The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-06-28
EyADING THE LAWS.
The Telephone Companies Give an Outline
of Their Plans Of Maintaining Rates.

A circular was received by telephone patrons
yesterday announcing the course which will be
pursued by the Central Union Telephone Com
session of the Legislature reducing the rental Of
telephones from S. to SO month ',rhe law re-
Gently passed by the Legislature of Indiana
the circular states, fixes the price of the rental
for the use of a telephone only, whereas, in each
case there are furnished in addition, many other
things which 20 to make up telephone exchange
service, such as lines, batteries magnetic bells,
central Office apparatus. constant labor of agents
and employees in maintaining the same, services
of operators at central Offices, etc. The company
proposes to conform to the law in the price OF
rental and to make such charges for other ma
terial and for its services as are reasonable and
proper"
In pursuance of this determination the COM
pany has prepared a new form of contract limit,
ed to period of three months, which all pa
irons will be required to sign before they can
receive telephone service. 1t provides that the
company, upon the application of the subscrib-
agrees to furnish one magnetic teephone
and one battery transmitter, and to supply
the necessary appliances for the purpose Of con-
Meeting them with the exchanges. for period OF
three months, for which the subscriber agrees to
pay the sum of SIS in advance. There is a pro-
vision that this contract shall be understood to
be renewed for an additional three months and
so on for consecutive terms of three months
each, until cancelled by thirty days notice from
either party
Mr.. F. G.. Beach, general superintendent of
the Central Union Telephone Company who
attended meeting of the directors in Chicago
on Thursday, where this course was decided
upon, is now in the city, experimenting the
arrangements for putting the new system OF
working into operation In an interview
yesterday he stated that the company believed
the law enacted by the last Legislature reducing
the rental is unconstitu tional, and that in due
time the question will be tested in the courts.
When asked if the company had legal advice to
the effect that the extra charge for exchange
service is not evasion of the law, Mr.
Beach said that they had received such advice
from the best counsel in the country. I'VE do
not regard this as an evasion of the law" he re-
marked, "but an attempt TO reorganize the bus
mess of the company in direct conformity with
the statute which allows us to collect SO n
month for rentals, but says nothing about any
other charges. On the other hand, If the SUI
preme Court holds that these charges are illegal,
the company stands ready to refund the money to
the subscribers, but it will close up it business at
the same time l expect that the payment viii
be contested, and we may have good many
suits from it, but, as / told you before, this In
intended as only a temporary expedient, to bridge
over the time until final Judgments reached in
the courts. There is no use talking about US
operating exchanges throughout Indiana at the
reduced rates. for we can't do it, and we are
compelled to do something to keep the rates at
what they are now, at least"
Mr.. Beach claims that even at the present
rates there is no profit in the telephone busi-
ness, and says that he will sell his stock OF 25
per cent less than it cost him.