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Newspaper Page Text
If the city takes over the automatic plant with its 20,000 telephones,
which it can do if the council is prevented from allowing the pending sale,
or approving the sale already made, we will have assets of about $5,000,000
on which to issue 1)onds7
These bonds will finoa ready market in small denominations among
the telephone users and the Chicago public and will furnish the money for
extending the plant as fast as the work can be carried on.
With automatic telephones we can get penny service one cent for
three minutes' service. Just think what a saving this would mean. It is
not a dream; it is an immediate possibility if we will go at it. Here is the
general plan by which it will work out:
Telephone Meters for Each Telephone.
Each telephone has a meter that charges for each minute the service
is used and the users of private telephones will get bills just as they do
for gas or electricity, only the unit of charge is the minutes in this case.
The meters charge only for outgoing calls, during the actual time of con
versation. The average time of conversations is ninety seconds, so that a
period of three minutes will in many cases pay for two calls when the
same are short The meters are entirely automatic and are located at the
telephones, where they can be watched by the user.
Class of Service.
. There will be but three classes of private service and there will be a
base rate on each class. This base rate pays for having the telephone for
incoming calls and the name in the directory, and the outward use of service
is paid tor at the rate of one cent for each three minutes, the charge for
each month being computed by dividing the total minutes since the last
reading by three and multiplying by the rate per call which will be one cent
after the average use of the tele-,
phones amount to thirty minutes per
day per telephone fpr the whole sys
tem. That will be when about 100,
000 telephones have been installed.
The three classes are as follows,
with the base rates necessary to
cover the "ready to serve charges":
Individual line (secret service), $24
Two-party line, $15 per year.
Four-party line, $9 per year.
These will also be automatic, re
quiring no expensive operators, and
the subscribers will have the option
of purchasing them outright and only
paying $24 per year base rate on each
outgoing trunk line to .11 per cent on
the cost of their private systems, and
in either case get unlimited local ser
vice by paying $12 per year for each
terminal. Each local or terminal has
its own meter, which charges the
trunk line use of that telephone when
conversing with outside parties be
yond the limits of the establishment.
" Public service will be rendered
from telephones having coin boxes
with slots for special tokens that can
be sold two for five cents,' so as to
allow a profit to those who provide
the public with telephone con
veniences. The public telephone sub
scriber will be charged the regular
service rate of one cent per call,
based on the number of tokens col
lected from the box.
Income at One Cent Per Call.
""This is based on the present aver
age traffic of the Bell telephones and
is therefore conservative asa penny
Factors for Calculations
Average calls per day, per tele
phone 5y2 (present C. T. rate)y
Number of telephones, 250,000.
Rotes per call of three minutes'
duration, 1 cent.