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TWBNTY-THIBD YEAH, NO. 17.
CHICAGO, SATURDAY. JANUARY 27, 1912.
WHOLE NUMBER 1,103.
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EIGHT PER CENT
The Poor Down Trodden Telephone Com
pany Only Paid This Amount of Divi
dend on Stock Last Year.
City Experts Say that It Is Losing Money and
that Telephone Charges Must Certainly
Be Raised.
Notwithstanding the Fact . that the Company's Capital Is
Twenty-seven Millions, Where It Was Only Five
Hundred Thousand Originally.
And that It Can Pay Sucli an Enormous Annual Dividend and Put Up
Twenty Story Buildings Besides, Public Must Suffer.
The Chicago Telephone Company,
which is Buffering so much (rom
want of funds, according to certain
city "experts" that it will have to
ralso telephono rates on the people
In order to exist, paid 8 per cent in
dividends last year.
Think of it!
Eight per cent on twenty-seven mil
. lion dollars I
This 1b tho company that started
with a capital stock of half a million
and now has a capital stock of twen-ty-seven
millions.
It pays 8 por cent annual dividend
on twonty-soven millions and puts up
a twenty-two story modern ofllco
building besides.
The people of Chicago are such
tusy marks that the phono ctowd want
to get more out of them and asks for
an Increase of rates at tho hands of
tho City Council.
And two "experts" agree that this
"poor" company Is losing monoyt
In 1011 tho Chicago Telephone Com
pany paid 8 por cont in quarterly tilvl
dends of 2 per cent March 31. 2 per
cent, June 30; 2 per cent, September
30; 2 per cont, December 30, 1011.
Hero Is a nice little nest egg of
12,160,000 divided up among tho stock
holders. '
When to this Is added the profits
paid the "parent" Bell Telophono
Company, tho amount grabbed off the
people of Chicago Is' simply enormous.
Instead of raising telephone rates,
tho City Council should lower them.
People demand the penny telephone
and lower charges all along the line.
Tho manner in which the capital
stock of the Chicago Telephono Com
pany has been Increased should be
investigated by the Aldermen.
The city is entitled to 3 per cent of
the gross receipts of tho company.
Does it goTUT
The following, taken from the Chi
cago Dally News of December 19,
1905, shows what was talked about In
former days:
"Efforts to force the Chicago Tele
phone Company to produce Its books
for public inspection were begun In
the Circuit Court today by the city
of Chicago, which asked an account
ing with the company. It Is declared
that since 1889 the telephono com
pany has held out between $350,000
and $600,000 which it should have
paid the city.
The city bases its demand for an
accounting upon Its agreement with
the company that 3 per cent of the
gross receipts should be paid the city
tor franchise ' right. The dispute
Is over the receipts In the territories
unnexed to Chicago since 1889, In
cluding the towns of Hyde Park, Ci
cero and Lake,
For fourteen years, It is declared,
the company caused to be prepared
"falsa and misleading statements of
Its business, cunningly worded and
calculated to deceive and mislead"
the clty'a comptrollers. The state
menta purporting to show the gross
receipts of the company, It Is assert
ed, do not Include any receipts from
the annexed territory or from long
distance business.
arly in 1908, it Is declared, Comp
troller McOann discovered that the
telephone company had been deceiving
the city.. He appealed to the cor
poration counsel for an opinion under
the ordinance and In September,
i&l1&twtofc0&iX4.
1003, was told tho company's duty Is
to pay 3 per cent on the receipts in
tho city limits as they at present ex
1st? Since that time, the city says, It
has been the custom of the city to
make receipts for compensation "on
account" that the city's rights might
not be prejudiced In tho courts.- At
tempts by the mayor and finance com
mittee of tho council to get a settle
ment from the company of the city's
claims' are said to have failed, the
company refusing at all times to ex
blblt its books of account to tho city's
representatives.
