Alma record. (Alma, Mich.) 1878-1928, 1910-10-06
TELEPHONE MONOPOLY
This is What the Bell Telephone
Company Wants
INDEPENDENT LINES FIGHT
Matters Have Come TO Head In Lenawee
County Where Merger Is Made

What would it mean to each tele-
phone user in the state of Michigan
should the telephone trust absorb the
four hundred or more independent
companies in Michigan? That is a
question that really deserves more
notice than the average telephone user
is prone TO give it. A slight hint OF
what the result would be can be
gained from past history. The use OF
telephone for one year used to be
from thirty-siX to seventy-two dol
lars. That was when there was no
competition. Now the use OF the tele-
phone for the same period, in spite OF
the fact that the extra expenses OF
competition makes the operating cost
higher. in spite of the advance in
prices of material and labor, the same
service which formerly cost from
thirty-six to seventy-two dollars. costs
eighteen This remarkable reduction
shows the value to the general public
OF competition in the telephone busi-
ness.
Just now that question has assumed
vital importance in Michigan because
OF the fact that down in Lenawee
county a hot fight is on between the
independent and the trust interests.
1t is generally we'll known that the
larger part OF the telephone and tele-
graph service OF the country is in the
hands of a gigantic corporation known
as the American Telephone and Tele-
graph Company The telephone de-
partment is the Bell Telephone Com
pany, which some time ago became
affiliated with the Western Union
Telegraph Company. Theodore Vail,
a prime factor in the Bell company,
is the new Western Union vice presi-
dent. The Michigan branch of this
big company is the Michigan State
Telephone Company.
On the other hand there are in
Michigan about four hundred inde-
pendent companies, mostly owned by
farmers and citizens of the smaller
towns Now all these small COM
panies are more or less closely con-
nected through the Michigan Inde-
pendent Telephone and Traffic Asso-
citation. This is a leasing association
OF which W. J. Melchers of the Union
Telephone Company of this city is its
vice president and member OF its
board OF directors. Its object Is to
lease the long-distance toll lines of
each OF the various independent COM
panies, releasing them to other com
panies, and to establish such lines and
lease them. In every county in which
the independent companies operate
the leases are recorded The affairs
OF the leasing association are so ar
ranged that none of the long-distance
lines can be sold This is to prevent
the trust from buying up those lines,
and merging the many independent
companies into their company.
1t is for a right to live, right to
conduct the telephone business in
businesslike manner, that the indie
pendent companies are fighting. Alma
realizes strongly the benefits to be
derived from competing company
1t makes for good service. courteous
treatment and lower prices. Thus
public sympathy is strongly with the
smaller dog that is fighting SO valiant
ly for life.
In Lenawee county the situation is
this: The Lenawee County Tele-
phone Company is now branch OF
the Bell company 1t has recently re-
fused TO allow the Southern Michigan
Telephone Company TO use its toll
lines Now that means. if put into
t.-
Michigan has been cut out Of the con-
nections of the independent COM
panies and interferes greatly with the
business of all the companies. The
independent people hold that action
Of the Lenawee county company tend
ed toward the restraint OF trade and
therefore violated the Michigan anti
trust laws The case is of vital inter
est to every user or prospective user
of the telephone.
The Grand Rapids Herald had the
following TO say OF the history of the
case:
Following is brief history of thc
case. Last spring the Michigan State
Telephone Company (BelD and the
Adrian Telephone Company (inde
pendent were both operating lines il
Lenawee county. There was much
friction and dissatisfaction and, real
izing that neither could sell ont TO the
other and SO establish a monopoly
which would be in violation OF the
antitrust law, a new company, calleC
the Lenawee County Telephone Com
pany, was formed. 1t was composed
of four of each of the old companies
officials and the stock of both com
panies was transferred to the new