The Detroit times., 1912-07-12


effected.
! the use OF It's phones am opposed
To the merger believing that 1t VIII
eventually result in much higher
rates.
4 score or more OF aldermen We're
interviewed, all expressing similar
views, indicating clearly that the
council Will issue this ultimatun:;
Control OF the rates, or no merger.
II shall introduce a resolution in the
council 10 protest against giving the
two telephone companies the right 10
merge. said Aid. George Ellis, when
he heard the report OF the proposed
absorption by the Michigan State
Telephone Co OF The Home Telephone
Co. III II is possible. the city should
head them of The absorption will
only mean raise in rates. An in
crease in rates always results from a
monopoly. II seems 10 me that the
state commission should consider the
wishes of the council and the city In
this matter before taking action.
The franchise granted the Home Tele-
phone Co, ! believe, has forfeiture
a
was attached TO. the franchise granted
the Peoples Telephone Co. whereby
the property Of the company reverts
TO the city in the event OF sale.
If a protest is unavailing the next
step for us to take is 10 word the
regulation OF the rates The city can
do this, and viii, do ii II they attempt
10 raise the rates We now have an
ordinance before the council. prepared
by T. j NJ HALEY, when he was cor
poration counsel am not In favor
Of thar ordinance and as near as |
could discover, no one else was. I
know the council WASH In favor OF IL
and Il is not likely to lie passed But,
il that ordinance was legal, Ii would
seem that We have the right TO regu-
late the rates in some other way. The
ordinance provided for a measures
service, the patrons paying for the
number of outgoing calls. That would
be a snap for the patrons using phones
only once or twice day, but the bust
ness men were opposed TO II. ! don't
think it right to make the man phon-
ing 100 times a day to pay some of the
expense Of keeping a phone in house
where the number of calls a day ordi-
narily would not defray the cost OF the
service"
Corporation Council Lawson will be
asked by the aldermen to look into the
franchise granted to the Home Tele.
phone Co, TO clear up the point raised
by Aid Ellis as TO the right of the
company TO sell out.
ITS shame" said Aid Lodge
Six years ago when | was secretary
10 the mayor, | stated. when the old
Peoples Telephone Co. sought fran.
chise, that IL would merely be a ques-
ton of time when the company would
sell out. The story is repeated in the
case of the Home Telephone Co II is
true that the telephone business Is a
natural monopoly and anyone who has
had TO use two phone services realizes
the handicaps OF such a system. But
We went TO the trouble of granting the
Home Telephone Co a franchise, let
ting them tear up our streets, only to
have them sell out 10 another com
pany. They promised to do such Won
ders for the city. They were going to
give us such splendid service. etc, but
it, was a cinch from the first they
would sell out The merger will GER
tainly not operate 10 the advantage
OF the small users Ii viii not hurt
the big business houses. but IL will
hurt the homes and the shopkeepers. ="
II knew they would no this when
the franchise was granted them - said
Aid Richard Watson II am opposed
TO a double phone system, If we can
control the rates exacted by a single
company. have doubts as 10 wheth-
er we can regulate the rates satsfac-
torily. The merger OF the two com
panies would surely mean the adop-
ton Of a charter amendment giving
this city the power to operate it's own
phone system We will always have
that as a club over the company.
Some time ago | sought TO have an
interchange between the phones OF
both systems, the city to maintain the
exchange in the city hall The com
panies would not agree TO IL and We
had TO drop it. The Hally ordinance
providing for measured telephone ser
vice does not meet with popular favor
and that is in the discard But we
might find some other regulation feas-
ible"
II would be surprised and sorry II
the sNdte saw III 10 permit the COM
panies 70 merge" said Aid Tossy.
You can say what YOU want about
the disadvantage of two telephone sys-
tens in the city. but how about the
benefit TO the people through the com.
petition Of the two companiesP The
competition did more good than the
two systems did harm II we can pre-
vent the merger think We should do
IT, Wait till the aldermen give this
matter a little thought You Will hear
more from them