Copies of the ordlnanco of 1881, giv
ing the company a nlnoty-nlne-year
grant in tho streets, and of the com
jinny's acceptance of tho ordinance,
were submitted with the demand fpr
nn accounting. The ordinance shows
the company's orlglnnl capital to have
boon 1500,000."
Slugging has become such a popu
lnr pastime with sluggers in Chicago
that the Chicago Telephone Company
has announced Its intention of pre
senting three slugs to every tick-tick
patron.
snaaTSoaaW'
Tho Third wardnas endorsed Ed
ward F. Dunno for governor.
The more the opposition, the big
ger will be Dunno's majority for Gov
ernor. Chicago Dally News, January 19,
1011. Spoaklng of the "nickel first"
telephones, President Sunny remarks:
"As to whether wo havo the right to
continuo them or not, that will be for
tho lawyers to decide." It is conve
nient but highhanded to do things
first and find out about them after
ward. Lawrence Stringer has announced
his candidacy for Congressman at
largo ns a Democrat.
The Twenty-second Ward has en
dorsed Edward F. Dunne for Gov
ernor. At the Cook County Republican con
vention that meets on February 3, one
of tho first propositions that will be
met will bo the volunteer preferential
presidential primary. The organiza
tion 'leadora In Cook County have de
cided to obtain an expression of sen
timent as to the presidential candi
dates from the people. It is pointed
out that the voters will be at the polls
to cast their ballots on primary can
didates and that day, April 9, will be
a good , time to take the volunteer
preferential vote. Booths will be
placed within 100 feet of the polling
places In the various precincts. Judges
and clerks of the volunteer primary
will be named by the officers-of the
various ward organizations. They
will, of course, be without any except
nominal power.
The Twenty-fifth Ward has en
dorsed Edward F. Dunne for Gov
ernor. The City Council Monday night after
listening to an opinion of William H.
Sexton, corporation counsel, to the ef
fect that a majority vote Is necessary
to order tho corporation counsel to
confess a judgment against the city,
sent to tho finance committco for con
sideration the proposition to pay tho
Empire Voting Machlno Company for
200 voting machines which will be de
livered this spring. At tho previous
session of the council the corporation
counsel was ordered to confess judg-
ment for nearly $200,000. Mayor Har
rison was authorized by the council to
appoint a commission of fifteen to In
vestlgate labor conditions in Chicago.
The mayor appointed the following on
the interlakes traffic commission;
Harry E. Littler, Alderman; Theodore
K, Long, Alderman; George F. Hard
Ing, Alderman; A. J. Cermak, Alder
man; H. R. McCormlck, W. H. Coch
rane and W, H. Johnson, It will be
the duty of the commission to visit
lake ports, on all the great lakes and
tfMt1AV.r,r,...
try to interest business men of the
towns In, a great Interlako traffic.
The nickel-first phones are a good
thing for the telephone company. A
person "desiring to hso the phono
must first deposit a nickel before ho
can reach tho operator, who In turn
rings up tho nickel and connects him
with his number. That is what she
ought to do, but lnstend ho Is put on
to a wrong number. Then to get tho
operator again to tell her of her mis
take, a very common one, he has to
deposit another nickel. This ho will
havo to continue to do until ho Is
fortunato enough to get tho right num
ber. Yes tho nickel-first phono Is a
good thing nnyway you look at it
from the viewpoint of the company.
Edward F. Dunne will run like a
Beared deer for governor on primary
day. You can't beat him.
Tho Thirty-first Ward has endorsed
Edward F. Dunno for Governor.
Aldermen who favor tolephono
monopolies will not be In much favor
with tho pcoplo when election time
comcfl around.
Illcliard Yates has shied his caster
Into the Republican gubernatorial
race. Tho former governor intends to
put up an aggressive light.
Anything to soak tho people Is the
motto of tho phone gang.
