure \ 

'' I Total number of stations J 

Amount borrowed and not repaid 

Total revenue 

Total revenue per station 

Rentals carried forward to following year 

Public Telephone receipts 

Working expenses, excluding P. O 

royalt\ and terminals 

Interest paid • 

Sinking Fund paid 

Depreciation fund 

Loss on terminal fees 

Royalty to Post Office 

Total expenditure 

Total expenditure per station 

Percentage of Sinking Fund paid, plus 

Depreciation Fund to total capital ex-l 

penditure 

Percentage of total expenditure to total 



19(11 02. 



1902 03 



.1. 



1903-04, 



d. 



192,693 (i 270,938 o 
35 3 4! 29 14 



320,78? 

0\ 28 2 6j 



1904-05. 



37)0,274 
28 6 8i 



(including spare plant and preliminary expenses 

172,24(1 o ii 242,533 [285,490 302,936 

14,096 'I o 35,014 

2 11 ..', 3 16 9 

12,417 20,717. 

29 I 227. o 



6,832 

2,680 

1,960 

398 

725 

1,379 

13,698 

2 



(i 






10 



17.,! II IS 
6,642 

7..S(I(1 

1,694 

1,131 

3,407. 

33,320 

3 



18. Percentage of total revenue to capital 

expenditure 

19. Percentage of outstanding rentals to 

gross rentals 

20. Percentage of working expenses, less 

interest, Sinking Fund, and deprecia- 
tion to revenue, less royalty 

Stations working'. 



Percent. 
3 93 

9717 

7 31 

1395 



31'68 

5,479 



Percent. 
42 

9516 

12 '92 

9'91 



55 25 
9,122 



23,154 

8,537 

8,343 

3,650 

299 

5,007 

46,000 

4 7^ 

Percent. 
467 

9266 

15-47 

7 44 



54 02 
11,405 



19,639 





55,426 








4 


7 


0J 4 


9 


8 


24,170 


ii 


25,165 








77(1 





1,137 





ii 



28,468 

9,188 

10,053 

1,504 

200 

5,539 

53,922 

4 7 









2f 


Percent. 
379 




97 28 




1582 




7 74 




58 41 
1 '1,362 





GLASGOW. 



APPENDIX No. 1 



APPENDIX " A " 



SERVICE AND TRAFFIC. 



237 



The traffic through the various exchanges has continued to increase during the 
year, the rate at the end of the year being 40 millions per annum, counting each call 
as being equal to two messages. The trunk traffic has ialso shown an increase over the 
previous year. The loss incurred in terminal fees amounts to £200, against £299 last 
year. 



PUBLIC TELEPHONE OFFICES. 



The number of public call offices now open throughout the area is 362. 
ber of calls made from these offices during the year exceeded 300,000. 



-he num- 



GENERAL REMARKS. 

The negotiations between the Postmaster General and the National Telephone 
Company, Limited, during the past year created a condition of doubt as to the future 
position of municipal telephony, and has led to diminution of activity in telephone 
work generally. 

The agreement resulting from the negotiations has been the subject of careful 
consideration by the committee, in conjunction with the committees of the other tele- 
phone-owning municipalities, and evidence was laid before the Parliamentary Select 
Committee on behalf of the municipalities. A report of the action taken by the com- 
mittee is set forth in their minute, which will be found on pages 2428-31 of tliie 
Corporation Print No. 37. 

STATISTICS. 

There will be found on page 15 a statement of the work which has been executed 
up to May 31, 1905, and of the number of employees. 

JAMES ALEXANDEK, 

Convener of Telephone Committee. 

JOHN MACFEE, 

General Manager. 
Glasgow, September 1, 1905. 



238 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



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GLASGOW. 



240 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 



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GLASGOW. 



242 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 



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APPENDIX " A " 



243 



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241 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
VI.— STATISTICS. 



Switchrooms in operation 

Stations in Operation 

Direct lines to the exchange, unlimiti I 
ii ii toil ... . 

Party lines 

Public telephones 

Service telephones 

Extensions outside 

n inside. . 

Private lines. .... 

Sundry lines 



Year 
1!Kil 02. 



Junction i 



Mileage of metallic circuits outside switchrooms and sub 

scribers' office— 
Miles in underground cable 

ii in aerial cables 

n in leading- in cables 

H of overhead open wires 

Particulars of outside construction — 

Underground pipes from exchanges 

Pairs of wires from exchanges 

Underground cables from exchanges 

Distributing points 

Manholes built 

Junction pillars erected 

Poles erected in ground . . . 

Standards erected on roofs ... . 

Fixtures to building 

Miles of trench opened 

M pipes laid 

n armoured cable laid 

ii cable drawn into pipes 

Employees — 

Officials 

General office 

Stores office 

Operators 

Canvassers 

Engineering and drawing office staff and clerical staff in 

Engineering ami Electrical Departments 

Cleaners 

Inspectors, fitters, &c, in Electrical Department 

Foremen, wireman, labourers, &c, in Engineering De- 
partment 



4,532 

ISC, 



27 

42 

198 

412 

80 

2 

5,479 
306 



5,785 



11,0614 

26 

3174 
370| 

126 

14,57:.' 

60 

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691 

228 

6,342 

114 

104 

53 

60 

11 

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5 

31 

!( 

106 

315 



628 



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303 

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115 

60 

611 

811 

184 

6 



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194 



0,616 



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78 

1,422 

K(7 

11 

1,799 

243 

9,370 

127 

127 

66 

95 

12 
25 

8 
192 

8 

24 

11 

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213 



596 



Year 
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19 

8,385 

352 

82 

235 

68 

791 

1,081 

377 

34 



11,405 
627 



12,032 



17,597 

35* 
■"■74 
9954 

150 

22,243 

92 

1,631 

116 

17 

2,544 

239 

11,671 

143 

140 

80 

125 

12 
30 

243 
9 

21 

11 
108 

132 



571 



20 

8,563 
348 
289 
362 

72 

1,013 

1,270 

408 

37 



12,362 
910 



13,272 



10,001 

34 

624 

1,139 

162 

25,183 

103 

1,800 

135 

17 

3,020 

036 

13.231) 

152 

157 

84 

137 

10 
32 

293 
13 

21 

9 

109 



GLASGOW. 



APPENDIX " A " 245 

APPENDIX No. 1 * 

No. 275b. 

GLASGOW— Continued.. 

Castle Chambers, 65 Kenfield Street, 

Glasgow, July 4, 1905. 

Included in the telephone area of Glasgow are the municipalities of Partick, 
Clydebank, Govan, Kinning Park, Kutherglen, Pollokshaws, Kirtintilloch, Milngavie; 
and the townships of Bearsden, Lenzie, Stepps, Shettleston, Cambuslang, Busby, Eagle- 
sham, Clarkston, Giffnock, &c. 

There are about 1,000,000 inhabitants in the area. 

The license extends from March, 1900, to December, 1913. 

The system includes 20 switchrooms, ranging in number of stations from 12 to 
6,500. 

The number of telephones are as follows: — 

As at May 31. 1905. 

Unlimited service 8,563 stations. 

Measured service (toll) 348 " 

2 party lines 42 " 

4 party lines. . v 247 " 

Public telephones 362 " 

Inside extensions 1,270 

Outside extensions 1,013 

Sundry stations 486 



12,331 

The rates are : — 

(a) £5 5s. Od. ($25.56), unlimited service, business. 

(b) £5 5s. Od. ($25.56), " residence. 

(c) £4 4s. Od. ($20.45), " 2 party lines. 

(d) £3 3s. Od. ($15.34), " 4 party lines. 

(e) £3 10s. Od. ($17.05), plus Id. (2 cents), per message. 

Above rates cover service over whole area, and are applicable to business and resi- 
dence located within one mile from any exchange. 

The service is continuous, day and night, including Sunday. 

The charge to non-subscribers is one penny (2 cents) per message from public 
telephones. 

Post office, trunk or long-distance tariffs charged plus additional terminal fee when 
speaking to distant National Telephone Company subscribers: — 

Trunk or long-distance tariffs — 

For conversation of 3 minutes' duration. 

Within 25 miles 3d. ( 6 cents) 

" 50 " 6d. (12 cents) 

" 75 " 9d. (18 cents) 

" 100 " Is. (24 cents) 

Every additional 40 miles, 6d. (12 cents). 

GLASGOW. 
1_<£_17J 



246 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Terminal fees — 

For conversation of 3 minutes' duration. 

When trunk charge does not exceed Is. 6d. 

(36 cents) 3d. ( *6 cents) 

When trunk charge does not exceed 3s. (72 cents) . . 4d. ( 8 cents) 

When trunk charge exceeds 4s. (94 cents) 6d. (12 cents) 

Terminals not charged between corporation and post office subscribers. 

Subscribers have long-distance service all over the Kingdom. Greatest distance 
about 450 miles direct. 

The subscribers' telephones are L. M. Ericsson pattern, supplied by that firm, and 
Ericsson Bell Telephone Company. 

All lines are metallic circuit, the construction being: 

Underground — Dry core cables of low static capacity ; conductors 20 and 22 gauge. 

Overhead — No. 18 S.W.G. bronze for subscribers' circuits and 100 lbs. H.D. cop- 
per wire for junction circuits. 

Total mileage of lines erected 20,800 miles. 

. Of which, underground 19,001 " 

" overhead 1,799 " 

The undergrounds extend 11 miles east to west, and 10J miles north to south. 

Total mileage of trench 152 miles. 

" pipes 157 " 

" armoured cable 84 " 

Number of pipes from exchanges 162 

Total pairs from exchanges 25,183 

Total duct capacity 40,000 

As at March 31, 1905, the amounted expended on the system was £355,000, includ- 
ing stores and tools on hand. 

The gross revenue as at May 31, 1904, was £73,809 ; net, £49,639. 

The total expenditure per annum, including management, operating expenses, 
maintenance, sinking fund and depreciation is £45,989; interest on capital, 3A per 
cent at present; varies slightly according to money market. Sinking fund, 3J per 
cent. Surplus last year, £3,650. 

Taking capital expended at May 31, 1903, which amounted to £270,938, the sur- 
plus last year equalled 1 - 34 per cent, to which percentage must be added 3J per cent 
on total amount borrowed to May 31, 1904, making a total of 4 -67 per cent. 

The post office has adopted the principle of 2J per cent depreciation. It is a 
debateable point whether a depreciation fund is necessary when a sinking fund is 
provided. 

About £300 ($1,461) per annum is paid for way leave privileges on private 
property. The wages paid are: — 

Foremen 31s. ($7.56) to 40s. ($9.74) per week 

Instrument fitters 10s. ($2.44) to 36s. ($8.78) per week 

Wiremen 25s. ($6.09) to 32s. ($7.80) per week 

Operators — 

3rd grade or learners .... 5s. ($1.21) to 8s ($1.93) per week 

2nd grade 8s. ($1.93) to 14s. ($3.40) per week 

1st grade. . . . . 14s. ($3.40) to 18s. ($4.37) per week 

Supervisors 18s. ($4.37) and upwards. 

GLASGOW. 



APPENDIX " A " 247 

APPENDIX No. 1 

The cost of equipment was : — 

(a) Central exchange cost £32,982. 

Equipped for 6,400 lines. 

Ultimate capacity 8,000 " 

Test jacks and frames, present 11,900 

" " ultimate 12,000 

High voltage guards, present 7,900 

" " ultimate 10,700 

(b) Sub-exchanges cost altogether £9,670. 

Equipped for 5,100 lines. 

Ultimate capacity 38,000 " 

Test jacks and frames, present 14,000 

" " ultimate 20,000 

High voltage guard frames, present 8,000 

" " .ultimate 19,000 

(c) Wall instruments, 45s. ($10.96) to 50s. ($12.18) each. 

(d) Table instruments, 45s. ($10.96) to 50s. ($12.18) each. 

(e) The cost of underground cable varies according to class of cable and number 
ci conductors, e.g. — 

1 pair £16 per mile. 

12 pair £74 to £108 

24 pair 121 to 

48 pair 190 to 270 

120 pair 300 to 

168 pair 450 to 

217 pair 

312 pair ' . . 

(f) Overhead wire — 

Bronze 10d. (20 cents) per lb. 

Copper, 100 lbs Sd. (16 cents) " 

Varies according to price of copper. 

(g) Poles- 
Iron 10s. ($2.44) to 21s. ($5.12) each. 

Wood 10s. ($2.44) to 160$. ($38.96) " 

According to size. 

(h) Arms — 

Iron 2s. 6d. (60c.) to 4s. 6d. ($1.09) each. 

Oak 9<L (18c.) to Is. 8d. ( 40c. ) " 

(i) Insulators— 5d. (10c.) to Is. 2d (28c) each. 

(/) Ducts — 

Stoneware 4d- (8 cents) per foot. 

Iron 5d. (10 cents) 

GLASGOW. 



173 


« 


270 


a 


390 


a 


670 


« 


680 


a 


700 


a 



248 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The National Telephone Company claim to have 23,000 telephones in the Glas- 
gow area. An analysis of the 1905 directory gives the following: — 

Direct line stations 8,382 

Party line stations 6,641 

Sundry 905 

(Including 1,000 call offices) 15,928 

The 1900-1901 directory gives- 
Direct line stations 6,590 

Party line stations 

Sundry 341 



6,931 



The tariffs charged by the National Telephone Company before competition were : 
£10 ($48.70), unlimited. 1st connection. 
8 10 ($41.40), unlimited, 2nd connection. 

In some cases as much as £25 ($121.75) was charged for an exchange line. The 
tariffs since competition commenced are: — 

£10 ($48.70), 1st connection, unlimited. 

8 10 ($41.40), 2nd connection, unlimited. 

6 ($29.22), 2 party line, unlimited. 

4 ($19.48), 4 party line, unlimited. 

5 ($24.35), measured service for 600 calls; £1 for additional 300 calls. 
5 ($24.35), measured service for houses for 1,500 calls. 

2d. (4 cents) per day — ten party line^ equal to £3 Is. Od. ($14.85) per year; 
calls in excess of second per day, Id. (2 cents) each. 

As the National Telephone Company does not publish detailed statistics of its 
telephones, the figures should be taken as approximate. It is not possible to give the 
number of the National Company's residence telephones. 

The National Company's direct lines include a large number of service lines for 
residences at £5 ($24.35) per annum for 1,500 calls, and the party lines are mostly 
composed of 20 party lines at 25s. ($6.08) per annum for 600 calls. 

There is no local inter-communication between the subscribers of the competing 
systems. All subscribers, however, have the right to the use of the state trunk lines 
at the charges mentioned in answer No. 15. National Company's subscribers are 
charged trunk fees only, while corporation subscribers pay the terminal fees in addi- 
tion. The corporation relieves its subscribers of terminal fees up to 20s. ($4.87) for 
each in any one year on outward trunk calls. 

Between 4,000 and 5,000 approximately, subscribe to both the ' Municipal ' and 
' National ' telephones at the same address. 

Accounts for toll fees are rendered quarterly, and payable within 28 days. Trunk 
and postal service fees are rendered to the subscribers monthly, and are payable within 
7 days. Although deposits against these fees are not generally exacted, subscribers 
can deposit a sum and work it off from month to month. The trunk fees and telegraph 
charges are paid to the post office each month. 

In the five chief city exchanges the call wire system of switching was adopted. 
In the other exchanges the magneto-ring-through system is in operation. 
GLASGOW. 



APPENDIX " A " 



249 



APPENDIX No. 1 

No. 275c. 



GLASGOW— Continued. 
FINANCE STATISTICS (Telephone Department) 



1 Total capital expenditure 

2 Average gross cost per station 

( ( | Total capital expenditure 1 
' ) Total number of stations f ■■■• 

3 Amount borrowed and not repaid .... 

4 ( rross revenue 

5 Net revenue 

6 Net revenue per station 

7 Rentals carried forward to following 

year 

8 Public telephone receipts 

9 Working expenses, excluding P.O. 

royalty and terminals 

10 Interest paid 

11 Sinking fund paid 

12 Depreciation fund 

13 Loss on terminal fees . 

14 Royalty to post office 

15 Total expenditure 

16 it per station 

17 Percentage of sinking fund paid, plus 

depreciation fund to total capital 
expenditure 

18 Percentage of total expenditure to net 

revenue 

19 Percentage of net revenue to capital 

expenditure 

20 Percentage of outstanding rentals to 

gross rentals 

21 Stations working 



1901-02. 



£ s. d. 

192,693 
35 3 4* 



1902-03. 



£ s. d. 

270,938 
29 14 0^ 



1903-04. 


Total. 


£ s. d. 

320,782 
28 2 6f 


£ 
320,782 



(Including spare plant and preliminary expenses. 



172,240 
26,513 

14,096 
2 11 






54 


12,417 
29 






6,832 

2,680 o 

1,960 

398 

725 

1,379 

13,698 

2 10 












Per cent. 
393 




97 17 




731 




13 95 
5,479 





242,533 

.->!">, 7 2! I 

35,014 

3 16 9 

20.715 

225 



15,968 
6,642 
5,806 
1,694 
1,131 
3,405 

33,320 
3 



Per cent. 
42 

95 16 

12 92 

9 91 
9,122 



285,490 

73,809 

49,639 

4 7 





0J 


24,170 
776 






23,154 

8,537 

8,343 

3,650 

299 

5,007 

46,000 

4 









74 


Per cent. 
467 




92-66 




15-47 




7 44 
11,405 





285,490 



17,859 
16,109 

5,742 
2,155 
9,791 



Average p.c. 
4 26 



94 99 
11-9 



No. 275d. 



GLASGOW— Continued. 



COMPARATIVE STATEMENT SHOWING FINANCIAL RESULTS OF 

THE NATIONAL TELEPHONE COMPANY AND THE GLASGOW 

CORPORATION TELEPHONES. 



The National Telephone 
Company, to 30th 
June, 1904. 



Glasgow Corpora t i o n 
Telephones, to 31st 
May, 1904. 



Standard Rate 

for 

Unlimited 

Service. 



£17, London. 

£10, provinces. 

£8 10s. in some 
smaller towns 
in provinces. 



£ s5. 



Interest 

and 

Dividends. 



4 ' 29 per cent. 

Average rate of interest 
and dividends paid 
on various stocks and 
shares. 



3 20 per cent. 
Interest on borrowed 
money. 



Provision 
against 

the Future. 



1 ■ 52 per cent. 



467 



Remarks. 



Carried to reserve fund 
and invested in Com- 
pany's business. 
(From 33rd report 
presented to share- 
holders. ) 

Includes sinking fund 
and depre c i a t i o n 
fund. (From 3rd 
annual report and 
balance sheet. ) 



GLASGOW, 



250 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



No. 275e. 



GLASGOW— Continued. 



FINANCE STATISTICS COMPILED FEOM THE LATEST BALANCE 

SHEETS ISSUED BY THE UNDERNOTED TELEPHONE 

UNDERTAKINGS IN GREAT BRITAIN, CANADA 

AND THE UNITED STATES. 

Extracted from the ' American Telephone Journal,' March 11, 1905. 

In order to throw some light upon the financial side of telephone competition, we 
publish herewith some statistics showing results of the working of telephone monopo- 
lies in Great Britain and Canada, in comparison with those of competitive undertak- 
ings. These figures prove conclusively what it is possible for a company or munici- 
pality having a system that is well managed and legitimately capitalized to accomplish, 
as compared with a monopoly whose capital includes much watered stock, and whose 
obsolete plant is replaced at the expense of telephone users, instead of being charged 
against the profits of the undertaking. It will also be noticed that on both sides of 
the Atlantic the comparisons between the monopoly and its competitor show almost 
identical results, the slight difference being in favour of the two United States inde- 
depeiidcnt companies quoted. This is due to the fact that there are more subscribers 
within the same area in American cities than in Great Britain. Another very signifi- 
cant fact is that the average capital per station of the monopoly (and especially is this 
the case in Canada) includes a large proportion of obsolete plant and single-grounded 
lines; whereas the competitive systems are all modern plants, comprising longi-dis- 
tance telephones, copper metallic circuits, and a large percentage ot underground 
wires. 

The figures for the United States and Canada include the long-distance lines, 
which in Great Britain are owned by the state, therefore some allowance must be made 
in this respect, but it will be seen from the mileage of long-distance wire per tele- 
phone that if the figures could be accurately dissected, it would not make the ' Bell ' 
compare more favourably with the ' Independent ' results. 



GLASGOW. 



APPENDIX " A " 



251 



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GLASGOW. 



252 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
STATEMENT OF TELEPHONE TARIFFS 



Nature 

of 
Service. 



Exelvsive line— 
Unlimited ser 



Exclusive line- 
.\ 1 1 .-sage rate 
service. 



Toll service. 



Germany. 
(Government). 



£4 ( -"S 1 1) . 48 ) p. ann., centres up to 

£5 (824 ■:*:,) 

£6 ($29.22) 

£7(134.09) 

£7 10s. (836.53) 

£8 ($38 96) 

£8 10s. ($41.40) 

£9(843.83) 



r.n sube. 

50/100 

100/200 

200/500 

500/1,000 

1,000/5,000 

5,000/20,000 

above 20,000 



Wurtemberg. 
(Government). 



Bavaria. 
(Government). 



E6 (829.22) p. ann 

within town 
limits ; suburbs, 
hd. (lc.) each call, 
in addition to 
rental. 



£4 ($19.48) to £7 
10s. (836.53) p. 
ann., according 
to number of sub 
scribers 



GLASGOW. 



APPENDIX " A " 
APPENDIX No. 1 
ON THE CONTINENT OF EUROPE. 



253 



Norway. 
(Company). 



Sweden. 
(Govt, and Co'y)< 



Christiania. 

Single wires, £4 8s, 
lOd. ($21.62) ]>. 
ann., 6,000 calls 
£5 ($24.35) p. 
aim., over 6,000 
calls. 

Other towns. 

Single wires from 
£2 4s. 5d.($10.80) 
to £4 ($19.48) p 
ann. 

Double wires from 
£215s.5d.($13.50) 
to £4 17s. ($12.62) 
p. aim. 

N. B. — In some 
towns telephone 
instruments are 
owned by sub- 

• scribers and 
maintained by 
tilt-phone com- 
panies. 



Belgium. 
(Government). 



Stockholm. 

State Telephone 
Department. 

Business £2 15s. 
6d. ($13.50) p. 
aim. ; entrance 
fee, £2 15s. 6d. 
($13.50). 
Private houses, 
E215s.6d.($13.50) 
p. aim. ; no en- 
trance fee. 

Allmanna Tele 
Company. 

t'4N 3 .i0d.($21.62) 
p. ann. ; en- 
trance fee, £2 
15s. 6d.($13.50) 
or £5 lis. 
($27.03) p. ann. 
with no en- 
trance fee). 



Allmanna Tele. 
Company. 

Business, £2 10s. 

($12.18) p". ann. 
Private nouses, 

£2 ($9.74) p. 

an., limited to 

100 calls per 

quarter. 



Brussels. 

£10 p. ann. 

( (ther towns 

from £5 to £9 

p. ann. 



Switzerland. 
(Government). 



Denmark. 
(Company). 



Copenhagen. 

Business, £6 13s. 

4d. ($32.46) p. 

ann., 5,000 

calls; £7 15s. 

6d. ($37.87) p. 

ann., over 

5,000 calls. 
Private houses, 

£5 ($24.35) p. 

ann. 

Other towns. 

£2 4s. 5d.($10.80) 
to £4 3s. 3d. 
($20.26)p. ann. 

Funen 
Municipal Co'y. 

£2 10s. ($12. IS) 
to £3 Is. Id. 
($14.87)p. ann. 
according t o 
size of centre, 
for 1,200 calls ; 
5s. 6d. ($1.34) 
p. 100 calls 
above 1,200. 



Amsterdam, 

Rotterdam and 

Hague. 

£7 10s. p. ann. 



1st y. £4 ($19.48) 

p. ann. 
2nd y. £2 16s. 

($13.64) p. ann. 
3rd y. £1 12s. 

($7.79) p. ann. 
Jd. (lc.) each 

call. 



Holland. 

(Municipal). 



GLASGOW. 



254 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD /ll., A. '905 



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GLASGOW. 



256 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 275g. 

GLASGOW— Continued. 

Castle Chambers, 
65 Kenfield Street, Glasgow. 

local communication. 
The exchanges are open day and night, Sundays included. 

COMPLAINTS. 

Subscribers are requested to communicate all complaints in writing, no verbal 
complaint can be recognized. In order to facilitate investigation, the time at which 
tiie fault occurred should be given. Complaints regarding incivility or inattention 
on the part of the staff should be communicated direct to the general manager. As 
complaints respecting trunk service have to be referred to the post office, they must 
be in writing, and particulars given. Subscribers are particularly requested not to 
converse with operators^ any information required may be obtained from the chief 
operator or supervisors. 

PAYMENT OF SUBSCRIPTIONS, &C. 

Subscriptions are due on completion of the connections, and are payable immedi- 
ately thereafter. Subscriptions, trunk, telegraph and local toll fees are not collected, 
but are payable at Castle Chambers, 65 Kenfield street, where official receipts will be 
given only. The department's official form of receipt will only be recognized. 
Cheques should be made payable to the general manager and crossed. 

Any subscriber who wishes to be disjoined from the Corporation Exchange must 
give notice to that effect in writing at least four months previous to the day on which 
his subscription for the ensuing year would become due, as per clause 6 of conditions 
o± supply. Failing such notice, he shall be liable for another year's subscription. 

TRUNK COMMUNICATION. 

Subscribers to the Corporation Exchange can communicate by means of the gov- 
ernment trunk lines with subscribers to other exchanges in all parts of the kingdom. 

Trunk messages to post office subscribers in London, Neweastle-on-Tyne, Cardiff, 
Hull, Leicester, &c, and corporation telephones in Hull, Portsmouth, Swansea, 
Brighton and the National telephones at Hull and Tunbridge Wells will be charged 
a i the ordinary trunk message rates without any terminal fees. 

Trunk messages to National telephone subscribers in other towns will be charged 
the ordinary trunk rate plus a terminal charge, which, it is understood, will be imposed 
by the National Telephone Company. The corporation telephone department have 
arranged to free their subscribers of terminal charges on outward trunk calls to the 
extent of £1 per exchange line, for any one year, commencing June 1 of any year. 

Corporation subscribers are recommended to draw the attention of their corre- 
spondents in other towns to the corporation exchange, and to request that all calls 
made to them should be made through the medium of the corporation instruments. 

National telephone subscribers in Edinburgh, Manchester and Liverpool, on apply- 
ing by telephone to the post offices, will be informed the telephone number of any sub- 
scriber to the Glasgow Corporation system. 

The corporation will, under no circumstances, be responsible for trunk charges 
incurred by subscribers. Subscribers making trunk calls must do so entirely at their 
cwn risk, and if the post office decline to waive or alter any charge that may be ob- 
jected to, the loss must fall on the subscriber. 
GLASGOW. 



APPENDIX " A " 257 

APPENDIX No. 1 

Subscribers whose numbers are not prefixed with a letter or name are requested to 
give the word ' Central ' in addition to their number to the post office operator when 
asking for a trunk message or telegram, e.g., Central 2456 on Edinburgh 1324. 

REDUCTION OF TRUNK TELEPHONE CHARGES AT NIGHT. 

The charge for a 6-minutes' conversation on the trunk telephone wires between 
8 p.m. and 6 a.m is the same as that for a single period of 3 minutes during the day. 
No reduction is made in the charge for a 3-minutes conversation. 

Particulars of trunk line charges, &c, can be obtained from the department's 
offices, Castle Chambers, 65 Renfield street. 

TRUNK NUMBERS. 

Corporation subscribers not acquainted with the correspondents' numbers in 
other towns shall be afforded this information on asking the exchange for ' Directory 
467,' and giving the full name and address of the correspondent wanted. 

SUBSCRIBERS IN OTHER TOWNS. 

Subscribers in other towns who purpose calling up subscribers on the corporation 
system will be supplied at a small charge with a telephone directory on making appli- 
cation to the general manager. 

SPECIAL NOTE. 

Persons in other towns may call up corporation subscribers from the call boxes 
in the post offices on payment of the simple trunk fee, without any terminal charge 
being made. For instance, a call can be made from the Paisley, Greenock, Dumbar- 
ton or Coatbridge, &c, post office call boxes for 3d.; from Edinburgh, Bo'ness or Ayr, 
&c, post office call boxes, 6d., &c. &c. 

POST OFFICE FACILITIES. 

The central exchange is connected with the post office, George Square, telephone 
numbers 910 and 3169. 

Subscribers are thereby enabled to exercise any of the following facilities: — 

1. Any corporation subscriber may telephone messages to the general post office 
(Nos. Corporation 910 and Corporation 3169) for transmission by telegraph at the 
ordinary rate for telegrams. He may also telephone to any postal telegraph office 
which can be reached either through the local exchange system, or subject to payment 
of the proper trunk fees, by means of the post office trunk wires, in order that the 
messages may be written down and forwarded as express letters. 

2. No letter telephoned to a post office for delivery by express messenger may 
contain more than 30 words if the telephone call is for a single period of 3 
minutes. If the call is for a double period of 6 minutes, 60 words may be sent, but in 
this case a double express fee will be charged. 

3. Any person receiving an express letter in this way may send another express 
letter back to the post office to be telephoned to the sender of the original message on 
payment of the full ordinary express and telephone fees. 

4. Any subscriber to a telephone exchange may obtain the services of an express 
messenger by telephoning to the nearest post office which is connected with his ex- 
change 

5. In general the ordinary rules for telegrams or express letters will apply to all 
messages telephoned to post offices for transmission in one of these forms. 

6. The senders of such messages should speak very distinctly, and should spell all 
proper names, numbers or difficult words. The persons who take down messages at post 
offices will, at the end, carefully read them to the senders, who are requested to do all 
'n their power to prevent and correct mistakes. 

GLASGOW. 



258 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

7. It is also possible for subscribers who have registered abbreviated addresses 
to make general arrangements to have all telegrams bearing such addresses delivered 
by telephone, in lieu of delivery by messenger. Delivery by messenger will, of course,. 
be resorted to if a subscriber's circuit is faulty. 

8. Call for post office messengers for express delivery of parcels and letters. 

For further particulars of services (3) and (4) see local post office guide. 

Subscribers desirous of participating in above services will please communicate 
with the general manager, 65 Renfield street. 

The payments for cost of telegrams, postage of letters, and hire of messengers are 
due to the post office, but the accounts will be rendered monthly by the telephone 
department, and payment is to be forwarded by cheque or postal order to the telephone 
office, Renfield street, within one week, or on demand if necessary. Inquiries or 
objections in respect of accounts rendered for postal facilities can only be enter- 
tained if made within five days after receipt of account. 

The telephone department reserves the right of withdrawing the services from 
subscribers whose payments are overdue, or who fail to comply with the rules and regu- 
lations. 

DEPOSIT. 

Post Office Facilities and Local Toll Service. 

In order to obviate the necessity of remitting small amounts monthly, in payment 
cf postal facilities and local toll service, subscribers may lodge a sum with the de- 
partment which will be worked off according to their requirements. 

TELEPHONE INSPECTORS. 

Subscribers are informed that all officials of the corporation telephone depart- 
ment entitled to go into offices and houses are furnished with certificates. of employ- 
ment in the telephone department, which they will produce on demand. No house- 
holder should, therefore, admit any person about whom doubt exists unless he pro- 
duces the certificate. 

REMOVAL OF SUBSCRIBERS' TELEPHONES. 

Subscribers purposing removing offices, &c, are z-equested to give at least one 
month's previous notice in writing to the general manager. 

Removals will be charged for, and the department will not be responsible for any 
interruption of service due to such removals. 

FIRE INSURANCE OF INSTRUMENTS. 

Subscribers are recommended to include the sum of £4 in respect of each instru- 
ment in their fire policy, as per clause 5 of the conditions of supply. 

