TTTE OMATTA" DAILY DEE: THURSDAY, 'AUGUST 18, 1904.
10
TELEPHONES IN TWIN CITIES
Operation of Two Byntemt Brings Competl
( . . tion at Added Cost.
BUSINESS MEN PREFER ONE MONOPOLY
Experience of Cities o Ike IfortTa that
Slur tie with Fromt d
Iastractloa by Other
Towns.
8T. PAUL, Minn., July 28. Gpecil Cor
respondence of The ,Be.)-Complalnlng of
. the rates end service of the Northwestern
Telephone company, which had a monopoly
cr he business In that territory, the peo
ple of the twin cities of 8t Paul and
Minnipoll In 1898 were ready subject
for the Independent Telephone promoter,
and when J. C. Hublng-er of Keokuk, la.,
came along- with a proposition to furnish
a superior service at about one-half the
prevailing- rates, he wai eagerly and heartily
welcomed. Business men of both cities
-were finding fault with the service of the
existing company and many of them were
of the opinion that the rates were very
Jilgh; so when Mr. Hublnger told them
that an up-to-date service could be fur
nished at about half the rates they were
then paying, and that the proposed new
: company could make plenty of money at
It, they believed him and gave him much
assistance In securing the necessary fran
' chlsea from the two cities.
! The Bt Paul and Mlneapolis city coun-
ells, although petitioned by the business
Interests and labor organizations to grant
j to Mr. Hublnger the franchises he de
: Hired, took care to Insert In the ordinances
certain provisions designed to protect the
public from any abuses the new company
, might seek to Inflict !n the future. For
i Instance, It was provided that the new
I company, which was known as the Mls
' alsslppl Valley Telephone company, should
never charge to exceed $48 a year for a
' business 'phone and $34 for a residence
' 'phone that there should be no party lines,
! that the company should not at any time
! transfer Its rights and property to any
VUlri vYSiiiaaif nivuuuk iliv vviidvii vs. s, rv w
thirds of the city council by resolution, and
that the company should not at any time
bond, mortgage or encumber Its plant for
more than 75 per cent of its actual value.
It also provided that the new exchange
was to have 1,200 subscribers In each city
before It began operations.
A Long; Time Building-.
After the franchises were granted. In
1808, Mr. Hublnger and his associates,
known as the Mississippi Valley Telephone
oompany, began the construction of their
plant In the two cities, and this work was
carried along, with more or less Inter,
ruptlon, until January, 1901, when O. W.
i Firkins & Co., who had obtained judgment
' against the company in the sum of $793.63,
I asked the district court for the appolnt
t mont of a receiver. In their petition Flr
1 kins & Co. alleged that the company had
encumbered its plant by mortgages aggro-
gating $905,000, but the company answered
' that $750,000 of this amount was in bonds
which had not at that time been sold,
although they had been offered on the
market. The company, in its answer,
placed the value of its tangible property
x in the two cities at $726,000, but insisted
that, counting in the value of the fran
chises, its property was worth $1,500,000.
So it will be seen that even at that early
stage of the game the company was giving
its franchises a value of $775,000. It will
be seen also that the company was prepar
, Ing to issue $750,000 of bonds on tangible
; property that it valued at only. $725,000, de
spite the provision of the franchise ordl
; nance that it should not encumber its
j property for more than 75 per cent of its
( actual value,
j Goes Through Receivership.
; On January 10, 1901, B, E. Webster was
i appointed receiver for the Mississippi Val
I ley Telephone company, and on April 2 of
i the same year he reported that all claims
J filed bad been paid by the company, and
,; the court discharged the receiver. The
. j concern came out of the receivership known
as the Twin City Telephone company, a re
( organization, with local capitalists inter
I eeted, having been effected. This com
j pany now has capital stock of $1,500,000,
i $500,000 of which la preferred stock, on
; which 7 per cent dividend has been paid
t since May, 190L Its funded debt amounts
I to $1,000,000 in 8 per cent bonds. At the
time the company was reorganized, ap
parently with plenty of capital behind it,
I the hope of the publlo that It would drive
the Northwestern out of the field was re-
i Irtved. How It has "driven" the North-
j western may be shown by a fefw figures
; compiled from the telephone directories of
j 1901 and 1904, as follows:
j Approximate number of 'phones in use:
i v . 1901. 1904. Inc.
