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657

(1914) [MARC] Author: Joseph Guinchard
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PRIVATE TELEPHOIIE COMPANIES.

657

the Government, and, in accordance with which, the Company was granted the
right to retain all its existing telephone wires within a district extending to 70
km in every direction from Stortorget (the centre of Stockholm), and to erect
new lines within this territory. The condition on which this agreement was
drawn up was that the Company should, at the same time, sell to the
Telegraph Service all its lines outside the above-mentioned district.

By an agreement made with the Board of the State Telegraphs, there was
established in 1891 co-operation between the lines of the State Telephones
and those of the private companies, whereby all subscribers in the capital
enjoyed the tise of extensive local lines and of extensive telephone-connections
with provincial districts. This co-operation came to an end in 1903.

In 1902 and 1906, proposals were made by the State Telegraph and
Telephone Departments to purchase the telephone lines of the General Company
but, on each occasion, the Bill was thrown out by the Riksdag. Neither
did a proposal made in 1904, to divide the field of operations between the
State Telephones and the General Company, gain the approval of the Riksdag,
so that it has not been found possible to find any solution of the co-operation
problem. Since the cessation of co-operation, however, the lines of the private

company have increased at a constantly increasing rate.

* *

*



In 1899, it came to the knowledge of the General Telephone Company that
the Russian State intended to issue invitations for an international competition
respecting telephone-concessions in the five Russian cities of Petrograd, Moscow,
Riga, and Odessa. After an investigation made by Mr Cedergren at these places
had shown that there was a great field of work for the telephone-traffic in
Russia, there were established two Swedish telephone companies: the
Swedish-Danish-Russian Telephone Company, Ltd, and the Cedergren Telephone
Company, Ltd, in both of which the General Telephone Company was the
principal shareholder, and which sent in tenders for the proposed Russian plants.
The result was that the Swedish-Danish-Russian Telephone Company obtained
the concession in Moscow and the Cedergren Telephone Company that in
Warsaw. New and first-class telephone plants have since been established in
these cities and have obtained large numbers of subscribers. Before the
Swedish Companies began their work in Russia, the American Bell Company had
enjoyed telephone-concessions in these cities, but, after having been founded
20 years, the number of its subscribers was not more than 3 058 in Moscow,
and 2 331 in Warsaw. On January 1, 1913, i. e., after 12 years of activity, the
number of subscribers to the Swedish-Russian Companies’ lines was 43 347
and 28 935 respectively.

In combination with L. M. Ericsson & Co., the General Telephone
Company has also established a telephone service in the city of Mexico and its
suburbs. On January 1, 1913, this combined company had 9 202 subscribers.

In proportion as the business of the General Telephone Company increased there
arose a growing difficulty in obtaining a clear view of the working of the various
divisions and, especially, in distinguishing the economic results of the Stockholm
lines from the other business of the Company. On January 1, 1908, was formed
the Stockholm Telephone Company, Ltd, which, as was mentioned above, took
over the lines of the General Telephone Company and of the Bell Telephone
Company in Stockholm and the surrounding districts. The General Telephone
Company is the principal shareholder in the Stockholm Telephone Company.

During the whole of their existence the private telephone companies
of Stockholm have endeavoured to extend the use of the telephone among

42—133179. Sweden. 11.

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