AMERICAN INSTITUTE OF ELECTRICAL ENGINEERS.

NEW YORK, March 28th, 1902.The 163rd meeting of the INSTITUTE was held at 12 West 31st

Street, this evening, President Charles P. Steinmetz in the Chair.PRESIDENT STEINMETZ:-Gentlemen, the meeting will be in

order. I give the floor to Secretary Pope, to make some an-nouncements.SECRETARY POPE:-At the meeting of the Board of Directors

this afternoon the following associates were elected:Name. Address. Endorsed by

BEVENUE-MILLER, EDWIN DAVID, Electrician, Natal, W. D. Weaver.Government Railways, Es- R. W. Pope.sex Road, off Umbilo Road, Edward Caldwell.Durban, Natal, So. Africa.

BROWN, HUGH AuCHINCLOSS, General Utility Engi- Horace Dowie.neer, Crocker-Wheeler Co., S. S. Wheeler.Ampere, N. J.; residence, Gano S. Dunn.285 Springfield Ave., EastOrange, N. J.

BULLEN, DANA RIPLEY, Salesman, General Electric Louis Bell.Co., 200 Summer St., Bos- Harry Bottomley.ton; residence, Winthrop, S. B. Paine.Mass.

BURTON, FRANK VAIL, Office Salesman, Western G. F. Atwood.Electric Co., 463 West St.; G. A. Hamilton.residence, 475 Central Park P. G. Burton.West, New York City.

CLARK, EUGENE BRADLEY, Chief Electrician, So. C. F. Scott.Works, Illinois Steel Co.; H. J. Ryan.residence, 5342 Cornell Ave., R. D. Mershon.Chicago, Ill.

COSBY, FRANK CLARK, Salesman, Westinghouse Elec. C. F. Scott.and Mfg. Co., 120 Broad- H. J. Ryan.way; residence, 124 West H. W. Fisher.114th St., New York City.

DAVIDSON, JAMES EDWARD, Superintendent, Port Hu- R. W. Van Vleet.ron Light and Power Co., Alex Dow.Port Huron, Mich. H. G. Field

373

374 ASSOCIATES ELECTED. [March 28,

DICK, WILLIAM AMzI, Designing Electrical Engineer, N. W. Storer.Westinghouse E. and M. Co., C. E. Skinner,Pittsburg, Pa. C. F. Scott.

FANSLER, PERCIVAL ELLIOTT, Post-Graduate Student, W.E.GoldsborouLighPurdue University, Lafay- C. P. Matthews.ette, Ind. J. W. Esterline.

FISH, FREDERICK PERRY, President, American Tele- Elihu Thomson.phone and Telegraph Co., C. S. Bradley.125 Milk St., Boston; resi- H. V. Hayes.dence, Brookline, Mass.

FOLK, FREDERICK JACKSON, Chief Electrician, New W. B. Jackson.York and Queens E. L. and HarrisJ. Ryan.P. Co.; residence, 135 Rut- H. A. Lardner.land Rd., Brooklyn, N. Y.

GRANT, OLIVER REMICK, Student, Columbia Univer- F. B. Crocker,sity; residence, 2236 South- G. F. Sever,ern Boulevard, Bronx Bor- F. Townsend.ough, New York City.

GRISSINGER, ELWOOD, Engineer, The Cataract Power H. W Buck.and Conduit Co., 40 Court P. M Lincoln,St., Buffalo, N. Y. C. F. Scott.

HALL, CLARENCE MORTIMER, Teacher of Physics and H. B. Smith.Electricity, Manual Training L. D Bliss.School No. 1, 17th and R. I. F. R. Jones.Ave., N. W., Washington,D. C

HODGE, CHARLES, Salesman, Westinghouse E. and C. F. Scott.M. Co., 120 Broadway; resi- R. D. Mershon.deuce, 72 E. 34th St., New P. T. Brady.York City.

HOGAN, CHARLES WILLIAM, Photometric Expert, Co- J. E. Randall.lumbia Incandescent Lamp H. B. Shaw.Co.; residence, 3028 Bell R. W. Pope.Ave., St. Louis, Mo.

JOHNSON, WV OOLSEY McALPINE, Electro-Metallurgist, Win. StanlevyOxford Copper Co., New W. L. Robh.Brighton, S. I., N. Y. W. D. Weaver.

KNIGHT, PERCY HENRY, District Engineer, Westing- C. F. Scott.house E. and M. Co., San N. W. Storer.Francisco, Cal. C. E. Skinner.