Northwestern Tel. Ex . J7,40 8,)0
Twin City Telephone J.400 8,800 6,200
It wlU be observed that tha old company
has Installed nearly as many new 'phones
since it nas had competition aa tha new
cwnjany has altogether. It had been ex
pected that the advent of the new com
pany, with its cheaper service, would cut
: oown the number of the old company's
! subeortbei, but the Northwestern has evi
dently thrived from the competition. Nor
. has tha cheaper service of the new com
pany forced any reduction in the- rates of
ths older one. It is true that the rate
schedule of the Northwestern has been re
, vised since 1901. but the revision has been
; the introduction of new classes of service
. rather than the reduction of rates.
Question of Rates.
The following table shows the changes
; made in rates:
i NORTHWESTERN COMPANY'S RATES.
I lousiness 'Phones 1904. luoi,
1 litreat line, unlimited tki ,i tw ,.i
, nv-w ij una, uuuniima. . .... vz.uy
Four-party line, unlimited.... 4 00
I J'lreot line, 8i0 calls 48 00
Two-party line, 600 calls Su.UO
Jlesldence Phones
,' Ilreot line, unlimited 48 00
I Two-party line, unlimited 42 00
Four-party Hue, unlimited 3u.0O
72 00
48.00
60 00
4X00
86.00
In business 'phones, it will be noticed,
there is no reduction in rates, but the
addition of the measured service. In resi
dence 'phones there has been a slight r
ductloq of rates, but the officials of the
' Northwestern company insist that tlas re
duction was not forced by competition, but
. was made in accordance with the well
known policy of the .company to increase
the number of residences on its lines in
order to make its business service mora
valuable.
Even at Bt. Paul and Minneapolis, where
they have the demonstration before thorn
dally., some telephone users are unable to
1 understand how the Northwestern can
maintain Its rates in the face of an'cppoal
. tjon company that offers business 'phones
litllll year and residence 'phones for $30.
The point in this is very clearly shown by
I a conversation between President Upham
land Cashier Miller, of the First National
, bank of St. Paul, in the presence ot your
. correspondent. Mr. Upham hud been tell
,lng me that he could not understand how
the old coiniMUiy kept Its rates up, and he
turned to Mr. Miller with this inquiry)
Hay, Fred, we pay only $4 a month for
i 4 . i . 11 lto I'm.,
II till 1 lT A ItoTTI R.
Or eat
5al of
riuslln
Under we
A
Sale
From the Kcllcy-Stigcr Stock
I. : 1"
actually
worth as
high as
$1.20, Thurs
day very
special, each..
Ladies9 Turnover Collars 2ic
The pretty and neat turnovers, in white and all
fancy colors, lace embroidered and some
prettily Bilk embroidered, in popular sum
mer effects, actually worth up to 20c each....i
Embroideries at 121c
An extra fine selected lot of Embroideries, in
Swiss and nainsook, all medium widths
worth up to 30c yard at
Millinery Special Basement
Ladies and Children's Hats at 10c
An Immense) lot of lad lea' summer Sailors, worth up
ladles' trimmed hats, up-to-date shapes children's
trimmed bats and children's caps actually sold up to
$1. 50 to clear them all away In one day your choice
basement
Ladies9 Sfiirt
All Kelley-Stigcr's neat and
cool summer materials and popular
patterns, new pleated styles, worth up
to $6.00, at
ADVANCE NOTICE
Special Sale of Men's Shirts Saturday at 75c
Monarch and Star brands, stiff bosom and negligee
shirts on sale Saturday, August 20, at 75c; worth up to
$3.00.
y ix -? u
the new 'phone, and why do we pay 17 a
month for the old one?"
