Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-06-23
co. FIXES
A MAXIMUM RATE
Central Union Breaks Ironclad
Rule in Effort to Clear the
Local Situation.
ORDINANCE is PRESENTED
Also Offers Connection With Farmer
Lines if Independent Company
Sale Is Allowed.

merger with the Union Electric Tele
phone company in the tri-cities Tire
Central Union has drafted an ordi-
nance Rmbodying a maximum rate
clause, thereby making a concession
here that establishes a precedent in
the United States on the part of the
Bell interests. A copy of the new
ordinance, which carries the right to
acquire the plants of the Union E!ec-
trio, was delivered to the Rock Island
commission today
Heretofore the Central Union has re-
fused even to consider a propositioa
TO insert a maximum rate clause IN
any Of its franchises on the theory
that prices for service necessarily
varied with changing conditions, apply
ing the same principle to its affairs as
operate in the conduct of other COM
mercial enterprises.
/ The prevailing rates of the Contra (
! Union are $50 per year for busine IS
telephones and $50 for residence COZ
nections- These are for independent
instruments, graduating reduction be-
ing allowed where the party line is
taken. The charges for business and |
residence telephones include tri-city
service. At present the Central Union |
has $4,000 instruments in commits sion
| in the tri-cities.
TO CONTINUE 20 YEARS.
In the new ordinance the company
agrees that the present rates shall con
tinue until there is an increase OF
1900 telephones in the tri-cities For
every additional 1,50O Instruments il
lis to be allowed to increase its rates
so cents per month on business and Sd
cents per month on residence teie-
phones. This arrangement is to be eli
forced 20 years, the life of the corn
pany's franchise here.
C. H. Rottger, superintendent of H.
linois lines for the Central Union, is
responsible for the concession offered
by his company. After a conference Il
with the head officers OF the company,
Mr.. Rottger had an ordinance PEE
pared. He forwarded copies to f. J.
Burns of this city, who has been acting
for the Union Electric. Mr. Burns de.
l1vered copies to the members of The
Rock Island commission.
THE rate question has been the
stickler in the negotiations for the sale
of the Union Eleetric properties to the
Central Union,' Mr.. Burns said state
regulation of public utilities is coming,
and the Central Union sees it, and m
doubtedly will welcome 1t. The fixing
of a maximum rate clause in an ord:n-
ance of the Central Union will be a
surprise to the telephone world, for
the contrary was the irrevocable ruse
in the past with that corporation.
PROTECTION FOR PUBLIC.
"As far as it would go locally was
ito promise to charge rates based Oh
those charged in other cities of similar
size. The rate change put in the new
ordinance should remove the last OBJ
stacle to the transfer of the Union
Electric to the Central Union, mas
much as the public is protected against
eXorbitant rates for service for at least
20 years. You will find by investiga-
ton that the Central Union is furnish
ing service cheaper here considering
population and the territory embraced.
than in any community in the country
where 1t is doing business. A further
concession is to connect with all of The /
farmers independ Mt lines. He-etof0r
the Central Union has refused to ex-
change calls with the farmer lines
NEW HOME PROMISED.
Manager A. J. Beverlin of the
Central Union Telephone company,
speaking of the new ordinance, said
this morning: Rock Island is to
have something that is unique in the
n cTn Of faIa -,
clause which has never been known
before in this country. If the new
deal is permitted to be consummated
as submitted, within a year Rock
Island will have a newer, more mod
ern and larger building than the
present, equipped with the largest
and most up-to-date switchboard that
can be secured, insuring as near as
possible TO automatic service as can
be obtained. Four party line SER .
vice will be discontinued, no more
than two parties being on a single
line"
There is no discounting the fact that
sentiment in Rock Island is opposed
to duplicate telephone service. Those
who have favored a second company
have done so for the single purpose
Of holding a club over the Central
Union in the matter OF rates. Nory
that protection il Offend, and provid-
ing that the proper safeguards will 'le
insisted upon by the city commission.
1t is to be dou0ted if there would be
any objection to the clearing OF ira
by the merger of the Cenfra
Union and Union Electric plants. Tie
latter company practically has been or
Of business two years. By the very
nature of its business, the telephone is
a monopoly. Rock Islands experience :
has been no different than that If
other cities where there have been Dur
Dlicate telephone service.
UP TO CENTRAL UNION.
Today in Chicago there is a move
nent on TO consolidate the two cor.
1anies Resentment OF the apparent II