[comp.dcom.telecom] Billing of Yore

zweig@brutus.cs.uiuc.edu (Johnny Zweig) (10/17/89)

I am curious if people know how long-distance billing used to be
handled in days of yore. In particular, how did it evolve as
technology went from patch cords to SxS to *ESS? I mean, in 1921 I
gather you placed a long-distance call by telling the local operator
to patch you through -- where did the billing information reside?

I am also curious about how hotels have charged for phone-usage in the
days since they started doing so. Before PBX's, it seems like they
would either have had to guesstimate the charges or have some
complicated arrangement with the phone company to inform them at the
time the call is made how much it costs.

Johnny Curious

[Moderator's Note: Years ago, operators kept manual paper tickets which
they wrote up as they placed each call. These tickets were stamped in
a clock when the connection started, and stamped again when it ended. The
tickets were collected by clerks who went around to each operator position
picking them up every few minutes. The clerks computed the time and charges
for each ticket, and when the subscriber had requested this information
they were called back with details. The tickets were sorted by calling
number and placed in each subscriber's folder where they were held for
billing. Other clerks continually kept pulling these folders and posting
tickets on the appropriate ledger card. Like today, subscribers were on
cycle billing; that is, a certain number were billed each working day of
the month. There were 22 billing cycles per month. I have in my grandparent's
papers a phone bill from Illinois Bell dated May 13, 1931. The statement
has a *handwritten* list of the long distance calls, plus a handwritten
cover sheet showing the total bill for the month was $3.60.

Hotels had an arrangement with telco which was that they (hotel) guarenteed
payment for all guest calls in exchange for a commission for handling the
call, as well as billing and collecting. Following a long distance call,
the hotel was notified, usually within minutes and always within an hour
of the charges for the call. They added this to the guest's bill and the
guest paid when checking out, or immediatly, depending on his credit. The
telco billed the hotel once a month, and gave typically a 10-15 percent
discount on the total bill. If as sometimes happened, telco failed to
quote time and charges in a timely way and the guest checked out without
paying -- because the amount was not known by the cashiers when he paid
his bill -- then telco had to absorb those charges.  Usually in high
traffic locations, telco would call the hotel every few minutes to quote
time and charges for the calls just completed. Sometimes they used a
telex machine to transmit this information.   PT]