"Because," promptly replied Mr. Miller,
"the old one Is worth that much more; with
It we can reaota twice as many people In
St. Paul and Minneapolis as we can reach
with the new one. Besides, the old 'phone
Is necessary to reach outside towns."
Exclusive of private branch and extension
telephones, the number ot 'phones now In
use In Minneapolis and St. Paul and their
division, is shown in the following- table
compiled from the latest directories of the
two companies: t
Northwestern Telephone exchange:
i Minneapolis, tit. Paul.
Business 'phones 7.310 4.600
Residence 'phones 3.3UO 2,200
. Total 10,600 6,800
Twin City Telephone exchange:
' Minneapolis. St. Paul.
Business 'phones 3,100 1,800
Residence 'phones 2,500 1,200
Totals 6.600 3,000
About one-half of the users of the Twin
City company's 'phones also find it neces
sary to have the Northwestern service. In
other words, about 4,300 telephone users In
the two cities, for obvious reasons, must
have connection with both telephone sys
tems. Probably not less than 3,600 of these
"duplicate" 'phones are for business serv
ice and consequently telephone "competi
tion" puts an additional expense of about
3168,000 per year on the business and pro
fessional men of Minneapolis and St. Paul.
Whether the Twin City Telephone com
pany can continue many years to furnish
telephone service at the low rates fixed by
its franchise may be judged from the following-
figures: s ,
Twin City Telephone company's finances:
Gross earnings for year
ending November 30, llKXi 3309,496
General and operating ex
penses, extlmated at 60 per
cent, gross earnings 3185,1(97
Interest on 31,ou0,0oo bonds at
S per cant 50,000
Dividends on 3500,000 preferred
stock at 7 par cet 85,000
Taxes, per cent of gross
earnings 9,284
Depreciation on 31,000,000 of
electrical equipment 50,000 83.981
In the foregoing table expenses are esti
mated low, as moat experts in the tele
phone business assert that It requires more
than 70 per cent of the gross earnings to
pay the general and operating expenses,
and this when higher rates than those of
the Twin City company ; are charged for
services.
In Minnesota, under state law, all tele
phone companies pay I per cent of their
gross earnings to the state tn lieu of all
other taxes. Five per cent for depreciation
is also a very low estimate and no account
is taken In the above table of a sinking
fund for the redemption of the bonds.
Views of Baatne Men.
Business men of Bt. Paul and Minneapolis
who had anticipated some benefits from
competition in the telephone business are
disappointed and talk like this:
II. P. Upham, prealdent First National
bank: "Competition is a good thing on
general principles, but when applied to
the telephone business It falls to work
any good. I cannot see where the business
men of - this city have gained anything
from having two companies In the field."
. Romans St Rohrbeck. retail drugglBta:
"We have no more use for two telephones
than a dog has fcr two tails. Competi
tion in that line has simply put an extra,
tax on the business men of this city.
I was In favor of It before It came, but
now J am dlguMed."
W. II. McQuuid & Co., retail grocers:
"In this store we have five trunk lines
of the Northwestern, and three of the
Twin City, and if it were not for the fact
that Ww have two difTeront exchanges
we could get along very nicely with only
five lines. As it Is we have the extra
expenaa of the three Twin City lines. The
only correct way la to have but one tele
phone company In a city of this size."
Uelroonry, Ryan & Clark, commiaHlon
merchant: "We would prefer to have
but one 'phone, but we And It necessary to
have both. The advent of the new com
pany did tint bring about any reduction In
the rat of the old, as we had expected it
would."
Uii.gj, Cutacr & Co., wholcRKle croce-.
Maslla
Underwe'r
5al
Saturday
of Corsets
All the fine corsets in odd
lots and broken sizes from
the Kelley-Stiger stock
hundreds of styles all
lengths white, drab and
and black
6
$1.00-
Waist Suits
dainty Shirt Waist Suits of
98C-2.50
'bt
oro Children's and
Hisses' Shoos.
All that are left of the 100
pairs of misses' and children's
shoes wlU be on sale Thurs
day. This Is a great chance to
shoe the young people cheap.
