The Birmingham age-herald., 1912-03-23


 that to continue in business substantial increase in rates would be necessary.
 The petitioner states that it has no de- sire to transfer dispose of It's fran , ,chises but asks that they be cancelled by the city. that the Peoples Home Tele- phone company be relieved from its obli- gations to fhe city, and that they be al lowed to lsell and dispose of it's physical properties in the city of Birmingham.
 The petition was received without com ment by the city commissioners and &C., ton was deferred until Tuesday, March 26.
 The Petition in Full
 The following is the full text of the petition.
 ITO the Honorable, the Board of Com
 nissioners of the City of Birming-
 ham;
 Your petitioner, Peoples Home Tele- phone company, respectfully shows and states:
 "S. B. Claypool heretofore entered into contract with the mayor and board of aldermen of the city of Birmingham, on the 9th day of May, 1900, for the con struction aud operation of a telephone system in the city of Birmingham, said contract being executed under author ity of resolution of mayor and board of aldermen of said ciEy
 Your petitioner states that 1t sue 
 granted by the mayor and aldermen of Birmingham to the said $. B. Clay pool. and that you petitioner has for a number of years past operated and maintained a telephone system in the city of Birming ngham under the rights and franchises granted to the said Clay pool.
 Your petitioner states that it has made diligent persistent and strenu-l ous efforts to operate it's telephone sys-I tenn successfully and to give the best possible service to it's patrons in the city of Birmingham.
 Your petitioner states that 1t has found that it Is impossible to success fully conduct its telephone system on 8 satisfactory business basis. The long distance service which the Bell Tele phone company is able to give gives the Bell Telephone company an advan tage over petitioner which 1t is un- able to meet.
 The great body of the citizens of Birmingham in using telephones, want the benefit of the long distance serv ice which only the Bell Telephone com pany can give, and although your pe- titioner has done its best to make it's service a success and to give satis- faction to it's patrons, it has been forced to the realization that it's bus mess can never be conducted with profit to it's stockholders, and further more. that the people of Birmingha prefer only one telephone system and naturally the system capable of giving a long distance service.
 Tn the struggle for existence peti toner has succeeded in procuring the patronage of a large number of resi- dences in Birmingham and it's suburbs. A still larger number of residences use the Bell system. As a result, druggists, grocers. doctors, lawyers and many ,t1 feS si me L. CTS are practically forced into the eN- pense of using both telephones.
 The total number of establishments using both telephones is about 1900. Very heavy expense results from this duplication of service with no corres- bonding benefit So rsat while peti- tioner's rates are lower than those of its competitor, the result of the com petition is to increase to the com munity as whole the cost of its tele- phone service.
 ..petitioner further states that since tie original installation of its plant there has been a steady increase in the cost of la bor and supplies and that if petitioner continues in the telephone business it will be compelled at once to apply for permis- sion to increase its rates.
 'sThe result would be, on the one hand, a constantly increasing burden of expen- sjye and wasteful duplication of service to the people of Birmingham, and on the ether constant increase of unprof1ta- ble investment. Petitioner reluctantly ad- mits that it believes it would be to the interest of the people of Birmingham, as we'll as of the stockholders of the Peo- ples Home Telephone company. for the Peoples Home Telephone company to dis continue it's telephone business in the city of Birmingham.
 petitioner has no desire to transfer ar disoose of the franchise granted to if. but your petitioner respectfully prays that the contract entered into betwes