The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-02-23
THE TELEPHONE SITUATION.
No Decision by the Company as to What
Course Will Be Pursued.
Rebates Aggregating Nearly 100000 To Be
Made to Patrons of the Company-Views
Regarding What Will Be Done.

When the trouble between the Central Union
Telephone Company and its patrons was adjust
ed. last fall it was agreed that the money col
lected in Of the legal rate if the validity
OF the new law should be sustained by the SUI
preme Court, should be refunded, and as the
statute went into effect seven months ago, there
Is now due to each patron the sum of $l4, which
WILL make the aggregate amount Of rebates in
this city between $l5 900 and SIG, 000 1t will re-
qulre some time, the telephone company's repre-
sentatives claim, to get matters in shape to make
this settlement. but every subscriber will be
PAID the amount due him as soon
as practicable. Mr. Hockett, the superin-
tendent thinks that it will be necessary
to make the settlement with subscribers by due
bills The only demand for the rebate which
mas yet been made was by aaloon keeper. A
representative of the company stated to Jour
nal reporter yesterday, in giving the assurance
that all subscribers would be dealth with honest
ly, that between $685. and $50, 900 would be
refunded to the patrons in the different cities
and towns where telephone service
is furnished by the Central Union.
The executive committee of the company has
reached no conclusion yet as to what course it
will pursue, according to an Associated Press
dispatch received from Chicago last night Mr..
A. l.. Mason, of the law firm of Mcdonald, But
Ter & Mason. the attorneys of the company, re-
turned from Chicago last evening, but he was
unable to give any information as to what would
probably be done by the company. as the ex
ecutive committee, at the time he left Chicago,
was wholly undecided upon the question of what
should be done.
1t is claimed that the company will either
withdraw from the State or furnish less expen-
sive service in the future. The latter, it is said
contemplates the withdrawal of all service
Sunday. and the operation OF the exchange only
between the hours of 8 o'clock in the morning
and o'clock in the afternoon. The Evening
News quotes a lawyer as saying in reference to
this report: 1.-THE company will probably find
that the law will not allow it to do either of
these things with impunity. 1t may not impair
its service without laying itself liable to the law
IT the Legislature Congress fixes railroad pas
senger rates at cents mile and railroad,
to make this legislation obnoxious, backs
up coal cars and offers to haul people
in them at the lawful rate, instead of in com
Portable coaches. the law would not support it in
any such course Neither will the law tolerate
the notification Of the telephone act by an in
ferior service. The service must continue
good as when found by the Legislature. If the
Central company declines to furnish service at
the legal rate. and withdraws from the field, it
cannot interfere with other companies who may
desire to give telephone service. To grant a
patent is not to give the right of extorton, and
the people have a right to the of patents
which have been long in public use and favor."
1t the Central Union should decide to withdraw
from the State it is claimed that the field will
immediately be filled by another company, and
that there are now two anxiously waiting for
this opportunity.
1t is regarded as doubtful whether the COM
pany will appeal to the Supreme Court of the
United States, for the that it is generally
believed by lawyers that the decision of the In
diana courts would be affirmed and this would
effectually put end to the question of States
right to regulate the rental of telephones.
While there is obviously not as much profit in
renting telephones at SO month as at S.
month, it is believed that the service can be
furnished. quito as efficiently as it now u.s. for
the legal rate. A gentleman who until recent
ly, held the controlling interest in the principal
telephone company in the South, stated to
journal reporter short time ago. in converse
ton about the Indiana law, that as matter of
fact a good profit on the investment could be
made by renting telephones at $3.50 month,
but he doubted the constitutionality of any law
limiting the profits on patented article.