Judgo Dunno's candidacy for gov
ernor In arousing enthusiasm nil over
tho state. Ho will carry Chicago by
an overwhelming plurality and will
prove nn easy winner on primary day.
1
Norman n. Mack, chairman of tho
Democratic national committoo, has
announced the committco on arrange
ments for the Democratic national
convention to bo held at Baltimore on
June 25. According to a resolution
ndoptcd by tho Democratic national
committee at Its recent meeting at
Washington, Chairman Mack, Vlco
Chairman Hall of Nebraska and Sec
rotary Urey Woodson of Kentucky
LAWRENCE E. McQANN,
Commissioner of Public Works.
i
are ex-offlclo members, Those ap
pointed are: Josepbus Daniels of
North Carolina, Clark Howell of Geor
gla and John T. Med raw or West Vir
gins, R, M. Johnston of Texas, Martin
J. Made of Iowa, Edwin O, Wood of
Michigan, Roger C. Sullivan of 1111
nols, Thomas Taggart of Indiana, Rob
ert Ewlng of Louisiana, Robert S.
Hudspeth of New Jersey and Thomas
H. Brown of Vermont, former Govern
or -John E. Osborne of Wyoming and
J. F. C. Talbot of Maryland.
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'PH0ME SLA VERY
a
The People of Chicago Pray for De
liverance from the Grasp of the
Awful Bell Monopoly.
Chicagoans Forced to Pile Up the Profits of
Three Different Corporations and Thus
Boost Stock Dividends.
The Bell Monopoly Owns the Local Telephone Company and
the Western Electrical Company and Makes One
of Them Patronize the Other.
As the Bell Company Wants a Big Profit Itself It Is Easy to See Why
Telephone Bates Are to Be Baised.
The Telephone Trust has com
menced a bitter and an uncalled for
attack on tho Mayor and honest alder
men of the city of Chicago who are
fighting, for the people's rights against
a heartless monopoly.
The Telephone Trust Is opposed to
the honest, capable and efficient serv-
v
t u
Ice that Mr. J. Ogden Armour and his
colleagues are prepared to give to the
city with their automatic sorvleo.
The Telephone Trust hag changed
managers in Chicago aid has decided
to throw dirt upon hoaest men la the
city government who oppose its dom
ineering and extortionate methods.
" The Illinois Tunnel Company has
fully complied with tho terms of Its
ordinance and yet the grafters anion
Is not satisfied.
It wants tho Illinois Tunnel Com
.'lAiyu.yw.
pany which has expended over $2,300,
000 in Instruments, wires and station
equipments, to 'be forced to give up
all of this to satisfy the Telephone
Trust.
Any alderman who votes In favor
of an Increase of rates for the Tele
phone Monopoly will be beaten to a
finish the next time be runs for office.
According to some accounts several
men who aro working for the mon
opoly and Its franchlso may not be
residents of Chicago when tho next
election comes around.
The Telephone Monopoly Is busy
circulating "ugly rumors" about the
Corporation Counsel, the Mayor and
tho honest aldermen who aro standing
up for tho peoplo's rights.
"Ugly rumors" Is good.
Aldermen who aro anxious to learn
tho truth ought to Inqulro Into tho de
tails of tho puB3ngo o( tho telephone
ordlnanco five years ago.
"Ugly rumors"!
Well, there are sorao protty ugly
rumors going the rounds just now.
But tho Mayor, Corporation Counsel
and honest aldermen aro not the onos
affected by them.
A watchful eye Is being kopt on the
situation by too many people to have
It easily misunderstood.
A new report has been ordered ou
the books and accouuts of tho Tele
phone Trust.
When the aldermen got that report
they ought to be In a position to low
er rates.
If they raise them thoy will raise
something hotter than this climate
has been for the past fow weeks.
