The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-29
PHONE RATES Up
FOR DISCUSSION
Utah Development League Gov
errors Meet to Discuss
the Matter.
QUESTIONS ANSWERED
BY II. +. FENNEM0RE
Division Commercial Superin-
tendent of Bell Company
Makes Statement.

Representing the Commercial clubs o
the state as members of the board OF gov
crnors of tho Utah Development league
seventeen business men of Utah met
Wednesday afternoon at the Commercial
club to discuss proposed increases in tele'
phone rates by the Bell Telephone com
pany. recent purchaser of the independent
Telephone company of Utah. The meet
ing OF this body OF represcnta tative busl
ness men Was called at the Instance OF
the Commercial club OF Eureka a week
ago, AT time when the telephone com
pany announced IA raise IN rates In the
Tintic district. At that time a meeting
OF the citizens of Eureka was held and
initial steps taken to check. IL possible.
the plans OF the telephone company.
Officers OF the telephone company were
invited 10 attend the meeting II. r
Fennemore, division commercial superin,
tendent OF the company. was present ana
In the course OF the discussion undertook
10 answer some of the questions asked as
10 the policy OF the company relative TO
raising rates. Mr Fennemore said
with the consolidation OF the two
telephone companies there Will undouDt-
edly in some quarters be slight in
crease.
But In just what towns or districts
to c's saw ,t detiniteiy until our engineers COM
plcte their part of the work OF combining
the Two systems. So far Increases nave
been made In the business telephones OF
Bingham. Eureka and Park City. We
have announced definitely that there VIII
be no increase in the rates now in effect
In Salt Lake.
Operated at Loss.
THE increase In rates, however,
wherever IT may be made. is more prop
erly a readjustment OF rates. In many
places and districts the system has been
operated at q. loss. A certain return
must be received by the company to
l.. DOR, Ion, L., .,t.If IN
pay dividends to the stockholders. and the
result inevitably under former conditions
that some stations. those who were self
sustaining. had 10 bear the deficits OF
the poorer paving stations :, that Is, those
whose revenues under the low rates did
not earn sufficient to cover their main
tenance-
''rhe plan OF the company is now TO
make each plant or central station a
separate unit and 10 make " self-sus-
tanning from its revenue. In the case OF
increase in the rate, because the present
rate Is sufficient, but under the new plan
Salt Lake will not be compelled TO con:
tribute 10 the deficits of outside points.
We expect TO give a good service but
To receive a fair return for 1t, of course
In Bingham merchants who had two tele-
pendent, paid a total of 81 monthly--now
they will obtain the complete service
for s5."
Committee Appointed.
The immediate result of the meeting
was the appointment OF committee to
investigate the raising OF rates already
made and 10 fully investigate the condi-
tions relative 10 the territory to be az
fected by raise i'll rates This sub
committee has instructions TO complete
It's report as soon as possible and present
it to the board of governors of the league
at a meeting TO be called for the purpose
OF hearing the report. This comittee Is
composed OF George J. Kelly, Ogden;
Geeess Mr9 Geerss Pgeys Merrill
Salt Lake. and c. r. Mabey. Bountful,
E. w. Hammer. president OF the Gen
ersl Engineering company of Chicago. d.
which was read before the members OF
the board. In this letter Mr., Hammer
went into detail on the merits OF an in
dependent telephone company operating
In Utah and gave that as the best and
only solution 10 the question OF Increased
telephone rates. His discussion OF the
subject was lengthy and covered many
points previously discussed by the board.
He urged the board TO consider the In
terests of the state, saying that the peo-
pie Of Utah deserve the best telephone
service that is possible to provide. On
this subject he said. The science of tel
ephony is where II Is today because Of
competition. In the field OF active opera
tion competition is the virtue OF ali in
dvstrial developments and the American
people will not stand for the monopolstic
grind"
COmpetlLlon Solutl0n-
To further emphasize his contention
paIly Is the solution. Mr.. Hammer quoted
from decision Of the supreme court OF
New York as follows; There is no
stronger inducemsnt TO the mansEers OF
public service corporation 10 serve the
public well than In healthy aDprehen-
sion that rival concern will do So
Mr.; Hammer. through his letter to the
meeting. says independent companies TO
the north In Montana, Wyoming and
Idaho are ready 10 meet the people OF
Utah hallway in establishing an indie
dependent system OF the interInountaiu
states mentioned MIR, Hammers con-
tention Is that company financed by
people In Utah, maintained and managed
exclusively by Utah citizens, cannot only
be d benefit to the people in the way of
offering better service; but it Will help
keep the profits OF the telephone in
dustry WITHIN the bounds of the state.
On this subject he said: "AI OF the
profits may remain in Utah IL this de-
telopment league willis IL so and resolves
to lend It's prestige and support to the
consumnation OF that object
REFERENCE was made In the letter TO
the installation Of the newer telephone
equipment. chiefly the automatic system.
Mr.. Hammer insists that telephone sub
scribers are entitled To the best service
and 10 the best of modern telephone de
vices. he says the automatic system.
perfected as 1t has been in the last few
years Is III advance Of all other equip
mcnt and that subscribers arc entitled
10 Its use. independent companies are
installing this system In many places Il
Is claimed. and with entire satisfaction.
Under the contract the Bell company
SAYS Mr. Hammer. cannot procure this
device for the equipment OF It's plants.
Other Suggestions.
Among other things said In the letter
To the meeting MIR. Hammer SAYS the
people OF Utah are entitled to:
Long DISTANCE connection with the In
dependent automatic system Of Mon.
tana. where the independent system is
paramount throughout the state The
Montana company stands ready and anx.
ious 10 meet us halfway. and Utat
business men need this widening of thei,
business horizon.
Long distance connection with hcl
sister states on the coast and To tn,
south. AL OF which are to be had bu
never will be realized under Bell dornI
nation.
"rhe rapid extension of the independ
cnt toll lines TO the more distant parts