Misses' sizes In one lot,' QQ
Children's sizes in one fj f
lot, at UUl
Youths' $2.00 and $2.00 I j
1 tan shoes, at lit
Women's black Russia $3.60
and $4.00 welt I Rfl
Oxfords, at liuU
Drexel Shoo Co.
1413 FARNAU STREET,
Omaha's Up -to-C :la Shoe Housa
"The desirability of competition In the
telephone business depends on local con
ditions. I should say that If you have a
satisfactory service and reasonable rates
in Omaha a second company would be an
unnecessary burden."
Hackett, Walther & Gates, wholesale
grocers: "Two companies are an annoy
ance, and If you can get good service and
reasonable rates from one company. It Is
beat to let It enjoy a monopoly."
W. II. Elalnger & Co., proprietors Golden
Rule department store: "The second tele
phone company Is a luxury. We were well
satisfied with the service and the rates of
the old company, but had to put In a
couple of lines on the new exchange so as
to put our store in comunlcatlon with a
few residences where they bad only the
cheap Twin City telephone. We want to
say that it Is a great mistake for any city
to allow a second . telephone company a
franchise, for it brings no benefit what
ever and puts a very heavy expense on
the business men."
W. B. Nott St Co., mill and railroad sup
lies: "Ths new company comes in and
gets a few exclusive subscribers, and In
this way forces business places to put in
their 'phones. It Is an extra expense that
ought to be avoided by having all tele
phone users In the one exchange.
Powers Dry Ooods company, department
store: "It la, of course, best to have all
telephone users In one system, but when
they are not It becomes neceaaary for peo
ple who cater to the general publlo to have
the service of every system In existence.
The more telephone companies we have
the greater becomes our expense for that
Uom-" II. J. O.
Poland Sprlaga aaa Com. I of Maine
Via Mlchltcan Central, "The Niagara Falls
Route." Nothing finer on the continent.
City ticket ofiice, lit Adams street; Cen
tral station. 12th strt and l'efs Row;
Qreat Northern and Auditorium tlls, and
bUaruiaA buutf -
to
Omaha Weather ForecastThursday, Continued Fair.
eWfc-V. VyM
If ra m fe l
mm
Green Trading Stamp
Scusotions.
Terhaps the most significant proof of
the ever increasing popularity of the
Little Green Stickers is to be found in the
fact that soap wrappers, tobacco tags,
cigar bands, labels and package coupons
(an almost endless list) are exchangeable
all over the country AND PARTICU
LARLY AT BENNETT'S, PREMIUM
TARLOR, SECOND FLOOR for
Green Trading Stamps.
Ton are using certain r"cknRr goods everv day
end you might as well CUT OUT THE TRADE
MARK AND SAVE IT you mleht s well save the
Coupons r not such products of world wide repute erf
Force, Kirk's White Rusnlnn Sonp, Diamond "C"
Soap, Reardsley's canned fish products, etc, Green
Tradlns; Stamps are given for the trade marks, cou-
f'ons or labels affixed to these packflKes. Bring thm
r Premium Parlor, Second Floor, and get all Infor
mation. -
Special Sale of Silk Petticoats in Suit
and Cloak Dept.
Thursday we place On sale a very complete line of BILK UNDERSKIRTS
made of KXTHA FINK ViUALIiVOK RUSTLE TAFFETA, in changeable
red, srren, blue and brown and nolld colors In green, gun metal and black with
tucked and m filed flounce with dust ruflle.
These skirts have the rustle and swish of a $9.00 skirt your choice A Q?
Thursdnv. lit "n-tCJ
SATEEN UNDERSKIRTS
Thursday we will give you a regular $1.25 Underskirt for Ke This skirt Is full
width with three ruffles and each ruffle hemstitched, and fulled on, making
avery pretty skirt, easily worth 91.2a on sale Thursday, &QC
Clean Up Sale Infants', Children's
and Misses' Lace Hosiery
60 dozen warranted "Fast Black" high spliced heel and toe,' splendid lacey rat
terns, sizes & to 84 values In this lot worth up to 36c Thursday fr,
we sell them, at, pair ...-""
Sensational Sale on Ladies' and
Misses Summer Union Suits
Thursday we sell ladles'
sleeves, taped yoke ana
4, 6 and values up to
AND $1.00 WORTH "8. &
Woocceee ' EACH
Thursday Will Be a Great Bargain Day in Our
Cotton Goods Dept.