MILLER, ALPHONSUS JOSEPH, Laboratory Assistant, G. A. Hamilton.Western Electric Co., 463 D. E. Bicknell.West St.; New York City; Norman Leeds.residence, 161 Newark St.,Hoboken, N. J.

MURPHY, EDWIN J., Assistant Engineer, General Elec- W. C. Fish,tric Co., Lynn. Mass. F. P. Cox.

E. E. Boyer.MCALLISTER, ADDAMS STRATTON, Assistant in Physics, H. J. Ryan.

Cornell University; resi- E. L. Nichols.dence, 106 Catharine St., J. P. Jackson.Ithaca, N. Y.

MCGRATH, WILLIAM HENRY, Electrical Engineer, C. A. Adams.with Stone & Webster, 930 S. E. Whiting.Federal St., Boston; resi- Russell Robb.dence, 27 Pleasant St.,oli.nie!v, Al\ass.

'19024J AJ-SOCIATES ELECTED. 375

PHILLIPS, ELLIS LAURIMOnE, Engineer, Westinghouse, H. J. Ryan.Church, Kerr & Co., 8 Bridge J. J. Bellman.St.; residence, 11 West 103d P. H. Powell.St., New York City.

PIERCE, ALFRED LAWRENCE, Superintendent, Gen- A. E. Winchester.eral Manager and E. E., E. C. Boynton.Borough Elec. Works; resi- J. B. Cahoon.dence, 102 N. WhittleseyAve., Wallingford, Conl.

PIRTLE, CLAIBORNE, Sales Agent for North Carolina E. J. Berg.General Electric Co., Box W. L. -R. Emnmet301, Greensboro, N. C. W. I. Slichter.

RAnDTE, A!LBERT AUGUSTUS, Instructor of E. E. and D. C. Jackson.Physics, R. I. College of B. V. Swenson.Agriculture and Mechanic C. F. Burgess.Arts, Kingston, R. I.

REYNOLDS, Louis EMBREE, Chief Electrician, Inde- W. H. Allen.pendent Light and Power G. P. Low.Co., 321 Market Street; resi- W. R. Hewitt.deuce, 460 Noe St., SanFrancisco, Cal.

RUGG, WALTER S., Engineer, Westinghouse Elec. and L. B. Stillwell.Mfg. Co., 120 Broadway; H. J. Ryan.residence, 225 W. 83d St., B. J. Arnold.New York City.

SCRIBnNER, CHARLES E. Engineer, Western Electric J, J. Carty.Co., 259 South Clinton St., B. Gherardi, Jr.Chicago, Ill. J. C. Rennard.

SESSIONS, EDSON OLIVER, Construction Engineer, C. P. Steinmetz.General Electric Co., Toledo, F. 0. Blackwell.Ohio; residence, Schenec- T. C. Martin.tady, N. Y.

SHERWOOD, EDGAR F., Superintendent of Traffic, New J. J. Carty.York Telephone Co., 18th B. Gherardi, Jr.St. and Irving Place, New J. C. Rennard.Y ork City; residence, 59Park Ave., East Orange,N. J.

SMITH, WILLIAM NELSON, Electrical Engineer, West- G. L. Hoxie.inghouse, Church, Kerr & Carl Hering.Co., 8 Bridge St., New York Edward Caldwell.City; residence, 62 MorrisSt., Yonkers, N. Y.

SPENCER, HARRY B., Clerk in Draughting Department, Elihu Thomson.General Electric Co., Lynn, N. S. Hopkins.Mass.; residence, Proctor, E. E. Boyer.Vermont.

WHITE, LINDEN G., Superintendent Electrical De- C. D. Haskins.partinent, Columbus Edison F. C. Caldwell.Electric Light Co., Colum- W. S. Barstow.

Total, 34. bus, Ohio.At the same meeting the Board of Directors made the following

nominations for the coming election:For President-Charles F. Scott for Vice-Presidents-C. 0.

Mailloux, Bion J. Arnold, Schuyler S. Wheeler; for MaI gaers-Townsend Wolcott, Gano S. Dunn, E. H. Mullin, Charles A.Terry ; for Treasurer-George A. Hamilton; for Secretary-Ralph W. Pope.

X pafier read at Ihe 163d meeting ofthe A "tericanInstieute of Elec/rical Engineers, New Yorkand Chticago, March 28,. Qo2.