WALL CARDS FOR SUBSCRIBERS' NUMBERS. 

These will be supplied on calling at the department's office, Castle Chambers, 65- 
Renfield street. 

DIRECTORY AND SUBSCRIBERS' NUMBERS. 

Subscribers' numbers, names and addresses will be inserted in the first directory 
or supplement published after date of their connection to the exchange; and while 
every care is taken in compiling the list, the department will not be liable for omis- 
sions or inaccuracies. Any omissions or inaccuracies should be immediately notified, 
in writing, to the general manager, at the address given below. Additional insertions 
are charged at the rate of 5s. each per annum. The department reserves the right to 
GIiASGOW. 



APPENDIX " A " 259 

APPENDIX No. 1 

disconnect the subscriber's line from the exchange to which it may be connected, and 
to reconnect it with any other exchange belonging to the corporation. The department 
also reserves the right to alter the telephone number of any subscriber when such 
change is rendered necessary by the exigencies of the service, and will not be liable 
for any loss or inconvenience caused thereby. 

JOHN MACFEE, 

General Manager. 
General Manager's Office, 

Castle Chambers, 65 Eenfield St., Glasgow, 
February, 1905. 

GLASGOW— Continued. 
No. 275h. 

Conditions of Supply. 

The following is a copy of the conditions under which the corporation supply tele- 
phone service, and subscribers shall be deemed to have a knowledge thereof : — 

I. — general. 

The corporation shall, as soon as practicable, connect the office of every subscriber 
to the corporation telephones with one of their exchanges by a metallic circuit tele- 
phone line, and shall maintain in good working order the said line and the instrument 
to be fitted up in the subscriber's office. 

2. The subscriber shall have the right to communicate with all other corporation 
telephone subscribers within the Glasgow telephone area, and to use at the usual tariff 
rates the post office trunk lines, subject to the regulations for the time being relating 
thereto respectively. 

3. The corporation shall not be responsible to the subscriber or liable in damages 
or otherwise for any delay, interruption, or failure of service, but it shall use every 
reasonable endeavour to repair defects and restore connection as speedily as possible 
after receipt of notice in writing. 

4. The corporation reserves to itself the right to disconnect the subscriber's line 
from the exchange to which it may be at first connected, and to reconnect it with any 
other exchange belonging to the corporation. 

5. The subscriber shall take good care of the exchange line and instrument, and 
of all extra instruments, additional wires, switches, and other apparatus which may be 
fitted up, and of all the fixtures and accessories connected therewith, and shall not 
damage, alter, or remove the same, nor allow it or them or any of them to be damaged, 
altered, or removed, nor make, nor suffer to be made, any attachments to the same, and 
shall not obliterate, nor allow to be obliterated, any marks, words, or numbers which may 
be written, painted, stamped, or impressed thereon. In the event of any of the fore- 
going telephonic appliances being damaged otherwise than by ordinary tear and wear, 
the subscriber shall pay to the corporation the cost of the repair of such damage, and 
in the event of any of them being totally destroyed by fire or otherwise, or stolen, or 
missing from any cause whatever, then the subscriber shall pay to the corporation the 
sum of £4 for each set of instruments as compensation for the destruction or loss 
thereof. 

6. The subscription shall begin to run from the date of the connection of the sub- 
scriber with an exchange, and the corporation's books shall be sufficient and conclu- 
sive proof of such date, and (unless proved to be inaccurate) of all accounts betwen the 
parties, and the said subscription shall be due on that day in each succeeding year. 
Any subscriber who wishes to be disjoined from the Corporation Exchange must give 
notice to that effect, in writing, at least four months previous to the day on which his 
subscription for the' ensuing year would become due. Failing such notice, he shall be 
liable for another year's subscription. 

GLASGOW. 
1— c£— 18 . 



260 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

7. In the event of the annual subscription hereinafter mentioned, or any other 
money payable to the corporation, being in arrear for one calendar month after the 
same ought to have been paid, or if the subscriber shall be adjudged bankrupt, or make 
or enter into any composition or arrangement with his creditors, or shall execute any 
assignment for the benefit of his creditors, or shall have the movables within his prem- 
ises poinded, or if the subscriber shall commit any breach of or fail to observe any of 
the conditions herein contained, the coiporation may, after notice in writing, discon- 
nect the subscriber and remove the telephone appliances as from the date of such 
notice or the leaving of the same at the subscriber's premises, and such action shall 
not prejudice the right of the corporation to recover the full year's subscription and 
any other moneys which may be due to them. 

8. The corporation reserves to itself the right to disconnect, without prejudice to 
any of the other conditions herein contained, any subscriber who persistently neglects 
to observe the instructions for using the instruments, or who uses objectionable 
language to the operators. 

9. If the corporation shall at any time be unable, or, for any reason, unwilling, 
to obtain or maintain any necessary licenses, wayleaves, permission for attachment or 
poles, or other easements, the corporation, by notice in writing, may disconnect the 
subscriber, who shall be entitled to no payment or compensation except the return oi 
so much of the current year's subscription as shall be proportionate to the unexpired 
portion of the year. 

10. The subscriber shall give to the corporation every facility in his power for 
running his own wire or wires, laying underground cables, making attachments, fixing 
poles, &c, and will permit the corporation and its servants at all reasonable times to 
have free access to the subscriber's premises for the purpose of erecting, fixing, exam- 
ining, repairing, or removing the said exchange line, wires, cables, instruments, poles, 
attachments, &c. 

11. The following conditions in the license between the corporation and His 
Majesty's Postmaster General shall, under the penalty of the immediate disconnection 
of the subscriber's premises from the exchange, and the removal of all telephonic appli- 
ances, be observed by the subscriber, viz. : — 

(In what follows, the expression ' local authority ' means the corporation, and the 
expression ' telephonic message ' means a spoken message or communication trans- 
mitted by telephone.) 

(a) The local authority have license and permission from the Postmaster General 
(subject as hereinafter provided) to work and use within the licensed area telegraphs 
of which the transmitting and receiving instruments shall be telephones (but no other 
kind or description of telegraphs) for the purpose of enabling any person to transmit 
direct from and receive at any office to and from any other person at any other office to 
and from any other person at any other office telephonic messages (but no other des- 
cription of telegrams) relating to the business or private affairs of such persons respec- 
tively or one of them, and the local authority shall (subject to the provisions of their 
license) have license and permission to receive from all such persons for or in respect 
of the purchase or hire or maintenance or working or use of the said telegraphs, or any 
part or parts thereof, for the purpose aforesaid, or for or in respect of the right or; 
permission to transmit or receive or otherwise in respect of the transmission or re- 
ceipt of such telephonic messages as aforesaid by means of the said telegraphs such 
sums of money or other valuable considerations as shall be agreed upon between the 
local authority and the said persons respectively. 

The term ' business ' used above shall not be construed or held to mean or include 
the business of collecting, receiving or delivering messages or other communications 
transmitted or intended for transmission by telegraph or any other business of a like 
kind. 

(b) Neither any office whether in the occupation of the local authority or of any 
other person, nor any such telegraphs as aforesaid, nor any part thereof, shall be used 
by the local authority, or by any other person either on their behalf or by their per- 
GDASGOW. 



APPENDIX " A " 261 

APPENDIX No. 1 

mission, for the transmission or receipt of telegrams of any kind except such tele- 
phonic messages as are hereinbefore expressly authorized. 

No office or part of any office in the occupation of the local authority, either solely 
or jointly with any other person, shall he used by the local authority or any other 
person, or be permitted or suffered by the local authority to be used by any other per- 
son, for the purpose of making any copy, transcript, memorandum or note of any tele- 
phonic message, or of the contents, substance, purport or effect of any such message 
received at such office by means of the said telegraphs or any part thereof — it being 
the express intention of these presents and of the license and permission hereby given 
that no "written message or communication or any written copy, memorandum or note 
of any message or communication, or of the contents, substance, purport or effect of 
any message or communication transmitted to any such office as aforesaid by means of 
the said telegraphs, shall be made or taken at or conveyed from any such office by any 
person whomsoever for any purpose whatsoever. 

The local authority shall make due provision and take all necessary and proper 
precautions for the observance of the conditions contained in this article by each and 
every person who may be from time to time or at any time entitled or permitted to use 
any office in the occupation of the local authority, or any part thereof, or the said tele- 
graphs or any part thereof. 

Nothing in this article contained shall prevent either the sender or receiver of any 
telephonic message from making a note or memorandum of the purport of such mes- 
sage for the purposes of the business or private affairs of such sender or receiver. 

(c) No office whether in the occupation of the local authority or of any other 
person shall be used by the local authority or any other person for the collection or 
delivery of telegrams of any kind. 

No written message or communication, or written copy, memorandum or note of 
any message or communication, or of the contents, substance, purport or effect of any 
message or communication transmitted to any office by means of the said telegraphs, 
shall be delivered from such office or any other office. 

Subject to the provisions of the license of the local authority, no money or other 
valuable consideration shall in respect of the transmission or receipt of any telegram 
by means of the said telegraphs or any part thereof be or be promised to be paid or 
given to any person (other than the local authority) entitled or permitted to use the 
said telegraphs by any other person whomsoever. 

The local authority shall take all necessary and proper precautions for the obser- 
vance of the conditions stated in this article, and shall in entering into every contract 
or agreement with any person or persons in relation to the aforesaid business of the 
local authority, make due provision for the summary determination by the local 
authority of such contract or agreement or breach of any of such conditions by any 
such person or persons. 

(d) Where the charges for the establishment of telephonic communication with 
the office of any exchange subscriber are made with reference to the number of mes- 
sages transmitted, such subscriber may (notwithstanding anything contained in the 
license of the local authority) allow the telephones supplied to him to be used by any 
other person, and may charge for the use of such telephones. 

(e) In case any person or persons with whom the local authority may make any 
contract or agreement in relation to telephonic business, or who may be for the time being 
permitted by the local authority to use at any office the said telegraphs or any part 
thereof for the purposes hereinbefore authorized, shall at any time during the con- 
tinuance of these presents use any office, or the said telegraphs, or any part thereof 
respectively, for any purpose or by any means or in any manner other than as herein- 
before expressly authorized, and according to the conditions hereinbefore declared the 
following provisions shall apply : — 

(1) The local authority shall forthwith determine any such contract or 
agreement with or withdraw such permission from any and every such person 
so using such office or the said telegraphs or any part thereof; 

GLASGOW. 
1—d— ISA 



262 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

(2) If such office belong to or be occupied by such person either solely or 
jointly with any other person or persons, the local authority shall forthwith 
disconnect such office from any other office which is or may be telegraphically 
connected therewith by means of their aforesaid telegraphs. 

(3) The local authority shall give notice forthwith to the Postmaster 
General of such determination of contract or agreement or withdrawal of per- 
mission, as the case may be, together with full particulars of the reasons for 
the same; and 

(4) The local authority shall not without the special license and author- 
ity of the Postmaster General re-establish telephonic communication between 
such office and any other office, or enter into any other contract or agreement 
with such person in relation to telephonic business, or permit him to use the 
said telegraphs at any other office. 

12. Private wires, extensions, extra instruments, bells, switches, &c, may be sup- 
plied at rates to be adjusted from time to time. 

13. The corporation reserve right to make rules and regulations, and to impose an 
extra charge, not exceeding £2 per half-mile, for lines exceeding one mile in length 
from an exchange, but exchanges will be so arranged that this extra charge will not be 
imposed within the city or in any burgh included in the telephone area. 

14. On ceasing to be a subscriber from whatever cause, the subscriber shall sur- 
render to the corporation the said wire and instrument, or instruments, with all 
fixtures and accessories, in as good condition as when received, ordinary wear only ex- 
cepted, and the corporation shall remove the same, and any poles, wires, attachments, 
&c, which may have been erected within six months from the termination thereof, and 
for that purpose shall have access at all reasonable times by its agents and workmen 
to the premises of the subscriber, and to all other places under the control of the sub- 
scriber, on, through, or over which any part of the foregoing telephonic appliances 
are fixed, and the subscriber shall (except as hereinbefore provided) have no claim 
for any compensation or damages, or for the repayment of any part of his subscrip- 
tion for any unexpired portion of the year then current. 

14a. The corporation shall not be responsible to the subscriber for any damage or 
injury arising from the leakage into the corporation telephone lines, through any cause 
whatever, of high tension electrical currents belonging to another system of electrical 
conductors. 

II. — UNLIMITED SERVICE. 

15. The subscriber shall pay in advance an annual subscription of £5 5s. (which 
includes the government royalty) for the establishment of telephonic communication 
and the right to transmit an -unlimited number of messages. 

, 16. The subscriber shall not send, or permit to be sent, nor receive, nor permit to 
be received, by or through the said line or instruments, or any of the foregoing appli- 
ances, any message in respect of which any money or other consideration shall be 
given, paid or promised to the subscriber, or to any person other than the corporation, 
and he shall not permit his instrument, or any of them, to be so used by any person 
other than the subscriber and his servants. 

III. TOLL SERVICE. 

17. The toll subscriber shall pay in advance an annual subscription of £3 10s. 
(which includes the government royalty) for the establishment of telephonic communi- 
cation, and shall, in addition, pay for each connection established at his call, One 
Penny. Accounts for calls shall be made up to the 31st March, 30th June, 30th Sep- 
tember, and 31st December, and shall be payable at the corporation telephone offices, 
65 Kenfield street, within 28 days thereafter. 
GLASGOW. 



APPENDIX "A 



263 



APPENDIX No. 1 

18. The duration of a connection will be limited to five minutes, and all connec- 
tions actually established will be charged for whether conversation be had or not, 
unless failure to communicate is clearly due to some defect in the corporation's lines 
or instruments. 

19. The toll subscriber may allow the telephones supplied to him to be used by any 
other person, and may charge for the use of such telephones. 



275i. 



GLASGOW— Concluded. 



Gi^gow Corporation TrxLPnoriE v AREA 
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GLASGOW. 



264 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
CORPORATION OF PORTSMOUTH, ENGLAND. 

No. 276. 

Towx Hall, 

Portsmouth, July 13, 1905. 
Sir William Mulock, KC.M.G., 

Postmaster General, 

Ottawa, Canada. 
Sib, — With reference to your circular of May 3 last, I now beg to inclose the 
.- which have just been supplied to me by the engineer and manager of the tele- 
phone department here to the questions sent with your letter, and I also inclose copies 
of the reports since the establishment of the system here. 

The origin of the municipal system here was the failure to obtain from the 
National Telephone Company any reduction in their rate of charges, and when it was 
found that no reduction could be obtained, the corporation determined to apply to the 
Postmaster General in England for a license which was granted. 

The effect of the introduction of the municipal telephone system has undoubtedly 
been to lower the rates of charges, and it will be seen from the accounts that notwith- 
standing the rates being considerably lower than those in force under the company 
prior to the introduction of the municipal system, a profit has been earned after pro- 
viding for the proper sinking fund. 

I am, sir, your obedient servant, 

ALEX. HELLARD, 

Town Clerk. 



No. 276a. 

Portsmouth has a population of 200,000. The term of the Postmaster General's 
license is from 1900 to 1926. There are eight switchrooms, the number of subscribers 
being (a) 1929; (&) 37; (c) 25; (d) 113; (e) 25; (f) 20; (g) 12; (h) 18. The total 
number of telephones is 2,213, of which 304 are residence, and 1,909 business connec- 
tions. There are no party lines on the municipal system. There are 188 extension 
telephones. 

The following tariffs are in vogue for both residence and business telehpones : — 

1. Unlimited service at £5 17s. 6d. ($28.61) per annum 

2. Unlimited service, 2nd connection at £5 5s. ($25.77) per annum. 

3. Toll service at £5 ($24.25) per annum (1,S00 outward calls free). 

£d. (1 cent) per call afterwards. 

4. Toll service at £4 ($19.48) per annum (1,000 outward calls free). 
id. (1 cent) per call afterwards. 

5. Toll service at £3 10s. ($17.05) per annum, and £d. (1 cent) per call. 

6. Toll service at £2 10s. ($12.18) per annum and Id. (2 cents) per call. 
Inside extension telephones, 25s. ($6.08) per annum. The rates cover service 

over the whole area, and are for stations within 1 mile of any switchroom. The ser- 
vice is continuous day and night, Sundays included. The charge to non-subscribers is 
Id. (2 cents) for five minutes' conversation. The long-distance rate is 3d. (6 cents) 
for each 25 miles (3 minutes limit). Subscribers can speak 600 miles by aid of trunk 
(long-distance) lines. 

Metallic circuits in all cases ; subscribers' lines are provided with phosphor bronze 
and junction circuits between switchrooms (sub-exchanges) with hard drawn copper. 

All subscribers' circuits are underground with the exception of spur from cable 
terminals ; the junction circuits connecting the several exchanges being overhead. The 
total amount expended on the system to date is £39,240 ($191,098.80). 

The total revenue per annum is £9,366 ($45,612.42). The total expenditure per 
annum, including management, operating, maintenance,' interest, sinking fund and 
depreciation is £7,394 ($36,008.78). 
PORTSMOUTH. 



APPENDIX " A " 265 

APPENDIX No. 1 

The interest paid for the year ending March 31, 1905, is £969 8s. lOd. ($4,721.17). 
Three per cent is provided as sinking fund. The surplus for the year ending March 
31 last was £1,972 19s. 3d. ($9,608.33). 

As this undertaking is only in the third year of working no actual depreciation 
fund has been provided, but the surplus which has been made during that period is 
available for such a purpose at the discretion of the Telephone Committee. 

Between £60 ($292.20) and £70 ($340.90) per annum is paid for way-leave privi- 
leges. 

The wages paid are: Manager, £300 ($1,461) per annum; foremen, 30s. ($7.31) 
per week; instrument and switchboard men, 35s. ($8.54) per week; wiremen, 22s. 
($5.35) to 27s. ($6.56) per week; operators, 6s. ($1.46) to £1 Is. ($5.11) per week. 

The prices paid for equipment are as follows: Main switchboard plant, capacity 
for 1,560 lines, contract price £2543 9s. 4d. ($12,386.69) ; sub-exchange switchboards with 
average capacity of 50 lines, £64 ($311.68) ; subscribers' wall telephones £2 5s. ($10.96) 
each; subscribers' desk telephones, £2 5s. ($10.96) each; hard drawn copper wire, 8d. 
(16 cents) to 9d. (18 cents) per lb.; bronze wire, 9Jd. (19 cents) to 10£d. (21 cents) 
per lb.; plain wood poles, 30 feet long, 19s. 5d. ($4.73) each; 55 feet long, 94s. 2d. 
($22.94) each; wood arms, £9 ($43.83) per hundred; insulators, 44s. 6d. ($10.86) per 
hundred. 

The National Telephone Company has 417 residence telephones, of which 251 are 
l.arty lines, and 1,981 business telephones, of which 1,3S0 are party lines. The total 
number of ' National ' party lines is 1,631. 

Before competition the ' National ' had 114 residence telephones, of which 11 were 
party lines, and 898 business telephones, of which 105 were party J'nes. The total 
number of ' National ' party lines before competition being 116. 

There is no intercommunication between ' National ' and corporation subscribers 
locally, but corporation subscribers may call up ' National ' subscribers in distant 
towns on payment of trunk fees; the scale being 3d. (6 cents) for every 25 miles, con- 
versation being limited to 3 minutes. 

Six hundred and forty-seven subscribers have both 'Municipal' and 'National' 
telephones on the same premises. 

Daily accounts for long-distance messages are rendered by the post office, details 
of which are forwarded on monthly statements to our subscribers who are requested 
Lxj pay same at the offices of the department. 

Subscriber's instrument. — This consists of a magneto of any ordinary construc- 
tion provided with a ring-off key. This key, when in normal position, connects the 
subscriber's instrument to the metallic circuit, but when pressed down it connects the 
metallic circuit directly to ' earth ' so long as it remains pressed. 

Switchboard. — Each subscriber's metallic circuit contains an indicator of ordin- 
ary construction and a 4-point spring- jack. When the answering plug is inserted in 
the spring- jack the line indicator is cut out of circuit, and the metallic loop is in 
direct communication with the two circuits of the plug. The second or rear plug 
when out of use sits on and presses down a switch which connects the two conductors 
c± the flexible cord joining the two plugs to a second switch, which is worked by the 
operator's finger. When the rear plug is sitting on its switch and the button of the 
second switch remains unpressed the metallic circuit into which the answering plug 
has been inserted, is directly on to the operator's 'phone. If in this position the finger 
switch is pressed, the operator's 'phone is cut out and a magneto generator is brought 
into circuit by means of which the operator is enabled to ring the bell of the subscriber 
into whose jack the answering plug is inserted. The consequence of this arrangement 
is that the mere insertion of the answering plug puts the operator in communication 
with the calling subscriber without any further movement. After ascertaining his 
wishes she lifts the rear plug from fEs position and inserts it in the jack of the sub- 
scriber called for. The lifting of the rear plug from the switch cuts off the operator's 
telephone and brings into circuit a ring-off indicator. This indicator is wound so 

PORTSMOUTH. 



266 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

that a current passing through both coils successively will not work it but if a current 
enters between the two coils, the shutter falls. From a point between the two coils 
ci the indicator a wire is taken which is connected to the pole of a ring-off battery, 
+he other pole of which is joined to ' earth.' Supposing two subscribers are connected 
one can ring the other's bell without disturbing the indicator at the exchange, but 
when conversation is finished, if one or both of the talkers touch their ring-off buttons 
s current flows from the battery, actuates the indicator, and flows over both wires of 
the metallic loop to 'earth' through the subscriber's ring-off key. At the central 
exchange the main switchboard is multiplied and built for automatic calling and 
clearing, the energy being derived from accumulators in duplicate sets, capable of 
being charged from a motor generating set, provided with power switchboard. All 
circuits are distributed through fuses mounted on a distributing slate working in con- 
junction with the power switchboard. 

C. M. GARDNER, 

Engineer and Manager 
Portsmouth Corporation Telephone Department. 
July 12, 1905. 



PORTSMOUTH. 



APPENDIX " A " 



267 



APPENDIX No. 1 



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PORTSMOUTH. 



268 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



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PORTSMOUTa 



270 SELECT COMMITTEE ON TELEPHONE ST8TEM8 

4-5 EDWARD VII., A. 1905 

AUDITOR'S CERTIFICATE. 

We have examined the foregoing accounts made up to March 31, 1905, and find 
them correct. 

We find that all interest on capital expenditure has heen properly charged against 
the undertaking, and due provision has been made for repayment of all loans sanc- 
tioned. 

HOWARD B. MORRIS, 

Incorporated Accountant. 



ERNEST EDMONDS, 
Chartered Accountant. 



Portsmouth, June 1, 1905. 



PORTSMOUTH— Con eluded. 



No. 276c. 



Statistics—March 31, 1905. 

Number of Telephones working, exclusive of Junction Lines -M ->7 

Payments on Telephone construction £39,240 

Income for year 9,366 

Expenditure for year 7. 394 



Profit. 



Number of subscribers' lines 

Extension and other lines . 

Exchanges 

Underground cables. . 

i, m distributors 

Mileage of metallic circuit wire, overhead 

„ u underground. . . 



1903. 



742 

129 

4 

6 

61 

308 miles 

1,207 „ 



1904. 



1,384 

293 

6 

8 

68 

566J miles 

1,224 „ 



£1,972 



1905. 



1.75S 

410 

8 

10 

80 

851j miles 

1,734 „ 



Increase 

for 

12 months. 



374 

117 

2 

2 

12 

2S5A miles 

510" „ 



Employees. 



— 


1903. 


1904. 
1 


1905. 


Increase. 


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1 










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1 
1 

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4 

20 


1 
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1 
1 

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5 

22 




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1 

27 
5 

29 


2 










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9 

1 


Wiremen, labourers, &c. (not on permanent staff) 


2 




70 


66 


80 


14 



PORTSMOUTH. 



APPENDIX " A " 271 

APPENDIX No. 1 

ROTTERDAM MUNICIPAL SYSTEM. 
No. 277. 

Rotterdam, Holland, July 8, 1905. 
Select Committee on Telephone Systems, 
Ottawa. 

Gentlemen, — Enclosed I beg to hand you a list, containing answers to the ques- 
tions made in your letter of May 1. 

The answers only refer to the town of Rotterdam, and concerning the interlocal 
service you might apply to, ' Den Heer Directeur-Generaal, der Posterijcn & Telegrafie, 
's — Gravenhage.' 

Yours truly, 

KIST, 

Manager. 

No. 277a. 

The government is owner and operator of the long-distance lines; municipalities 
and companies of the local central stations. 

There are 5,200,000 inhabitants in the Netherlands. Rotterdam has 357,500 in- 
habitants and 4,300 local telephone subscribers. 

The rates are 90 florins ($36.18) per annum for business telephones and 66 florins 
($26.53) per annum for private telephones. 

The Rotterdam radius is 5 kilometres (about 31 miles). 

Subscribers have direct connection with the central office of Rotterdam for or- 
dinary rate within the city, and 3 florins ($1.20) more for 10 metres length of the line, 
out of the city, the last amount to be paid once only, at the beginning, but within a 
radius of 5 miles. 

Around Rotterdam there are 25 subscribers in rural districts. 

There is no measured rate in Rotterdam, and no extra charges above the rates paid 
by the state for long-distance conversations. Subscribers can talk, within the radius 
of 5 K.M. (about 3J miles) for local conversations without further charge. 

' Berliner ' and ' Ericsson ' apparatus is used in Rotterdam, and all lines are 
metallic circuits, bronze 1 :5 m.M., in the cables -9 m.M. 

Ninety-four per cent of the lines are underground and 6 per cent overground. 

The amount expended on the system to date is 1,780,200 florins ($715,640), 1895 
to 1904. 

The revenue for 1904 was 368.837.60 florins ($148,272.87). 

The expenses for 1904 included the following items: Rent, 52,487.83 florins 
($21,100.17) ; wages, 89,417 florins ($35,945.63) ; depreciation, 65,588.72 florins 
($26,366.77). 

The profit last year was 66,231 florins ($26,624.86). 

The cost of equipment was as follows : Multiple switchboard of the Western Elec- 
tric Company, ultimate capacity 8,100 subscribers, at present 5,400. Cost of construc- 
tion now in total 213,631.62 florins ($85,880). Switchboards for different numbers of 
subscribers, for instance, 60—1,000 florins ($402); 40—330 florins ($132.66); 30— 
387-50 florins ($155.75); 21—210 florins ($84.42); 15—180 florins ($72.36); 10—81-50 
florins ($32.76). Wire, 90 florins ($36.18) per 100 E.G. (240 pounds), (bronze 1-5 
m.m.) 

All cables are armored, and buried in ground without ducts or pipes. The working 
is quite satisfactory. 



ROTTERDAM. 



272 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

GREAT BRITAIN AND IRELAND. 



POSTAL TELEGKAPH DEPARTMENT. 



No. 278. 



General Post Office, 

London, Eng., August 17, 1905. 
The Chairman, Select Committee on Telephone Systems, 
Ottawa. 
Sir, — I have the honour by direction of the Postmaster General to acknowledge 
the receipt of your letter of May 1 last on the subject of the inquiry into the tele- 
phone systems in Canada, and to furnish as requested, answers (marked A) to the 
qutstions enclosed herewith, together with the following documents : — 

B. Circular of telephone rates in small towns. 

C. Circular of measured service rates in small towns. 

D. Circular of party-line rates in provinces. 

E. Descriptive pamphlet of the London Telephone Service. 

F. Agreement with the National Telephone Company, dated February 2 last, 
with a supplemental indenture embodying certain 'alterations proposed by the Select 
Committee which examined the agreement. 

G. Reprints of three articles in the ' Electrician ' describing the working of recent 
post office exchanges. 

H. Copy of the Postmaster General's report for the past financial year. See- 
especially Appendix and pages 18 to 23. 

I. Copy of instructions for working the telephone system. 
K. Directory of post office provincial exchanges. 
L. Memorandum concerning rural telephones. 
M. Memorandum about inter-urban working. 

Much information about the telephone service in the United Kingdom, and especi- 
ally as to the competition between municipal systems and the National Telephone 
Company in certain towns was given in evidence before a recent parliamentary com- 
mittee. As soon as that evidence is published a copy shall be sent to you. 

The Postmaster General takes this opportunity of thanking you for forwarding 
copies of the evidence teken by the select committee in Canada. 

I am to add that the Postmaster General has not had great experience of the 
provision of telephone facilities in rural districts, and he is unable to furnish you with 
any useful statistics in this respect, other than the information contained in the post 
office provincial telephone directory. As a general rule, extensions of the trunk system 
have been carried out under a guarantee calculated at the rate of £5 ($24.35) per mile 
of line, or under a promise of sufficient support to the new exchange to justify him in 
dispensing with such a guarantee. Long exchange circuits are provided on special 
terms, calculated at rates of from £5 to £7 ($24.35 to $34.09) per mile of circuit for 
that part of the circuit extending beyond the radius covered by subscription. 

The party line system has not yet found much favour in this country. 

It is difficult in purely rural districts to find sufficient subscribers to warrant the 
expense of establishing an exchange and connecting it with the trunk system. Some 
details of an experiment which has been tried of establishing village call offices may 
be of interest to the committee and are also inclosed (Enclosure L). 

I have the. honour to be, sir, 

Your obedient servant, 

A. H. KING. 

GREAT BRITAIN. 



APPENDIX "A" 273 

APPENDIX No. 1 

No. 278a. 

GEEAT BRITAIN— Continued. 
INCLOSUEE A. 

ANSWERS TO QUESTIONS. 

The United Kingdom is divided into a number of exchange areas containing 
generally one large town and the surrounding smaller places. These areas vary con- 
siderably in size, the largest being the metropolitan area, which is about 640 square 
miles in extent. These areas are connected by long-distance or trunk lines, which are 
all owned and operated by the state. Circuits, which may be of considerable length 
connecting exchanges within the same area are erected and worked by the party or 
parties supplying the local exchange service in the area. 

There were 112,743J miles of long-distance lines on March 31, 1905, the cost of 
same being about £21 ($102.27) per mile of single wire, or £42 ($204.54) per mile of 
circuit. These lines were carried upon 10,958£ miles of poles, and comprised 56,3715 
miles of separate circuits. The charge for long-distance service is 3d. (6 cents) for 
c-ach period of three minutes' conversation for each 25 miles up to 100 miles, 6d. (12J 
cents for each additional 40 miles or fraction thereof above 100 miles. 

The distances are measured ' as the crow flies,' between the central exchanges 
where the trunk lines are worked, except in the case of the lines between Great 
Britain and Ireland.In that case, the mileage is calculated as the crow flies to the 
respective terminals of the cable, and an extra charge of Is. 6d. (37 cents) for each 
three minutes' use is made for the use°of the cable. A charge of 3d. (6 cents) for each 
three minutes' use is also made for the cable connecting the Isle of Wight with the 
mainland. Double periods are allowed for a single charge when the conversations 
take place at night. 

Subscribers' circuits are with few exceptions of copper and metallic throughout. 
The size of wire varies from 150 lbs. per mile to 800 lbs. per mile. 

The expenditure on trunk lines was £2,797,000 ($13,621,390) up to March 31, 
1905. The cost of maintenance was £62,394 ($303,858.78) for year ending March 31, 
1905. This amount does not include depreciation. Three per cent interest is paid on 
capital. The amount set aside for depreciation was £77,659 ($378,199.33) for year end- 
ing March 31, 1905. 