Ws Start Three Blir Tables for Thursday
Table No. 1 at 3c yard
Wash Goods worth to 15c yard.
Table No. 2 at 5c yard
Wash Goods worth to 29c yard.
.Ml ''
Table No. J at ic
Wash Uoods worth to ;5c yard.
If you do not), attend our silk sale W ednesday be sure and come Thursday AQq
and see those beauillul silks, at, yard, 69c and
Big Drive in Ladies' Neckwear
Buster Brown and Button-Hole Turnover Collars, In fine linen, embriodered In
the newest designs and colors values run as high as 600 each 25C
Thursday we make a special drlve.at, each:
Thursday 'Will Be an Iron Bed Day
Iron Beds of substantial build, batchy designs, artistic finish and in all col
ors. Our assortment Is large very large and very complete. There is a real
advantage to be gained by attending Uiis sale.
Kodaks, Cameras and All Photorahic
Accessories
)(!.
D2VELOPINO AND FINISHING WORK EXPERTLY DONE.
Don"t run the risk of undoing all your picture-taking and ruining your
plates by attempting todevelop the pic ture yourself; bring the plate to our Camera
man and have It done without worry to yourself, and at a fractional cost.
SOUTH-EAST CORNER MAIN FLOOR.
Shoes A Big Thursday Sale Shoes
Bennett's for the Nicest $2.50 Shoes Made
Ladies' ricl kid, patent tip, extension Blucher 50
Ladie' vici kid, patent tip, mat tdp,' flexible 2 50
Ladies' box calf, extension sole, swell shoes for f A
eervice ...aS.UU
310 Men's
kinds, worth up
and $5.00 worth
Stamps with
... . iIjJ
169 Ladies' short lines of Dorothy
Dodd Oxfords, 193
and $5.00 in Little Green
Stickers.
ii,V'
Green Trading Stamps Every Time
UuL
w,an V-- -fJW
5 x w
Boys
Girls
Come and see the
prizes offered for the
most successful ' boy
and girl "combina
tion" sales-persona 15
cents for every com
bination brought In;
$400 worth of Green
Trading Stamps to the
customer. I?s a great
Idea.
and misses union suits, low neck, no
arm,, crocnetea inmmea. sizes lUn
36c all go at
H." GREEN TRADING STAMPS WITH
GARMENT.
yard-
Enameled Iron Beds, scroll designs,
all color combinations )Q
Continuous post, extended A OR
foot, W value, at
Continuous post, handsome designs,
all co.'or combinations, Q Cf
$12 value, at O. OU
Continuous lH-inch pest, brass spin
dle head and foot end, 4 A flft
$20 value, at 1. UU
Continuous 1H-Inch post, artistic de-aK-n,
extended foot end, ' JQ 50
THIRD FLOOR.' N
Everything with which to Induge
your picture-taking dreams. Films,
film packs, solutions, mats, albums.
Cameras of every style and size,
every one with a perfection peculiarly
its own.
Our photo department outshines all .
others in newness, freshness and '
attractiveness of its supplies.
Sample Shoes, all
to $4.00 j JJJ
'S. & IL" Green Trading
each pair.
and
DIG CUT
PRICES ON
TRUNKS
WIS WLEK
jiMfy
THB RELIABLfD STORK.
August Clearing Sale Still Going
On in Our Ladies' Suit Dept.