THE TELEPHONIC STATUS QUO.

BY ARTHUR VAUGHAN ABBOTT

It is difficult to estimate the present telephonic situationwithout the recitation of a little history that may appear quitetrite to many.

The introduction of the telephone dates from 1876, when, atthe Centennial Exposition, the Bell magneto instrument waspublicly exhibited. Almost immediately the patents coveringthis and subsequent kindred inventions, afterward construedto cover all feasible methods for the electrical transmission ofspeech, passed under the control of an association, which underone corporate name after another, and in combination with itsvarious operating and manufacturing affiliations, has been popu-larly collectively known as the Bell Telephone Company. Themethod of developing telephonic business consisted in forming amanufacturing company whose function was that of creating thenecessary apparatus, and a large number of operating companies,one in each particular territory, to absorb and use, under license,this apparatus in serving the public. In all the subsidiary com-panies the parent organization took an active part, always re-taining a controlling interest, so that the entire telephonicbusiness of this country was, during the lifetime of the funda-mental patents, to all intents and purposes, that of a singlemanagement.

The inception and perpetuation of an enterprise to operateover this entire continent, necessitating business relations of themost heterogeneous character, required the exercise of thekeenest skill and shrewdness in the manipulation of men, andthus acquired the greatest advantages in uniformity, strength

377

378 ABBOTT TELEPHONIC S7TATUS QUO. [iMarch 28,

and coherence. Quite possibly, under any other form of organiza-tion, American telephonic development would be far behindwhat it is to-day, for it cannot for a moment be denied thatthe Bell system is a most magnificent masterpiece, both of busi-ness and technical engineering.

But with all these virtues some faults appeared. Seeminglya policy of secrecy prevailed. Telephonic conventions, initiatedin the earlier days, were abandoned, or held at the rarest intervals;that freedom of speech so dear to the American mind, the exer-cise of which developed the later inventions of the electric lightand the electric railway in a shorter period of time to a widerdegree, was frowned upon even to the extent of non-technicalpublications. For the writer well remembers, after a popularmagazine article, his general manager intimating, that goodtelephonists should, like small boys, be seen and not heard.Search as one may, where in our transactions will one find a paperfrom a professional telephonist, save Mr. Carty's classic andancient (though classic in spite of its age) exposition of electro-static induction? The manufacture of apparatus, particularlyof transmitters and receivers, was sedulously guarded and themagneto bell, the receiver and solid-back transmitter stand to-day, after one or two decades of experience, unchanged andunimproved.

Nor was technical reticence, and consequently impeded prog-ress the only consequence. Gradually, in the public mind,arose an undefined feeling that something was wrong with thetelephonic "quid pro quo.' Alleged extortionate charges,coupled with complaints of poor service were whispered about.Legislative and aldermanic investigating committees were ap-pointed that resembled the fabled characteristics of the monthof March, for they went to work like lions, only in due processof time to subside into the most lamb-like serenity, People sawonly an insignificant bit of apparatus which their common sensetold them could be made for a dozen dollars, for the annualuse of which a charge of from $50 to $250 was made. Smallwonder, then, in view of this insufficient evidence, that on theexpiration of the fundamental patents, there were hosts of enter-prising electricians, many of them of the locksmith and bell-hanger type, who were ready to flood the market with telephonicapparatus of all kinds, good, bad and indifferent; or thatthere was a public trained and educated to embrace any tele-phonic relief from the real or fancied oppression of a so-called

1902.] ABBOTT: TELEPHONIC STATUS QUO. 379

grasping monopoly. It is no part of the present paper to ex-amine into the validity of the grounds for this state of publicsentiment. But it exists, deeply and strongly rooted in thepublic mind, fixed therein by nearly a score of years of mostunfortunate training; so firmly seated that in some cases in-dependent exchanges, charging regular rates, have flourishedand grown fat in the face of absolutely free service offered by theolder company, in the hopes of crushing by the superior endur-ance of a powerful 'backing, its younger and seemingly weakrivals. So strong is this sentiment that to-day, though the Bellcomnpanies are nearly a quarter of a century old, and the inde-pendent companies barely six years, the field is quite evenlydlivided between them as is shown by the statistics in Table I.

TABLE I.ITEM. BELL INDEPENDENT

EXCHANGES. EXCHANGES.

