The Detroit times., 1912-07-17
WANTS INCREASED POWER
TO HOLD UP PATRONS
(Csntinued from Page oneJ


the Michigan Telephone Co. has been
siving to the public and the exces-
sive rates they have been charging.
Nearly every great government in
the world owns its own telegraph and
telephone system, and they are oper-
ating them for one-half the cost Of
4 private ownership. and giving twice
as good service as that of a. private
company.
Now Is an opportune time for the
city to block this merger until the
charter Is revised and the city will
be able to take in this Home COM
pany at its physical cash value and
operate II in the interests of the city.
Il see that Corporation Counsel
Lawson states that he don't propose
70 Interfere, and that he thinks that
Tho merger is beneficial to the city.
maintain that the Home company
entered into contract with the city,
and that without the consent OF the
city to the cancellation of said con-
tract or agreement, the Michigan
Railroad commissioners have no right
to annul or invalidate that contract.
maintain that II Is the duty OF the
corporation counsel to protest against
this merger"
Mr.. Owens calls attention to the
fact that the council granted a tele-
phone franchise TO J.. w. Martin in
1901 for the Peoples Telephone Co,
specifying that IL the company failed
to operate, then its property became
5 to property of the city. He scores
q point when he states that little. il
1 nothing, has been accomplished by
/ the present administration In COM
(, pelling the Michigan State Telephone
/ Co.. to turn over to the city the physi-
I cal property 1t bought from the Peo-
I Piles Telephone Co. The Michigan
State Telephone Co. evidenced a will
4 ingness to settle when prodded by
4 Mr.. lawson. but weeks have elapsed
since then. The various municipal
/ commissions were to prepare plans
land estimates showing what conduits,
4 etc, they could use and their value 70
them 50 that the company might re-
'imburse the city. Mr.. Owens says:
The subscribers OF the Michisar
Telephone Co. are being mulcted out
iof excessive overcharges. The city
derives no benefit from the use Of the
conduits, worth approximately $780,
1000, which II owns. II the mayor
would do more In protecting the In
terests and rights OF the public
against leeches, instead Of abusing
the public through the press for not
accepting his franchise, he would be
held In higher estimation by his coL-
jetituents.
I'm 1906, the Bell Telephone Co.
went into liquidation and was sold
under an order Of the United States
court for q small amount in excess
Of S4.000,000; within 80 days thereaf.
ter the Bell Telephone Co. was reor-
Eanized with a bond and capitaliza-
= tion OF $4,000 900, which was ap-
lproximateIy sl6,000,000 OF water and
only $4.000.000 Of actual physical
3 value. Trying to pay dividends on
this excessive watered stock causes
the poor service the Bell Telephone
Co. Is now giving to its subscribers
Il maintain that the past history
Of the telephone companies which
have been granted franchises by the
city. proves that they have not car
ried out their contracts with the city
:. and never will, and the only possible
= way of getting cheap and effective
1 service In the city, Is for the city 10
( own and operate its own telephones =
Two resolutions were introduced In
the council. Tuesday night, relatine
4 70 the proposed merger. The council
adopted a resolution introduced by
Aid. George II. Ellis directing the
corporation counsel to attend the
meeting OF the State Railroad Com
mission In Lansing, Thursday. and
SEQ that the city's interests are safe
guarded. The resolution In part fol-
lows;
The corporation counsel is fur
ther Instructed to see II better tele-
phone service cannot be provided. II
q merger Of the telephone companies
Il to take place. and that the presen,
tclephone rates be not Increased. and
Y possible. decreased by action OF the
Railroad Commission at said hear
Inr.e
The council also adopted a resolu
ton Introduced by Aid. Tossy, auth
prizing the council committee on pub
Iic utilities TO attend the hearing.
The resolutions did not take tn.
form Of a protest. simply putting 4
U0 n the corporation counsel TO Sc,
that the city's interests are safe
|'ordo1" Corporation Counsel Law
@IT n IN favor of the merger.