The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1907-04-01
Proposition Between Bell and
Home Companies Is Now
Pending and May Be Favor
ably Acted Upon.
INITIATIVE is WITH
THE BELL COMP ANY.
Has No Desire to Continue to
Operate Plants Where of a
Necessity 1t Is Done With
out Profit.

1t is very probable that the interests
of the Home and Bell telephone COM
panies of Richmond will soon be con-
solfdated as it is said the Bell COM
pany has submitted proposition to
the Home telephone managers III
closely contested districts throughout
the state by which in case of accep-
lance the Bell company will turn over
all toll business and which Will neces-
sarily mean the turning over of ali
city business likewise. According %
the plan suggested by the Bell people,
they would have the Home telephone
company take over all properties and
run the same, on per centage basis.
In this way the company might re-
alize more than at the present time,
without expense.
The situation in Richmond is such
that it is claimed the Bell company
cannot operate its system at profit.
This gives color to the report that
the Bell company's scheme will be ac-
copied by the Home company.
Meeting at Logansport.
A. c. Lindemuth OF this city. repre-
scented the local Home company at the
meeting Of managers of the Bell and
Home companies at Logansport last
week. and the proposition made by the
Bell people there. by which it was to
turn over Logansport properties, was
not accepted, although it probably will
be. according to the statements of
Mr. Lindemuth. The situation at Lo-
gansport is practically that in Rich
mond, the toll business being the main
business done by the Bell company.
1t is operated at a loss, and the Bell
phone directors made no bones about
it, saying that it was impossible for
them to operate at a profit, when the
toll lines are the chief means of reven-
ne.
The telephone situation in this city
has long been watched with interest,
months that one of the systems would
be gobbled UP by the other sooner or
later. This in the main is the reason
the city council refused to let the Bell
company go underground until the
proper franchise, with a maximum
rate clause, was granted The union
of the two here is inevitable, it is
claimed
Other Places Affected.
Richmond, however, will not be the
only town in Indiana, where the lines
of the Bell system will be run into
the Independent exchanges as, the
whole of the first second and third
telephone districts. comprising a terri
tory lying north of Richmond are aft
ected. The pace set by the indepen-
dent companies and the popular favor
with which they have met has been
the undoing of the Bell company. The
latter named organization will contin-
ne to operate its lines in those ties
where the competition is not as great
at present LOgansport and Richmond
are the two towns, it is said where
the Bell telephone company is very
DESTROYS of turning its toll business
to the Home companies. This will
mean the turning of the city business
also. The Bell telephone company is
composed of two companies, the Am
erican Telephone and Telegraph com
pany and the Central Union Telephone
company. The former named organ.
lzatlon controls the toll routes. while
the Central Union has the city bust
ness. 1t is all practically one howev-
er, and the transfer of one would
mean throwing the business of the
other to the Independent interests.
The settlement of the matter, which
will not come up for some time, IS
awaited locally with much interest as
the future situation in the city de
ponds largely upon the ultimate out
come.