Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1910-05-29

DETECTING the recommendations
X of the board of public utilities the
AO council yesterday fixed the rates
for telephones at practically the same
rates that have prevailed for several
wears but making few minor reduc-
tions instead of the increases recon-
mended by the board All unlimited
service business phones will cost Dut
SO a month instead of $6, as suggested
nv the board This is the price the
Home Telephone company has been re-
ceiving, but the Pacific company has
heretofore added so cents month for
portable phones. This so cents was
knocked off by the council The resi-
dence Home service in Hollywood ana
other recently annexed portions OF the
city that has been So and $3.50 month
was reduced to 81. Otherwise the tele-
phone rates for both companies remain
as they have been
Under these rates the Pacific COM
pany is entitled to charge SO a month
for its unlimited residence service ana
the Home company 81 month. Thls
discrimination has always existed ana
the council yesterday continued 1t.
Why different rates were fixed for the
two companies for the same class or
service even several members of the
council did not seem to know. Gregory
was the only member of the six coun-
Cllfnen present WHO NOleu dBttlISL tiilS
difference in rates. He wanted to abide
by the recommendation of the board
of public utilities, but considered that
If any change from the proposed sched-
ule was made both companies should
be treated alike.
WHAT COUNCILMEN SAY
Judge Lusk, president of the city
council, was asked why he voted for
different rates and why he considered
discrimination just.
II do not quite understand 1t my
SELF he said.
Councilman Andrews was asked how
he justified his vote for the two rates
by his square deal" measure.
~ considered the whole matter and
believed it proper" he answered.
Councilman Williams was asked the
same question.
"The other members of the council
. who had given 1t more consideration
than l did seemed to regard that as the
proper thing" he answered.
OBrien and Betkouski, who are
credited with having made more
thorough investigation than the other
members, declared they believed the
former rates to be right.
If the statement of Meyer Lissner
president of the board of public utili-
ties, and of Il. b. Cass, president of
the Home Telephone company, is borne
out by subsequent facts the failure OF
the council to increase the rates for
the Home company will lead that cor
poration into bankruptcy.
LIssNER's STATEMENT
"If this company is forced to ask
for a receiver, and I firmly believe that
will be the outcome of your action
today" said Mr.. Lissner, addressing
the council, "the court win appoint
referee and fix the rates, and the rates
fixed by the court will be at least as
high as those proposed by the schedule
of the board of public utilities"
The board of public utilities had rec
commended that the rate for business
phones for both companies be fixed at
Sc a month and residence phones at
$3.50, both increases for the Home COM
pany, but the measure was not pop
ular with the council. This was shown
from the first. Previous recommenda-
tions of the board of public utilities
have been adopted almost in whole by
the council, but that body could not see
it's way clear to increase telephone
rates 1t had in mind the referendum
of a year ago when the former council
increased phone rates for the Home
company to SO on unlimited residence
service to put 1t on an equal basis
with the Pacific company. The refer
endum invoked against this ordinance
was submitted to n vote of the people
at the last general election and was
sustained by a majority of 14OO votes.
The board of public utilities felt dis
appointed that the council failed to
adopt its recommendations. Lissner ex-
plained that the board had spent the
last four months in working out this
matter and believed 1t was in a bet
ter position to ascertain the facts in
the case than was the council, which
had given practically no time to a con-
sIderation of the facts. He said he
knew that under the old rates the
Home company would be forced into
bankruptcy. He produced figures to
(Continued PnRA Three,