An account of the receipts and expenditure relating to the London service for the 
year ended March 31, 1905, is printed in Appendix O on page 93. It shows a balance 
of £93,298, a sum nearly sufficient to meet the charge for interest on capital and to 
provide for depreciation of plant. This balance is rapidly increasing as more of the 
plant comes into use and begins to earn revenue. Similar tables are also given (for 
the first time) in respect to the post office provincial exchange systems and the trunk 
line system. A table is also added to show the financial position of the three systems 
taken as a whole. This shows a balance of £282,321, while the estimated amount 
required to provide for depreciation of plan and interest at 3 per cent on the capital 
expenditure of £5,042,000 is £300,776. Other statistics of the post office telephone and 
private wire systems will be found in the appendices M. and N. 

Accounts for long-distance service are rendered monthly, and subscribers are re- 
quired to deposit a sum covering the monthly credit given. Persons using public call 
offices of course pay at the time. 

The trunk lines are not used for simultaneous telegraphy and telephony. 

The state owns some local telephone exchanges, and has agreed with its principal 
licensee, the National Telephone Company, to acquire its system in 1912. The muni- 
cipalities of Glasgow, Brighton, Hull, Portsmouth and Swansea also have established 
systems under license from the Postmaster General. The great majority of local ex- 
changes are in the hands of the National Telephone Company. 

G-R3AT BRITAIN. 



274 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The last census return of the population taken in 190] was as follows : — 

England and Wales 32,527,843 

Scotland 4,472,103 

Ireland 4,458,775 

Islands 150,370 

Total 41,609,091 

The number of local telephone subscribers (not including municipal) is : — 

Subscribers. Stations. 

Post office, to March 31, 1905 25,781 32,744 

Principal licensee (National Telephone Co.) 326,017 

358,761 



The number of subscribers' telephones on the post o&ice system in the London 
area is about 28,000. The corresponding figures for the company's London system are 
77,000. 

Owing to the division of the country in areas, it is not possible to give accurate 
figures either as regards the number of telephones or as regards the populations for the 
chief localities. Particulars respecting certain places where post office telephone ex- 
changes exisl will be found in the index of the directory (Inclosure K). 

Both unlimited message, and party line rates are available for post office sub- 
scribers. Particulars of the rates are given in the circulars marked B, C and D. 

The unlimited service rates of licensees vary from £5 ($24.35) to £10 ($48.70). 

The longest trunk line circuits which are made up in practice are: For inland 
communications London to Cork, 776J miles, including 27J miles of submarine cable. 
For international communicatious London and Marseilles, 800 miles, including 23 
miles of submarine cable. 

The principal types of telephones used are shown in the pamphlet marked E. 

The following is the percentage proportion of overhead and underground lines : — 

Wire Mileage. 

Underground 
Overhead. and 

Submarine. 

Local Exchange system, London - 6 99*4 

" Provinces 75 -0 25-0 

(Estimated.) 

The wages paid are as follows : — 

Managers, post office exchanges (London), per annum — 

Mean. 
£160 ($779.20) to £200 ($974) £180 ($876.60) 

Foremen, per week 31s. to 45s. ($7.55 to $10.96) 38s. ($9.25) 

Instrument men, per week 23s. to 36s. ($5.61 to $8.77) 29s. 6d. ($7.19) 

Wiremen, per week 25s. to 35s. ($6.09 to $8.53) 30s. ($7.31) 

Telephone operators (London), per week — 

lis., 14s., 17s. ($2.68, $3.42, $4.15) 18s. 6d. ($4.52) 
Then Is. 6d. to 26s. (37 cents to $6.33) (efficiency bar at 
20s. ($4.87). 

Telephone learners (in provinces), per week — 

10s., 12s., 15s. ($2.44, $2.93, $3.66) 
Then by Is. 6d. (37 cents) to maxima ranging from 20s. to 
24s. ($4.87 to $5.83). 
Telephone learners (London), per week 7s. ($1.71) 

GRE'AT BRITAIN. 



. . . £18 


($87.66) 


23 


($112.00) 


46 


($224.00) 


69 


($336.00) 


... 104 


($506.48) 



APPENDIX " A " 275 

APPENDIX No. 1 -" i 

The cost of equipment is as follows: — 

(a) Central Exchange, London. — ultimate capacity, 14,400 subscribers. Equipped 
for full capacity of 14,400 subscribers, £6 -77 ($32.97) per circuit. 

New City Exchange. — Ultimate capacity, 18,500 subscribers. Equipped for 15,500 
subscribers. Cost, £7 - l ($34.58) per circuit. Difference due to cost of fireproof ma- 
terials largely used in construction. 

Victoria Exchange. — Ultimate capacity, 5,400 subscribers. Equipped for 2,160 
subscribers. Cost, £5 -59 ($27.22) per circuit. 

Hamstead Exchange. — Ultimate capacity, 7,500. Equipped for 2,200 subscribers. 
Cost, £5 -18 ($25.23) per circuit. 

Ealing exchange, ultimate capacity, 5,400. Cost for 1,080 subscribers, £5.48 
($26.69) per circuit. 

The only large provincial common battery exchange installed by the post office is 
at Cardiff. Ultimate capacity, 7,500. Cost for 1,080 subscribers, £6-18 ($30.10) per 
circuit. 

These figures include all exchange equipment for subscribers, junction circuits, 
distributing frames, protective devices, secondary cells and power plant, together with 
all wiring and fitting inside the exchanges. 

(b) The cost of branch exchange switchboards for subscribers' offices is as shown 
below : — 

Switchboard with 1 exchange connection and 2 to 4 extensions. 
" 1 " " 5 to 9 " 

" 2 " " 10 to 20 " 

" 2 " " 21 to 30 " 

" 3 " " 31 to 50 

(c) The cost of a subscribers' common battery wall telephone comes to £2 17s Od. 
($13.89). 

(d) The cost of a subscribers' desk or table common battery telephone amounts to 
£2 10s. Od. ($12.18). 

(e) Light conductors — 

14/20 paper insulated cable, twin, per mile £50 ($243.50) 

612/20 " " " " 870 ($4,236.90) 

794/121 " " " " 894 ($4,353.78) 

216/40 " " " " 630 ($3,068.10) 

For the above light conductor, paper insulated cables, the average cost per mile 
of double wire is about £4 lis. Od. ($22.16). 
Heavier conductors — 

42/100 multiple twin per mile £400 ($1,948.00) 

32/150 quad, pair— 10/150 twin, per mile. ..... 557 ($2,712.59) 

8/150 Q.P.— 56/100 Q.P.— 22/100 S.S.— 44/70 

S>S ._7/40 S.S ■• •• 1.700 ($8,279.00) 

(Hanwell — Slough cable). 
The average cost per mile of double wire in these three cables is about £23 10s. Od. 
i$114.45). It varies from £19 ($92.53) to £26 10s. 0d. ($129.06). 

Per mile of 

(f) Per cwt. (112 lbs.) single wire. 

f s. d. £ s. (3. 

70 lbs. bronze (sometimes used for exchange 

circuits 4 5 3 ($20.76) 2 15 ($13.40) 

100 lbs. copper (exchange circuits) 4 ($19.48) 3 14 ($18.02) 

150 " (junctions and minor trunks 

—also some telegraphs 4 ($19.48) 5 10 ($26.79) 

900 " (Longer trunks) 4 ($19.48) 7 8 ($36.03) 

300 " " 4 ($19.48) 11 2 ($54.06) 

400 " " 4 ($19.48) 14 16 ($72.08) 

©BEAT BRITAIN 

l—d—19 



276 SELECT COMMITTEE ON TELEPHONE ST8TEM8 

4-5 EDWARD VII., A. 1905 
(g) Poles— 

£ s. d. 

Iron, 30 feet, light each 5 3 6 ($25.21) 

" 30 feet, medium " 5 11 ($27.03) 

" 35 feet, stout " 7 3 6 ($34.95) 

" 35 feet, extra stout " 8 18 6 ($43.48) 

" 35 feet, heavy " 11 9 6 ($55.89) 

Average cost, say £7 15s. Od. ($37.75). 

Wood, creosoted, 30 feet, light each 10 9 ($2.62) 

30 feet, medium " 15 5 ($3.76) 

34 feet, stout " 1 16 8 ($8.94) 

Average cost, say £1 1>. Od. ($5.12) 

(h) Arms, Iron, 20 inches for iron poles each 2 9 (68c.) 

" 44 inches, for iron poles " 3 9 (92c.) 

Average, 3s. 3d. (80c.) 

Wood, 48 inches " 1 8J (42c.) 

(i) Armbolts each 3 (6c) 

Insulators, D.S.W. screwed " 5| (lie.) 

Spindles, standard " 4 ( 8c. ) 

(;') Ducts average per foot 2J ( 6c. ) 

Pipes, C.I., 2-inch per foot 4 ( 8c. ) 

3-inch • 6£ (13c. ) 

3i-inch " 6J (13ic.) 

4-inch " 9 (18Jc.) 

Average, say 8jd. (171c.) per foot of pipe. 

There is competing system in operation in several towns, notably in London and 
Glasgow. 

In London competition is between the post office and the National Telephone Com- 
puny, but as there is a working agreement and intercommunication between the sys- 
t<ms, the systems are not altogether independent, and the two will become one when 
the London system of the licensee is transferred to the post office in 1912. 

In Glasgow, the competition is between the corporation and the National Tele- 
phone Company. There is at present neither intercommunication nor a working 
agreement between them. Subscribers wishing to obtain full use of the facilities 
available are, therefore, obliged to subscribe to both systems, and there is consequently 
considerable duplication of plant throughout the district. 

As you are doubtless aware, an agreement has recently been concluded under 
which the post office will acquire the whole system of the largest license in 1912. A 
copy of that agreement is inclosed. 

Three handbooks reprinted from the ' Electrician ' are inclosed, which furnish 
fall descriptions of the most recent post office exchanges. 

There is no separate record available of the actual way-leave incurred by the post 
office in respect to telephone lines. As a general rule it may, however, be stated that 
the post office does not pay for way-leave facilities on the public roads, although it 
makes certain contributions in lieu of rates. It pays small sums for way-leavi privi- 
leges on private property, and on railway property there is in most cases a special pay- 
ment for way-leave, as way-leave rights have been acquired by Act of Parliament. 
The railway companies as a rule maintain the telegraphs at a fixed rate of £1 ($4.87) 
a mile of wire per annum; and where the department maintains the wires a small pay- 
ment is made for waiver of maintenance. 

Licensees pay for way-leaves on the public roads, and the amounts vary in the 
OSifferent districts. 

GREAT BRITAIN. 



APPENDIX "A" 277 

APPENDIX No. 1 

GREAT BRITAIN— Continued. 

No. 278b. 

(Circular B.) 

POST OFFICE TELEPHONE EXCHANGES. 

RATES OF SUBSCRIPTION AT SMALL TOWNS. 

I. Message-rate Service. — Charges for connection with an exchange within a 
radius of half a mile from the subscriber's premises: — 

Annual subscription, £3 ($14.61), payable in advance, and in addition: Message 
fees of one penny (2 cents) for each local call originated by the subscriber; the annual 
payment in respect of local messages to be at least £1 10s. ($7.31), also payable in ad- 
vance. 

The minimum payment under this arrangement is thus £4 10s. ($21.92), for which 
a subscriber can make 360 local calls in a year, paying one penny for each additional 
call beyond 360. The subscriber is not charged for answering calls made by other sub- 
scribers. 

II. Unlimited Service. — Annual subscription for connection with an exchange 
within half a mile radius of the subscriber's premises, together with an unlimited num- 
ber of Local calls, £7 10s. ($36.53), payable in advance. 

III. Where the premises of any subscriber at the message-rate or at the unlimited 
service rate are beyond the prescribed radius from the exchange, the annual subscrip- 
tion is increased by £1 5s. ($6.09) for every additional quarter of a mile or fraction 
thereof. Where new work of an exceptionally expensive character is involved, a higher 
charge may be necessary. 

IV. Agreements arc usually for three years, and are terminable at the expira- 
tion of this term or thereafter by three months' notice. 

V. The charge for use of a call office for local calls is Id. for each three minutes' 
conversation. 

VI. Post office subscribers are able to use their exchange circuits for the following 
purposes : — 

(1.) To forward messages for transmission over the public wires as telegrams. 

(2.) To forward messages for delivery as express letters. 

(3.) To forward messages for delivery as ordinary letters 

(4.) To call for the services of post office express messengers. 

(5.) To receive telegrams, in place of the ordinary delivery by messenger, 

where, in adopting this course, no alteration in the circulation of 

telegrams is involved. 

VII. Post office subscribers have the right to communicate over the trunk wires 
with subscribers of the National Telephone Company and other licensees of the Post- 
master General in all other areas on payment of the trunk fees shown below. In the 
case of trunk calls for subscribers of the National Telephone Company certain ' term- 
inal fees ' are payable to that company ; but these are borne by the Postmaster General 
himself, and are not charged to his subscribers when the calls are made over their cir- 
cuits. 

TRUNK FEES. . 

The rates for trunk messages generally are as follows : — 

For 25 miles or under Threepence (6-J cents) 

"50 " Sixpence (12J cents) 

"75 Ninepence (18| cents) 

"100 " One shilling (24* cents) 

" every additional 40 miles or fraction 

thereof Sixpence (12+ cents) 

GREAT BRITAIN. 



278 __ SELECT COMMITTEE ON TELEPHONE SYSTEMS 

, 4-5 EDWARD VII., A. 1905 

for a conversation of three minutes' duration between 6 a.m. and 8 p.m., or 6 minutes 
between 8 p.m. and 6 a.m., in cases where a continuous service is provided. 

These fees must be paid by both message-rate and unlimited service subscribers 
in respect of trunk communications, but no local message fee is charged to a message- 
rate subscriber in respect of a trunk conversation. 

General Post Office, May, 1904. 



No. 278c. 

GEEAT BKITAIN— Continued. 

(Circular C.) 

POST OFFICE TELEPHONE EXCHANGES. 

RATES OF SUBSCRIPTION AT SMALL TOWNS — MEASURED SERVICE. 

I. Charge for installing a telephone on the subscriber's premises and connecting 
it with an exchange not more than half a mile distant : — 

Annual subscription: 

(a) Five pounds ($24.35), covering the right to send 480 messages during the 
year to offices on the same exchange, or 

(b) Six pounds ($29.22), covering the right to send 720 messages during the 
year to offices on the same exchange. 

Any additional messages to offices on the same exchange will be charged Id. 
(2 cents) each. 

Each call from one exchange to another in the same area is generally reckoned 
as two local calls. 

No charge is made to a subscriber for calls received. 

II. Where the premises of any subscriber are more than half a mile from the ex- 
change, the annual subscription is increased by £1 5s. ($6.09) for every additional 
quarter of a mile or fraction thereof. Where new work of an exceptionally expensive 
character is involved, a higher charge may be necessary. 

HI. Agreements are usually for three years, and are terminable at the expiration 
of this term or thereafter by three months' notice. 

IV. The charge for the use of a call office for local calls is 2d. (4 cents) for each 
three minutes' conversation. 

V. Post office subscribers are able to use their exchange circuits for the follow- 
ing purposes: — 

(1.) To forward messages for transmission over the public wires as telegrams. 
(2.) To forward messages for delivery as express letters. 
(3.) To forward messages for delivery as ordinary letters. 
(4.) To call for the services of post office express messengers. 
(5.) To receive telegrams, in place of the ordinary delivery by messenger, 
where, in adopting this course, no alteration in the circulation of 
telegrams is involved. 
VI. Post office subscribers have the right to communicate over the trunk wires 
with subscribers of the National Telephone Company and other licensees of the Post- 
matser General in all other areas on payment of the trunk fees shown below. 

General Post Office, July, 1905. 

GREAT BRITAIN. 



APPENDIX " A " 279 

APPENDIX No. 1 

No. 278d. 

GREAT BRITAIN— Continued. 

Circular D. 

POST OFFICE TELEPHONE EXCHANGES. 

RATES FOR PARTY LINES IN THE PROVINCES. 

Where two or more persons share the use of one line to an exchange, the Post- 
master General is prepared to provide the service at special rates. Such lines are 
called ' party lines.' They may be ' two-party lines ' — where the Postmaster General 
undertakes to connect the premises of only two subscribers on the one circuit; or 
' ten-party lines ' — where he reserves to himself the right to connect the premises of 
any number of subscribers from three to ten by means of the one line and its spurs. 

The main circuit is that portion of a party line which is used in common by two 
or more subscribers. 

The expression ' spur circuit ' means that portion of a party line used by one 
subscriber only. 

The rates of subscription are : — 
7. — Party line Message Rate Service. 

(a) Where the length of the main circuit does not exceed the radius from the post 
office covered by the minimum payment at the ordinary message rate (usually half a 
mile), and the spur circuits do not in each case exceed 220 yards in length, an annual 
subscription payable in advance of £2 ($9.74) per subscriber for a ' two-party line,' and 
of £1 10s. ($7.31) for a ' ten-party line,' exclusive of the charge for the transmission of 
messages. 

The charge for local messages is in each case one penny (2 cents) per call with a 
minimum payment of £1 10s. ($7.31) per subscriber, also payable annually in advance. 

(&) Where the length of the main circuit exceeds the ordinary radius, a charge 
of 12s. 6d. ($2.97) in the case of a ' two-party line,' and of 10s. ($2.44) in the case of a 
' ten-party line ' for each additional quarter of a mile for each subscriber using it. 

(c) Where the spur circuit exceeds 220 yards, a charge of 12s. 6d. ($2.97) for 
fach additional 220 yards or fraction thereof payable by the individual subscriber 
concerned. 
II. — Two-party line Unlimited Service. 

A subscription of £6 ($29.22) a year payable in advance for ordinary ' two-party 
lines ' when the length of the main circuit does not exceed half a mile and the spur 
circuits do not in each case exceed 220 yards in length. Excess distances in the main 
or spur circuits to be charged for as in the case of the message rate subscription. The 
unlimited service subscription covers an unlimited number of local calls, but not trunk 
calls, which must in all cases be paid for at the usual tariff, the charge varying accord- 
ing to distance. There will be no unlimited service rate for ' ten-party lines.' 

Agreements are as a rule for three years, but where the work of construction is 
specially expensive, agreements for a longer period may be required, and some addi- 
tional charge beyond the tariff charge may be necessary. 

Extension lines are not provided in connection with party lines. 

SPECIAL CONDITIONS OF THE SERVICE. 

1. A portion of a ' party-line ' is in every case used in common by two or more 
subscribers. The premises to be connected by a party line must lie in the same direc- 
tion from an exchange. 

2. A subscriber shall not be entitled to interrupt or otherwise interfere with the 
conversation of any other subscriber connected with the same party line. When one 
of the subscribers to a party line is speaking over the circuit, no local calls for the 
other subscribers can be effected. 

GREAT BRITAIN. 



280 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

.1 , 4-5 EDWARD VII., A. 1905 

3. But the Postmaster General reserves to himself the right to interrupt any local 
conversation of a subscriber if a trunk call is received from or for any other sub- 
scriber connected with the same party line. 

4. Secrecy as between the several subscribers connected with a party line cannot 
be given. 

General Post Office, May, 1904. 



No. 278e. 



GEEAT BEIT AIN— Con tinned. 
Pamphlet E. 




Boundaries of :— - 
[ondon "Telephone A rea 
CouNTy of |_onoon 



The London telephone area, which is probably the largest and most populous single 
exchange area in existence, is upwards of 600 square miles in extent, and contains a population 
of more than 6,000,000. 

GREAT BRITAIN. 



APPENDIX " A " 281 

APPENDIX No. 1 

No. 278f. 

GREAT BRITAIN— Continued. 

(Pamphlet E.) 

POST OFFICE LONDON (ENGLAND) TELEPHONE SEEVICE. 

EXCHANGES. 

The following post office exchanges have been provided, or are in course of estab- 
lishment, and will serve the districts indicated: — 

Wiih in the Con nli/ of London. 

1. Central Exchange. — Serving the city and west central districts as far as Regent 
street on the west, King's Cross on the north, and Wapping on the east, together with 
Bermondsey and the Borough on the south of the Thames. 

2. Victoria Exchange. — Serving Westminster, Belgravia, and the adjoining dis- 
tricts, as far as St. James' Park and Hyde Park on the north to Chelsea on the west. 

3. Western Exchange. — Serving South Kensington, Earl's Court, Kensington, 
Brompton. with parts of Walham Green, Chelsea and Hammersmith. 

4. Mayfair Exchange. — Serving the Mayfair, Paddington, Marylebone and Bays- 
water districts, with part of St. John's Wood. 

5. Hamstead Exchange. — Serving Hamstead, West Hamstead, Child's Hill and 
Kentish Town. 

6. Putney Exchange. — Serving Putney, Fulham and Roehampton, with parts of 
Barnes and Wandsworth. 

Outside the County of London. 

7. Wimbledon Exchange. — Sewing Wimbledon, Wimbledon Park, iferton, Mit- 
cha:n, with the adjoining districts. 

8. Kingston-on-Thames Exchange. — Serving Kingston-on-Thames, Norbiton, Sur- 
biton. Trddington, Hampton, East Molesey, Esher, the Dittons and Maiden. 

9. Richmond Exchange. — Serving Richmond, Twickenham, Petersham, Kew 
Mortlake and East Sheen. 

10. Chiswick Exchange. — Serving Chiswick, Acton, East Acton, Shepherd's Bush, 
Turnham Green, Gunnersbury, and parts of Hamersmith, Barnes and Brentford. 

11. Croydon Exchange. — Serving Croydon and the adjoining district. 

New exchanges will be established from time to time for the service of other dis- 
tricts. 

The work of connecting the premises of subscribers with these exchanges will be 
carried on as rapidly as possible. 

ADVANTAGES OF THE SYSTEM. 

(1.) The Pest Office London Exchange system is an entirely new system, and the 
apparatus and method of working represent the latest achievements of electrical 
science. The operator at the exchange is called automatically by the removal of the 
telephone receiver from the rest. This action lights a small glow lamp on the switch- 
board, which keeps alight until the necessary connections are made; and the replace- 
ment of tin- receiver at the end of the conversation light another lamp, notifying the 
completion of the call. If the subscriber required is engaged, the fact is indicated by 
the production of a distinct sound (an intermittent buzz) in the calling subscriber's 
telephone. 

GREAT BRITAIN. 



282 



SELECT COMMITTEE ON TELEPHONE S78TEMS 

4-5 EDWARD VII., A. 1905 




Fig 1.— Wall Telephone for Exchanges in Central London 
(with moveable arm for adjusting the height of the transmitter). 



(2.) At the more important exchanges the system is worked by means of batteries 
at the exchange, which obviate the necessity for batteries at the subscriber's premises. 

(3.) Table or wall telephones of the latest and most approved pattern are supplied 
at the option of the subscriber. 

(4.) The system, which is composed throughout of double-wire (metallic) cir- 
cuits, is almost entirely underground. By the use of underground wires, interruptions 
due to storms, as well as accidents due to contact between telephone wires and wires 
carrying high-power currents, are obviated. 

(5.) The various post office exchanges are connected with each other, with the 
trunk wire exchange, and with the various exchanges of the National Telephone Com- 
pany, by means of a large number of direct circuits. In this way the loss of time 
which would otherwise arise in passing calls through several exchanges is avoided, and 
subscribers to the post office system should be able to communicate with the company's 
subscribers as readily as if there were but one system. 

GREAT BRITAIN. 



APPENDIX 



283 



APPENDIX No. 1 




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GREAT BRITAIN. 



284 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 



Attention to Calls. 



To ensure that subscribers' calls are attended to promptly by the operators at the 
exchange, officers of the post office will from time to time, unknown to the operators, 
visit subscribers' premises and ask permission to call up the exchange. The number 
of seconds occupied before the operator answers will be recorded, and subscribers are 
earnestly requested to give the officer, on production of his card of authorization, every 
facility. 

RATES OF SUBSCRIPTION. 

The rates of subscription for exchange circuits are as follows: — 
1. Ordinary Message Rate Service: — 

(a) Charges for connection with any exchange in the county of London within 
two miles of the subscribers's premises. 

£ s. d. 
Annual subscription 5 ($24.35) 




Fig. 4.— Wall Telephone for Suburban Exchanges 
(with movable arm for adjusting the height of the transmitter.) 



GREAT BRITAIN. 



APPENDIX " A " 



285 



APPENDIX No. 1 

Message Fees — £ s . d. 

One penny (2 cents) for each call to a subscriber 

on any exchange in the county of London. 
Two pence (4 cents) for each call to a subscriber 
on any exchange outside the county of Lon- 
don, but within the London area. 
(b) Charges for connection with any exchange 
outside the county of London within two 
miles of the subscriber's premises. 

Annual subscription 4 ($19.48) 

Message Fees — 

One penny (2 cents) for each call to a subscriber 

on the same exchange. 
Two pence (4 cents) for each call to a subscriber 
on any other exchange in the London area. 
The minimum yearly amount payable by each sub- 
scriber for message fees is 1 10 ( $7.31 ) 




Fig. 5. — Table Telephone for Suburban Exchanges. 

IT. Party-line Message Rate Service: — 
Annual Subscriptions — 

(a) For connection with any exchange, except 
the Central Exchange, by means of a line 
used by not more than two subscribers .... 

(b) For connection with any exchange outside 
the county of London by means of a line 
used by more than two and not more than 
ten subscribers 2 

Subscriptions at party-line rates cannot be accepted 
from subscribers on the Central Exchange, or at 
the lower party-line rate from subscribers on any 
exchange in the county of London. 



3 ($14.61) 



($9.71) 



GREAT BRITAIN. 



286 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

£ s. d. 
Message fees for calls originated by party-line sub- 
scribers will be the same as for calls by sub- 
scribers at the ordinary message rate, but the 
minimum yearly amount payable for message fees 
by each party-line subscriber is 3 ($14.61) 

III. Unlimited Service: — 

Annual subscriptions for connection with any exchange 
within two miles of the subscriber's premises, to- 
gether with an unlimited number of calls — 

(a) For the first line 17 ($82.79) 

(o) For each additional line connecting any 
premises of the same subscriber with an ex- 
change 14 ($68.18) 

IV. Call Office Fee:— 

For any call from a call office to any subscriber in 

the London area, for each period of three minutes 2 (4 cents) 

V. Additional Annual Charges: — 

(a) Where the premises of any subscriber at the 
ordinary message rate or at the unlimited service 
rate are more than two miles from the exchange, 

for every additional quarter of a mile 1 5 ( $6.09 ), 

(b) Where the main circuit of a party-line exceeds two 
miles in length, for each additional quarter of 

a mile, for each subscriber . 10 ( $2.44 ) 

(c) Where the spur circuit of a party-line exceeds 
220 yards in length, for each additional quarter 
of a mile, for the subscriber served by the spur 

circuit 1 5 ( $6.00 ) 

(d) For each extension line connecting two parts 
of the same premises of a subscriber, where the 

line is not more than 110 yards in length .... 1 10 ( $7.31 ) 

(e) For each additional 110 yards of such a line.. . 10 ( $2.44) 

(f) For each extension line connecting separate 
premises of the same subscriber, and not more 

than a quarter of a mile in length 3 10 ($17.05) 

(g) For each additional quarter of a mile of such a 

line 1 5 ( $6.09 ) 

The distances f except in the case of party-lines) are measured in a straight 
line on a horizontal plane. 

VI. All agreements are for one year, and are terminable thereafter by three months' 
notice. 

VII. Post office subscribers have the right to communicate with subscribers of the 
National Telephone Company in the London Exchange area at th; same rates of 
charge as for communication with other post office subscribers. 

Note. — Message fees will be charged only when subscribers' lines are connected 
with the lines of subscribers with whom they have asked to speak. No fees will be 
charged if the lines are out of order or engaged. 

Where an extension line goes to a point more than two miles from the ex- 
change with which it is connected, an agreement for five years may be required. 
Similarly, a five years' agreement may be required in cases where an exchange circuit 
is, at the request of the subscriber, connected with an exchange other than that by 
wbich the subscriber's premises would normally be served. 
GREAT BRITAIN. 



APPENDIX " A " 287 

APPENDIX No. 1 

Special arrangements will be made for the service of residential flats, and of com- 
mercial exchanges, clubs, and similar institutions, particulars of which can be had on 
application. 

See also the fourth paragraph on ' Use of Exchange Lines by Non- Subscribers.' 

ADDITIONAL APPARATUS. 

Receivers. 

Wherever the exchange line is likely to be used for trunk messages, a second 
receiver will be supplied, if desired, without additional charge. 

Additional receivers after the second will be provided, if required, at an annual 
rental of 3s. 6d. (86 cents) each. 

Extension Bells. 

An extension bell will be supplied for an additional annual rental of 5s. ($1.22), 
provided that not more than 25 yards of wire are required to connect the bell with the 
telephone. 

Any length of wire in excess of 25 yards will be charged for at the ordinary inter- 
nal exension rate, viz., 10s. ($2.44) for each 110 yards or portion thereof. 

Silence Cabinets and other Fittings. 

Silence cabinets and ornamental cases for batteries will, when required, be sup- 
plied at the expense of subscribers — the articles, of course, becoming their own pro- 
perty. The cost of the standard post office cabinet is £12 12s. ($61.37), but any other 
pattern will be supplied if desired. 

Automatic Coin-Collecting Boxes. 

In the case of party-line subscribers a coin-collecting box for the payment of mes- 
sage fees will be provided at each subscriber's office. Such boxes will be supplied in 
other cases, when desired, without additional charge. 

SERVICES AVAILABLE FOR SUBSCRIBERS. 

The system is available day and night, including Sundays. 

A subscriber may use his exchange line for the following purposes, viz. : — 

(1.) For originating and receiving calls to and from subscribers to the Port Office 
system, or subscribers to the National Telephone Company's system in the London ex- 
change area. 

(2.) For originating and receiving calls over the telephone trunk wires to and 
from subscribers to any exchange system of the Postmaster General, or of any licensee 
in other exchange areas, as well as for originating and receiving calls over the London- 
Paris telephones wires. 

Printed copies of the list of trunk charges may be obtained on application. 

Message-rate or party-line subscribers, on making trunk calls will pay the or- 
dinary local tolls in addition to the trunk fee. Trunk calls will, in all cases, be effected 
through the trunk switch at the Central telegraph office. 

(3.) For forwarding telegrams for onward transmission over the public wires, sub- 
ject to payment of the telegraphic charge. The telegrams will be written down at the 
Central telegraph office, and message-rate or party-line subscribers will pay the or- 
dinary local tolls in addition to the telegraphic charge, as in the case of trunk calls. 

(4.) For the receipt of telegrams bearing the subscriber's registered abbreviated 
address, in lieu, of delivery by messenger. The fee for the registration of an abbre- 
viated address is one guinea ($5.12) per annum. 

GREAT BRITAIN. 



288 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Where a subscriber whose telegrams are delivered by telephone, wishes also to have 
for record purposes a written copy of each message, such copies will be sent to him 
Reparately, or in daily batches, either by post or by express messenger, on payment of 
the postage, or of the express fee calculated at the rate of 3d. (6 cents) per mile, as the 
case may be. 

Delivery by messenger will, of course, be reverted to at once in the event of a sub- 
scriber's circuit becoming faulty. 

(5.) For forwarding messages for delivery as express letters. Such a message, if 
intended for delivery within the London exchange area, will be written down at any 
post office connected with the Post Office system or with the National Telephone Com- 
pany's system, which may be selected by the subscriber, and will be delivered by spe- 
cial messenger from that office on payment of the ordinary express letter fees (i.e., 3d. 
(6 cents) for each mile or part of a mile traversed by the messenger on his outward 
journey) if the message does not exceed 30 words in length ; and on payment of double 
those fees if the message is over 30 but under 60 words in length. 

For instance, if a subscriber in Croydon wishes to communicate with a non-sub- 
scriber in Kengsington, he can call up the post office in Kensington and dictate a mes- 
sage which would be immediately delivered by express messenger. 

Such messages can also be sent by means of the trunk wires for delivery in other 
areas, the trunk fees being payable in addition to those already specified. 

Messages over 60 words in length or occupying more than six minutes in trans- 
mission cannot be accepted. 

