The Detroit times., 1912-07-12

mates That the time is NOT Tar
distans when all Of the telephone
companies of the state will be
controlled by one concern.
Opposition &c ;hc proposed merger
OF the Home Telephone Co. with the
Michigan State Telephone Co, appn-
cation for which was filed, THURSDAY
with the state railroad commission,
developed as soon as the plan was
made known 10 the aldermen ut the
city hall Their expressions of an.
tagoni3m to the plan left little doubt
hat that -he opposition will crystal7e
into definite plan b. the council TO
prevent the merger The council
may send a protest 10 the commits
sion and ask for hearing before ac-
ton is taken.
Corporation Counsel Lawson, on
being informed By Attorney J O. Mar
fin that the application had been
got busy at once TO determine the
Homo Telephone Co.'S rights in the
matter He will make a thorough an
alysis # the situation before giving
his opinion TO the council.
The Home Telephone Co. took over
the franchise granted by the city in
1902 10 the co operative Ttlephol e
Co This franchise expressly proEib-
tied the safe OF the company TO tho
Michigan Bell Telephone Co. and pro-
vided that in the event an attempt
was made to do so, then It's property
became the property OF the city
President W. A. Jackson. OF the
Home Telephone Co. stated TO The
Times. Thursday morning. that this
clause had been knocked out by the
courts together with the clause giving
the city the right 10 regulate the
rates. before the Home Telephone Co
took over the franchise.
The franchise was amended In
several particulars by the courts
|, said Mr. Jackson we are now oper-
ating under a state law as we'll as un
der the provisions OF the COOPERATIVE
Telephone Co s franchise, as amend
ed by the courts The state law
which gave us certain rights has since
been amended or repealed, | believe
The city, then. cannot prohibit the
merger" he was asked
81 believe not" he replied
"Can the city regulate the rates
which might be charged?' he was also
asked
ono. don't think It can" he said
Asked II there is any intention to
increase rates under the new plan,
Mr.. Jackson said
mot at all | am not aware Of any
such intention, If any exists at pres
emit"
Attorney Murfn stated emphatical-
" 10 Mr.. lawson that the legality OF
- haI
gated and that there Is no restric-
tons on the companies so far as local
ordinances are concerned
The Home Telephone Co. is not
row following out the terms OF the
franchise granted to the Cooperative
Telephone Co, as evidenced by the
fact that the franchise TO the latter
concern provided for a maximum rate
OF S4S a year for business telephones,
while the Home company Is now
charging $50. and it's residence rate IS
above the $24 maximum provided in
the Cooperative franchise.
The aldermen take the position that
If the city can regulate the rates and
provide against excessive charges I'm
the future. the one-system plan would
be satisfactory. although they express
certain privileges from the city and
guaranteeing to do certain things,
sells ont and eliminates competition,
the one purpose for which the com
pany was granted those privileges.
Aid Gilman summarized their view
point as follows
The object in letting the contract
was TO insure competition. II IS bet
F.. ter TO nave competition, low rates
and the slight Inconvenience Of two
systems than 20 abolish competition
enjoy the advantages OF one system
and put mp with excessive rates i,
II can be stipulated that the city can
regulate the rates, or, ~ other W"rCs,
II We retain control. then would not
object 10 the merger. Otherwise, |
think We should oppose it.
Il understand that the merger was
practically IN effect months ago, sail
Aid. Knapp. The Home rates are al.
most as high as the Bell rates Tho
Home company has=HeI made mitch