Independent Telephones

"Telephone" to the U. S. citizen signifies American Telephone & Telegraph Co. and its subsidiaries. Seldom is any publicity given to the nonA. T. & T. telephones. Last week, however, F. B. McKinnon, president of the Independent Telephone Association, spoke convincingly for the companies he represents. Questioned by the Senate Commerce Committee as to the opinion of the independent companies on the proposed Communications Committee, he vehemently protested that the members of his association "prefer to remain hitched up with the railroad organizations [I. C. C.] than to be driven into the same corral with the kicking and biting herd that is known as the radio industry. . . ."

Independents. In 1897 when the Bell system was vigorously absorbing telephone companies all over the U. S., 500 independent companies formed an association. Today the association has 7,000 members, all of which are telephone companies not owned, controlled, or operated by the Bell system. These companies operate some 4,000,000 telephones, or about 20% of the U. S.'s 20,233,000. Since, however, the Bell system embraces all large cities and the independent 4,000,000 telephones are scattered on an average scale of 300 to a town, the independents do not receive 20% of the total receipts. Last year the independent companies took in $125,000,000 gross against $975,000,000 gross by the Bell companies.

With such a large percentage of business going to independents, it is obvious that, contrary to popular opinion, A. T. & T. has no complete monopoly in the total telephone business. However, since the independents are scattered, A. T. & T. has a virtual monopoly on long distance calls. Where a toll call travels over both the wires of an independent and a Bell company the charge is prorated according to the number of miles used.

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