The ordinary local tolls will, of course, be payable by message-rate and party-line 
subscribers in addition to the express and trunk fees. 

(6.) For forwarding messages for delivery as letters, on payment of the ordinary 
postal fees and local tolls, snch messages being not more than 60 words in length and 
occupying not more than six minutes in transmission. 

(7.) For obtaining the services of express messengers for such purposes as the 
conveyance of parcels from one address to another, the summoning of doctors, the call- 
ing ot cabs, &c, subject to the charges specified in clause (5) and to the conditions laid 
down in the post office guide with regard to the express messenger service. 

DEPOSITS. 

Each message-rate subscriber will be required to pay the minimum amount for 
message fees, namely, 30s. ($7.31), at the time of payment of the annual subscription. 

Subscribers, whether at the message-rate, or unlimited service rate, who desire to 
use their lines for trunk messages or for the telegram and express services, will be re- 
quired to make a deposit of £1 ($4.87) to cover the credit given, on payment of their 
first annual subscription. An additional deposit will be required in the case of lar^e 
users. 

CALL OFFICES. 

Call offices will, in course of time, be established at the majority of the post offices 
in the London area. 

The fee for originating or receiving a call at a call office within the London 
txchange area is 2d. (4 cents) for each period of three minutes' conversation. 

In the case of a trunk call this fee is charged in addition to the trunk fee. 

USE OF EXCHANGE LINES BY NON-SUBSCRIBERS. 

Message-rate subscribers (including party-line subscribers) may allow their tele- 
phones to be used by other persons, and may charge and retain fees for such use in 
addition to the charges payable to the Postmaster General; 

GREAT BRITAIN. 



APPENDIX " A " 289 

APPENDIX No. 1 

No objection will be raised if a subscriber at the message-rates exhibits a notice 
that calls may he made by means of his telephone, or if he advertises the fact on his 
business note-paper, &c. 

This privilege does not extend to subscribers at the unlimited service rate, whose 
lines are not permitted to be used for the transmission of messages which do not relate 
to their own business or private affairs. 

Two persons or firms occupying the same offices and desiring to use the same tele- 
phone jvill severally be admitted to the ordinary privileges of subscribers (including a 
separate entry in the directory in respect of each person or firm) on payment of a sub- 
scription and a half, either at the ' message ' rate or ' unlimited service' rate. 

PRIVATE WIRES. 

The Postmaster General undertakes the construction and maintenance on rental 
terms of private telegraph and telephone wires, i.e., wires not led into post office-; or 
exchanges, nor used in connection with exchange wires, between the offices or houses 
of firms or private individuals. Inquiries regarding such wires should be addressed 
to the Secretary, General Post Office. London. 

No. 278g. 

GREAT BRITAIN— Continued. 

(Pamphlet F.) 

POSTMASTER GENERAL AND NATIONAL TELEPHONE COMPANY. 

RETURN TO AN ORDER OF THE HONOURABLE THE HOUSE OF COM- 
MONS, DATED FEBRUARY 14, 1905.— FOR, 

Copy 'of memorandum of the Postmaster General, dated February 14, 1905, setting 
forth an agreement, dated February 2, 1905, between the Postmaster General and the 
National Telephone Company, Limited.' 

Stanley. 
Post Office, February 14, 1905. 



Memorandum of the Postmaster General, dated February 14, 1905, setting forth 
an agreement dated February 2, 1905, between the Postmaster General and the National 
Telephone Company, Limited. 

On November 18, 1901, the Postmaster General entered into an agreement with 
the National Telephone Company, Limited, for the purchase of the plant of the com- 
pany in the London Exchange Area on the termination of the company's license, that 
13 on December 31, 1911. The plant was to be purchased at its value in situ, and no 
payment was to be made in respect of compulsory purchase, goodwill, or past or future 
profits, in other words the purchase was to be made on what are known as ' tramway 
terms.' The agreement also provided for inter-communication between the systems 
of the Postmaster General and of the company in London during the continuance of 
the company's license, and for uniformity of rates. 

This agreement was in effect approved by the House of Commons, after full dis- 
cussion, on January 27, 1902. 

An agreement, on similar lines, has now been made in relation to the whole coun- 
try. On December 31, 1911, the Postmaster General will take over the whole business 
carried on up to that date by the company, and will acquire the plant of the company 
on ' tramway terms.' No payment will be made in respect of goodwill or profits except 
in the case of the private wire business of the company (which can be! carried on 
without the Postmaster General's license) and in the very few cases where the com- 

GRBAT BRITAIN'. 



290 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

pany licenses have, under the provisions of the Telegraph Act, 1899, been extended 
beyond 1911. 

At the option of the government, three-fourths, and, with the consent of the com- 
pany licenses have, under the provisions of the Telegraph Act, 1899, been extended 
exceeding twenty years. 

Certain powers of objecting to plant as unsuitable for purchase are reserved to 
the Postmaster General; and rules for the construction of plant are laid down. 

During the continuance of their license the company are to allow intercommuni- 
cation without additional charge between the systems of the Postmaster General an! 
of the company. The company will be precluded from showing favour or preference 
as between subscribers, and the rates charged by the company will be confined withi.i 
certain limits. If, on complaint and after full inquiry, it is proved that the com- 
pany is giving an inefficient service in any district, the Postmaster General may take 
over the company's business in that district at once, without any payment for goodwill. 

Certain provisions of the London agreement which are not of general application 
remain in force. In other respects the provisions of that agreement have been assimi- 
lated to those applicable to the rest of the country. 

A copy of the agreement is appended. It will become binding when confirmed by a 
resolution of the House of Commons, or on August 31, if not disapproved by Parlia- 
ment before that date. 

Stanley. 
February 14, 1904. 



Dated February 2, 1905. 
POST OFFICE TELEGKAPHS. 
his majesty's postmaster general 
and 

THE NATIONAL TELEPHONE COMPANY, LIMITED. 

Agreement for Purchase of Plant, Property and Assets. 

This indenture made the second day of February, one thousand nine hundred and 
five, between the Right Honourable Edward George Villiers Stanley, C.B., commonly 
called Lord Stanley, His Majesty's Postmaster General (who and whose successors in 
office for the time being are intended to be hereinafter included in the term ' the Post- 
master General ') on behalf of His Majesty of the one part and the National Telephone 
Company, Limited, the registered office of which is at Telephone House, Victoria Em- 
bankment, in the City of London (hereinafter called ' the company ') of the other part. 

Whereas by an indenture dated the 29th day of November, 1884, and made between 
the Eight Honourable George John Shaw Lefevre, then Her late Majesty's Postmaster 
General, on behalf of Her late Majesty of the one part, and the company of the other 
part (which indenture is hereinafter referred to as ' the license of 1884 ') the Postmaster 
General covenanted and agreed with the company that the company should during the 
term of thirty-one years from the 1st day of January, 1881 (determinable as in the 
same indenture provided) have license and permission to do the following things (that 
is to say) : — 

1. To work and use telegraphs of which the transmitting and receiving instru- 
ments should be telephones but no other kind or description of telegraphs for the pur- 
pose of enabling persons to transmit and receive by means of spoken words (but not 
otherwise), and with the aid of such telegraphs as aforesaid telegraphic messages (with- 
in the exclusive privilege conferred on the Postmaster General by the Telegraph Act, 
1869) relating to the business or private affairs of such persons, and 
GREAT BRITAIN. 



APPENDIX " A " 291 

APPENDIX No. 1 

2. To receive money or other valuable considerations in respect of the use of the 
said telegraphs or the transmission and receipt of messages thereby; 

And the license of 1884 was granted subject to such provisions and to such 
covenants on the part of the company as in the same license are specified; 

And whereas the several acts which the company were authorized to do and the 
business which they were authorized to carry on under and by virtue of the license 
of 1884 are hereinafter for convenience collectively referred to by the expression ' li- 
censed telephonic business,' and the expression ' to transact licensed telephonic busi- 
ness ' means to do such acts and to carry on such business as aforesaid ; 

And whereas by an indenture dated the 25th day of March, 1896, and made between 
the Most Noble Henry Duke of Norfolk, Earl Marshal and Hereditary Marshal of 
England K.G. then Her late Majesty's Postmaster General on behalf of Her late 
Majesty of the one part and the company of the other part (which indenture is here- 
inafter referred to as ' the Trunk Line agreement ') it was agreed (inter alia) that 
the company should cease to transact licensed telephonic business elsewhere than 
within exchange areas as therein specified and provision was made by the Trunk Line 
agreement and by an indenture dated the 26th day of March, 1896, and made between 
the same parties for the purchase by the Postmaster General from the company of 
the telephonic lines of the company connecting exchange areas (which lines were in' 
the said indentures more specifically defined and were therein and are hereinafter 
called ' trunk lines.') 

And whereas the trunk lines of the company were accordingly on April 4, 1S96. 
delivered and handed over by the company to the Postmaster General upon paymenl 
of the purchase money specified in the said debentures and the Postmaster Genera! 
has from that date maintained a system of public telephonic communication by means 
of trunk lines between exchange areas and the company have transacted licensed tele- 
phonic business according to the provisions of the Trunk Line Agreement within 
exchange areas and not elsewhere; 

And whereas by an indenture dated November 18, 1901, and made between the 
Most Honourable Charles Stewart, Marquis of Londonderry, E.G., His Majesty's 
then Postmaster General on behalf of His Majesty of the one part and the company of 
the other part (which indenture is hereinafter referred to as ' the London Agreement ') 
it was agreed (inter alia) that (subject to the provisions therein contained) the Post- 
master General should on the determination of the license of 1884 in the London 
Exchange area purchase all such plant of the company within that area as was in use 
for the purposes of the company's London system at the time of such determination 
and was then suitable for the requirements of the telephonic service of the post office 
in that area. 

And whereas under the provisions of the Telegraph Act, 1899, and of certain 
agreements between the Postmaster General and the company made in pursuance 
thereof the license of 1884 has within the areas specified in the first schedule hereto 
been extended until the dates respectively specified in the second column of the said 
schedule opposite the names of such areas, but subject to such extensions and to any 
further extensions which may hereafter be made in pursuance of the provisions of 
the Telegraph Act, 1899, or any agreement between the Postmaster General and the 
company the power of the company to transact licensed telephonic business will expire 
on December 31, 1911; 

And whereas the company also transact telephonic business which may by law be 
transacted without the license of the Postmaster General, such business being herein- 
after referred to as ' private wire business ;' 

And whereas it has been agreed between the Postmaster General and the company 
that the company shall as from December 31, 1911, cease to transact any telephonic 
business except as hereinafter specified and that the Postmaster General shall pur- 
chase all such plant, property and assets of the company as hereinafter specified to- 
gether with any telephonic business of the company which could be lawfully transacted 

GREAT BRITAIN. 
l—d—20 



292 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

after December 31, 1911, and it has further been agreed between the parties aforesaid 
as hereinafter specified; 

Now this indenture witnesseth that in consideration of the premises and of the 
matters hereinafter appearing, it is hereby agreed and declared between and by the 
parties hereto and the company as to the covenants and agreements hereinafter con- 
tained on their part) do hereby covenant and agree with the Postmaster General and 
the Postmaster General (as to the covenants and agreements hereinafter contained on 
his part) in exercise of the powers and authorities enabling him in this behalf doth 
hereby covenant and agree with the company in manner following (that is to say) : — 

Interpretation clause — 

1. In this agreement and in the schedules hereto — The expression ' plant ' includes 
works, materials and plant. 

The expression ' competitive exchange area ' means one of the areas specified or 
described in the second schedule hereto. 

The expression ' exchange system ' means a system of public telephonic com- 
munication established in any exchange area. 

The expression ' junction wire ' means a wire used for telephonic communication 
and connecting one exchange with another exchange in the same exchange area. 

The expression 'terminal charge' means a charge for the use of an exchiage 
system in respect of a conversation initiated on another exchange system whether 'n 
the same or in any other area. 

The expression ' United Kingdom ' includes the Channel Islands and the Isle of 
Man. Other expressions interpreted in the Trunk Line agreement and the London 
agreement shall have the same meanings as in those agreements so far as the subject 
or context so requires or admits. 

Purchase and sale — 

2. (1) Subject to the provisions of this agreement the Postmaster General shall 
buy and the company shall sell and convey on December 31, 1911 : — 

(a) All plant, land and buildings of the company brought into use with the sanc- 
tion of the Postmaster General and in use by the company on December 31, 1911, for 
the purpose of the licensed telephonic business of the company; 

(o) Any licensed telephonic business of the company which by virtue of the Tele- 
graph Act, 1899, or of any of the agreements in writing between the Postmaster Gen- 
eral and the company particularly specified in the first schedule hereto or of any other 
agreement in writing between the Postmaster General and the company (whether made 
before or after the date of this agreement) can be transacted for any period after 
December 31, 1911 ; 

(c) Any private wire business of the company together with all plant, land and 
buildings in use by the company on December 31, 1911, for the purposes of such busi- 
ness; 

(d) All stores which on December 31, 1911, are in the company's possession and 
which are suitable for use in accordance with the methods of work described in the 
specification and rules set forth in the third schedule hereto and all furniture in the 
company's possession at the same date provided such stores and furniture are reason- 
ably necessary for the purposes of telephonic business of the company according to the 
ordinary and business-like way of carrying on such business. 

(2) Spare plant of all descriptions in the possession of the company on December 
31, 1911, including works of all kinds in course of construction at the same date (pro- 
vided such plant and works are reasonably necessary for the purposes of the telephonic 
business of the company according to the ordinary and business-like way of carrying 
on such business) shall be deemed to be plant in use by the company on December 31 
1911, for the purposes of the company's telephonic business. 

(3) Plant, land and buildings shall be deemed to have brought into use the sanc- 
tion of the Postmaster General if such plant, land and buildings comply with one of the 
following conditions, but not otherwise (that is to say) : — 

GREAT BRITAIN. 



APPENDIX " A " 293 

APPENDIX No. 1 

(a) If such plant, land or buildings are in use (or are in process of being brought 
into use) for the purposes of the company's business at the date hereof; or 

(b) In the case of plant, if such plant is after the date of this agreement con- 
structed by the company in accordance with the specification and rules set forth in the 
third schedule hereto; or 

(c) In the case of land and buildings, if such land and buildings are after the date 
of this agreement acquired or constructed with the consent in writing of the Post- 
master General. 

Provided that no exchange which has a capacity of more than 300 direct sub- 
scribers' lines and the construction of which was commenced after August 15, 1904, 
shall be deemed to have been brought into use with the sanction of the Postmaster 
General unless its site and capacity shall have been approved in writing by the Post- 
master General or unless at the time when the question arises it shall be determined 
by arbitration that such exchanges will be suitable for the requirements of the tele- 
phonic service of the post office on December 31, 1911. 

Suitability. 

3. (1) In the case of — 

(a) Plant not constructed in accordance with the specification and rules set forth 
in the third schedule hereto (other than switchboards and internal exchange plant in 
use. on August 15, 1904, and specified in a list furnished by the company to the Post- 
master General within six months from the date of this agreement), and 

(b) Plant of any kind, land and buildings in use on January 1, 1911, for the pur- 
poses of the company's licensed telephonic business in competitive exchange areas 
(whether such plant is constructed in accordance with the said specification and rules 
or not), 

the Postmaster General may by notice in writing given to the company not later than 
January 1, 1911, object to buy such plant, land or buildings as he considers will be un- 
suitable for the actual requirements of the telephonic service of the post office on 
December 31, 1911. 

(2) Any question of the suitability of plant, land or buildings for the requirements 
of the telephonic service of the post office raised by the Postmaster General under the 
last preceding sub-clause shall if the parties differ be referred to arbitration, and if the 
company (otherwise than through any cause beyond their control) fail on or before 
June 30, 1911, to obtain an award of the arbitrator or tribunal to which such question 
is under the provisions of this agreement referred to the effect that any plant, land or 
building specified in any notice of objection given by the Postmaster General under 
the last preceding sub-clause will in the opinion of the arbitrator or tribunal be suit- 
able for the actual requirements of the telephonic service of the post office on December 
31, 1911, the objection of the Postmaster General shall be deemed valid and he shall not 
be bound to buy such plant, land or building as aforesaid any other provision of this 
agreement to the contrary notwithstanding. 

(3) For the purposes of this clause the Postmaster General may give one or more 
notices of objection and all questions of suitability of plant, land or buildings raised 
by him may be the subject of one reference to arbitration or different questions may be 
the subject of different references as may be agreed between the parties and the pro- 
visions of the clause shall apply in either case. 

(4) The right of objection reserved to the Postmaster General by this clause in re- 
lation to plant, land and buildings in competitive exchange areas shall extend to plant 
constructed and to buildings constructed or acquired and to land acquired by the com- 
pany in such areas during 1911 provided the Postmaster General gives notice in writ- 
ing within three months after December 31, 1911, that he objects to buy such plant, 
land or buildings. In such case the provisions of this clause as to the arbitration shall 
apply and the question referred shall be the suitability of the plant, land or buildings 
for the actual requirements of the telephonic service of the post office on December 31, 

GREAT BRITAIN. 

1— d— 20J 



294 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

1911, and the date before which an award must be obtained by the company (otherwise 
than through any cause beyond their control) shall be September 30, 1912. 

(5) In the event of any plant being excluded from the Postmaster General's pur- 
chase under the provisions of this clause or otherwise the company shall give the Post- 
master General at the cost in all things of the Postmaster General all reasonable facili- 
ties for the construction of alternative plant in connection with the company's tele- 
phonic system for use upon the transfer of that system to the Postmaster General. 

Value — 

4. (1) The value on December 31, 1911, of all plant purchased by the Postmaster 
General in pursuance of the provisions hereof shall be deemed to be its fair market 
value at the time of the purchase due regard being had to the nature and then condition 
of such plant and to the state of repair thereof and to the circm lat it is in 
such a position as to be ready for the immediate working and to its suitability for the 
purposes of the Postmaster General's telephonic service and no addition shall be made 
to such value in respect of compulsory purchase or of goodwill or of any profits which 
might have been or be made by the company by the use of such plant and in determin- 
ing the value of any plant no advantage arising from the construction of such plant 
by leave of the Postmaster General upon any railway or canal over which the Post- 
master General possesses exclusive rights of way for telegraphic lines shall be taken 
into account. 

(2) The value on December 31, 1911, of all land, buildings, stores and furniture 
purchased by the Postmaster General in pursuance of the provisions hereof shall be the 
fair market value thereof at that date. 

(3) The value on December 31, 1911, of any licensed telephonic business of the 
company which by virtue of the agreements referred to in the first schedule hereto or 
of any other agreement in writing between the Postmaster General and the company 
can be transacted as aforesaid after December 31, 1911, (apart from the plant, land and 
buildings used therein which are to be valued as hereinbefore in this clause provided) 
shall be such sum as may be agreed between the Postmaster General and the company 
regard being had to the net profits of such business and to the circumstances and con- 
ditions under which the company would carry on such business after December 31, 1911. 

(4) The value on December 31, 1911, of any private wire business of the company 
(apart from the plant, land and buildings used therein which are to be valued as here- 
inbefore in this clause provided) shall be taken to be three years' purchase of the net 
profits of such business, in the average of the three years ending on the 31st day of 
December, 1911. 

(5) All matters of difference arising under this clause shall be determined by 
arbitration. 

Optional purchase — 

5. The Postmaster General shall have the option of purchasing on December 31, 
1911, any property or assets of the company not specified in the preceding clauses of this 
agreement and the price to be paid therefor shall be determined by arbitration in case 
the parties differ. 

Transfer of ousiness — 

6. (1) As from December 31, 1911, the telephonic business (of whatsoever kind) 
theretofore carried on by the company shall be carried on (whether by the company 
or by the Postmaster General) at the expense and for the benefit of the Postmaster 
General and all income from such business shall be payable to the Postmaster General 
and all outgoings shall be payable by him. Where necessary there shall be an appor- 
tionment of the current income andj outgoings of such business and the company 
shall pay or allow to the Postmaster General a proportion of all rentals or subscriptions 
paid or payable in advance to the company such proportion being that which the un- 
expired portion of the whole term for which the rent or subscription is payable in 
GREAT BRITAIN. 



APPENDIX " A " 295 

APPENDIX No. 1 

advance bears to the whole term and the Postmaster General shall pay or allow to the 
company a corresponding proportion of any sums paid or payable by the company to 
the Postmaster General in advance by way of royalty. The Postmaster General shall 
undertake the collection of all outstanding rentals and other moneys owing to the 
company on any account current on December 31, 1911, and shall render such accounts 
to the company in connection with the same as may be agreed between the parties or 
determined by arbitration. 

(2) The company shall on December 31, 1911, or on such subsequent day or days 
during the year 1912 as may be fixed by the Postmaster General, deliver and hand over 
t-J the Postmaster General, all plant, property and assets of the company which may be 
purchased by him under this agreement and upon such transfer all estates, interests, 
rights, powers and authorities possessed or enjoyed by the company in relation thereto 
shall become and be deemed to be the property of and shall vest in the Postmaster 
General absolutely for all the estate and interest previously enjoyed therein by the 
company freed from any charge or incumbrance thereon created by the company but 
subject to all wayleave and other rentals, contracts and burdens of every kind subject 
to which the company may hold the same or which the company may be liable to pay, 
observe, perform or bear in connection therewith and so far as such rentals, contracts 
and burdens are continuing liabilities the Postmaster General shall indemnify the 
company against the same. 

(3) The company shall do all such acts and things as may be necessary to effect 
a complete delivery and transfer to the Postmaster General of all plant, property and 
assets of the company which may be purchased by him under this agreement together 
with all estates, interests, rights, powers and authorities as aforesaid and in parti- 
cular : — 

(a) The company shall show a good marketable title to all lands comprised withia 
the contract for purchase in this agreement contained, and the Postmaster General 
shall not be bound to purchase from the company any land to which the company are 
unable to show a good marketable title or which is subject to any restrictive covenants 
or conditions incompatible with the use of the land for the purposes of the telephonic 
business of the Postmaster General any provision of this agreement to the contrary 
notwithstanding; and 

(6) The company shall surrender to the Postmaster General all rights of carrying 
on licensed telephonic business after December 31, 1911, and shall hand over to the 
Postmaster General the license of 1884 and the several agreements specified in the 
first schedule hereto and any other agreements in writing between the Postmastar 
General and the company (whether made before or after the date of these presents) 
under which any licensed telephonic business of the company can be transacted for 
any period after December 31, 1911. 

(4) Upon the completion of the transfer of the plant, property and assets of the 
company to be purchased under this agreement or as soon after as may be, but in any 
case within six calendar months from such transfer the Postmaster General shall pay 
or assure to the company the purchase money payable by him under the provisions 
hereof. 

(5) If from any cause the purchase money payable by the Postmaster General 
for the plant, property and assets of the company purchased by him under this agree- 
ment is not paid or assured to the company on December 31, 1911, the Postmaster 
General shall pay to the company from that day until payment or assurance, interest 
on so much of the purchase money as from time to time remains unpaid at the rate 
of three pounds per centum per annum. 

(6) On and as from the date of the completion of the transfer of the plant, pro- 
perty and assets of the company to the Postmaster General under the provisions of 
this agreement the company shall cease to transact any telephonic business within 
the United Kingdom and the company shall not thereafter transact any business except 
so far as may be necessary to wind up the affairs of the company. 

GREAT BRITAIN. 



296 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

(7) If the company at any time after the date of this agreement shall, without 
the consent of the Postmaster General enter into any contract the effect of which 
is to impose an obligation upon the Postmaster General either to render any service 
or to make any payment after December 31, 1911 and such contract shall be injurious 
to his interests, the company shall make compensation to the Postmaster General in 
respect of such contract and the operation thereof and the Postmaster General may 
aet off against the purchase money payable to the company under this agreement any 
sums payable by the company under this sub-clause. If any difference arises between 
the parties as to whether any such contract is or is not injurious to the Postmaster 
General or as to the amount of compensation to be made by the company, every such 
difference shall be determined by arbitration. 

Payment by annuity — 

7. Subject as herein provided the Postmaster General shall have the option of pay- 
ing the purchase money payable under this agreement by way of terminable annuities 
running for a period not exceeding twenty years, such annuities being calculated so as 
to pay the whole of the purchase money by the end of the period fixed with interest in 
the meantime on the balance outstanding from time to time at the rate of three pounds 
per centum per annum payable quarterly. Provided that if the company so require 
such proportion of the purchase money as may be specified by the company not exceed- 
ing one-fourth part thereof shall be paid in cash. 

Company's staff — 

8. With regard to the officers and servants of the company the following provisions 
shall have effect : — 

(1) It is probable that the Postmaster General will be prepared upon the transfer 
to him of the plant, property and assets of the company as provided by this agreement 
to take into his service a considerable proportion of such officers and servants on terms 
to be arranged between himself and them, but the Postmaster General will not accept 
any obligation to recognize service under the company as giving any officer or servant 
any claim to consideration at the hands of the Postmaster General either as regards 
service, emolument, pension, gratuity or compensation, it being the intention of this 
agreement that any claim on the part of the officers or servants of the company arising 
from their service under the company for pension or compensation shall be dealt with 
by the company. 

(2) If any officer or servant who has been continuously in the service of the com- 
pany from August 15, 1904, to December 31, 1911, is taken into the service of the Post- 
master General and placed upon the permanent establishment of the post office his ser- 
vice under the Postmaster General shall (provided the authority of the Treasury or of 
Parliament be obtained in that behalf) give him a claim to a superannuation allowance 
after the rate and under the conditions provided by the Superannuation Acts, 1834 to 
1892, or any statutory modification thereof notwithstanding that he may at the date of 
his retirement have served less than ten years. 

Temporary arrangements — 

9. In order to promote the use of the telephone during the period between the date 
of this agreement and December 31, 1911, the following provisions shall have effect: — 

(1) The company shall maintain all their plant in good and efficient working order. 

(2) The company shall not show favour or preference to any person whomsoever 
in connection with their licensed telephonic business, and shall not as a condition of 
giving any service in connection with any exchange system require from any person the 
grant of any facility except for the purpose of giving such service to that person. 

(3) The company's charges for use of their exchange systems (other than the 
London Exchange System) and any services connected therewith shall not exceed the 
maximum rates or fall below the minimum rates specified in the fourth schedule hereto. 
Provided that — 

GREAT BRITAIN. 



APPENDIX " A " 297 

APPENDIX No. 1 

(a) In cases in which at the date of this agreement the company's charges in any 
exchange area exceed the maximum or fall below the minimum charges specified in the 
said schedule the maximum or minimum charges (as the case may be) in such exchange 
area shall be the charges of the company at the date of this agreement in lieu of those 
specified in the said schedule. 

(b) With the consent in writi™ nf the Postmaster General but not otherwise 
cirer tariffs or rates of charge (including rates for private branch exchanges and 
other special services) not falling within the scale of rates specified in the said schedule 
may be adopted and brought into use by the company either in substitution for or by 
way of addition to or variation of the charges specified in the 6aid schedule. 

(c) Nothing in the said schedule contained shall be deemed to affect the position 
of the company with regard to inter-communication with the Exchange System of any 
licensee of the Postmaster General other than the company. 

(4) (a) Subject as hereinafter provided the company and the Postmaster General 
shall respectively permit and give all reasonable facilities for local inter-communication 
between the subscribers and other persons using any post office exchange and the sub- 
scribers and other persons using the company's exchange system in the same exchange. 
area without payment of any terminal or other additional charge and for the purposes 
of such inter-communication each party shall provide the junction wires for conversa- 
tions originated on the system of each party and each party shall give all necessary 
facilities for the introduction into the exchanges of such party of the junction wires. 
of the other party. 

Provided that in every such case the Postmaster General and the company shall 
use every reasonable endeavour to come to an agreement as to the rates to be charged 
for the use of the exchange system of either party in the said area and any services con- 
nected therewith it being the intention of this agreement that in such cases the rates 
to be charged by the Postmaster General and the company shall be uniform. Any 
question relating to rates in any of the said areas as to which the parties may differ 
shall be referred by them to the treasury whose decision shall be final. 

(i) No terminal charges shall be made in respect of messages passing in either 
direction over the Postmaster General's trunk wires between the subscribers to and 
other persons using any post office exchange and the subscribers to and other persons 
using any exchange system of the company. 

(5) (a) On the conditions specified in clause 7 of the London agreement so far ?.s 
the same are applicable the Postmaster General will without prejudice to any existing 
agreements between the Postmaster General and the company as to the provision of 
any works provide underground works for the use of the company elsewhere than in 
the London exchange area the rent to be paid by the company for the use of such 
works being at the rate of £11 per mile of double wire per annum. 

Provided that — 

(i) Such rent shall be calculated as though every underground work contained 
fifty double wires at the least except in the case of underground wires not exceeding 
a quarter of a mile in length led from a main cable to a distrioution point and cf 
underground wires not exceeding fifty yards in length led from a main cable to a 
group of a least ten subscribers' offices; and 

(ii) Where the company desires to replace large overhead systems by underground 
systems the rate to be charged for underground work under the sub-clause may be the 
subject of special agreement. 

(b) On the like conditions the Postmaster General will provide for the use of the 
company in new or refitted exchanges of the company switch-boards adapted to the 
Postmaster General's exchange system the rent to be paid by the company (to cover 
interest on cost of construction and depreciation) being nine per cent upon the cost 
of construction such cost to include an allowance of ten per cent on the cost of 
materials and labour in respect of supervision by the head office staff and local staff 
of the post office. 

(c) The company shall maintain to the satisfaction of the Postmaster Generil 

GREAT BRITAIN. 



298 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

all works provided under this agreement by the Postmaster General for the company 
and on default such works shall be maintained by the Postmaster General at the ex- 
pense of the company. 

(d) Leases or agreements in relation to all works provided under this agreement 
by the Postmaster General for the company shall be executed by the Postmaster 
General and the company respectively and such leases or agreements shall contain 
all proper provisions as to the use and maintenance of such works. 

(e) Nothing herein contained shall oblige the Postmaster General to give the 
company the use of wires in an underground work which is provided in the first in- 
stance for the Postmaster General's own use. 

(6) The Postmaster General will extend and afford to the subscribers and persons 
using any exchange system of the company a'l such postal telephonic and telegraphic 
facilities (so far as the same may be available) as he affords to subscribers and persons 
using any post office exchange system and upon similar terms and conditions. 

(7) The provisions of clause 11 of the London agreement shall in addition to 
applying to the London exchange area supply to all other exchange areas. 

Provision in the event of inefficient service — 

10. If at any time before December 31, 1911, representations are made to the 
Postmaster General that the company are giving an inefficient service in any exchange 
area and upon an inquiry by an impartial person appointed by the board of trade (at 
which inquiry the company and the person or persons making the representations 
shall be entitled to be heard by counsel and to adduce evidence) it shall be ascertained 
by the award of such person that the company's service in that area is inefficient and 
that such inefliciency is not caused by the unreasonable withholding of wayleaves by 
any local authority it shall be lawful for the Postmaster General at his option either 
to require the company to take such steps as he may deem necessary to render their 
service efficient or to call upon the company to sell to him the plant, land and buildings 
used by them in such exchange area. In the first case if the company make default 
in complying with the Postmaster General's requirements and in the second case 
forthwith the company shall sell to the Postmaster General the plant and buildings 
used by them as aforesaid and all the provisions of this agreement in relation to the 
sale to the Postmaster General of the company's plant, land and buildings on December 
31, 1911, shall apply to a sale under this clause so far as such provisions are applicable. 
Upon such day as the Postmaster General shall fix in such case the company's license 
to transact telephonic business in such area shall cease, and the company shall not be 
entitled to any payment in respect of compulsory purchase or good-will or prospective 
or hypothetical profits in respect of their business in the said area. 