Women's Walking Pklrts In
fancy mixtures worth up to
IS.00 Thursday at
plain and
.2.95
Women's Covert Jackets In tan and black
worth up to 110.00 Thursday 4.Q5
Women's French Voile Pklrts with n
elegant silk drop worth 130.00 O Q
Thursday at
Women's Silk Underskirts In all colors and
black worth 16.00 Thursday r jici
at
Tour
cholca of any women's Tailor-made
Pult In the house worth up to 0 7R
l.00-t -laS0
Women's Bilk and Pongee Suits Q Qf
,r.rh ixim it zr.zr
Only a few Wash Butts left
your choice for
Special Bargains in Our Furnishing Goods
Department Thursday
BOO 'ndlfts fine fancy lisle thread sleeveless and short sleeve Vests drop stitch frt
and fancy yokes worth from l&o to 3&o-Thuraday at
FROM 10 TO 11 For one hour we will place on sale 300 doson ladies' fancy Cl
lace and lisle thread Hose in black and fancy colors worth up to 26c at 0W
We will place on sale all day Thursday one lot of boys' fins Woolen Sweaters me
dium welarhts and can be worn the year round these are worth from $1.00 -lQrt
to $2.00 your choice at - ,Vw
STUN NIN G TRIMMED HATS
NOW ON SALE AT 50c EACH
Grocery
10' bars best Laundry Soap So
S bars Wool or Armour's White Soap.. 10c
Oil or Mustard Sardines, can 4o
Stuffed or Plain Olives, bottle 8Vo
California Evaporated Peaches, pound. 7Vio
Currants, - evaporated, pound 7c
Ruby Prunes, pound 3Ha
Mince Meat, condensed, package 60
X-Cello, Vigor, Vim, Neutrita or
Force, package 7o
Fruit Puddlne, package
Dear Johnnie Cake:
You remember when we were boys how your
mother used to make us the old fashioned mo
lasses Ginger Cake, and how awfully good it .
was. Makes your mouth water thinking
about it,
Well, I have just begun making it in great
big slabs so big they will make you think of
the old home and I am selling them at 10c.
Stop in on your way home and take one of these
home to the children the whole family will
enjoy my genuine molasses Ginger Cake.
' BALDUFF,
1520 Farnam Street.
Mm IVooiimcn of America
PICNIC
Thursday, Aug.
Only 60c for the Round Trip
Special Trains from Webster StreelDepot
at 9 a. m.
VIA THE NORTHWESTERN LINE.
All Woodmen and Their Friends Are
Welcome.
OPENING
OF A
NEW AND THOROUGHLY EQUIPPED LINO
BETWEEN
ST. LOUIS AND CHICAGO.
SUNDAY, JULY 31, 1904. .
Thoroughly Equipped trains leave Bt Louis and Chicago nightly (afte
arrival of Incoming trains), arriving either city the following morning.
Equipment entirely new; lavish In design, elaborate la furnlablngs.
Ask your Ticket Agent, or address,
PASSENQER TRAFFIC DEPARTMENT.
p A Nice Grip or Suit Case Q f
will not make you better, but it makes people think battel' ??
liHnPtM,k.y.Vaiita.e of OUR PER CENT PlflrOUNT I ' V 3
BALK aad aet the best at leas than
you elsewiioi'e.
Omaha Trunk
Telephone I0S3
$2.50
SAMPLE
SOFT FELT
UhTS 95c
s
WOMEN'S WAISTS
at -
25 c
69c
95c
198
Women's $2.00 Waists
for
Women's $3.50 Waists
for
Women's $5.00 Waists
for
Tour choics of any I,n Waist in B ((
the house worth J12.00 f or.
Women's $1.00 Wrarpcrs
at
Women's $2.00 Lawn Wrappers
for -
.-.49c
....98c
Women's $3.00 and $4.00 Wrappers
&4.00 Wrappers f QQ
(4
at i.-
Specials
Oood Japan Rice, pound....- SVtd ,
6 pounds Beans, Tapioca, Sago or Bar
ley U4
FRESH FRUIT SPECIALS
Choice Juicy Lemons, dozen ,. ....... 10a
Fancy Rartlett Pears, dozen 16o
Large Florida Bananas, dosen 12o
California Strained Honey, rack 12a
Good Country Butter, pound 12H4
I
AT BLAIR
cheap (radrs will cost
' (iM
Factory,
20S Faroam
18
V
'J
! t