Invested capital ............... $320,000,000.00 $150,000,000.00Number of exchange's ......... 1,500 2,811Sub-stations ................. 1,080,000 1,198,000

During the past year about ,$18,750,000 has been spent ontelephone apparatus, of which about 40 per cent. is credited tothe independent interests, and in this field 415 new independenttelephone companies have been floated.

So far as apparatus is involved, there are to-day a number offirms that can, and regularly do, produce transmitters and re-ceivers whose clearness and volume of articulation cannot for amoment be considered to be inferior to those manufactured by theolder corporation. There are at least two companies that areprepared to, and do manufacture as broad and variegated a lineof' switchboard apparatus, are well equipped, do as good work,attain similar results, and are supplied with electrical talentequal to that of the Bell Company's. So, it is possible to-dayfor anyone to build a- first-class telephone exchange, and withgood care, shrewd and expert management, to give service thatcannot be excelled at the lowest possible price.. Such, I say, ispossible, but, unfortunately, it is rarely done. On the contrary,a very erroneous idea prevails in the mind of most 'of the inde-pendent companies as to the requirements and limitations oftelephony. A large portion of those interested therein seem tohave been bitten by a kind of telephonic tarantula until they feelthat a telephone exchange is a sort of Golconda. Put it in andit will run itself, rolling in dividends in a way to make the goose

380 ABROTT: TELEPHONIC STATUS QUO. [March 28,

which laid the golden egg blush for incapacity. According totheir doctrine, all one has to do is to put in a telephone (anykind of a telephone) build a line (any kind of a line), set up aswitchboard (any kind of a switchboard), go away and leave itto its own devices, returning once a year to collect the dividends.For instance, the general manager of a 5,000 line independentexchange recently remarked in answer to a question as to costof maintenance, "why, we don't have any maintenance, we havea new plant.'" And another man, president of more thanone telephone company, laughed me to scorn when I advised himto allow $2 per sub-station per year for maintenance expense,averring that ten cents per year was amply sufficient for thepurpose.

Another and more vicious result of such misconception.is the way in which new telephone companies are floated.Half a dozen of the prominent citizens of some town conceivethe idea of establishing a telephone exchange; an ordinance isrushed through the City Council of which one or more of the" prominent citizens " are members, a company is formed,enough stock subscription raised to pay current office expenses,and the labor of erecting a few miles of wire. The switchboardand a lot of material is purchased on three months, six months ora year's time, a few subscribers connected up, and lo! a full-fledged telephone plant is in existence, which the incorporatorsnow proceed to mortgage to some confiding trust company,using a good block of stock as tempting bonus, securing to them-selves a nice profit, and incidently getting funds to pay for theswitchboard, and'oth'er material previously purchased on credit.How mistaken are these ideas, the first financial cold breeze thatblows over this country will surely demonstrate. Indeed, thepreliminary puff is already felt as is testified by the presentlamentable financial condition in Cleveland, for if ever the trueepitaph is written over the unfortunate Everett-Moore syndicateit will read, " Died of too much telephone."

Such a condition of affairs is partly due to unprecedentedprosperity in America, but it must not be forgotten that bothprosperity and poverty progress in cycles. We are now aboutat the crest of the present prosperity wave, and in the flush ofplenty and success, men grow careless and plunge wildly into allsorts of enterprises. Oh! for some Joseph that could rend asidethe veil, and show the lean and hungry years of the future waitingto devour the sleek and well fed ones of the present. But, more

1902.] ABBOTT TELEPHONIC STATUS QUO. 381

than all, the public has been educated to regard the telephonefrom an entirely false standpoint, both as regards the instrumentitself, and the annual charge for its use. I do not believe thatone per cent. of the population of New York City have ever seen.a switchboard, or that one-tenth per cent. have the slightest con-ception of the maze of circuits that traverse the streets. Howmany of us, electrical engineers though we are, and so presumablyfamiliar with at least the rudiments of telephony, know anythingof the tortuous path traversed by the messages we send a dozentimes a day from our desks? By the formerly universal flatrate system, a certain charge per annum was made for each-instrument, and this method indissolubly linked the telephone-instrument with the price charged. This is a false unit, and theerroneous impression thus created in the public mind will takeyears of sorrowful and patient eradication. It is not the instru-ment, but telephonic service that the subscribers pay for; notthe transmitter and receiver that stand on the desk only, butthe conduits, cables, switchboard, trunk line plant, the operatorswho patiently, night and day, await an instantaneous summons,and all the other complicated paraphernalia that complete anextensive business organization. All these and more are includedin the necessary cost of service, and if only the cloud of mysterythat has for so long obscured telephonic practice were dispelled,and the public taken fully into the confidence of the operatingcompany, much of the present friction would be obviated. Peoplewould gain not only true appreciation of the service performed forthem, and so be more tolerant of tariffs, but would also acquiresuch a knowledge of the telephonic modus operandi as vastly toincrease the efficiency of every telephone plant. In this respect,.the independent companies are setting an admirable example.Frequent conventions take place at which free and open dis-cussions of all subjects of interest are held, to which all, whetherfriend or foe, are equally and cordially welcomed. Each weekthe technical papers of the land chronicle all items of progress-in so free and full a manner as to display the most striking con-trast to the years of grim and forbidding silence maintained by-the older organization.