Modification of London agreement — 

11. (1) Clause 9 of the London agreement shall as from the date of this agree- 
ment cease to be of effect and the provisions of this agreement in relation to the pur- 
chase of the company's plant, land, buildings, private wire, business stores and other 
property and assets and to the transfer of the company's business shall have effect in 
the London exchange area. 

(2) Without prejudice to any arrangements heretofore made or now in progress 
between the Postmaster General and the company as to particular works, the 
rent to be paid by the company for the use of any underground wires which the Post- 
master General may at any time after the date of this agreement provide for the com- 
pany in the London exchange area under the provisions of the London agreement 
shall be at the rate of two pounds per mile of double wire per annum where the wires 
are provided and maintained by the Postmaster General and at the rate of one pound 
per mile of double wire per annum where the wires are provided by the Postmaster 
General but are maintained by the company such rents being respectively, calculated 
as though every underground work contained fifty double wires at the least except in 
the case of underground wires not exceeding a quarter of a mile in length led from a 

GREAT BRITAIN. 



APPENDIX " A " 299 

APPENDIX No. 1 

main cable to a distribution point and of underground wires not exceeding fifty yards 
in length led from a main cable to a group of at least ten subscribers' offices. And the 
rents in this sub-clause specified shall be substituted for the rents specified in the 
second schedule to the London agreement. 

(3) The provisions of this agreement relating to the maintenance of the company's 
plant between the date of this agreement and December 31, 1911, to the provisions of 
switch-boards for the company by the Postmaster General and their maintenance 
by the company and to the extension to the company's subscribers of postal telephonic 
and telegraphic facilities shall have effect in the London exchange area and any pro- 
visions of the London agreement which are inconsistent with those provisions shall 
cease to be of effect. 

(4) Save as aforesaid and save as is otherwise herein expressly provided, the 
London agreement shall remain in full force and effect. 

Further assurance — 

12. (1) The company and the Postmaster General shall from time to time do 
and excute or cause to be clone and executed all such acts, deeds and things whatsoever 
as may be required by the Postmaster General or the company (as the case may be) 
to give effect to the covenants and agreements in this agreement contained, and the 
company shall, if desired by the Postmaster General, assent to the Bill for any Act 
which the Postmaster General may deem necessary or desirable to carry out the pro- 
visions of this agreement and take all such steps as may be necessary to facilitate the 
passing of such Act. 

(2) The company shall from time to time furnish the Postmaster General with all 
such information with reference to their plant, property and assets and the organization 
of their telephonic business as may be reasonably required by him for the purposes 
of the purchase provided for by this agreement and the transaction of telephone busi- 
ness by the Postmaster General after December 31, 1911. Provided that if the furnish- 
ing of such information puts the company to any expense not incident to the trans- 
action of their business or the carrying out of the said purchase the Postmaster Gen- 
eral shall reimburse such expense to the company. 

Agreement not to be assigned — 

13. The company shall not assign, underlet or otherwise dispose of the benefit 
of the covenants herein contained or of any of such covenants or the powers or authori- 
ties hereby granted or any of such powers or authorities without the consent in writing 
of the Postmaster General. 

Agreement not to affect Postmaster General's rights — 

14. Nothing in these presents contained shall prejudice or affect the right of tne 
Postmaster General from time to time to establish, extend, maintain and work any 
system or systems of telegraphic communication (whether of a like nature to any 
system of telegraphic communication carried on by the company or to any business 
of the company or otherwise, in such manner as he shall in his discretion think fiz 
neither shall anything herein contained prejudice or affect the right of the Postmaster 
General from time to time to enter into agreements for or to grant licenses relative 
to the working and user of telegraphic (whether of a like nature to those worked and 
used by the company or otherwise) or the transmission of telegrams in any part of the 
United Kingdom with or to any company, person or persons whomsoever upon such 
terms and whether with or without authority to exercise the powers in section 5 of 
the Telegraph Act, 1892, referred to as he shall in his discretion think fit. And nothing 
in this agreement contained shall in any manner interfere with the administration 
of the telegraphic service of the country by the Postmaster General according to his 
discretion. And (save as in this agreement provided) nothing in this agreement con- 
tained shall be deemed to authorize the company to exercise any of the powers or 
authorities conferred on or acquired by the Postmaster General by or under the Tele- 
graph Acts or any of them. 

GREAT BRITAIN. 



300 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 



Arbitration. 

15. Save as otherwise expressly provided by this agreement all questions and mat- 
ters of difference referred to arbitration by or under this agreement shall be referred 
to the Eailway and Canal Commission if that body shall be authorized to entertain the 
same and each of the parties hereto shall at the request of the other join m any applica- 
tion to the commission which may be necessary to initiate or for the purposes of such 
reference. In the event of the Eailway and Canal Commission not being authorized at 
the time when any question referred to arbitration by this agreement arises to entertain 
such question the provisions of the Arbitration Act, 1889, shall apply to the determina- 
tion of such question. 

Notices — 

16. Any notice, request, consent or approval (whether expressed to be in writing or 
not) to be given or expressed by the Postmaster General under these presents maybe 
under the hand of any one of the secretaries or assistant secretaries foT the time being 
of the post office and may be served or given by sending the same by registered pos* 
letter to the company addressed to them at their registered office and any notice to be 
given by the company under these presents may be under their common seal or under 
the hand of their secretary and may be served by sending the same by registered post 
letter addressed to the secretary of the poet office at the general post office, London. 
Parliamentary veto — 

17. This agreement shall not be binding if at any time before August 31, 1905, a 
resolution of either House of Parliament requesting the Postmaster General not to give 
effect to the agreement shall be passed provided that the agreement shall become bind- 
ing at any time if it is approved by a resolution of the House of Commons. 

In witness whereof the above-named Postmaster General hath hereunto set hia 
hand and seal and the company have caused their common seal to be hereunto affixed 
the day and year first above written. 

SCHEDULES. 

THE FIRST SCHEDULE HEREINBEFORE REFERRED TO. 

Areas where the License of 1884 has been extended beyond December 31, 1911. 



Exchange Area. 



Date to which License of 1S84 extended. 



Glasgow Decembei 31, 1913 



Date of Agreement 

relating to Extension of 

License of 1884. 



Portsmouth. 
Tunbridge Wells. 



Swansea . 
Brighton 



June 30, 1926 

April 30, 1925 (subject to determination by 
Postmaster General on December 31, 
1911, under agreement of October 10, 
1903). 

December 31, 1920 

April 30, 1926 



July 8, 1901. 
August 11, 1902. 
August 11, 1902. 



September 27, 1902. 
May 16, 1904. 



THE SECOND SCHEDULE HEREINBEFORE REFERRED TO. 



Abergavenny. 
Bridgend. 
Brighton. 
Briton Eerry. 
Cardiff. 
Glasgow. 
Hull. 
London. 
GREAT BRITAIN. 



Competitive Exchange Areas. 

Merthyr Tydvil. 
Newcastle-upon-Tyne 

(with Gateshead). 
Newport (Monmouthshire). 
Pontypool. 
Pontypridd. 
Portsmouth. 
Swansea. 



APPENDIX " A " 301 

APPENDIX No. 1 

THE THIRD SCHEDULE HEREINBEFORE REFERRED TO. 

Specification and Rules as to Plant. 
Definitions — 

1. In this schedule — 

The term ' Exchange Subscriber's Circuit ' or ' Circuit of an Exchange Subscriber ' 
means the wires and apparatus connecting a call office or a subscribers's office (whether 
on an exclusive line or a party line) with an exchange and the term ' Junction Circuit ' 
means the wires and apparatus which connect any two exchanges in the same exchange 
area or an exchange and a prescribed post office in the same exchange area. 

The term ' Test Cable ' means a telephone drycore cable the wires of which have a 
loop resistance of 88 ohms, per mile and an average mutual electrostatic capacity of 
:054 microfarads per mile between wire and wire of each pair and an average insula- 
tion of not less than 200 magaohms per mile between wire and wire of each pair, all 
measurements being made at 60° Fahrenheit. 

The term ' Test Instruments ' means common battery instruments fed by a battery 
of 22 volts through a circuit which except so far as it consists of exchange apparatus 
and subscribers' instruments shall have a resistance of 300 ohms, (all being in accord- 
ance with the specification and diagram identified in duplicate before the execution of 
this agreement by the signatures of the engineer-in-chief to the post office and the 
engineer-in-chief to the company). 

Circuits — 

2. (1) All circuits whether exchange subscribers' circuits or junction circuits shall 
be metallic. 

(2) All circuits when used for speaking on local exchange lines or through to a 
trunk circuit which itself is free from disturbance shall be free from inductive or 
other disturbances. 

(3) All circuits shall be so arranged that each exchange subscriber shall be unable 
to overhear what passes on any other than his own circuit or those to which it is joined 
through. 

Conductors — 

3. The use of iron conductors shall not be permitted in any portion of a circuit- 
Cables — 

4. (1) All buried cables shall be efficiently protected by iron pipes or by ducts of 
glazed earthenware laid in concrete or by cement blocks thoroughly matured or by such 
other means as the Postmaster General may approve before the cable is laid. 

(2) Cables in subways or tunnels shall be supported in such a manner as to pro- 
vent fracture of the lead covering. 

Overhead and underground plant — 

5. (1) Distributing wires (that is, wires from a distribution point to exchange 
subscribers' offices) may be carried either overhead or underground as may be con- 
sidered desirable, and overhead distributing wires may either be open or be contained in 
a cable. 

(2) No overhead wire extending more than a quarte;- of a mile from a distribution 
point shall be considered to be a distributing wire. 

(3) Wires other than distributing wires may be carried overhead — 

(a) Either open or in lead-covered cables, provided that on one line of poles or 
other supports not more than 104 wires in all may be carried, of which only 64 may h& 
open. 

(b) In cables of any kind across a river, canal, estuary or railway or across over- 
head electric wires used for the purpose of lighting traction or the transmission of 
power. 

GREAT BRITAIN. 



302 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

(4) Wires other than distributing wires may be carried overhead either open or in 
cables without reference to the limitation contained in the last preceding sub-clause — 

(a) In connection with any exchange system or part of an exchange system which 
at the date of this agreement consists substantially of overhead lines 'a list of which 
exchange systems and parts of exchange systems has been 'furnished by the company 
to the Postmaster General and is identified by the signatures of the s cretary of the 
post office and of the general manager of the company) ; provided that — 

(i) In no case shall more than 104 circuits, or 208 win s. bo earri d in cables on 
any one line of poles or other supports to be hereafter erected, or more than 104 cir- 
cuits, or 208 wires, be hereafter added in cables to any cne line of poles or other sup- 
ports now existing, and 

(ti) All cables hereafter erected shall be lead-covered when practicable; and 
(Hi) The case of each exchange system or pari of an exchange system which is 
specified in the aforesaid list, and which is established in a town having a population 
of 50,000 inhabitants ami upwards according to the last shall, if the company 

so request, be specially considered, and in respect of each such exchange system or part 
of an exchange system, the Postmaster General shall notify the company within six 
calendar months from the date of the company's request whether he is prepared to pro- 
vide from time to time such underground works as the company may require for extend- 
adiding to such exchange system on a i id in default of his giving 

to the company an asuranoe to provide 3uch works, the first preceding proviso to this 
sub-clause shall no1 apply in t] if such i >r part of an exchange 

system. 

(b) In cases where the company are unable to execute underground works by virtue 
of any powers which they may possess or are unwilling ite such works in conse- 
quence of the terms and conditions proposed by a local authority and ie Postmaster 
General (whether the company possess such powers as last aforesaid or not) after appli- 
cation to him by the company in that behalf refuses or fails to agree within a reason- 
able time to provide the underground works specified in the company's application. 

($) Except as aforesaid, no wires of any kind shall, without the consent in writ- 
ing of the Postmaster General, he carried overhead. 

Test of audibility — 

<;. All instruments, wires and apparatus shall be such that the transmission of 
speech thereby shall not be inferior in audibility to that afforded! by test instruments 
connected by a length of test cable in accordance with the following regulations : — 

(1) When- 
Ca) Any two exchange subscribers' circuits are connected together on the same 

exchange, or 

(b) The circuit of an exchange subscriber whose office is on one exchange in a<p 
exchange area is connected with the circuit of another exchange subscriber whose office 
is on a different exchange in the same exchange area and the radial distance between 
the two exchanges does not exceed ten miles, the standard of speech shall not be inferior 
to that afforded by test instruments connected by a length of twenty miles of test cable ; 
provided, that where an exchange subscriber's office situate more than five miles from 
an exchange is connected with another exchange subscriber's office situate more than 
five miles from another exchange, the standard of speech between such offices shall be 
deemed satisfactory if not inferior to that afforded by test instruments connected by 
a length of 25 miles of test cable. 

(2) When the circuit of an exchange subscriber whose office is on one exchange in 
an exchange area is connected with the circuit of another exchange subscriber whose 
office is on a different exchange in the same exchange area and the radial distance 
between the two exchanges exceeds ten miles, but does not exceed fifty miles the stand- 
ard of speech shall not be inferior to that afforded by test instruments connected by a 
length of 30 miles of test cable; provided, that where an exchange subscriber's office, 
situate more than five miles from an exchange, is connected with another exchange! 
GREAT BRITAIN. 



APPENDIX " A " 303 

APPENDIX No. 1 

subscriber's office, situate more than five miles from another exchange, the standard of 
speech between such offices shall be deemed satisfactory if not inferior to that afforded 
by test instruments connected by a length of 35 miles of test cable. 

(3) When the circuit of any exchange subscriber is connected to a prescribed post 
office in the same exchange area for the purpose of being connected to a trunk wire of 
the Postmaster General the standard of speech through the exchange subscriber's cir- 
cuit and the junction circuit or circuits combined (exclusive of the trunk wire) shall 
not be inferior to that afforded by test instruments connected by a length of five miles' 
of test cable; provided, that where the radial distance between a prescribed post office 
and an exchange, when added to the radial distance between an exchange subscribers' 
office and the same exchange exceeds nine miles the standard of speech through the 
exchange subscribers' circuit and the junction circuit or circuits combined (exclusive 
of the trunk wire) shall be deemed satisfactory if not inferior to that afforded by test 
instruments connected by a length of eight miles of test cable. 

Exchanges — 

7. All new and reconstructed exchanges shall be provided with automatic calling 
and clearing apparatus on every exchange subscriber's circuit, and the calling and 
clearing signals shall be effective in all conditions and upon the longest circuits used 
in an exchange area when connected together; provided, that automatic calling and 
clearing apparatus need not be provided in any new or reconstructed exchange designed 
for an ultimate maximum capacity of not exceeding 1,000 direct subscibers' lines and a 
fitted capacity of not exceeding 400 such lines if in any such case a thoroughly efficient 
method of calling the exchange and signalling the close of a conversation is provided-! 

Exchange equipments — 

8. In exchange equipments on the multiple system the multiple jacks shall be con- 
nected on the branching system except in cases in which not more than ten jacks are in 
series. 

Junction circuits — 

9. Junction circuits connecting exchanges with prescribed post offices shall be pro- 
vided with automatic signalling arrangements of a character approved by the Post- 
master General and suitable for working in connection with his trunk lines, and shall 
be worked in accordance with such regulations as he may from time to time prescribe. 

Subscribers' Instruments — 

10. The apparatus fitted at exchange subscribers' offices shall be efficient for trunk 
line communication, and where separate batteries are provided at each exchange sub- 
scriber's office for speaking purposes the electro-motive force shall not at any time fall 
below two volts, and such apparatus shall be so fitted as to admit of a clearing signal 
being transmitted by the exchange subscriber to the prescribed post office to indicate the 
close of a trunk conversation. 

Notice of new equipment — 

11. With a view to avoid difficulty under the last two preceding clauses the com- 
pany shall, at least six calendar months before the bringing into use of a new exchange 
equipment in an exchange, furnish the Postmaster General with diagrams illustrating; 
both the exchange subscribers' circuits and the method by which it is proposed to actuate 
the signals on the junction circuits at the prescribed post office. 

Protection of circuits — 

12. When an overhead electric system used for the purpose of lighting traction or 
the transmission of power is worked in the neighbourhood of any overhead circuits of 
the company suitable safety devices, including fuses and heat coils shall in all circuits 

GREAT BRITAIN. 



304 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

likely to be affected be provided both at the exchange and at the exchange subscribers' 
offices. 

Lightning protectors — 

13. Efficient lightning protectors shall be provided on all circuits. 

'Modification and savings — 

14. (1) Proposals for the modification of the foregoing specification and rules 
either generally or in relation to any particular case will be considered by the Post- 
master General or the company (as the case may be). 

(2) The fact that overhead work is for some purposes authorized by the specifica- 
tion and rules contained in this schedule is not to prejudice the right of the Postmaster 
General to raise any question with regard to the value of overhead work which he is 
authorized to raise under clause 4 of this agreement. 

(3) The specification and rules contained in this schedule do not apply to the 
internal exchange plant of the company specified in the list to be furnished by the 
company to the Postmaster General under clause 3 of this agreement. 

(4) Notwithstanding anything contained in the specification and rules contained 
in this schedule the existing internal exchange plant of the company may be utilized 
to the extent of the capacity for which it has been designed, but such internal exchange 
plant may not be extended beyond the capacity for which it has been designed other- 
wise than in conformity with the said specification and rules provided, that if any 
question arises between the Postmaster General and the company as to the capacity of 
anv internal pvchanise plant the question shall be determined by arbitration. 



GREAT BRITAIN. 



APPENDIX " A " 



305 



APPENDIX No. 1 



THE FOURTH SCHEDULE HEREINBEFORE REFERRED TO. 

Maximum and Minimum Charges for use of the Exchange Systems of the Company other than 

the London Exchange System. 



Service. 



Maximum Charge. 



Minimum Charge. 



A.— For Exclusive Links. 

(«)- — Where the office of the exchange subscriber is within one 
mile of the exchange with such office is immediately con- 
nected : — 

1. For the establishment of telephonic communication 
between any exchange and the office of any exchange subscriber 
and the transmission of an unlimited number of messages of the 
subscriber to any office on an exchange in the same exchange 



(ii). — 1. For the establishment of telephonic communi- 
cation between any exchange and the office of any exchange, 
subscriber, exclusive of tin sion of messages 

2. For the transmission of each message of the subscriber 
to any office on an exchange in the same exchange area 

(b). Where the office of an exchange subscriber is situated 
more than one mile from the exchange with which such office is 
immediately connected 

Over and above the respective charges aforesaid. 

For every additional quarter of a mile or part thereof, an 
additional charge of 



tin per annum. 

£E 

2d. 



25s. pei- annum. 



B. — For Party Links. 

(a). Where the main circuit does not exceed one mile in 
length and the spur circuits do not respectively exceed 220 
yards in length 

1. For the establishment of telephonic communication 

' between any exchange and the office of any exchange subscriber, 

and the transmission of an unlimited number of messages of the 

subscriber to any office on an exchange in the same exchange 



£5 per annum. 

£2 u 
d. 



Nil 



line . 



1. Where two exchange subscribers use the same party 



2. Where three or four exchange subscribers use the same 
party line 



(ii). — 1. For the establishment of telephonic communi 
cation between any exchange and the office of any exchange 
subscriber exclusive of the transmission A messages 

(a). Where two exchange subscribers use the same party 
line 



per annum (per 
i nge subscriber). 



£6 per annum (per 
exchange subscriber). 



£3 per annum (per 
exchange subscriber). 



£2. 10s. per annum 
(per exchange sub- 
scriber). 



(6). Where three or four exchange subscribers use the same 
party line 



(c). Where more than four exchange subscribers use the 
same party line 

2. For the transmission of each message of a party line 
subscriber to any office on an exchange in the same exchange 



(ft). — 1. Where the main circuit exceeds one mile in 
length in respect of every additional quarter of a mile or part 
thereof, — for every exchange subscriber whose spur circuit 
issues from the main circuit at a point exceeding one mile from 
the exchange • ■ .- 

2. Where the spur circuit exceeds 220 yards in length— 
in respect of every additional quarter of a mile or part thereof, 



£3 per annum (per 
exchange subscriber). 

£2. 10s. per annum 
(per exchange sub- 
scriber). 

£2 per annum (per 
exchange subscriber). 



2d. 



15s. per annum. 
25s. „ 



Nil. 



Nil. 



Nil. 



hd. 



Nil. 

Nil. 
GREAT BRITAIN. 



306 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

THE FOURTH SCHEDULE HEREINBEFORE REFERRED TO— Continued. 

Maximum and Minimum Charges fob use of the Exchange Systems of the Company other than 

the London Exchange System. 



Service. 



C — For Extension Lines. 

(a). Where the two offices connected by the line are 
situate in the same building or curtilage 

1. Where the line does not exceed 11<i yards oi double 
wire in length 

(ii) Where the line exceeds 110 yards of double 
length . 



For the first llo yards of double wire 
For each additional 110 yards of double wire oi 
thereof 



(M. Where the two offices connected are not situate 
within the 'ling or cvn I 

(i). Where the line does not exceed a quarter of a mile of 
double wire in length 

( n i. Where the line exceeds a quarter of a mile of di mble 
wire in length 

For the first quarter of a mile of double wire 

For each additional quarter of a mile of double wire or part 
thereof 



mum Charge. Minimum Charge. 



annua 



is. per annum. 



r annum. per annum. 

Nil. 



im. 25s. per annum. 



i annum. 25s. per annum, 
i annum. Nil. 



D.- I I >i PICES. 

other <>mV. ihange in tl 

For t of a message at a call office fn » 
office on an exchange in the same exchangi 









Nil 



NOTES. 

These charges do not cover the supply, of special instruments or apparatus for the 
convenience of particular subscribers. Where the charges for telephonic communica- 
tion are made with reference to the number of messages transmitted the company may 
fix an annual minimum payment to be made by the subscriber in respect of such mes- 
sages, and in no case shall the total annual amount payable by an exchange subscriber 
be less than £1. 

The distances referred to in so much of this schedule as relate to exclusive lines 
and external extension lines shall be deemed to be measured in a straight line on a 
horizontal plane. The same mode of measurement may be applied in place of actual 
route measurement in relation to party lines in any exchange area, provided all party 
lines in the same area are measured in the same manner. 
Signed, sesled and delivered by] 

the Postmaster General in}- STANLEY, 

the presence of 

KOBEET HUNTER, 

Solicitor to the Post Office. 
The Common Seal of the com-1 
pany was affixed hereto inj- 
the presence of 
HARRIS, 
GEORGE FRANKLIN, 

Directors. Seal of 

ALBERT ANNS, The National Telephone 

Secretary. Company, Limited. 

GREAT BRITAIN. 



Seal of 

His Majesty's 

Postmaster General. 



APPENDIX "A" 307 

APPENDIX No. 1 

No. 278h. 

Dated August 8, 1905. 
GEEAT BRITAIN— Continued. 

Pamphlet F. 
POST OFFICE TELEGRAPHS. 

his majesty's postmaster general and the national telephone company, limited. 
Indenture supplemental to Agreement of February %, 1905. 

• 

This Indenture made August 8, 1905, between the Right Honourable Edward 
George Villiers Stanley, C.B., commonly called Lord Stanley, His Majesty's Post- 
master General (who and whose successors in office for the time being are intended to 
b«j hereinafter included in the term the ' Postmaster General ') on behalf of His 
Majesty of the one part and the National Telephone Company, Limited, the registered 
office of which is at Telephone House, Victoria Embankment, in the city of London 
(hereinafter called r the company ') of the otber part, and supplemental to an inden- 
ture dated February 2, 1905, and made between the same parties (which indenture is 
hereinafter referred to as ' the Principal Indenture ') . 

Witnesseth, that it is hereby agreed and declared between and by the parties 
hereto as follows, that is to say: — 

1. From and after the date of these presents the principal indenture shall be read, 
construed and take effect as if in lieu of Article 4 of the principal indenture the 
following article had been inserted (that is to say) : — 

4. — (1) The value on December 31, 1911 of all plant, land buildings, stores 
and furniture purchased by the Postmaster General in pursuance of the provi- 
sions hereof, shall be then value (exclusive of any allowance for past or future 
profits of the undertaking, or any compensation for compulsory sale or other con- 
sideration whatsoever) of such plant, land, buildings, stores and furniture having 
regard to its suitability for the purposes of the Postmaster General's telephonic 
service, and. in determining the value of any plant no advantage arising from the 
construction of such plant by leave of the Postmaster General upon any railway or 
canal over which the Postmaster General possesses exclusive rights of way for 
telegraphic lines shall be taken into account. 

2. The value on December 31, 1911, of any licensed telephonic business of 
the company which by virtue of the agreements referred to in the first schedule 
hereto or of any other agreement in writing between the Postmaster General 
and the Company can be transacted as aforesaid after December 31, 1911 (apart 
from the plant, land and buildings used herein, which are to be valued as herein- 
before in this clause provided) shall be such sum as may be agreed between the 
Postmaster General and the company, regard being had to the net profits of such 
business and to the circumstances and conditions under which the Company would 
carry on such business after December 31, 1911. 

(3) The value on December 31, 1911, of any private wire business of the 
company (apart from the plant, land and buildings used therein, which are to be 
valued as hereinbefore in this clause provided) shall be taken to be three years' 
purchase of the net profits of such business on the average of the three years end- 
ing on December 31, 1911. 

(4) All matters of difference arising under this clause shall be determined by 
arbitration. 

2. Except in so far as altered, modified or added to by these presents the Principal 
Indenture shall remain and be binding on the parties hereto. 

GREAT BRITAIN. 
1— d— 21 



308 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In witness whereof the above-named Postmaster General hath hereunto set his 
hand and seal, and the company have caused their common seal to be hereunto affixed, 
the day and year first before written. 



Signed, sealed and delivered by] 

the Postmaster General in the}- STANLEY. 

presence of J 

I Robert Hunter, 

Solicitor to the Post Office. 

The Common Seal of the Com-1 
pany was affixed hereto in the)- 
presence of J 

George Franklin, 

Director. 

Geo. H. Eobertson, 
Director. 

Albert Anns, 

Secretary. 



[Seal, &c] 



[Seal, &c] 



No. 278i. 

GREAT BRITAIN— Continued. 

Pamphlet H. 

EXCERPT FROM THE FIFTY-FIRST REPORT OF THE POSTMASTER 
GENERAL OF GREAT BRITAIN. 

appendix m. — telephone trunk wires. 

Statement showing the number of circuits, miles of wire and calls in each year since 
the trunk lines of the National Telephone Company were acquired by the state. 



Year. 


Circuits. 


Increase. 


Miles of 
Wire. 


Increase. 


Calls. 


Increase. 


1897-98 

1898-99 

1899-1900 

1900-01 

1901-02 

1902-03 

1903-04 

1904-05 


877 
953 
1,029 
1,116 
1,165 
1,309 
1,418 
- 1,604 


73 

76 

76 

87 

49 

144 

109 

186 


55,721 
63,109 
69,713 
76,831 
83,302 
93,473 
102,799 
112,743 


7,866 
7,388 
6,604 
7,118 
6,471 
10,171 
9,326 
9,943 


5,888,247 

7,066,609 

8,091,631 

8,980,733 

10,080,716 

11,574,229 

13,467,975 

15,461,822 


643,416 
1,178,362 
1,025,022 

889,102 
1,099,983 
1,493,513 
1,893,746 
1,993,847 



GREAT BRITAIN. 



APPENDIX " A " 



309 



APPENDIX No. 1 



APPENDIX M..— Gontintied. 



PROVINCIAL TELEPHONE EXCHANGE WIRES OWNED AND OPERATED BY THE BRITISH POSTAL 

DEPARTMENT. 

Statement showing the number of miles of wire and exchange telephones in each of 

the last ten years. 



Year. 



1895-96. . . . 
1896-97. . . 
1897-98. . . . 
1898-99. . . . 
1899-1900.. 
1900-1901. . 
1901-02.. . 
1902-03.. . 
1903-04.. . 
1904-05.... 



Miles of Wire. 



3,110 
3,295 
3,968 
4,369 
4,762 
5,199 
G,283 
7,372 
8,602 
9,893 



Increase 



Dec. 
Inc. 



172 

185 

673 

401 

393 

437 

1,084 

1,089 

1,230 

1,291 



Exchange Tele- 
phones. 



1,842 
1,863 
1,957 
2,132 
2,246 
2,686 
3,891 
5,218 
6,847 
8,644 



Increase. 



Dec. 
Inc. 



12 

21 

94 

175 

114 

440 

1,205 

1,327 

1,629 

1,797 



Private Wires Owned and Operated by the British Postal Department. 

Statement showing the Number of Contracts, Miles of Wire and Apparatus, and the 

Rentals in each of the last Ten Years. 



Year. 


Contracts. 


Increase. 


Miles 

of 
Wire. 


Increase. 


Telephones. 

and 
Telegraph 
Apparatus. 


Increase. 


Rentals. 


Increase. 


1895-96* 

1896-97 

1897-98 

1898-99 

1899-1900 

1900-01 

1901-02 

1902-03 

1903-04 

1904-05 


2,570 
2,530 
2,608 
2,676 
2,788 
2,910 
3,234 
3,439 
3,499 
3,746 


146 

Dec. 40 

Inc. 78 

68 

112 

122 

324 

205 

60 

247 


18,471 
19,095 
23,146 
25,829 
27,334 
29,157 
34,924 
36,581 
40,608 
41,026 


Dec. 1,456 
Inc. 624 
4,051 
2,683 
1,505 
1,823 
5,767 
1,657 
4,027 
418 


5,346 
5,358 
5,459 
5,629 
5,863 
6,193 
6,605 
7,118 
7,595 
8,901 


82 
12 
101 
170 
234 
330 
412 
513 
477 
1,306 


£ 

112,616 
114,448 
fll0,042 
121,065 
126,132 
132,424 
151,853 
163,638 
169,769 
172,953 


£ 

Dec. 1,541 

Inc. 1,832 

Dec. 4,406 

Inc. 11,023 

5,067 

6,292 

19,429 

11,785 

6,131 

3,184 



* Certain lines leased by cable companies were given up, and telephone trunk wires were for the first 
time excluded. 

t The rates for private wires were reduced in 1897 and existing rentals were reduced accordingly. 

Note.— The above figures include particulars of lines leased to cable companies. The total length of 
such wires is 8,187 miles and the rental £48,455. 



1-ni— 31i 



GREAT BRITAIN. 



310 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 









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GREAT BRITAIN. 



APPENDIX " A ' 



311 



APPENDIX No. 1 

APPENDIX O. 

Post Office Telephones — Continued. 

London Exchange System. 

An Account, partly estimated, of Receipts and Expenditure for the year ended 

March 31, 1905. 



Receipts. 



Subscribers' Rentals : — 

Proportion of subscriptions paid in 
1903-4, but proper to 190 J -5 

Paid in the year 1904-5— 

At flat rates £ 30,622 

At toll rat /s 124,218 



Less proportion proper to 
1905-6 



E 154,840 
81,330 



Message fees, in addition to fixed mini- 
mum of £1 10s. per message rate circuit. 

Call office fees 

Rentals or wires leased to National Tele- 
phone Co 

Miscellaneous receipts 

Value of services rendered to government 
departments without payment 



Iaikniuture. 



Maintenance of system 

Salaries, wages, &c, of staff, including 
provision for pensions of established 

staff 

rates, fuel and light, including 
estimated rental value of premises 
already belonging to the department. 

Miscellaneous, expenses (stationery, 
travelling, fie 



Balance available towards meeting de- 
preciation, interest, &c. (vide notes) . 



£ 
34,017 

48,069 

9,165 
2,512 



93,298 



£ lsr,0Gl 



himNotks. — (X) The estimated amount required to provide for depreciation of plant, inclusive of spare 
wires, is £56,647, and interest at 3 per cent on the capital expenditure of £1,926,000 is £57,780, making 
together £114,427. 

