The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-07
THE TELEPHONE MERGER.

Inc BEL JeIeDnone company mas, 5e
was expected, bought the Independent,
telephone plant and implements. Al
the sale on Monday there was but one
bidder against the Bell company, that
bidder apparently bidding up to the
extont Of the claims represented by
him, and when these were overpassed
he stopped, being content to be paid
out Of the money bid.
Now that the Bell Company has the
Independent plant. number of cues.
tions viii necessarily arise First of
all, il is said that tho Bell viii oper-
ate the independent line as heretofore
as an auxiliary or associate service.
II seems 10 us, however. that this VIII
raise = very serious question under the
antitrust law-the Sherman act Prob.
ably the Bell Company will find 1t
necessary as speedily AS possible to
merge the whole business into one.
And what Of that merger! Neccs.
ssrly The people will consider whctb-
cr they arc TO be taxed more for the
service than heretofore, and tho ad
.iustmcnt of rates which the Bell Telc-
phone Company has now 20 consider
will be one OF very serious import. both
to the company and 10 the people In
the business houses generally, where
it has been found necessary to have
both phones, there will undoubtedly be
relief. The new ratio charged by thc
Bell Company, particularly after the
full merger. viii doubtless be less than
what was paid for both services here.
toforc. But how about the customer
who has had but one Of these services
Is he TO he obliged 10 pav more under
the merger than nc has been paving
Il so, how much, and when viii tho
added charge begin?
Mr u. Vance Lane. the president of
the local Bell Company. talks in a
fair and candid business. like spirit
in discussing this question. n is TOO
early for him 10 fix definite rates. but
from his explanation Of his purposes.
it world appear that he is going about
the business in a commonsense way. 10
find out by comparison of receipts and
expenditures. not only in Salt Lake
City but elsewhere, what the proper
charge should he
One point of difference that may
arise between the company and the
customer may he that while the com.
pany may naturally wish TO capitalize
the amount bid for The independent
Company. and perhaps for other expen.
ditures. forming added capital upon
which interest or dividends. or both.
may be required, the consumer from
his point of view may argue that the
added investment gives him no better
service than he has had, especially if
he has been r patron all along Of the
Bell Telephone Company To such a
patron the purchase of the Independent
concern will afford no reason for any
advance in rates. and il will he diff
cult TO convince him that he ought 80
pay it because the company has bought
out the Independent concern, even
though The company may argue that it
is necessary TO charge higher rates be
cause of The additional investment
made
The public Will wait with q good deal
of interest. mingled with some appre-
hension. the adjustment of rates that
is announced as impending. But it will
not receive with favor any increase in
rates based ON an Investment 10 buy
out a rival. where the patron gets no
beneft and no better service than here
toforc.