There appear to be five results that are certain to follow:FIRST: Many of the present organizations lacking in ex-

perience and strength, located in unpromising fields will go downwith the first monetary stringency, throwing by their ruin con-siderable disfavor on the financial aspect of telephony.

382 ABBOTT; TELEPHONVIC STATUS QUO. [March 28,

SECOND; The remaining independent coinpanies will beforced to adjust their rates until such a point is reached as toenable them to become investments of reasonable earning power,and to this end only the most carefully designed, best constructedand most shrewdly managed plants can possibly survive.

THIRD: The rates of the Bell companies must fall until boththe Bell and the independent companies meet at a common level.and thereafter, so far as the public is concerned, it matters littlewhic.h gives service.

FOURTH: The independent companies are weak in theirlack of coherence, feeble in possessing but few exchanges in thelarger towns and almost none in the great cities, and powerlessin the toll and long distance field. New York is the keystoneof the telephonic arch, and when that city is captured by an.independent company, the battle will be more than half won,but judging from recent developments in this direction, that.time is still in the somewhat far distant future.

FIFTH: An oxtensive and far reaching tariff revision is thevital question of the present. If the Bell companies heed 'thetendencies of the times, they may yet not only retain, but revivaa fast diminishing supremacy. Failing in this respect, theywill be forced to meet this just demand, either by the struggle.for existence in the face of fiercest competition; or by the pres-sure of ordinance regulations, as has recently been witnessed inChicago; or by such legislative action as will declare all telephonecompaniies to be common carriers, and compel each to handleand transmit to its own subscribers any messages delivered bythe other.

In possession of a country of unbounded resources, theAmerican public is of all peoples the easiest and most tolerant todeal with. It has made money and it expects and wants every-one else to do likewise. It is good-natured and somewhat care-less as to what it pays, provided good goods are returned, andcharges that are equitable and just to all are made. But woebetide those who attempt to get something for nothing, or toidiscriminate unfavorably between different portions of society..Their fate is certain.

It is this innate feeling that has instituted the revolt againstthe flat rate system. One does not contract by the year withthe milkman for all the milk the family can drink, nor with thebaker or butcheri for all bread or meat, nor with the gas com-pany for all the gas one wishes to burn. The electric light people.

1902.1 ABBOT0 T7 lTELEPHONIC STATUS QUO. :3

even go s) far as to install a demand meter, sc&aling bills not onlyupon tbe quantity of electricity used, but considering also thetime at wbich it is asked for. To charge a subscriber who makes100 messages per day the same rate as one who makes 10 isobviously unfair, and driven from tbe illogical flat rate system,the plan of an initial charge, plus a message rate for all callsbeyond a certain annual number, has gained considerable cur-rency. That tbis is an improvement and more just than theformer method cannot be gainsaid, but even this scheme containslarge elements of manifest injustice, for the message is no moretbe true unit of charge than going to a livery stable and hiringa carriage to take a drive would be a fair basis for the livery-man, for one customer might be gone an. hour and anotherall day. The average length of teleplhonic conversations isabout two minutes, but averages are dangerous. In one caseunder the personal observation of the writer, a young bride onher return from the honeymoon kept tlhe line leading to hermother's house busy for several consecutive days for more than40 mninutes at a time. Query: shall the bridebe charged tencents for her call and you the same price for a two-minute con-versation? No; the message rate system, while approximatingmore closely to the truth than the flat rate, is still on a falsebasis and should be corrected.

In giving service, telephone companies do three entirelyseparate and independent things which' are incommensurablewith each other, all of which every j'ust and equitable tariff mustrecognize and express.