(2) Terminable annuites have been created, payable from the vote for the telegraph service, topiovide 
for the repayment, with interest at 3 per cent, of capital raised for telephone purposes under the Telegraph 
Acts, 1899-1904. The annuities provide for the repayment of the capital in 12-15 years, while the estimated 
life of the plant averages 34 years. The annuity required for interest and sinking fund on a capital ex- 
penditure of £1,926,000 repayable in 30 years with interest at 3 per cent would be £97,958. No deduction 
has been made from the annuity on account of the value of material recovered when plant is removed. 



GREAT BRITAIN. 



312 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
APPENDIX O— Continued. 

Post Office Telephones. — Continued. 

Provincial Exchange System. 



An Account, partly estimated, of Keceipts and Expenditure for the year ended 

March 31, 1905. 



Receipts. 



Subscribers' Rentals : — 

Proportion of subscriptions paid in 

1903-4 

Paid in 1904-5 £ 43,042 

Less proportion proper to 1905-6 22,023 

20,419 
Deduct amount payable to, in 
< ssof that receivable from, 
National Telephone Company 
for terminal fees 1,993 

Message fees for excess calls 

Call office collections 

Rentals of junction lines leased to Na- 
tional Telephone Company 

Miscellaneous receipts 

Value of services rendered to government 
departments without payment 



£ 
18,195 



18,426 

1,653 

H6 

3,697 
117 

384 



42,888 



Expenditure. 



Maintenance of provincial exchange 
systems. 

Salaries, wages, &c, of staff, including 
provision for pensions of established 
staff 

Kent, rates, fuel and light, including 
estimated rental value of premises 
already belonging to the department. 

Miscellaneous expenses (stationery 
travelling, &c) 



Balance available towards meeting de 
preciation, interest, &o. (rirfi notes).. 



£ 
12,932 

15,891 

1,502 
1,115 



11,448 

42,888 



Notes. — (1) The estimated amount required to provide for depreciation of plant is £15,210, and in- 
terest at 3 per cent on the capital expenditure < >f £319,000 is £9,570, making together £24,780. 

(2) Terminable annuities have been created, payable from the vote for the telegraph service, to pro- 
vide for the repayment, vvith interest at 3 per cent, of capital raised for telephone purposes under the 
Telegraph Act, 1899-1904. The annuities provide for the repayment of the capital in 15 years, while the 
estimated life of the plant averages 19 years. The annuity required for interest and sinking fund on a 
capital expenditure oj £319,000 repayable in 19 years with interest at 3 per cent would be £22,269. No 
deduction has been made from the anuity on account of the value of material recovered when plant is 
renewed. 



GREAT BRITAIN. 



APPENDIX " A " 



313 



APPENDIX No. 1 

APPENDIX 0— Continued. 

Post Office Telephones — Continued. 

Trunk Line Systems. 

An Account, partly estimated, of Eeceipts and Expenditure for the year ended March 

31, 1905. 



Receipts. 



Trunk Fees : — 

Gross value for year £380,308 

Lesscommission paid to licen- 
sees for collection, &c 18,749 

Miscellaneous receipts 

Value of services rendered to government 
departments without payment 




Expenditure. 



Maintenance of trunk line system 

Salaries, wages, &c, of staff, including 
provision for pensions of established 
staff 

Rents, rates, fuel.and light, including esti 
mated rental value of premises already 
belonging to the department 

Miscellaneous expenses (stationery, travel 
ling, &c.).. 

Balance available towards meeting depre 
ciation, interest, &c. {vide notes) 



£ 
62,394 



105,917 

10,538 

6,916 

177,575 



363,340 



Notes.— (1) The estimated amount required to provide for depreciation of plant is £77,659, and interest 
at 3 ner cent on the capital expenditure of £2,797,000 is £83,910, making together £161,569. 

(2) Terminable annuities have been created, payable from the vote of the telegraph service, to provide 
for the repayment, with interest at 3 per cent, of capital raised for telephone purposes under the Telegraph 
Acts, 1892-1904. The annuities provide for the repayment of the capital in 12-20 years, while the estimated 
life of the plant averages 29 years. The annuity required for interest and sinking fund on a capital expendi- 
ture of £2,797,000 repayable in 29 years, with interest at 3 per cent, would be £145,752 No deduction has 
been made from the annuity on account of the value of material recovered when plant is renewed. 

APPENDIX 0. —Continued. 

Post Office Telephones. 

SUMMARY. 

An account, partly estimated, of Eeceipts and Expenditure for the year ended 

March 31, 1905. 





Receipts. 







Expenditure. 





Exchanges. 


Trunk 
Lines. 


Total 
Re- 
ceipts. 


Exchanges. 


Trunk 
Lines. 


Total 




Lon- 
don. 


Pro- 
vincial. 


Lon- 
don. 


Pro- 
vincial. 


Expen- 
diture. 


Subscribers' rentals, 
local and trunk fees, 
&c. (including value 
of services rendered 
to government de- 
partments without 


£ 
187,061 


£ 

42,888 


£ 
363,340 


£ 
593,289 


Working expenses 
(including day to 
day maintenance). . 

Balance available 
towards meeting de- 
preciation, interest, 
&c 

Total 


£ 
93,763 

93,298 


£ 
31,440 

11,448 


£ 
185,765 

177,575 


£ 
310,968 




282,321 


Total 


187,061 


42,888 


363,340 


593,289 


187,061 


42,888 


363,340 


593,289 






(1) Estimated amount required to provide for deprt 

interest at 3 per cent on capital, as per foot note 

(2) Annuity required for interest and sinking fund for 

at 3 per cent, as ner foot note (2) of nrecedinsr ta 


ciation of plant, and 
|l)of preceding tables 
repayment of capital, 

bles 


114,427 
97,958 


24,780 
22,269 


161,569 
145,752 


300,776 
265,979 















GREAT BRITAIN. 



314 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 



4-5 EDWARD VII., A. 1905 



No. 278j. 



GREAT BRITAIN— Continued. 
POST OFFICE TELEGRAPHS. 



LIST OF SUBSCRIBERS TO THE POST OFFICE TELEPHONE EXCHANGE SYSTEM IN GREAT BRITAIN 

AND IRELAND. 

Note.— U. D. signifies Urban District. 

P. B. signifies Parliamentary Burgh. 

M. B. signifies Municipal Boro. 

A. C. signifies Admin. County. 

T. signifies Town. 

Par. signifies Parish. 

Par. & C. B. signifies Parliamentary & County Burgh. 

E. P. signifies Ecclesiastical Parish. 

R. D. signifies Rural District. 
Where no figures are given, no reliable ones are available. 



Sub- 
Place. Popu- scribers 
lation. Stations. 

Aberaman 13,940 16 

Aberbeeg 14 

Abercarn 12,607 20 

Abercynon 15 

Aberdare, U. D 43,365 45 

Aberdeen, P. B 143,728 2 

Aberdovey 1,466 7 

Abergavenny 7,795 95 

Aberkenfig 18 

Abertillery, U. D 21,945 71 

Aberystwyth 8,014 19 

Aldeburgh 2,405 21 

Alfreton 17,505 24 

Alnwick 6,716 . 5 

Amersham 2,674 16 

Ammanford 35 

Annfield Plain, U. D 12,481 17 

Anstruther 4,233 28 

Antrim, A. C 196,090 14 

Ashington, U. D 13,956 33 

Atherstone 5,248 45 

Auchterarder 3,159 30 

Auchtermuchty 637 18 

Aylesbury, U. D 9,243 94 

Badminton 317 13 

Baldock 2,057 19 

Ballymena 10,886 68 

Ballymoney, U. D 2,952 9 

Banbridge, U. D 5,006 20 

Banbury, M. B 12,968 52 

Bargoed 36 

Barmouth 2,214 29 

Barnard Castle 4,421 40 

Barnsley 41,086 4 

Barrow-in-Furness 57,586 3 

Barry 27,030 23 

Basingstoke, M. B 9,793 4 

Bathgate, T 7,549 2 

Beaufort 2,761 11 

Beaumaris, M. B 2,326 18 

Bedlington 18,766 20 

Belfast, P. B 348,705 6 

Benwell 18,316 6 

Biggleswade 5,120 24 

Billesdon 726 6 

Birmingham, Par 419,303 15 

Birtley, Par 5,573 6 

Bishop Auckland 11,969 37 

Bishop's Stortford 7,143 4 

Blackpool 47,348 2 

Blackwood 19 

Blaenavon 10,869 31 

Blaengwynfl 17 

GREAT BRITAIN. 



Sub- 
Place. Popu- scribers 
lation. Stations. 

Blaenogwy 12 

Blaina, U. D 13,489 25 

Blairgowrie, Par 4,464 58 

Blaydon-On-Tyne, U. D.. .. 19,623 20 

Blyth, U. D 5,472 44 

Bognor, U. D 6,180 71 

Bolton, P. B 130,611 2 

Bo'ness 9,306 2 

Bourne, U. D 4,361 23 

Bourton-On-Water 1,097 13 

Brackley 2,467 31 

Bradford, P. B 228,625 4 

Braintree 5,330 2 

Brasted 1,504 15 

Brecon, U. D 5,875 71 

Brentwood 4,932 9 

Bridgend 6,062 66 

Brig 3,137 20 

Brighton, P. B 153,386 3 

Bristol, P. B 321,935 12 

Briton Ferry 6,973 6 

Broadway 821 15 

Brooke 573 7 

Broxburn 7,099 2 - 

Brynmawr 6,833 27 

Builth Wells 1,805 27 

Burdage 2,196 2 

Bury, P. B 56,409 3 

Bury St. Edmunds 16,255 4 

Bwlch 5 

Caerau 229 21 

Caerphilly 15,835, 32 

CaUander, Par.. 2,171 19 

Cardiff, Par. & C. B 164,333 293 

Carlisle, M. B 45,480 2 

Castle Eden 1,354 21 

Castleton n 

Caterham Valley 9,486 59 

Cellardyke (see Anstruther). 

Cheadle (Staffs) 5,186 20 

Chepstow 3,067 2 

Chesham 7,245 54 

Chester, A. C 599,070 2 

Chesterfield 27,185 5 

Chester-Le-Street 11,753 9 

Chichester, M. B 12,244 2 

Chippenham, M. B 5,074 2 

Chipping Norton 3,780 24 

Church Strebton 816 21 

Clayton Road, Newcastle i 

Clutton 78 3 

Cobham (Surrey) 3,901 27 

Colchester, M. B. & Par.. .. 38,373 3 



APPENDIX " A " 



315 



APPENDIX No. 1 

List of Subscribers to tbe Post Office Telephone Exchange System in Great Britain 

and Ireland — Continued. 



Sub- 
Place. Popu- scribers 
lation. Stations. 

Coleraine 6,958 26 

Colinsburgh 352 12 

Consett 9,694 55 

Corbridge 1,938 28 

Cork 404,611 7 

Coupar Angus, Par 2,704 15 

Cowbridge, M. B. & Par.. .. 1,202 23 

Coxhoe 3,278 7 

Cranbrook 3,949 26 

Cranleigh 2,709 25 

Crawley 441 37 

Crewe, P. B 42,074 2 

Crlckhowell 1,150 26 

Crocken Hill 2,032 11 

Cross Ash 2 

Crumlin 8 

Cuckfield, U. D 1,813 8 

Cullercoats 1,743 15 

Cwmaman 10 

Darlington, P. B 44,487 10 

Dartford, U. D 18,644 27 

Daventry, P. B 3,780 23 

Derby, P. B 114,848 6 

Doncaster, P. B 28,932 4 

Doune 930 17 

Dowlais 17,142 11 

Dublin 157,568 7 

Dundee 162,636 2 

Dunfermline 31,697 3 

Dunster 1,182 5 

Dunston 5,660 9 

Durham 15,000 8 

Earls Colne 1,762 6 

Easington 1,731 9 

Easingwold 1,945 11 

East Grinstead, U. D 6,094 68 

Ebbw Vale, U. D 20,994 43 

Ebchester 407 10 

Edinburgh, P. B 298,113 2 

Elie 1.004 21 

Ellesmere, U. D 1,945 15 

Elswick Road, Newcastle. 

Ely 7,743 23 

Exeter, P. B 53,141 2 

Falkirk, P. B 20,505 2 

Farndon 564 3 

Farningham 1,328 11 

Fenny Stratford, U. D.. .. 4,799 28 

Ferndale 34 

Ferry Hill 3,123 8 

Fraserburgh, Par 9,715 45 

Frinton-On-Sea, U. D 644 47 

Gaddesby 301 8 

Gainford 869 5 

Gainsborough, U. D 17,660 2 

Garnant 16 

Gateshead, Par. & C. B.. .. 109.88S 1 

Gilfach Goch 16 

Glasbury 460 7 

Glasgow, P. B 622,372 14 

Gloucester, P. B 45,146 3 

Gosforth 935 6 

Gravesend, P. B 39.S33 3 

Great Missenden 2,166 16 

Great Smeaton 178 4 

Greenock, P. B 67,672 2 

Griffithstown 2,818 16 

Grimsby, P. B 78,198 6 

Halstead, U. D 6,073 17 



Place. Popu- 

lation. 

Harrogate 28,423 

Hartlepools, P B 86,303 

Haswell 6,512 

Hatch End 

Hawkhurst 3,136 

Hay, U. D 1,680 

Hayes (Middlesex) 16,358 

Hay wards Heath 3,717 

Hebburn 20,901 

Hengoed (see Maesycwmmer) 

Hexham 7,071 

Hextable 

Highclere 547 

Hillingdon 8,333 

Hinckley, U. D 11,304 

Hirst (see Ashington) 7,672 

Hitchin 10,072 

Hdbeach 4,755 

Holyhead, U. D 10,079 

Horley 4,133 

Horsham 10,781 

Hull, P. B 239,517 

Humshaugh 460 

Hungerford 2,906 

Huntingdon 4,261 

Innellan 1,007 

Inverurie, P. B 3,454 

Ipswich 66,630 

Jarrow 34,295 

Kells (Co. Antrim) 225 

Kenflg Hill 

Kingskettle 1,759 

Kinross 2,655 

Knebworth Station 522 

Lancaster 40,329 

Leatherbead 4,694 

Leeds, P. B 428,988 

Leicester, P. B 151,489 

Leighton Buzzard 6,331 

Leiston 3,259 

Lemington (see Blaydon-On-Tyne). 

Leominster 5,826 

Leslie 3,960 

Limavady 2,692 

Limerick, P. B 46,170 

Lincoln, P. B 51,751 

Linlithgow 8,076 

Liverpool, P. B 626,634 

Llanbradach 

Llandilo 1,934 

Llandrindod Wells, U. D.. .. 1,827 

Llandudno, U. D 9,297 

Llanhilleth 5,015 

Llanidloes 2,770 

Llantrisant, Par 10,090 

Llantwit Major 1,113 

Loddon 1,034 

London 28,000 

Long Buckby 2,147 4 

Longslde 2,780 6 

Loughborough 21,508 4 

Low Fell 2 

Lundin Links 16 

Machynlleth, U. D 2,038 11 

Maesteg, U. D 15,012 40 

Maesycwmmer 19 

Maldon, M. B '.. 5,565 34 

Mallow 4,542 8 

Malpas 1,139 13 

GREAT BRITAIN. 



Sub- 
scribers 
Stations. 

3 
25 
10 
21 
21 
27 
20 
38 
19 
19 
98 

4 
12 
14 

3 

39 
20 
27 
50 
24 
32 

4 
20 

2 

3 
22 

3 
36 

7 

9 

12 
19 
13 

3 
10 
11 
15 
63 
17 

50 

12 

12 

1 

5 

3 

57 
10 
25 
79 
2 
11 
18 
14 
20 
18 



316 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

List of Subscribers to the Post Office Telephone Exchange System in Great Britain 

and Ireland — Continued. 



Sub- 
Place. Popu- soribers 
lation. Stations. 

Malton 4,75s 69 

Manchester, P. B 475,356 28 

Manningtree 872 4 

Mardy 17 

Market Deeping 978 14 

Market Drayton 28 

Maud 575 8 

Maybole 5,892 28 

Melton Mowbray 7,454 78 

Memsie 2 

Menal Bridge, U. D 1,700 10 

Merthyr Tydvil 69,228 51 

Merthyr Vale 21 

Mevagissey 2,088 13 

Middlesbrough, P. B 116,546 42 

Milnathort 1,052 10 

Minehead, U. D 2,511 34 

Mintlaw Station 393 9 

Moffat 2,153 3 

Monmouth, P. B 5,005 56 

Montgomery, P. B 1,034 3 

Moreton-in-Marsb 1,374 22 

Morpeth, P. B 50,043 53 

Mostyn 1,685 10 

Mountain Ash, U. D 31,093 42 

Nantymoel (see Blaenogwy). 

Neath 13,720 6 

Nelson (Glam) 13 

Newbiggan-By-The-Sea.. .. 2,032 7 

Newbridge 16 

Newburn-On-Tyne, U. D.. .. 12,500 

Newbury 11,061 22 

Newcastle-On-Tyne 216,328 885 

New Deer 4,371 10 

Newmarket, U. D 10,688 14 

Newport (Mon), P. B 61,465 219 

Newport (Salop) 3,241 21 

Newton (Mont), U. D 6,500 26 

New Milton 6 

New Pitsligo 2,332 10 

New Tredegar, E. P 5,797 37 

Northallerton, U. D 4,009 19 

North Shields 5,737 46 

Northumberland Dock 12 

Northwood 2,414 36 

Norwich, P. B 111,742 2 

Nottingham 239,743 14 

Nutley 967 12 

Oakham 3,294 32 

Ogmore Vale 19,907 15 

Oxshott 6 

Penarth, U. D 14,228 9 

Pencoed 1,179 15 

Pengam 22 

Penrhiwceber 6,991 16 

Penrith 9,182 4 

Pentewan 3 

Pentre 92 

Peterborough, P. B 32,205 2 

Peterhead 15,146 37 

Peterston-Super-E'ly 327 8 

Piercebridge 207 5 

Pinner 3,266 25 

Pittenweem, P. B 1,859 9 

Ponteland 463 7 

Pontlottyn , 7,849 21 

Pontyclun 13 

Pontycymmer 28 

Pontypool, U. D 6,126 98 

GREAT BRITAIN. 



Place. 



Popu- 
lation. 
. 32,316 



Pontypridd, U. D 

Porth 

Porthcawl, V. D 1,872 

Portrush, U. D 1,941 

Portstewart 685 

Port Talbot 

Potton 2,033 

Prescot, U. D 7,855 

Prudhoe 3,901 

Reading, P. B 64,922 

Rhyl 8,473 

Rhymney, U. D 7,914 

Richmond (Yorks) 3,837 

Rickmansworth 5,627 

Riddings 4,435 

Risca 9,661 

Ross (Herefordshire) 3,303 

Royston (Herts) 3,517 

Rye 3,900 

Ryton, U. D 8,462 

Saffron Walden 5,896 

St. Athan 365 

St. Monance 2,007 

Sandbach 5,558 

Sandy 3,110 

Sanquhar 2,933 

Saxmundham 1,462 

Scunthorpe 6,750 

Seaton Sluice 

SedgefieJd 3,167 

Senghenith 

Sevenoaks 8,006 

Sheffield, P. B 380,783 

Shields Road (Newcastle). 

Shildon 11,759 

Shipton-On-Stour 1,564 

Shotley Bridge 

Shotts 15,562 

Sible Hedingham 1,701 

Skegness 2,140 

Skenfrith 449 

Sleaford 5,468 

Slough 11,453 

Somercotes 

Southampton, P. B 120,215 

Southend-OnnSea 28,857 

Southerndown 

South Shields, P. B 97,263 

South wold.. . . 2,800 

Spalding 9,385 

Spennymoor, U. D 16,635 

Stanley, U D 13,554 

Stevenage 3,957 

Stocksfleld 



Stockton-On-Tees, P. 
Stow-On-The-Wold. . . 

Strichen 

Sudbury 

Sunderland, P. B.. . 
Swanley Junction.. . 

Swansea, P. B 

Talgarth 

Talybont-On-Usk.. .. 

Talywaln 

Tamworth 

Taunton, P. B 

Tenterden 

Thetford 

Thirsk 



B.. 



71.815 
1,386 
2,313 
7,109 

158,877 
3,666 

128,773 
1,466 



7,271 

19,723 

3,243 

381 

3,093 



Sub- 
scribers 
Stations. 
90 
43 
30 
15 

7 
60 
14 

2 
10 

2 

1 
28 
36 
29 
10 
23 
62 
39 
40 
11 

3 

8 

11 
18 
19 

2 
22 
21 

4 
14 

7 

2 

7 

8 
15 
14 
21 
12 
41 

2 
37 

2 
13 

3 

2 

9 

48 
38 
57 
10 
26 
2S 
14 
31 
18 
13 
42 
123 
22 
17 
13 

9 
24 

2 

3 
23 
21 
16 



APPENDIX " A 



317 



APPENDIX No. 1 

List of Subscribers to the Post Office Telephone Exchange System in Great Britain 

and Ireland — Continued. 



Sub- 
Place. Popu- scribers 

lation. Stations. 

Thornbury 2,594 18 

Thornley 2,938 5 

Tilbury Docks 2 

Tipperary 160,232 10 

Tiverton 10,382 1 

Toddington (see Winch- 
combe) 202 

Ton-Y-Pandy 84 

Ton-Yr-Efail 11 

Torksey 202 2 

Towcester.. .. 2,371 20 

Towyn 3,756 IS 

Tredegar, U. D 18,497 27 

Treharris 24 

Treh?rbert, E. P 8,826 30 

Treorchy 36 

Tring 4,349 30 

Troedyrhiw 23 

Truro 2,443 2 

Turner's Hill, E. P 882 7 

Tylorstown, E. P 7,564 27 

Tyne Dock 13 

Tynemouth, Par 24,881 5 

Uckfleld 2,895 39 

Upper Brynamman 20 

Upper Largo 2,046 8 

Uxbridge, U. D 8,585 76 

Wainfleet 1,233 16 

Wallsend 20,918 13 

Walton-on-the-Naze 2,014 16 

Ware 5,573 3 

Wark 634 3 



Sub- 
Place. Popu- scribers 
lation. Stations. 

Warrington, P. B 64,701 2 

Warwick, P. B 39,075 2 

Watchet 1,880 6 

Watford, U. D.. .. 29,327 3 

Waunllwyd -19 

Wealdstone 5/901 28 

Welshpool, P. B 4,609 25 

Welwyn 1,660 18 

Wendover 2,009 27 

Westoe, E. P 26,912 2 

West Cornforth 8 

West Hartlepool, Par 60,561 

Westerham 2,905 25 

Weybridge 5,329 3 

Whitby, U. D 11,755 2 

Whitchurch (Salop) 5,221 41 

Whitley Bay, U. D 7,705 15 

Whittingham 439 7 

Wigan 60,764 2 

Williton, R. D 14,462 5 

Winchcombe 2,699 20 

Wingate 8,005 15 

Witham, U. D 3,454 13 

Wooler 1,336 17 

Workington 26,139 6 

Worthing 16,996 2 

Yiewsley 3,213 

Ynysbwl 7 

York, P. B 75,521 2 

Ystalyfera 26 

Ystradgynlais 5,785 13 



General Post Office, London, July, 1905. 



GREAT BRITAIN. 



318 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 278k. 

GREAT BRITAIN— Continued. 

(Pamphlet L.) 

TELEPHONES. 

EXPERIMENTAL RURAL CALL OFFICE SYSTEMS. 

When Mr. Austen Chamberlain was Postmaster General he decided, in view of 
representations made by Mr. Lough, M.P., to open experimentally some rural telephone 
call offices, that is to say call offices in villages by means of which the inhabitants may 
communicate with their nearest market town, and with callers at other village call 
offices on the same local system. The service was to be purely a local one. 

Three districts were chosen for the experiments : Cavan, in Ireland, in which Mr. 
Lough was interested; Fraserburgh, in Scotland, and Oakham, in England. The ex- 
pense involved was small in these cases, as existing telegraph circuits could be utilized 
for calls also. All that was necessary was to make a few slight alterations and to pro- 
vide some silence cabinets. Callers in the villages can arrange with their correspond- 
ents in the market town to attend at the call office at a certain hour, or they can first 
make a call to the market town in order to obtain the services of an express messenger 
there who will fetch the person required to the telephone. There has now been a fair 
opportunity of judging of the utility of arrangements of this kind, and it seems clear 
that, when the call offices are grouped round a town to which the exchange system has 
not been extended, very little use is likely to be made of the call offices, and their 
maintenance will be unremunerative. At Oakham and Cavan, where there are no tele- 
phone exchanges, 2d. (4 cents) is charged for each call, and if the services of an ex- 
press messenger are required they have to be paid for at the ordinary express service 
rates, and the minimum charge for a message becomes 5d. (10 cents). This perhaps 
is more than the villagers can afford to pay for the privilege of speaking to their 
market town. In any case comparatively few calls have been made; and the receipts 
have not covered the expenses, although the latter have been small. At Fraserburgh 
the circumstances are different. There is considerable post office exchange system 
there, and callers at the post office can speak to subscribers to the exchange without hav- 
ing to make previous arrangements with their correspondents or to employ express mes- 
sengers. Moreover, as the charge for a local call on the Fraserburgh exchange is only 
one penny, one penny only has been charged for a local call office call. The result has 
been that at Fraserburgh the call office receipts have about met the expenses. 

There is another point in connection with these call office arrangements that must 
be borne in mind when dealing with the financial aspect of the question. There is no 
doubt that when a local call office system is introduced a local call often takes the place 
of one or more local telegrams — that is, the caller gets for 2d. (4 cents) (or for 5d. 
(10 cents) or 7d. (14 cents), if an express messenger has to be employed) what 
formerly cost him and his correspondent 6d. or Is. Thus local calls often supersede 
local telegraph traffic at a loss to the revenue. 

(5d. — 2d. for a call; 3d. for a messenger to deliver the message). 

(7d. — 2d. for a call ; 3d. for express messenger to fetch correspondent ; 2d. for con- 
versation with correspondent when fetched. 

The result of the working of the three systems for 12 months in each case is shown 
in the annexed statement. 



GREAT BRITAIN. 



APPENDIX No. 1 



APPENDIX " A " 



319 



s 
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GREAT BRITAIN. 



320 . SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

No. 2781. 

GREAT BRITAIN— Continued. 

Pamphlet M. 

MEMORANDUM. 

When a subscriber of the National Telephone Company desires to make a trunk 
(or inter-urban) call, the demand is passed to the trunk exchange, where the particu- 
lars are noted on a ticket ( No. T. 92)), of which a specimen is attached. 

When a trunk line, which is required becomes disengaged for the call, the atten- 
tion of the subscribers concerned is obtained, and they are placed in communication 
with each other. At the termination of the call, which would be for three or for six 
ninutes, the trunk connections are severed and the time of conversation is noted on 
the ticket by the operator. The ticket is also used for noting any difficulty which may 
Lave arisen in connection with the call. 

All the tickets for completed trunk calls are collected from time to time, and the 
charges for the conversations are entire] on them by an operator. 

The National Telephone Company are responsible to the post office for paynient for 
.-ill trunk calls made by their subscribers, ami all accounts for trunk conversations are 
therefore rendered to th impany. 

Two systems are in vogue for rendering accounts. 

Usually the particulars of calls are entered from the tickets on to a form (T. 78) 
of which a specimen is attached and the form is forwarded to the company at the end 
cf each day. Under the other system, the tickets themselves are forwarded to the 
company, and the amount due is summarized on an accompanying form (T. 7), of 
which a specimen is attached. The post office keeps a copy of the summary. This 
system is favoured "by the post office, but the company cannot introduce it generally, 
Rt, their staff would in many cases be unable to cope with the extra work which the 
system throws on them. 

Tne company in their turn collect the amounts due from the subscribers. They 
are allowed a commission of 5 per cent on the amount due to the post office to cover the 
work involved and any losses caused by defaulting subscribers. 

At present the company have a right to impose terminal fees on conversations 
with their subscribers originated by subscribers to other exchange systems, and they 
have hitherto imposed these terminal fees with certain exceptions which have been 
agreed to. Conversely, the company's subscribers have had to pay terminal fees on trunk 
conversations originated by them for subscribers to other exchange systems, with the 
txceptions mentioned. These terminal fees were added to the trunk fees, but it has 
been arranged with the company that the payment of terminal fees on all conversa- 
tions between their subscribers and subscribers to post offices exchanges shall cease 
on August 31 next. 



GREAT BRITAIN. 



APPENDIX "A 



321 



APPENDIX No. 1 



No. 278m. 



GEEAT BKITAIN— Continued. 



T. No. 92. Telephone Tick.-t. 9Q1Q7 



Code time \ 
of call / 



Charge 



Remarks 



Number of 

Minutes 

Demanded 



To 


No. 

No. 




Time \ 
On J 


Circuit [ 
Number f 


Time \ 
Off j 






Trunk \ 
Operator | 


Record I 
Operator j 




Office Stamp. 



GREAT BRITAIN. 



322 

No. 278n. 

T.— No. 78. 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

GEEAT BRITAIN— Continued. 

POST OFFICE TELEGRAPHS. 



AN ACCOUNT showing the AMOUNT due from the NATIONAL TELE- 
PHONE COMPANY to His Majesty's Postmaster-General for Telephone Trunk Line 

Calls which passed from the Company's System on to the Post Office System at 

on the . day of 190.... 



Time of Call 



From 



To 

(To be filled 

up if 

3 mini it :s 

exceeded) 



Call from 



Call Office or Town 



No. of 
Subscriber 



Call to 



Town 



No. of 
Subscriber 



Charge 



H. M. 



H. 



M. 



Total for the day . 

Amount due for previous 
days of the Month . . . 



Date Stamp. 



Total £ 



. Postmaste r. 



GREAT BRITAIN. 



APPENDIX " A " 



323 



APPENDIX No. 1 
No. 278o. 

T.— No. 7. 



GREAT BRITAIN— Continued. 



(National Telephone Company 
or Licensed Local Authority) 



POST OFFICE TELEGRAPHS. 



AN ACCOUNT showing the Amount due from the 

to His Majesty's Postmaster General for Telephone Trunk Line Calls passed on to the 
Post Office System at on the day of 190.... 



Number of Calls 


Charge 
per Call 


Amount due 


Numbei of Calls 


Charge 
per Call 


Amount due 




s. d. 


£ s. d. 




s. d. 


£ s. d. 






1 








Brought \ 
forward ) 
















2 










3 


4 












3 










3 


<; 












4 








4 















5 










4 


6 












G 
























9 






















1 

























1 


3 






















1 


6 






















1 


9 






















2 

























2 
2 
2 


4 
ti 

10 






















Total number of 1 
Charged Calls/ 






3 











Number of Un-\ 
charged Calls) 








Carried | 
forward l 










Amount carried forward. . . 









Total number of Tickets \ 
forwarded with this Account J 



1— d— 22 



GREAT BRITAIN. 



324 



No. 278p. 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

GREAT BRITAIN— Continued. 



Amount brought forward 



Adjustments : 



Particulars of Call 
Date Time From To 



Kxplanatory Remarks 



to lie 
added 
8. (1. 



Amount 

to be 

. d 



Totals. 



Net Amount to be added or deducted. 



Ami mnt due for the day 

Amount due for the previous days of the month . . 

Total due from the beginning of the month £ 



a. d. 



Memo.— The Tickets forwarded with this Account should be returned within 3 working days of receipt 



Date Stamp. 



GREAT BRITAIN. 



Postmaster. 



APPEXDIX " A " 325 

APPENDIX No. 1 

No. 278q. 

GREAT BRITAIN— Concluded. 

DESCRIPTION OF THE MANNER IN WHICH DEMANDS FOR TRUNK (OR INTER-URBAN) CALLS ARE 
PASSED BY TELEPHONE SUBSCRIBERS TO TRUNK EXCHANGES. 