From the learned telephone expert
whose report was submitted to the
City Council In May, 1911, we learn on
pages 49 and 60, that the Bell Tele
phone monopoly that reaches all over
the country, owns a controlling Inter
est In tho local telephone company and
the Western Electrical Company. "The
latter Is purely a manufacturing com
pany," says the report, "engaged In
the manufacture of Bell telephone ap
paratus and supplies." In 1904 a con
tract was entered Into between the
local telephone company and the elec
trical company, both of them owned
by the Bell monopoly, whereby the
local company agreed to purchase all
of its suppllos from the electrio com
pany. Under the terms of this con
tract the electrical company agrees to
deliver to the telephone company rll
telephone appliances manufactured un
der the license of tho Bell Telephone
Company. The local telephone com
pany, on the other band, agrees to pur
chase all Its suppllos from tho elec
trical company.
' Hero wo bavo a fine sample of how
the parent monopoly makes tho sub
sidiary monopolies pile up profits for
each other and tho puhlle pays the
freight.
On page 01 of tho report of this
"Expert" to tbfj City Coancll wo lad
the statement made that tho Ben mea
opoly charges a rental of II seats per
station for oaeh set of Instruments
used.
This would amount to $l$$,tet
yearly, but tho smart ilmnMi fc
tho local company really paid tho
parent company IMI.TU wot year.
About this oaormoms ovoreharte the
"export" naively gay m mm It of
tho renort now ta tfc . . ..
Coancll committee: "In f-rttlTsMaa
of the payment of the difference be
tween these amounts, or $223,411, tho
Chicago company receives eertaa
services from the parent company
which it Is claimed are worth the
amount paid.
These services consist of technical
advice and counsel and the use of ap
paratus patented by the parent com
pany.
What do you think of that?
And then the aldermen aro askod
to raise the rates on th rwinU t
help the local company out
Any alderman who votes to ralso
rates should bo outlawed.
Rates are twice as mueh h
ought to be at the present time. Thoy
snouia no reduced.
From a learned "Expert's" reports
to the City Council we learn that:
Telephone rates should bo raised
because tho Bell Telephono Company
owns the local telephone company.
Because tho Western Electrical
Company la also owned by tho Boll
Tolephono Company.
Because the local telephone com
pany Is obliged to buy all of Its equip
ment and necessaries from the West
ern Electrical Company,
Becauso neither the Western Elec
trical Company or the local telephono
company would have big enough prof
Its to suit the Bell Telephone, which
owns them, If Chicago people were
not pressed for a little more coin and
their telephone rates raised.
Because the local telephono com
pany has Increased Its capital stock
from tho original $500,000 to $27,000,
000 and $5,000,000 more In bonds.
Because the stockholders would not
get big enough dividends on this im
mense stock issue if the people of Chi
cago were not squeezed.
Tberoforo tho tolephono company
has tho nerve to ask tho City Council
to raise the rates on tho pcoplo of
Chicago.
The people of Chicago are to be used
as serfs by the telephono monoply and
the last drop Is to be squeezed out of
them.
In the meantime It would be well for
the aldermen to Inquire Into the al
leged relations, in the past, of certain
city officials with the above electrical
company, tho twin of the local tele
phone company, both being owned by
the Bell monopoly.
The telephone gang want the coun
cil to raise the rates on all phones.
To abolish all flat phones and make
everybody takes measured service.
To put a nickel in every phone be
fore connection Is made.
Fire Marshal Beyferllch asserted
that as practically one-half of tho fir
and police alarms ars received by tele
phone, he did not favor tho general
installation of the "pay-In-advaace"
type of telephono Instrument now bo
Ing plaeed In various parts of the city
by tho telephono company.
All telephone patents should bo eon
flscated by the government when thoy
become tho exclusive property of tho
Tolephono Trust Tho following from
nn editorial in tho Chicago Doily
Now of July 17, mi, alts tho ease
exactly:
"In an argument before tho national
(Mate's interstate eeamere eemtt
too, Senator Kenyan recently nraoi
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