FIRST: The telephone company supplies and maintains acertain atmount of apparatus necessary to connect each sub-scriber with the central office. This apparatus must be furnishedand cared for whether used or not, merely to give the subscribersan opportunity to call. The quantity and quality of this appa-ratus does not vary with the load, being the same whether theinstrument is used once a year or 100 times a day. A flat rateannual tariff sufficient to pay interest, depreciation and mairi-tenance on this portion of the plant is fair and just, and byrecognizing varying lengths of subscribers' lilnes, this chargemay be made exactly proportional to the requiremenits of eachstation.

SECOND: The telephone company must maintain a corpsof operators to answer subscribers' calls and to perform thenecessary avocations of connecting subscribers together. This

TABLE

IL-GENiERAL

TELE

PHEo

NE,

STATIST3ICA.

WIRE

MILE-S.

TARIFF.

Popo-

No.

of

aa

~~~~~~

~~~~~~

~~~F

latRates.Measured

Service.

Name

ofCi

ty.

Tele

-a

'.

oBusiness

Residence

-Bus

ines

sResidence

lotion,

phones.

aa.

~~~~~~

~~~~~~

~Telep

hones.

-elEi

ones.

___

'r_

Tlpoe el

ephones.

aa

wa-

CZ

_ad

.lC

dCd

ca

BBaltimore

507,

000

6,10

02.25

225

100

T00

786o

.c6

7262

48.0

436

5c

I'~~~~~~

~"~~~

6,ao

o12

.21

2,14

0757

1,897

.148

4230

36Ia

24.0

518

.25

.05

.05

loon

C11000

C1000

cz0o0

crooo

asara

aB

Bostom.

160,892

23,1

064.

247,000'

7,40

054

,400

2.3

2L62

141

is6

102

9071

66.04

9075

6o.04

20000c

lococ

BBuffalo .....

112,

219

9,449

2.7

6181

05,475

12,3

051

-3'

70ce6

52cI

460C

I000

cIC

365c1000

46o

5.o3

365

Chicago....x6855

3,6

o,3

310-4,-338

15TO

7o

92

7148

.01

.01

92

7148

2:8.25

.05

.05

BCleveland....

381,000

13.7

44315

28,6

2313

,119

4572

32

826o

486o

4836

.03

0.1

51

"~~

~~~~

~~~~

~9,0

002.4

9,000

4,500

513,

500

1.4

4836

.05

.05

BCo

lutm

husI..

25,5

608,501)

6.8

7,964

8,264

26,1

281.9

4024

:~B

Indianapolis.

i69,

000

4,137

2.7

9,60

022,500

22,I

o4.8

4024

BKa

nsas

City..

i63,000

7,200

4.4

6,50

07,500

24,000

'.5

9675

52172

6o42

72.05

.05

.05

BLouisville

....

204,731

6,604

3.2,

9678

4836

6o48

30iS8

74.5

.11

'~~~~

...

"~~~~500

2.5

4136

1000CI

OOO0

Cso

ooC

1000c1.,

BMi

nnea

poli

s.20

2,00

0.9,025

4.5

II,8

597,655

z9,5

142.15

8472

14:s8

6048

36iS

7262

48.03

6o.03

1000

025

00a

1000

c1000

c1000

CB

Milwaukeee

.28

5,00

08,

900

3.222

,529

5,55

918,088

2.0

9672

6o6o

4836

686o

50

.02

.05

4836

.02

.05

BNashville.

86,000

3,498

4.02,)

030.29

8448

3614

3624

4-1

.25

33.0

5B

New

Orle

ans.

.'28

7,02

06,

ooo

e.2

2 20

6o

BNew

York....

2,81

0,00

063,975

3.5

252,807

2.45

515

5,26

21.25

240

9987

.o8

90

8778

.07

BOmaha 2...

02,0

003,

852

3.7

3,5721

2,751

5,32

6I.4

9072

4824

6648

3672

.04

72.04

1005

10

00

cCioo

IOOIOO

400

BPhladlpha

1,0,0000

23,438

I.772,

62E8

7,80

880

,426

1.5

260

7866

.05

69fib

36.0

5So

5248

36B

Pitt

shur

g4.52,512

22z,986

2.1

22,388

23,2

2735,6i5

3.0

225

100

8o200

So6o

70

.04

70

.04

2000

C11000119

BRochester

....

x62,6o8

4200

2.6

22,550

leo

x2,3

503.0

9264

3624

70

.o6

36.0

4....

~4,200

2.6

3,3.242,012I

5,335

1.25

48

30

24

lca36

1000020000

~~~~

365c

365c

BSa

nFrancisco

342,200

29,1x3

58.5

23,56_

07,

100

40,66.