The fact that the local exchange systems largely do not belong to the post office, 
v/hieh owns the trunk lines, and that local exchanges are in consequence rarely in the 
same room as a trunk exchange has led to the existence of several methods of passing 
demands. 

Subscribers to tFe exchanges of the National Telephone Company and of the cor- 
porations which have established telephone systems do not as a rule pass the particu- 
lars of calls direct to the trunk exchange themselves. They inform their local operator, 
who in turn passes the particulars to the trunk exchange. She does so usually by 
means of a circuit known as a ' service ' circuit which is terminated at an operator's 
position at the trunk exchange. This ' service ' circuit is multiplied on keys at each 
operator's position in the local exchange, and every operator thus has access to the 
service circuit. The operator at the trunk exchange has to attend to trunk lines in 
addition to noting the particulars of demands on tickets as they are passed. 

When there is a sufficient amount of traffic to justify it, the ' service ' circuit is 
removed from the operator's position at the trunk exchange and terminated on the 
headgear telephone of an operator (known as a 'record operator'). This operator 
listens continuously, and notes particulars of calls as they are passed, the tickets being 
then distributed to the operators at the trunk positions. 

In a few of the larger exchanges, ' direct record ' working, under which subscribers 
themselves pass demands to the trunk exchange, is in force. The circuit of a sub- 
scriber, who wishes to make a trunk call, is switched through to the trunk exchange 
by means of circuits set apart for the purpose, and known as ' record circuits.' These 
record circuits are usually terminated on a record switch section which is fixed on a 
table and which is capable of accommodating 20 circuits. At the trunk exchange, one 
operator attends to one record switch section, and notes tho particulars of calls as they 
are passed. 

The post office is extending this system as rapidly as circumstances permit. 

In London and Cardiff, the record circuits are terminated at a transfer section 
which is en suite with the switchboard. The record operators are seated at a table in 
the middle of the room, and their headgear telephones are connected with cords at the 
transfer section. When a call from a subscriber is received at the transfer section, 
the record circuit is immediately extended by the transfer operator to any disengaged 
record operator. By this means the work is better distributed than where one operator 
attends to 20 lines terminated on a record switch section. The post office is extending 
this system to the largest exchanges. 

All post office subscribers pass their calls to the trunk exchange direct. 



No. 279. 



NEW ZEALAND. 



Post and Telegraph Department, 

General Post Office, Wellington, June 13, 1905. 

The Hon. the Postmaster General, 
Ottawa. 

Sir, — I have the honour to acknowledge the receipt of your letter of the 1st ultimo, 
asking for information for the Select Committee on Telephone Systems of the work- 
ing of the telephone system of this colony. 

1 __ /7 _22i NEW ZEALAND. 



326 SELECT COMMITTEE OX TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

In reply, I have pleasure in forwarding herewith a list of answers to the ques- 
tions which you furnished. Under separate cover, I am forwarding you copies of the 
Annual Keport of the Department for the year 1903-4 ; the New Zealand Post and 
Telegraph Guide for the current half year; the Official Year Book for 1904; and a set 
of Post and Telegraph maps of New Zealand. Should any further information on the 
matter be required, which it is in my power to supply, I shall be glad to do so. 

I have the honour to be, sir, 

Your obedient servant, 
J. G. WARD, 

Postmaster General. 

No. 279a. 

ANSWERS TO QUESTIONS. 

The government owns and operates the long-distance lines. The longest distances 
in New Zealand for trunk telephonic communications between subscribers to different 
exchanges are generally 50 to 60 miles, but in some cases subscribers are switched 
through an additional 20 to 30 miles. Provision is not made for greater distances. 
although at times an exchange in one telephonic district, while confined to its own 
limits during business hours, may after hours communicate with another, where prac- 
ticable. 

If erected on existing poles the cost (single wire) of the long-distance lines is: 
fron wire, £5 ($24.35) to £8 (38.96) per mile; copper wire. 200 pounds weight to the 
mile, £10 ($48.70) to £15 ($73.05). The cost varies according whether the poles do or 
do not require strengthening, or whether additional poles are necessary to carry extra 
wires. There are no special poles carrying only toll telephone wires, telegraph lines 
of poles being used. Within distances before mentioned the mileage of wire exclusively 
used for telephone toll lines is approximately 500 miles. Most of our toll lines are 
also used for ordinary telegrams transmitted by telephone. 

Our toll charges are 6d. (12J cents) for three minutes' conversation within 
miles, and Is. (24J cents) over 25 miles. No other rates have yet been fixed. Sub- 
scribers to exchanges, however, only pay half rates, namely, 3d. (6 cents) under 25 
mi'es and 6d. (12J cents) over 25 miles. 

Note. — Experience shows that although three minutes is an average time for a 
conversation, only about seven conversations per hour can be regarded as the capacity 
of a circuit. 

Subscribers' circuits are grounded, except that those at the four principal ex- 
changes, Auckland, Wellington, Ohristchurch and Dunedin. with approximately 2,000 
subscribers each, are now being converted to metallic circuits. Our toll lines, called 
here trunk lines, are mostly metallic, or in course of being made so, either by the erec- 
tion of special wires or super-imposing on telegraph wires. Many of our circuits up 
to 50 and 60 miles are No. 8 iron, both grounded and metallic. Where we have copper 
metallic circuits specially erected, gauge No. Hi, equal to 200 pounds weight of cop- 
per to the mile, has so far been used. An example of such special circuits is that from 
Invercargill to Gore, comprising two metallic circuits, and a third metallic circuit 
super-imposed. The line is 40 miles long, vide map sent under separate cover. 

The total cost of long-distance lines varies, but as an example it may be men- 
tioned that a special metallic trunk line has been recently erected on telegraph poles, 
one section of which cost £13 8s. ($65.25) per mile of single copper wire, 200 pounds 
to the mile, hut this included a number of stronger poles inserted in the line. 

The cost of maintenance of telephone lines is included in our telegraph lines 
maintenance, and cannot be separately stated. The operating expenses, including only 
the attendants on toll lines, would depend on the amount of business, and the salaries 
paid to the particular officers, male or female. Table No. 21 of 'the Department's 
Annual Report for the year 1904-5 gives details of exchanges, but not the separate cost 
of toll lines. Five per cent per annum is paid on debenture capital. For complete 
figures, see Table No. 21 of the annual report. 
NEW ZEALAND. 



APPEXDIJ " A " 



327 



APPENDIX No. 1 



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SELECT COMMITTEE ON TELEPHONE SYSTEMS 



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4- 



APPENDIX " A " 



329 



APPENDIX No. 1 

The fees for conversations by subscribers on toll lines are collected from them at 
the time the half-yearly subscription is paid by them, each exchange keeping accounts 
against each user of the toll line. In the case of non-subscribers, the fee is collected 
at the time of service. 

The department has for several years been superimposing telephone circuits on 
telegraph wires and telegraph circuits on telephone wires. It is obvious that the use 
of telegraph wires for telephone purposes is limited, and nearly all the wires available 
for this purpose have now been absorbed. Wherever the conditions permit, use will 
be made of telegraph wires for telephone purposes or vice versa, either superimposed 
or on the condenser system. It is intended to give a telephone service between Wel- 
lington and Palmerston North on the condenser system — that is, using telegraph wires 
both for telegraph and telephone purposes. Certain alterations to the line will be 
necessary, but in a few months it is hoped to put the system in operation. 

There is also in operation what is known as duplex-telephone circuits, and these 
will be extended where the necessary wires exist. Such a duplex circuit is at work 
between Napier and Hastings, where four telephone wires allow of a third metallio 
circuit being superimposed on the two metallic circuit pairs. 

The government owns and operates all exchanges. The exchanges constitute a 
branch of the Post and Telegraph Department. The population of New Zealand, at 
this date, is 900,000 approximately. 

TELEPHONE EXCHANGES. 

Four new exchanges were opened during the year, and one closed. 1,318 new sub- 
scribers were added to the exchanges throughout the colony, bringing the total con- 
nections up to 13,423, an increase of 10 :89 per cent for the year. Of the total increase, 
595 were added at the four chief centres. 

There were on March 31 last 28 central and 57 sub-exchanges, a total of 85 in alL 
The following is a comparative return of the telephone exchange connections for 
the years 1903-4 and 1904-5 :— 



Ashburton 

Auckland 

Devonport 

Blenheim 

Christchurch .... 

Akaroa 

Doyleston .... 

Duvauchelle. . . 

Leeston 

Lincoln 

Little River 

Lyttelton 

Rangoria 

Southbridge . . . 

Dannevirke 

Dunedin 

Balclutha . . . . 

Clinton 

Kaitangata .... 

Milton 

Palmerston . . 

Port Chalmers 

Waikouaiti .... 
Feilding 

Sanson 



Exchange. 



Number of Subscribers or 
Connections. 



March 31, 1904. 



118 

,707 

34 

133 

,479 

36 

7 



11 



15 

6 

88 

,579 

24 

8 
10 
21 
18 
21 

8 
133 

1 



March 31, 1905. 



130 

1,854 

38 

137 

1,647 

40 

7 

8 

10 

6 

9 

8 

15 

6 

109 

1,702 

27 

8 

13 

23 

19 

22 

8 

45 

1 



Population 
1901 Census. 



2,322 



3,823 
3,222 



559 



4,023 
1,768 



2,315 

1,617' 



1,241 

738 

2,056 



NEW ZEALAND. 



330 



SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
telephone exchanges — Continued. 





Number of Subscribers or 

Connections. 




Exchange. 




Pi filiation 






l'.iol C'en- 




March 31, 1904. 


March 31, 1905. 




Gisborne 


281 
183 


329 
193 


2,737 


Greymouth 


3,748 




44 


47 








66 


1,253 




143 
26 


157 

30 

6 


2,131 












18 


14 




Pa tea 


31 

129 

10 


33 

132 

10 


091 




1,946 


Kumara 




Ross 


6 


6 


614 


Invercargill 


335 


372 


6,215 


Bluff 


30 

5 

83 


33 

5 

88 










2,354 




16 


16 




Mataura 


10 


11 






25 


24 




K i v ei sdale 


17 
18 

22 


16 
18 
25 






815 


Winton 


474 




5 


5 




Wyndham, 


12 


12 






155 


205 


3,949 




33 


38 


1.203 




18 
10 


30 
9 






1,122 




384 

118 


399 

185 


8 774 




3,650 




1 
220 


1 

•'.'.1 






7,010 




320 


329 


4,405 




18 


23 






16 


14 




Oamaru 


210 


219 


4,836 




2 


2 




Pahiatua 


79 


82 


1,209 


Woodville . 


20 


23 


926 


Palmerston North 


264 


328 


6,534 


Foxton 


24 


25 


1,211 




70 
98 


91 
L06 


1,307 

-J '27 


Stratford 




78 


82 


1,009 


Paeroa 


- 25 


29 






206 


243 


6.424 


Fairlie 


12 


11 




Geraldine 




28 

9 

6 

18 

35 

445 






8 ' 

6 

17 

29 

425 








Temuka 


1.465 
1,359 
7,329 


Waimate 






5 

47 

1 


6 

63 

1 


Marton 

Okaiawa 


1,101 


Waverley 


8 


7 






2,103 
109 


2,260 
125 


43,638 
2,922 
1,429 


Westport 




36 


55 




12,105 


13,423 




___^__ 





NEW ZEALAND. 



APPENDIX " A " 



331 



APPENDIX No. 1 

The connections are classified : Paying, 12,377 ; free, 276 ; bureaux, 770 ; total, 
13,423 (being 1 telephone to 57 :56 inhabitants, based on the total population of 
772,719, 1901 census). 



Miles of lines, 31st March, 1904 . . . 

31st March, 1905 . . 

Miles of wire, 31st March. 1904.. . 

31st March, 1905.. . 

Increase during the year — 

Miles of line 

Miles of wire 

Cables — 

Submarine, 31st March, 1904. 
31st March, 1905. 



Telegraph. 



283 
283 



7,779i 

7,9432 

22,9204 

23,704" 

164S 
7831 

107 knots. 
107 m 



Telephone. 



72U 
7S.V, 
9,834 i 
11,028 

64 
1.193J 

3-392 knots. 
3-392 .. 



The following are particulars of telegraph and telephone wires. &c, in the colony 
on March 31, 1905, exclusive of those now maintained by the Railway Department: — 

The population of the principal cities is as follows : — 

Auckland and suburbs 74,738 

Wellington and suburbs 57,663 

Christchurch and suburbs 48,767 

Dunedin and suburbs 59,000 

The next towns of importance, Invercargill, Napier, &c., have under 10,000. 



THE CHARGES FOR SERVICE ARE AS FOLLOWS. 

1. In addition to the entrance fee of £1, the charge per annum payable in respect 
of the hire for any telephone instrument connected with a government telephone ex- 
change is as follows : — 

To every subscriber for a single wire, as from the date of connection: 

Per annum. 

At exchanges which are open continuously — £ s. 

Business establishments 7 ($34.09) 

Private residences 5 ($24.35) 

At exchanges which are not open continuously — 

Business establishments and private residences.. .. 5 ($24.35) 

2. The following are the hours of attendance observed at telephone exchanges, ac- 
cording to the number of paying subscribers connected therewith :— 

Hours. 
Subscribers. a.m. p.m. 

Up to 65 9 to 5 

Over 65 and up to 100 8 " 8 

" 100 " 125 8 " 10 

" 125 " 150 S '' midnight. 

" 150 — Open continuously if desired by subscribers, and payment at 
rate of £7 ($34.09) per annum for business connections 
agreed to. 

3. Extra telephone (in addition to cost of fitting), £1 ($4.87). Special instru- 
ments or appliances, as per agreement. Printing name of subscriber in telephone list 
free. Printing of additional names of subscribers in connection with the same num- 
ber: For each additional entry, 10s. ($2.44). 

NEW ZEALAND. 



332 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

4. The above rates are for connections with a telephone exchange of warehouses, 
stores, shops and business places not more than half a mile from the exchange, and of 
private residences not more than one mile from the exchange. 

5. For every additional quarter of a mile or fraction thereof, for each year com- 
mencing from the date of connection, and for every following year, 10s. ($2.44). 

6. Where any connection with an exchange is over one mile in length, the appli- 
cant will be required to hold the same for three years. 

7. If a connection with a telephone exchange necessitates the erection of a new 
line of poles beyond one mile, then the additional charge after the first mile will be at 
the rate of £1 ($4.87) for every quarter of a mile or fraction thereof. 

8. For connections over three miles in length the subscriber will be charged at 
ordinary rates on the first three miles. For the portion beyond that distance he will 
be required to pay the cost of erection of the line, and an annual maintenance charge 
of £1 ($4.87) for each quarter of a mile or fraction thereof if the line is on new poles, 
or 10s. for each quarter of a mile if the wire is on an existing line of poles. 

CHARGES FROM TELEPHONE BUREAUX OR PUBLIC CALL OFFICES. 

1. A ' telephone bureau ' means any ordinary telegraph or telephone office which 
is mentioned as a bureau in the list of telegraph offices published in the Post and Tele- 
graph Guide for the time being, as well as any such bureau specifically constituted. 

2. The following are the charges to be paid by the public for the use of govern- 
ment telephones at a telephone bureau in the colony : — 

3. Where the line used is not more than twenty-five miles long, a uniform charge 
of 6d. (12^ cents) for use of the same for any period not exceeding three minutes, and 
u further charge of 6d. for every additional three minutes or portion of three minutes. 

4. Where the line used is over twenty-five miles long, the charges are Is. (24J 
cents) for use of the same for any time not exceeding three minutes, and a further 
charge of Is. for every additional three minutes or portion of three minutes. 

5. When subscribers are connected through an exchange to a bureau, or from a 
bureau to a subscriber, half the above rates will be charged if the applicant is a sub- 
scriber to the particular exchange through which it is desired to communicate. 

6. When a message to the effect that any person is required at a telephone is sent 
to a bureau for delivery beyond the premises in which such bureau is situated, 3d. 
(6 cents) will be charged for delivery. These charges must be paid by the sender. 
Messages for addresses outside the ordinary delivery limits are subject to special 
charges for delivery, according to the extra expense thereby incurred. 

7. Any one person may only use the wire for six minutes at a time — that is to say 
that if another person requires the wire, at the end of six minutes it must be given up. 
Should the wire not be asked for, then the person using it may continue to do so at 
tariff rate. On Sundays ordinary rates only are charged. 

LONG-DISTANCE COMMUNICATIONS. 

8. The following are the charges for the use of government telephones for the 
purpose of conversing over long-distance wires on Sundays, or at other times approved 
by the commissioner, usually between midnight and 8 a.m. : — 

(a.) When the conversation takes place through exchanges which are open con- 
tinuously, or through other exchanges or bureaux during the ordinary hours of attend- 
ance of switchboard or bureau attendants: For a period not exceeding six minutes, 
2s. 6d. (61 cents); and a further charge of 2s. 6d. (61 cents) for every additional 
period of six minutes or portion of six minutes. 

(b.) When special attendance of switchboard or bureau attendants out of or- 
dinary hours of attendance is required, then for each switchboard or bureau attendant 
called upon to make the necessary wire connections: For every hour or less, 2s. 6d. 
(61 cents), in addition to the charges set forth in subsection (a.). 
NEW ZEALAND. 



APPENDIX " A " 333 

APPENDIX No. 1 

9. No free conversations on public service are permitted over long-distance cir- 
cuits. 

Private Wires. 

conditions under which line will be constructed, supplied with instruments and 

maintained. 

Cost of Construction. 

Application should be made direct to the Superintendent of Electric Lines, Wel- 
lington, for any information regarding cost of construction and conditions under 
which private lines will be constructed or supplied with instruments. 

Maintenance and Wayleave. 

The charge for maintenance of each private line will be as under, payable yearly 
in advance, viz. : — 

For the first mile or fraction thereof, £2 ($9.74) per annum, and 10s. ($2.44) for 
every additional quarter of a mile or fraction thereof. 

If the wire cannot be erected on any existing poles, and therefore entails the erec- 
tion of new poles, then for such new line the maintenance will be at the rate of £4 
($19.48) per annum for the first mile or fraction thereof, and £1 ($4.87) for every addi- 
tional quarter of a mile or fraction thereof. 

Use of Line. 

The applicants must only use the line for their own bona fide business, and on no 
account, directly or indirectly, allow the wire to be used for any purpose which might 
be construed into an attempt to defraud the department of its revenue. 

Nearly all extensions of telegraph facilities to rural districts or new settlements 
are for telephone working. The majority of New Zealand offices at which telegrams 
are dealt with have telephonic communication only, and are carried on in a store, a 
schoolhouse or a settler's house, where the small post offices are kept. Many of these 
offices yield a revenue of under £10 ($48.70) a year. A very large number of them 
(about 770) are what we call bureaux, in which provision is made for a settler either 
to send a telegram or speak over the same wire to the centre of his district, which 
usually has an exchange. 

No measured service system is in vogue in New Zealand. 

The greatest distance spoken over is, say, about 100 miles. Provision is not made 
for very long distances, only for districts. These districts are defined in accompany- 
ing map by a blue line inclosing each. But they may overlap, and after regular hours 
speech is permitted from an office in one district to an office in another, where prac- 
ticable. We have a special service for night and Sunday over telegraph wires after 
telegraph offices are closed. This applies, however, almost solely to Auckland to 
Napier, Auckland to Wellington, Wellington to Napier, in the North Island, the ex- 
changes in these places being open always. The distance from Auckland to Welling- 
ton is nearly 500 miles. Napier is, approximately, half way. Vide map. Wellington 
can also speak by telephone to Christchurch in the Middle Island when the telegraph 
offices are closed. The telegraph wire used includes 33 knots of submarine cable, and 
the length of the circuit is 270 miles. The wire on the land line, however, is No. 8 
copper, or 400 pounds weight to the mile. Christchurch can in the same way speak to 
Dune 1 in, 240 miles distant, or to Invercargill, a further distance of 130 miles. Ad- 
vantage is frequently taken of permission to converse after hours and on Sunday. 
The charge is 2s. 6d. (61 cents) for six minutes' use of the wire. 

' Ericsson ' and ' Western Electric ' wall or table telephones, mostly bridging, are 
used by subscribers. 

NEW ZEALAND. 



334 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Subscribers' lines are single, grounded circuits, but are being converted to metallic 
at the four principal centres. Some lines are iron and some copper. All overhead. 

The managers are officers of the Post and Telegraph Department, and are not 
specially paid for services connected with telephones. Officers in charge of exchanges 
acting under supervising officers of the Post and Telegraph Department receive £220 
($1,071.40) per annum; linemen, £125 ($598.75) to £180 ($876.60) per annum; super- 
vising cadettes, £40 ($194.80) to £120 ($584.40) ; switchboard cadettes, £40 ($194.80) 
to £80 ($389.60). 

The cost of equipment is as follows : — 

Switchboards. 

The four principal stations, Auckland, Wellington, Christchurch and Dunedin, 
are fitted with multiple switchboards of an ultimate capacity of 4,900 numbers. Cost, 
•fitted up, about £5 ($24.35) per number. 

Smaller switchboards of various types — many made up here — cost £2 ($9.74) per 
number. 

Ericsson or Western Electric wall telephones — about £3 ($14.61) each in England. 

Ericsson or Western Electric desk telephones — about £3 10s. Od. ($17.05) each. 

Wood poles, from £1 ($4.87) each and upwards, according to size, 20 to 50 feet. 

Wood cross arms, according to size, 6d. (12| cents) to Is. Od. (37 cents) each. 

Insulators and bolts, up to Is. (243 cents) each. 

No payment is made for wayleave privileges. 

No. 279b. 

NEW ZEALAND— Continued. 

EXTRACTS FROM THE ANNUAL REPORT OF THE POST AND TELE- 
GRAPH DEPARTMENT OF NEW ZEALAND FOR THE 
YEAR ENDING MARCH 31, 1905. 

Telegraph and Telephone Construction and Maintenance, 
new zealand cable services. 

The cables across Cook Strait, including the Wanganui-Wakapuaka cable, have 
been periodically tested with satisfactory results. No faults have occurred during the 
last two years. 

The cable connecting the Middle Island with Stewart Island continues in good 
working order. 

It may be of interest to note that the four Cook Strait cables are quadruplexed. 
One is used direct to Dunedin and one to Christchurch. The other two are quadru- 
plexed to Blenheim, and through repeaters there, Wellington is enabled to work on 
one a duplex circuit to Christchurch, and a duplex circuit to Greymouth, and on the 
vther a duplex circuit to Nelson and a duplex to Wakapuaka, with Blenheim inter- 
mediate. Wellington has direct communication with these places in the Middle Island, 
as well as all important towns in the Wellington, Napier, Wanganui and New Ply- 
mouth districts; and also with Auckland. 

These four cables are equal to sixteen single wires, and a single wire has a capa- 
city in ordinary working of forty messages an hour. When quadruplexed the wire has 
four times the carrying capacity. 

The Wanganui-Wakapuaka cable is duplexed, making it equal to two single wires. 

TRUNK TELEPHONE WIRES. 

Contrasted with the use that can be made of a telegraph wire, it is found that a 
trunk telephone wire has the very limited capacity of about fifty to sixty spoken com- 
munications a day; and where a telephone circuit, either metallic or single, is carrying 
NEW ZEALAND. 



APPENDIX " A " 335 

APPENDIX No. 1 

that volume uf business there is a demand for an extra wire. Where there are other 
wires on the sams poles, efficient communication requires the provision of a metallic 
circuit — that is, two wires; and where there is an existing single wire circuit for any 
length, and a second one is required, it is absolutely necessary to erect a metallic cir- 
cuit to have eacli free from induction from the other. This points to the necessity of 
charges being made for spoken communications in proportion to the length of wire. 
This is the practice in England, America, and other countries. In England the 
charges are 3d. for twenty-five miles, 6d. for twenty-five to fifty miles, 9d. for fifty to 
seventy-five miles, Is. for seventy-five to one hundred miles, and 6d. for every addi- 
tional forty miles. The time allowed at the above rates is three minutes. With three 
minutes as the basis of charge, it is found from records made here that each spoken 
communication takes up the circuit for an average of nine minutes. 

Before the department extends its trunk telephone facilities these facts will require 
consideration, and a preliminary scale of distance rates prepared. On ordinary tele- 
phone lines, which serve the largest number of offices in the colony — namely, 936 out 
of a total of 1,200 offices — used for the transmission of telegrams, the business that 
can be done is about twenty messages an hour, while spoken communications between 
subscribers or telephone bureaux average only six to seven an hour. 

CHEAP TELEPHONE LINES. 

Every effort is being made to reduce the cost of country extensions, consistent 
with safety to the public and a reasonable prospect of an uninterrupted service. The 
cost of poles is the largest item of expenditure, and by the use of a pole costing 10s. 
extensions may be made for about £20 a mile. Each extension must be dealt with, 
however, on its merits. Its remoteness from a lineman's station, the character of the 
country, fenced or open, the number of roads or gateways, whether sheep-country or 
cropping-country, have all to be considered, also whether long or short cartage of poles 
and material is necessary. 

AUCKLAND DISTRICT. 

Construction. 

The following new lines have been erected during the year : — 

Miles Miles 
of Pole, of Wire. 

Waipa prison (lead off Waiotapu line) Oft Oft 

Ngaruawahia to Te Akatea and Waingaro 16 16 

Auckland to Newton and Mount Eden railway 2i 

Cambridge Sanatorium Oft Oft 

Auckland to Warkworth (diversion of Nos. 1 and 2 

wires) 96 

Waiotemarama to Waimamaku 3 J 3| 

Hinuera (lead off Morrinsville-Putaruru line) 0£ OJ 

Cambridge to Cambridge West 1 1 

Auckland to_ Atiamuri Junction (diversion of No. 3 

wire) 156 

Tauranga to Te Puke diversion 13 26 

Paengaroa Junction towards Matata diversion 18 18 

Hamilton to Te Awamutu (diversion of No. 5 wire) .... IS 

Auckland — Manukau Heads (second wire) 23 

For Kailway Department — 

Paeroa Bail way to Puriri Bailway 10J 10 J 

Totals 62| 371J 

NEW ZEALAND. 



336 SELECT COMMITTEE ON TELEPHONE SYSTEM* 

4-5 EDWARD VII., A. 1905 

Railway wires ceased to be maintained by this department from July 31, 1904: — 

Miles Miles 
of Pole, of Wire. 

Newmarket — Mount Eden telephone li li 

Mount Eden and Avondale signal repeaters 0§ 

Auckland-Penrose telephones ' 

blocks 1 19| 

Auckland Railway crossing bells 

Greenlane Racecourse platform 1 

Newmarket signalbox tunnel 

Auckland — Mount Smart telephone T : ; 

Otahuhu Railway — Papakura Railway telephone.. .. lOf 10| 

Tuakau-Whangarata telephone 

Huntly-Ohinewai telephone 5 J 5 J 

Paeroa Railway — Puriri Railway telephone - 10^ 

Totals 28| 66£ 

The total number of miles of poles and wire in this district, exclusive of those 
maintained by the Railway Department for their own use, is 2,063J and 5,6085 respec- 
tively. 

Maintenance. 

The reconstruction of the Auckland — Doubtless Bay section was completed at the 
beginning of the year. Reconstruction of the section Otahuhu to Hamilton has been 
finished, and the line from Hamilton to Cambridge rebuilt. These sections are now 
in first-class order. 

Nos. 1 and 2 north wires, which originally ran via Helensville, are now qn the 
main line via Waiwera. 

Another wire from Auckland to Atiamuri Junction (156 miles), taking the place 
of a wire via Thames and Mercer, has been erected, thus giving another direct wire to 
Napier and south. 

The line, Tauranga-Te Puke, has been diverted from the coast to the main road, 
requiring the erection, of 13 miles of poles and 26 miles of wire. 

The Te Puke-Paengaroa Junction line has been entirely rebuilt and strengthened. 

Maketu-Opotiki line. — This line, for a distance of 18 miles along the beach, has 
been diverted to the main road. The whole section is receiving a thorough overhaul, 
which will be completed early in the year. 

Manukau Heads. — A second wire, 23 miles long, has been erected on the main 
south line, for the purpose of forming a metallic circuit to the junction of the Heads 
line, thereby eliminating induction. A transformer is inserted at that point, and the 
circuit continued on the single wire to the terminal office. This arrangement gives 
(entire satisfaction. 

The Paeroa-Waihi line is being rebuilt, and will be completed early in the year. 

The Hikutaia Junction line towards Katikati is being diverted to within eight 
miles of Katikati, and will run through Waihi, connecting with the new line on to 
Paeroa, thus providing a much better route. 

The Cambridge-Te Awamutu' line, which carried one wire only and would require 
considerable attention to thoroughly repair, will be dismantled. The wire has been 
diverted to the King-country line from Hamilton. 

Offices. 

Ten new offices were opened in the district during the year, nine being connected 
by telephone, and one (Mount Eden Railway) by Morse instruments. 
NEW ZEALAND. 



APPENDIX " A " 337 

APPENDIX No. 1 

Three offices were closed — viz., Waikowhai, Opitonui and Piriaka ; whilst Omanaia 
was reopened. 

The total number of offices open is now 271, 50 of which are Morse and 221 tele- 
phone. 

Two offices, Newton and Whakatane, were converted from telephone to Morse, and 
One, Katikati, from Morse to telephone. 

The Touranga, Whakatane and Mangonui offices have been refitted, whilst those 
at Dargaville, Cambridge and Te Awamutu have been fitted with duplex sets, and the 
Auckland office with two new quadruplex sets of instruments for the purpose of meet- 
iTiir the steadily increasing traffic. 

Two small offices, Okete and Ardmore, were burnt down during the year, but com- 
munication was soon restored. 

The ceiling of the Auckland operating room has been raised, and the ventilation 
considerably improved. 

Telephone Exchanges. 

The Auckland exchange is steadily increasing in numbers, there being on March 
31 a total of 1,854 connections, an increase of 147 for the year. Of these, 1,773 are pay- 
ing, 23 free, and 58 bureaux. There are also 387 extension telephones connected with 
the exchange. A new section of 300 numbers is being added to the switchboard, which 
will enable 2,400 connections to be dealt with. 

One hundred and eight and one-half miles of poles and 1,951 miles of wire are 
utilized for the present connections. 

A new exchange was opened at Hamilton. On March 31 there were 66 subscribers, 
requiring the erection of 4f miles of poles and 26 miles of wire. 

Substantial increases at Rotorua and Whangarei, by 21 and 18 subscribers respec- 
tively, have taken place; whilst all the other exchanges show a slight increase over the 
number of connections last year. 

The 7 exchanges are working satisfactorily. The total connections therewith num- 
ber 2,215 (2,093 paying, 33 free and 89 bureaux). The poles and wire connected with 
the various exchanges aggregate, respectively, 138 miles and 2,1174 miles. 

Metallic Circuits. 

On March 31 there were 285 subscribers connected by metallic circuit. 

The work on the eastern side of the city, which embraces Otahuhu, Onehunga, 
Ellerslie, Epsom, Remuera and Parnell, and most of which required very long circuits, 
entailing considerable labour, is completed. 

In the remainder of the city the work will be comparatively easy, and a much 
larger number of subscribers will be joined up in a shorter time. 

WELLINGTON DISTRICT. 

Construction. a 

The following new lines and wires were erected in this district during the year : — 

Miles Miles 
of Pole. o£ Wire. 

Inglewood to Halcombe (part of through wire, Welling- 
ton to New Plymouth) 134J 

Shannon to Otaki (part of through wire, Wellington to 

New Plymouth) 24 

Gladstone to Te Wharau 14 14 

Mangatera to Umutaoroa 4J 4J 

Kilbirnie to Maramii (lead off Worser Bay line) .... 0J 0J 

Aramoho to Aramoho Railway 0J 0J 

NEW ZEALAND. 