51.4

666o

240

204

28.251

.05

18.25

.05

0

BSt.Lo

uis ....

575,

238

7,8521

:18,465

25T,940

20,4

052.

615

o20

072

4869

57.04

575

.04

BSt.

Paul

.~~~~66,o

5,72I5

3-7,

356

3,29

72065

29

8472

5428

68

36i

i03

.03

.2.

,3

214

.8

__

NOTrE.-This

table

isco

mpil

edfrom

various

sour

ces,

,and

ishelieved

tohe

fair

lyac

cura

tewi

thin

ahout

sixmonths.

Inth

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expense is directly and only proportional to the number of timeseach station calls.

THIRD. During each conversation, battery is supplied to thesubscribers' station for talking, cords, plugs, trunk lines and othercommon appara.tus is in use, the amount and cost of which isproportional to the length of time of conversation.

Therefore, any telephone tariff to be fair to all, must recog-nize these three factors, and in so far as any one is omitted, anda blanket charge substituted therefor, injustice will be done,depending on how far the service rendered to a particularstation departs from the general average.

To perceive the bearing of this proposition, consider for amoment the cost of installation and service. According toprevious telephonic policy, the ratio of the number of telephonest-o population is' very low, as is shown in Table II. Conse-quently, the installation cost per station has been high. Inlarge cities this has varied from $150 to $250 per station. Inmedium cities, of say 200,000 population or so, from $90 to $125,while even in the smallest towns it is rare to find a cost of lessthan $50 per station. Of the installation cost, from $10 to $25is required at the sub-station, depending upon the characterand difficulty of wiring. From $15 to $50 for the switchboard,varying with the type of board, size of multiple and percentageof trunking, while the wire plant has absorbed the balance; butif by a more liberal policy the use of the telephone could be sostimulated as to raise the population ratio, to say 15 per cent.,it would be possible, even in such a city as New York, to installa telephone plant at a cost not to exceed $60 per sub-station,,as is shown in Table III.

TABLE III.

Probable installation cost per station of a telephone plant,sufficient to serve 15 per cent. of population.

ITEM. COST.

Sub-station Apparatus ............................. $15 .00Wire Plant, Subscribers' Lines ......................... 14.00Wire Plant, Trunk Lines ............................. 7.00Switchboard Apparatus, Subscribers' Lines ............. 12.00Switchboard Apparatus, Trunk Lines .................. 6.00

Ttal .. $54 .00

Assume now that an installation charge of $15 per year per sub-station were made against each one-party line to cover interest,

386 ABBOTT: TELEPHONIC STATUS QUO. [March 28,

depreciation and maintenance, $10 per year per station eachagainst two-party line and $8 per year per station against eachfour-party line, and that a charge of one cent was made for eachtime the central office was called up and one-half cent for eachminute of actual time that the telephone was in use. Largebusiness houses and the best class of residences would take one-party lines. Smaller business houses and medium residencestwo-party lines, while the bulk of subscribers would use four-party lines; all of these being arranged with selective signalsand lock-outs to secure the best quality of service. Simply toillustrate the effect of this system of tariff, assume one-partylines to average ten calls per day, two-party lines seven an'dfour-party lines three. Under these circumstances, one-partylines must bear a tariff of $75 per year; two-party lines $52 andfour-party lines $23. According to this suggestion, the annualcost of maintenance and depreciation on plant would be caredfor by the annual flat rate charge, which, for this purpose,is sufficient in a properly installed and maintained plant. Thereceipts from traffic would average $20 per thousand calls, whilethe actual expense should not be over $7 per thousand calls.The"difference of $13 would be ample to pay reasonable generalexpenses and dividends. At each sub-station, a meter wouldbe installed, carrying two dials, one showing how many timesthe exchange was called, and the other the total time expended inthe use of the telephone. This meter should be in plain sight ofthe ssubscriber, so that he, at any time, could check the readingswith his own watch. Such a device could be made and installedat an expense not to exceed $3 per station. Each station wouldbe charged for exactly the service rendered, and it would beoptional with all to regulate charges to suit their wishes.

It is probably an impossibility to make any one method ofcharging absolutely universal, any more than it is 'feasible tocrowd all passengers on a railway into one car. There must bePullmans, coaches and emigrant cars. So every telephonecompany must probably supply a few flat rate instruments,many meter rates and some coin boxes. "Chacunt a' son gMt,but the main idea is that of producing a rate that will be abso-lutely just, and be capable of so stimulating telephonic businessas to place an instrument in every house. Each communitycontains some chronic objectors whom it is impossible to satisfy,but setting such aside, it seems that a scheme of this generalnature would go far toward smoothing out- the existing frictionbetween the operating companies and the public.

1902.] ABBOTT: TELEPHONIC STATUS QUO. 387

But with this discussion of the commercial aspect, the engi-neering side must not be entirely forgotten. Two very curioustendencies are observable. Among the older companies and themost advanced of the independents, those to whom experiencehas read some bitter lessons, there is a very strong inclinationto design plants with the utmost care and skill, using the widestand best experience for the purpose, and foreseeing the future asfar as possible. This is in marked contrast to the practice of adecade ago, when telephone plants, like "Topsy," simply grew,and in many respects were not unlike the dark heroine of UncleTom. But with the newer and less experienced of the inde-pendents, there is a most conspicuous absence of design. Be-cause some farmer has talked half a dozen miles over barbedwire fences, a lo tof little telephone companies have immediatelybuilt toll lines of No. 10 or even No. 14 iron wire, on poles aboutas large as a walking stick, with grounded lines, through trolleytowns, and wonder why their subscribers complain of poorservice, or that their lines go down with the first snow.

Conduit construction has settled into pretty well recognizedchannels, involving chiefly the use of vitrified clay pipe, par-ticularly the multiple duct forms. Periodically, a new andimproved form of duct material appears destined to supersedeall others, but I notice the tile men serenely go their way, andtheir output to-day is larger than ever.

The construction of aerial lines is rapidly becoming system-ized and proceeding under stanldard specifications, the tendencyof which is to build the lines much more efficiently and muchmore solidly than in the past, and to restrict the use of openwires to three or four cross arms.

There is a notable tendency to increase the size of cable.Formerly 120 pair was standard for underground work and 25for aerial, but at present 200 pair is becoming almost universal,and even 400 pair has entered the field underground; whileaerial cable has grown so that 150 pair is not unknown. Fortrunk lines and toll work, large conductor, low capacity cablesare to the front, even to the extent of using No. 16, No. 14 oreven No. 12 wire, with capacity of from .06 to .05 m. f. permile. In switchboard practice, the common battery automaticsignal board is rapidly expelling all other forms and soon willapparently reign supreme, for at present there is not a shadowof a rival looming on the telephonic horizon to dispute its suprem-acy. While switchboards of this type are a vast improvement

388 ABBOTT: TELEPHONIC STATUS QUO. [March 28,

over those of older construction, they still leave much to bedesired,and the entire telephonic fraternity awaits with open armsthe coming of the perfect switchboard. There are many whobelieve that a purely automatic board will offer the desiredsolution, but during the past decade the progress in this directionhas been almost infinitesimal. A central office seems to be oneof those things that need the human element, and cannot bemade purely mechanical. Possibly the recently inventedFaller mechanical operator may form at least a pattial solution.

For the sub-station there is no progress to report. Thetransmitter, receiver and magneto have remained in statu quofor ten years, save that each manufacturer dresses his apparatusin a newer and possibly more fanciful design. This is strangewhen is considered that actual telephonic efficiency is less thantwo per cent., and that a very slight improvement in this direc-tion would be hailed with delight by all, particularly by thosewho do much toll work. Part of the difficulty lies in the elec-trical characteristics of the line, and for this Dr. Pupin's epoch-making discovery is supposed to be a remedy, but as yet resultsfrom practical experience therewith have not been reported.

In the light of the present, what is the earnest of the future?Despite the hints of our friends of the Hertzian waves, there isnothing at present to suggest any radical discovery in thetelephonic field. On the other hand, the art is gradually settlingdown to that inevitable and comfortable basis wherein soundfinancial judgment as to the expediency of a telephone plant,skillful engineering in design, the best possible construction,good business management in operation, fairness in the tariffand in the treatment of the subscriber, will be absolutely essentialto produce a good balance sheet. Toward this haven stronglysets the current of popular opinion, aided by those who are mostbroad minded and liberal in the business. May the art safelyreach this port, avoiding both the Scylla of a disastrous ratewar and the Charybdis of financial wreck from rash, ill-advisedinvestments, systems poorly constructed and operated.