338 SELECT COMMITTEE OA 7 TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Construction — Continued. 

Miles Miles 
of Pole, of Pole. 

Martinborough to Hinakura 14J 14£ 

Waitara to Sentry Hill H 

Utiku to Ohutu 0| U 

Ngaurukehu (lead off Mataroa-Euanui line) 0£ 0£ 

Napier to Hastings (metallic circuit 25 

Northland (lead off Wellington-Karori line) 0i 

Gisborne to Manufuke (metallic circuit) 16 

Muriwai to Wharerata 8 

Patea to Whenuakura Of 

Petone to Hutt 2£ 

Eiverlea (lead off Eltham-Kaponga wire) 

Napier to Eskdale 1 

Woodville to Mangarawa 2 2 

Douglas Eoad (lead off Toko-Strathmore wire) 

Wairoa to Opoutama (new route) 23 46 

Telephone exchange to telegraph office, Wellington 0J 

Napier to Napier Park racecourse 3 

Otaki Eailway to Otaki (loop lines) 12 

Levin to Shannon (new route) 9J 57 

Palmerston North to Terrace End 1 

Whangamomona to Kohuratahi 4i 4£ 

Ormondville to Whetukura 3J 3| 

Himatangi (bridged across Foxton-Palmerston X.. 

metallic circuit • 

Transferred from telephone exchange, Napier (for 

metallic circuits 9| 

For Public "Works Department — 

Mangaweka to Taihape 14 14 

Totals 90 404 

Lines dismantled — 

Whenuakura, from main line to old office 2 J 

Wairo to Oputama (old beach route) 21 42 

Shannon to Levin (old route) 12 72 

Totals 33 116J 



The above operations resulted* in a net increase of 57 miles of poles and 287£ miles 
cf wire, making grand totals of 2,087§ miles of poles and 7,330lJ miles of wire main- 
tained in this district, exclusive of those maintained by the Eailway Department for 
their own use. 

Ten private wires, principally in outlying districts, have been erected, aggregat- 
ing 1i miles of poles and 10f miles of wire. 

Maintenance. 

The lines generally are in good order several sections enumerated below, having 
recently been overhauled; but the following sections still need attention: Wairoa- 
Mohaka, Wangaehu-Feilding, Pakipaki-Waipukurau, Waipukurau-Poranghau and 
Otaki- Wellington. The work will be taken in hand during the year. 
NEW ZEALAND. 



APPENDIX " A " 339 

APPENDIX No. 1 

The following sections were overhauled and strengthened with extra or larger 
poles where necessary: — 

Miles. 

Inglewood to Wangaehu 120 

Nuhaka to Opoutama 7 

Gisborne to Opoutama 43 

Kaitoke to Upper Hutt 8 

Pohui to Rangitaiki 50 

Masterton to Castelpoint and Whakataki 45 

Gisborne to Manutuke 8 

Wellington to Hutt (partial) 8 

Opoutama to Mr. Ormond's 5J 

Nuhaka to Morere 6| 

Otaki to Otaki Railway (reconstructed) 1£ 

Total 3025 



Heavy gales followed by a severe snowstorm in August last did much damage to 
the line on the high levels between Napier and Taupo. 

Line faults are still caused by traction-engines, and threshing machines colliding 
with the wires, and also by persons felling trees, or throwing pieces of wire, over the 
lines. 

Offices. 

Sixteen new offices have been opened and three closed during the year. 

A new Jack-knife testboard has been erected at New Plymouth, and the instru- 
ments refitted and rearranged to provide room for a forked quadruplex repeater set, 
which has been installed to work on the Wanganui — New Plymouth and New Ply- 
mouth-Auckland circuits. A full quadruplex repeater set has also been installed at 
Napier for repeating on No. 2 wire, between Wellington and Auckland. 

A lineman is now stationed at Hastings. 

A new permanent office has been erected at Elthani, and sledge offices at Te Horo 
and Kahukura, requiring the transfer of instruments, &c. 

The name of the Te Arai Bridge office has been changed to Manutuke, and that 
of Dreyerton to Kopuaranga. 

There are 334 offices in the district — 61 Morse and 273 telephone. 

Metallic Circuits. 

The erection of two additional wires between Napier and Hastings has provided 
another metallic circuit for bureau purposes, and by coupling this circuit with the pre- 
viously existing metallic circuit, a third metallic cricuit has been superimposed on the 
other two, all of which are working very satisfactorily and carrying a large ameunt of 

work. 

The section between Wellington and Otaki of the No. 3 Morse wire, Wellington 
to Palmerson North, and the Wellington-Otaki telephone wire, have been utilized 
to install a metallic circuit for bureau purposes between Wellington exchange and the 
Otaki post office, with intermediate offices bridged across the two wires. Telephonic 
communication on the circuit, 50 miles in length, is now practically free from induc- 
tion from neighbouring wires, and the Morse superimposed over these is working very 
satisfactorily from Wellington to Palmerston North, with Otaki and Levin inter- 
mediate. 

1— d— 23 

NEW 'ZEALAND. 



310 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

>■■ 4-5 EDWARD VII., A. 1905 

Telephone Exchanges. 

One new sub-exchange was opened during the year at Kaponga, with 6 subscribers. 
The exchange at Otakeho was closed. 

New switchboards have been fitted at Inglewood, Marton, Waitara, Eltham, and 
the exchanges at Masterton and Hastings have been refitted. 

Thirteen telephones were destroyed by fire, 9 of them at Wellington. 

The exchange at Hawera has been removed to a more suitable and commodious 
room on the first floor, and a new switchboard installed. 

Considerable alterations to the lines at Hawera, Manaiaa and Okaiawa were 
needed on account of the operations of the Hawera Electric Light Company. 

New Plymouth was visited by a severe thunderstorm in August last, and by a 
whirlwind in December. The former did considerable damage to the switchboard 
indicator coils and line wires (, and the latter damaged the lines considerably. 

The extensive alterations to the lines in Wellington, on account of the installation 
of electric tramways, were completed early in January. The subscribers to this ex- 
change continue to increase rapidly, the total number being 2,260, an increase of 
157 for the year. Of these, 2,157 are paying subscribers, 49 free, and 54 bureaux. 

In addition there are 519 extension telephones making a grand total of 2,779 instru- 
ments used. With the addition of the subsection of 300 numbers just received, the 
capacity of the exchange will be 2,700. 

The poles and wire necessary to connect the present subscribers total 51| miles 
and 2,119 miles respectively, irrespective of that connected with bureaux. 

There are 30 exchanges in the district, all of which are working satisfactorily. 
The subscribers connected therewith aggregate 5,403, an increase of 535 for the year. 
Of this number 5,021 are paying, 11 are free, and 271 bureaux connected by 280 miles, 
67 chains of poles and 4,045 miles, 45 chains of wire. Extension telephones at the 
various exchanges number 793, making a grand total of 6,205 telephones in use. 

The alterations to the Wellington Exchange building, and the installation of the 
cable-drying machinery therein has been completed, and a large number of poles 
erected preparatory to the suspension of the lead-covered cables. 

NELSOX DISTRICT. 

Construction. 

The following new lines have been erected to connect the offices indicated here- 
under : — 

Miles of Miles of 

Poles. Vrires. 

Kaikoura to Kaikoura wharf 2 2 

McLeod's Terrace (lead off Okarito lint) OJ 

Heathdale (lead off Brunner line) 0J 

Mainaroa (lead off Tadmor line) 

Hapuka (cut in on Kaikoura-Blenheim line) 1 1 

Mount Hercules (lead off Okarito line) 0£ 0^ 

Totals 3i 3J . 

Lines dismantled — 

Belgrove section 5 

Kailway wires, &c, ceased to be maintained by this department — 

Greymouth-Keefton section 17 26 

Westport-Conn's Creek section 10j 10| 

Westport-Crane wharf Of 0£ 

Totals 28J 37i 

<• ■ — — ■ 

NEW ZEALAND. 



APPENDIX " A " 341 

APPENDIX No. 1 

The total mileages of poles and wires maintained in this district are 994§ and 
2,788f respectively. 

Maintenance. 

The following sections have been overhauled and strengthened : Takaka-Motueka, 
Motueka-Richmond, and Hokitika-Kumara. The AhauraeReefton section is in course 
of overhaul. A flying overhaul of the Okarito-Ross section has been made, but con- 
siderable work is necessary to make the line thoroughly efficient. 

The Havelock-Pelorus bridge section was reconstructed, owing to the line having 
been washed away during a flood in March last year. 

The encroachment of the Teremakau river on the roadway at several places on 
the Kumara-Taipo section necessitated a deviation of our line at these places. 

The Haast river signalling-wire, which was washed away, was replaced in a le3s 
dangerous position. 

Telephones were installed at the Big Wanganui and Wataroa rivers in place of 
the bells hitherto used. The lines in connection therewith were also strengthened. 

The Reef ton ,Lyell-Longford section requires attention, but the lines generally are 
in good order. Very few interruptions to traffic have occurred during the year. 

Offices. 

Five new offices were opened and one (Awatere) closed, making 158 offices open, 
oJ which 23 are Morse and 135 telephone. 

An extra set of Morse instruments has been put in at Picton to facilitate disposal 
of the traffic upon arrival of steamers. 

Several offices have been removed to new premises and others refitted. 

The Lyell building was struck by lightning on August 25 last, and the inside of 
the office, as well as the instruments, and part of the line were wrecked. Prompt mea- 
sures were taken to restore communication and effect repairs. 

The Collingwood office was burnt down on November 7. 

Telephone Exchanges. 
The exchanges in the district are in good working order. The subscribers num- 
ber 901, an increase of 67 for the year. Of this number 774 are paying, 36 free, and 
9i bureaux; 40 extension telephones are in use, making a total of 941 telephones, re- 
quiring 64J miles of poles and 436| miles of wire. 

CHRISTCHURCH DISTRICT. 

Construction. 

The following new lines and wires were erected: — 

Miles of Miles of 
Poles. Wires. 

Ashburton to Longbeach and Flemington, inaWinslow. . 164 23| 

Temuka to Geraldine (metallic trunk circuit) 15 

Amberley to Balcairn 4 

Woodend to Waikuku 4£ 

Spotswood (fork off Cheviot-Mendip line) OJ 0£ 

Ahoka-Kaiapoi-Woodend (circuit made metallic) 11J 

Duvauchelle to Akaroa (trunk wire) 6 

Totals 16| 64| 



The construction of the metallic trunk circuit between Glenavy and Waimate to 
connect with the Oamaru-Glenavy circuit was commenced on March 28. 
The total mileage of poles in the district is 921 J, and of wire 3,553|. 
1— d— 234 

NEW ZEALAND. 



342 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Maintenance. 

The overhaul of the line between Timaru and Christchurch has been completed to 
ft point half a mile north of Roleston. Every fifth pole is doubled to increase the 
stability of the line. 

Four miles of the Rangiora-Amberley line has been reconstructed to give facilities 
for the erection of additional wires. Minor line maintenance has b-.^en attended to 
where necessary. 

Offices. 

Eleven new offices have been opened and one (Castle Hill) closed, a new office in 
place thereof being opened at Craigieburn. 

A new brick building at Kaiapoi was opened on December 19. 

At Temuka and Geraldine circuits have been rearranged. Those stations now 
work Morse to Timaru superimposed over the metallic trunk wire, and are no longer 
in circuit on No. 8 wire. This practically gives Christchurch another clear wire to 
Timaru. 

Sydenham has been converted; from a telephone to a Morse station. 

There are 164 offices in the district — 61 Morse and 103 telephone. 

Telephone Exchanges. 

New sub-exchanges were opened at Geraldine and Duvauchelle. 

A large amount of reconstruction work has had to be done in Christchurch city in 
consequence of the introduction of electric tramways, and also owing to increased 
business, thus necessitating the use of larger poles. 

There are 1,647 connections to the Christchurch exchange — 1,563 paying, 39 free, 
and 45 bureaux, an increase of 168 for the year. 

A new subsection of 450 numbers is being erected, which will bring the capacity 
cf the exchange up to 2,400. 

A 2-horse power motor has been installed to take the place of the gas-engine for 
charging the batteries. 

The Timaru exchange has increased by 37 subscribers, there being 243 connections. 

Ashburton has 130 subscribers, an increase of 12. 

Other exchanges show slight increases over last year. The total number of sub- 
scribers is 2,236 — 2,075 paying, 52 free, and 109 bureaux — an increase of 262. 

There are 411 extension telephones, 364 of which are connected with the Christ- 
church exchange. 

All exchanges are working satisfactorily. 

DUNEDDJ DISTRICT. 

Construction. 

The following extensions have been carried out during the year:-^- 

Miles of Miles of 

Poles. Wire. 

Kurow to Otematata and Omarama 32 32 

Seacliff to Puketeraki 0J 2| 

Invercargill to Winton (metallic circuit) 37£ 

Gorge Road (lead off Waimahaka line) 0£ 0£ 

Owaka to Owaka Valley, Tahatika and Purekireki. ... 13 13 

Winton to Lochiel . . 4 

Taieri Beach to Akatore 7 7 

Clinton to Ashley Downs and Clydevale 9§ 15 

Omakau to Lauder 5 

Oamaru to Glenavy (Waimate metallic trunk) 29£ 

For Public Works Department — 

Miles of Poles. Miles of Wire. 
Lauder to Chatto Creek ... 13 13 \ , q , 

Heriot to Edievale 6J 6JJ ~ 



Totals 81| 166 

NEW ZEALAND. 



APPENDIX "A" 



343 



APPENDIX No. 1 

The total length of lines at the end of the year was 1,876§ miles of poles and 
4,422 miles of wire. 

Maintenance. 

No interruptions of any consequence occurred during the year. Some 600 miles 
of line were overhauled. The lines generally are in good order. 



Offices. 

Fourteen new offices were opened and two (Waimatua and Ida Valley) closed, 
leaving 273 offices open — viz., 69 Morse and 204 telephone stations. 

Telephone Exchanges. 

A steady increase of subscribers to the Dunedin exchange has taken place, bring- 
ing the total connection to 1,702, an increase of 123. Of these, 1.641 are paying, 22 
f-ee, and 39 bureaux. 

There are 386 extension telephones, an increase of 50 since last year. 

Two sections, of 450 numbers each, have been added to the switchboard, which will 
piovide for 2,950 connections. 

The work of installing the metallic circuit system in Dunedin is now in hand. A 
targe number of circuits should be converted during the year. 

The subscribers to the 22 exchanges in the district numbered 2,668, an increase 
cf 189. Including extension connections, there were 3,155 instruments. 

Of the ordinary connections, 2,414 are paying, 44 free, and 210 bureaux. 

The Oamaru exchange is being refitted with new annunciators. 

The total mileage of poles connected with the exchanges amounts to 142J, and of 
wire 2,121$. 



Table No. 22- 



-Return of the cost of Maintenance of Telegraph Lines for the year 
ended March 31, 1905. 



District. 


No. of 
Miles. 


Travelling 
expenses of 
Inspectors 

and 
Linemen. 


Extra 
Labour. 


Cost of 

Material 

purchased. 


Value 

of 

Material 

issued from 

Stores. 


Salaries. 

of 

Inspectors 

a nd 
Linemen. 


Total Cost 

of 
Mainten- 
ance. 


Average 

Cost per 

Mile. 


Auckland 
Wellington.. . . 

Nelson 

Canterbury . . . 
Otago 


2.063A 

2,087g 

994g 

92H 

l,876f 


£ s. d. 

1,202 1 2 

1,452 12 1 

897 15 3 

668 1 10 

854 16 2 


£ s. d. 

3,960 6 11 
3,856 5 
1,786 5 2 
926 7 2 
1,337 3 4 


£ s. d. 

4,938 5 11 

5,262 16 5 

216 19 7 

327 7 

1,055 2 1 


£ s. d. 

2,605 11 2 

626 7 7 

1,211 3 6 

1,532 13 6 

750 9 11 


£ s. d. 

2,558 
3,071 
1,583 
1,832 
1,428 


£ s. d. 

15 264 5 ? 

14,268 16 6 
5,695 3 6 
5,286 9 6 
5,425 11 6 


£ s. d. 

7 8 
6 16 8 
5 14 6 
5 14 10 
2 17 10 






Cables 


7,943g 
283 

knots. 


5,075 6 6 
8 16 1 

107 15 6 


11,866 3 
953 15 2 

312 5 2 


11,800 11 
14 11 

1,210 1 1 

13,024 13 


6,726 5 8 
685 1 6 


10,472 
400 

537 


45,940 6 2 
1,961 13 8 

2,167 1 9 


5 15 8 

6 18 8 
per knot 










Totals 




5,191 18 1 


13,132 3 4 


7,311 7 2 


11,409 


50,069 1 7 











NEW ZEALAND. 



344 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

Table No. 23. — Statement showing the Expenditure on and the cost of Telegraph 
construction during the financial year ended March 31, 1905. 



Line. 



Expenditure. 



Telephone exchanges, 

Ashburton 

Auckland ... 

Blenheim 

Cambridge 

Ohristchurch 

Dannevirke 

Dunedin. 

Feilding 

Gisborne, 

Sreymouth 

Hamilton 

Hawera 

Hokitika. . . 

Invercargill 

Masterton . . . 

Napier 

Nelson 

New Plymouth. . . 

Oamaru 

Pahiatua 

Palmerston North . 

Rotorua 

Stratford 

Thames 

Timaru 

Waihi 

Waipawa 

Wanganui 

Wellington 

Westport 

Whangerei 



Total exchanges 



Kaitaia-Herekino 

Omapere-Waiotemarama 

Waiotemarama-Waimamaku 

Howick-Whitford 

Ngaruawahia-Te Akatea-Waingaro . . . 

Hinuera , 

Cambridge-Cambridge West 

Kaiteratahi-Te Karaka 

Gisborne-Manutuke (Te Arai Bridge) . 

Muriwai-Wharerata 

AVaitara-Sentry Hill 

Whangamomona-Kohuratahi 

Toko-Tutitawa-Punuihakau 

Wanganui-Taihape 

Mangaweka-Taihape ... 

Hunterville-Koeke . 

Aramoho-Aramoho Railway station.. . 

Wellington-New Plymouth 

Napier-Hastings 

Dannevirke-Mangatera-Umutaoroa. . 

Ormondville-Whetukura 

Woodville-Mangarawa. - 

Pahiatua-Mangamaire 

Gladstone-Te Wharau . . . . 

Martinborough-Hinakura (Pahaoa). . . 

Kaikoura-Hapuku 

Kaikoura-Kaikoura Wharf 

Cheviot-Spotswood 

Amberley-Balcairn 

Woodend-Waikuku 

Duvauchelle 

NEW ZEALAND. 



£ s. d. 



7 

4,893 



12 

1,085 

47 

914 

15 

ll'd 

21 

205 

68 

12 

91 

78 

171 

26 

14 

13 
119 

in 

.■i 

4 

236 



4 6 

Hi 3 

11 
15 3 
in ii 

4 4 
7 11 

14 2 

15 6 

12 5 
7 7 

5 10 
5 1 

15 7 

5 7 

12 8 
L6 

i i; 

14 1 
7 l. 

11 10 

in !l 

13 
3 ii 

15 4 





99 is l 

1,229 4 10 

21 1 6 

29 11 6 



9,7<il 16 7 



133 4 

98 8 

54 12 

95 4 

200 10 

15 16 

IT 12 

13 1 

45 14 

36 13 

5 9 

10 4 

2 15 

7 

33 3 

220 2 

12 

245 13 



26 16 10 



34 16 
67 15 
45 19 

13 

143 10 

146 19 11 

20 19 10 

24 3 6 

3 12 
98 13 10 

6 16 

5 5 



Material from 

StiD 



Total Ci 

during the Year. 



lnl 

10,103 

76 

262 

2,449 
220 
'.1,5:1 1 
300 
603 
1117 
171 
293 

:ili 
329 
460 
802 
278 
200 
195 

53 
630 

82 
153 

50 
5S4 
108 
110 
385 
14,442 
100 

liS 



16 5 
lx 11 

I 10 
7 8 

II 11 
1 11 



6 

r. 

•'! 

5 
HI 
13 

6 





Hi 11 

Hi 1 

5 1 

2 (i 
IS 10 

13 3 
11 

4 8 



5 

•J 

12 

14 

17 



12 8 

8 2 

10 6 

10 5 



43,424 8 1 
76 5 11 
18 6" 8 



12 2 
5 13 10 

12 2 !l 

3 3 

163 17 

77 4 

14 
133 8 

47 18 
iiU2 IS 

1 17 
84 8 

5 11 
484 2 
209 6 
101 13 

25 10 
15 6 
14 3 

8 18 
63 
42 II 
73 17 

5 8 
27 3 

26 11 



2 

5 

10 

4 

5 

5 

1 
6 

2 
7 
4 
5 
7 
11 
4 
li 
5 
5 
1 
7 
9 



£ s. 



d. 



109 

14,997 

76 
275 
3,534 
267 
10,508 
3Hi 
725 
188 
380 
361 

51 
421) 
539 
974 
305 
214 
330 

67 
749 
lnl 
158 

54 
S21 
108 
llii 
485 
15,671 
121 

98 



ii 11 
15 2 
12 10 

2 11 



11) 
6 



14 S 
2 



in 

is 



6 11 
19 5 

11 8 

15 7 
2 6 

8 9 
1 7 

7 

12 11 
9 

12 1) 



15 

IS 

5 

7 

14 

17 



10 9 

13 

12 4 

1 8 



55. 12i; 4 8 

209 10 1 

98 8 

72 is 11 

115 4 9 

242 12 4 

21 9 11 

211 14 11 



16 4 

209 11 
113 18 

ii 4 
143 13 

50 13 
693 5 

35 
304 11 
3 
729 15 
236 3 
136 9 

93 5 

61 5 

14 16 
152 14 10 

210 5 
9 3 
11 
9 3 

17 5 

3 





2 
5 
4 
1 
3 


11 
5 
2 
li 
3 
5 

10 
8 
9 




63 

UN 

8 
125 
32 13 
5 



APPENDIX "A 



345 



Table No 23. — Statement showing the expenditure on and the cost of Telegraph 
construction during the financial year ended March 31, 1905. — Continued. 



Line, 



Ashburton-Waterton-Longbeach . 

Lowcli ff-Hinds 

Geraldine-Trunk 

Kurow-Otematata-Omarama 

Queenstown-Long (4ully 

Oamaru-Waimate 

Ciphir-Poolburn 

Seacliff-Puketeraki , 

Mosgiel-Momona 

Woodside-Manugaatua 

Taieri Beach-Akatore 

Winton-Lochiel 

Heriot-Edievale 

Balclutha Trunk ... 

Clinton-Ashley Down-Clydevale . 

Owaka-Purekireki 

Nuggets-Tokata 

' Invercargill -Mabel Bush 

Invercargill-Winton 

Invercargill-Gorge Road 

Te Tua-Tuatapere 



Purchase of material . 



Total expenditure 1904-5 

Total expenditure to 31st March, 1904 

Total Expenditure out of Public Works Fund to 31st 
March, 1905 



Expenditure. 



£ s. d 
284 18 3 



72 12 
325 5 
5 12 
50 6 
36 19 
26 8 

10 

1 10 
152 9 

12 16 

41 19 

10 

11 o 

336 3 

2 3 
93 7 

175 11 

9 7 

26 



13,221 15 
66,076 


1 



7'. i,L'!»7 15 
1,(153,69-2 9 


1 
6 



£1,132,990 4 7 



Material from 

Stores. 



325 16 

70 19 

244 5 

152 1 

5 7 

298 4 
38 7 



20 8 6 



20 
36 
24 


3 9 

8 11 
6 10 







81 8 10 

9 11 

30 5 

183 8 1 

5 18 4 

16 10 



47,435 4 1 



Total cost of lines 
during 1904 -5 . . 



Total Cost 
during the Year. 



£ s. d. 

610 14 6 

70 19 4 

316 17 9 

477 6 5 

10 19 10 
348 11 2 

75 7 

46 16 

10 

21 14 

188 18 

37 3 

41 19 

10 

11 
417 12 

11 14 
123 
358 19 

15 5 




ii 

o 
1 

6 

4 
1 
6 
11 
5 
11 
26 16 10 



60,656 19 2 



£60,656 19 2 



No. 279c. 



NEW ZEALAND— Concluded. 
Telephone Charges in Australian States before Federation and in New Zealand. 



State. 



New South Wales (Sydney and suburbs) 

New South Wales (country) 

Victoria (Melbourne and suburbs) 

Victoria (country) 

Queensland (throughout whole State) 

Tasmania (throughout whole State) 

Western Australia (throughout whole State). . 
South Australia (throughout whole State) 



New Zealand . 



Service for Distances up to One 
Mile from Exchange. 



Business 

Private residence 

Business 

Private residence 

Business ... 

Private residence 

Business 

Private residence 

One rate up to half-mile 

Every additional half-mile 

Business 

Private residence 

Business 

Private residence 

Business 

Private residence 

Business (continuous service) 

Private 

Business (limited service) . . , 



Charge per Annu m 



£ 


s. 


d. 




9 








$43 83) 


5 


(i 





24 35) 


8 








( 38 96) 


5 








( 24 35) 


9 








43 83) 


5 








24 35) 


i 





9 


34 09) 


5 








24 35) 


6 








29 22) 


1 


5 





6 09) 


6 








29 22) 


4 


10 





21 92) 


7 








34 09) 


5 








24 35) 


10 








48 70) 


5 








24 35) 


i 








34 09) 


5 








24 35) 


5 








24 35) 



NEW ZEALAND. 



346 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 
Proposed Commonwealth Telephone Charges under Toll System. 



Subscribers 
Connected. 



1 to 5, 000 

5,001 to 20,000 . 



Annual 
Ground-rent. 



£ s. d. 

*4 10 

f5 li 



Free calls 

covered by 

Ground -rent. 



300 
300 



Extra Calls (each). 



1 to l.Oiiil. l.iinl to 5,000. 



JO 1 
+0 1 





s. d. 




,rll 04 
(HI 0| 



5,001 to 20,000. 



60 o) 
00 Oj 



* $21.92. 1 $24.35. J 2 cents, a 1 cent, b \ cent. 



No. 280. 



CAPE COLONY. 



General Post Office, 

Cape Town, Cape of Good Hope, 

July 20, 1905. 
Sir William Mulock, K.C.M.G., 

Chairman, Select Committee on Telephone Systems, 
Ottawa. 

Sir, — In reply to your letter of May 1 last, requesting statistics, &c, for the in- 
formation of the Select Committee on Telephone Systems convened by the Parliament 
of Canada, I have much pleasure in appending replies to the list of questions for- 
warded by you, which I trust will prove of service to the Committee. 

I am, sir, yours truly, 

S. R. FRENCH, 

Postmaster General. 



No. 280a. 



ANSWERS to questions. 



The long-distance lines and local exchanges are owned and operated by the gov- 
ernment. 

There are in Cape Colony 26 miles of trunk or long-distance lines, costing 
£7 10s. Od. ($36.53) per mile of single wire. The long-distance system comprises 23 
miles of poles, and 92 miles of separate circuits. The toll charges are id. (1 cent) 
per mile, with a minimum charge of Is. (24£ cents) for three minutes' conversation. 

The long-distance lines are copper, metallic circuit, weighing 150 pounds to the 
mile of single wire. 

The total cost of the long-distance lines has been £253 ($1,232.11) per mile. The 
cost of operation and maintenance is merged in operating and maintenance of general 
system. 

The capital is provided by government loans. An average charge of 4 per cent 
as interest is paid to treasury by post office. Ten per cent is set aside for depreciation. 

In the case of subscribers who have made deposits for long-distance service, 
monthly accounts are rendered. In the case of any other persons— whether subscri- 
bers or non-subscribers— using public call offices, cash payments are required. 
CAPE COLONY. 



APPENDIX "A" 347 

APPENDIX No. 1 

The population of Cape Colony is 2,409,S04: European, 579,741; coloured, 
], 830,063. 

The total number of subscribers is 2,648, distributed as follows: — 

Cape Town, exchange area 1,287 

Port Elizabeth, exchange area 559 

Kimberley, exchange area 313 

East London, exchange area 215 

Grahamstown 94 

Kingwilliamstown 71 

Queenstown 56 

Cradock 27 

Mossel Bay 26 



2,648 



European. Coloured. 

Cape Town and suburbs, exchange area 169,641 103,887 65,751 

Port Elizabeth, exchange area 34,879 23,021 11,858 

Kimberley and Beaconsfield, exchange area 45,021 17,100 27,921 

East London, exchange area 25,220 14,674 10,546 

Grahamstown 13,887 7,283 6,604 

Kingwilliamstown 9,506 5,897 3,709 

Queenstown 9.616 4,157 5,559 

Cradock 7,762 3,054 4,708 

Mossel Bay 4,206 1,657 2,549 

The annual subscription to telephone exchanges for lines within a mile radius 
from any exchange centre is : — 

EXCHANGE CENTRES. 

Day service — 

£ s. d. 

Private residences 7 ($34.09) 

Business establishments 9 ($43.83) 

Day and night service — 

Private residences 7 10 ($36.53) 

Business establishments 10 ($48.70) 

EXCHANGE AREAS. 

(For the use of all the exchanges within an area.) 

Day service — 

£ 8. a. 

Private residences 10 ($48.70) 

Business establishments 14 ($68.18) 

Day and night service — 

Private residences 11 ($53.57) 

Business establishments 15 ($73.05) 

For every quarter of a mile beyond the mile limit 10 ($4.87) 

In rural districts private wire connections to the nearest post office or railway 
station can be provided. In the latter case permission is obtained from the railway 
department for the fitting of the apparatus on the station premises and arrangements 
made for attendance, by the renter. The following are the terms on which connec- 
tions are erected where exceptional expenditure is incurred in planting poles, &c, 

viz. : — 

CAPE COLONY. 



348 SELECT COMMITTEE ON TELEPHONE SYSTEMS 

4-5 EDWARD VII., A. 1905 

The applicant has the option of repaying (a) cost of erection and of (b) recovery, 
in a lump sum, or in equal annual instalments spead over three, five or more years and 
to pay during the period of repayment (under agreement) (c) 10 per cent per annum 
en material for depreciation (d) 5 per cent per annum interest on material less 
depreciation and (e) 5 per cent per annum interest on the cost of erection less repay- 
ments calculated as if charges were payable at the end instead of at the beginning of 
each year of the agreement. These charges are additional to the tariff private wire 

rental which is as follows: — 

Metallic Circuit. Single Wire, 

f s. d. £ s. d. 

For a line not exceeding half a mile in length 

per annum 2 00 ($9.74) 1 10 ($7.31) 

For every additional quarter mile or portion 

thereof, per annum 100 ($4.87) 15 ($3.66) 

For. the use and maintenance of apparatus — 

Telephones, each 200 ($9.74) 

Switchboards 7 6 ($1.83) 

Extra bells, each 5 ($1.22) 

Junction switches 7 6 ($1.83) 

Indicators numbers, each 7 6 ($1.83) 

For a private wire led into a post or telegraph office, £5 ($24.35) per annum is 
charged for clerk's services in addition to the ordinary rental charges. No exchanges 
have been opened in rural districts. 

The subscribers' telephones are Ericcson's magnetos. The subscribers' lines are 
metallic-copper; f overhead, 'i underground. The amount expended on the system to 
date is £198,681 ($967,576.47). The revenue for 1904 was £38,162 ($185,848.94). The 
expenditure for 1904 was £42,158 ($205,309.46) (exclusive of interest) or £46,738 
($227,614.06) (inclusive of interest). Profit, excluding interest and depreciation, 
£1,036 ($5,045.32). Loss, including interest and depreciation, £8,575 ($41,760.25). 

The following are the scales of pay: — 

Engineer assistants — Electrician and fault clerks, 1st class,