The Detroit times., 1913-01-03
MERGER
IS FOLLOWED BY
BOOST in RATES
Michigan Company Makes Big In
crease in Tolls To Cleve
land
JUST REIMBURSEMENT.
SAYS Won SCHLEGELL
Insists There's No Connection Be-
tween Increase and Absorption
Of Home Concern
SIS $ 5 5

The fact that the Michigan State
Telephone Co. has absorbed the Home
Telephone Co.. is becoming more APP
parent 10 the Detroit users OF tele
phone service every day -petFoiteFs
who used the long-distance lines TO
Cleveland and Toledo since the begin
ming OF the year, discovered what they
believe is one more bit OF evidence
that the absorption is being COM
pleted.
The long.distance toll rates from De
troit 10 Cleveland were formerly 90
cents for the first three minutes, and
20 cents for each additional minute,
but they have now been raised quietly
and unostentatiously to dollar for
the first three minutes and 30 cents
Tor each additional minute. The rate
to Toledo was formerly 80 cents for
The first minute, aud 10 cents for
each additional minute, and this toll
has been raised TO 40 cents for the
first three minutes and 10 cents for
each additional inmate.
Cleveland is the onv of the strong.
holds of the independent telephone
lines, being about the only large city
which is held by the Independents.
There is a strong Independent com
pany in Toledo also, and while the
Home Telephone Co was in existence
as an independent corporation, there
was plenty OF competition for the Bell
company for business between these
cities.
The raising OF the rates is possible
only to points outside of the state, as
the terms OF the order permitting the
merger made b. the state railway
commission stipulated that there
should be no changes in toll-rates
within the state unless the commits
sion approved them.
The increase In the rate 10 Cleve-
land and Toledo is merely matter OF
adjustment said Arthur Won Schle-
CELL, general manager OF the Michigan
state Telephone Co For some time
past all the telephone companies in
the country have been adjusting their
rates to a per-mile basis to avoid dis
ordinations. The Board of Commerce
called our attention to an alleged dis
elimination In the telephone rates
from points In the southern part OF
the state to Toledo and Detroit which
ODeTdltQ against DtAIOlls We nav .
attempted to straighten them out.
There have been constant changes in
the toll-rate to various points, some
OF them decreases and some OF them
advances. Telephone companies are
under the supervision OF the interstate
commission and the state
railway commission and they have all
adopted some standard basis for figur-
ing tolls. The taking over Of the
Home Telephone Co. has nothing TO
do with the change in rates. We
were working on the revision OF the
rates a long time before we took over
the Home company.
The independent companies have
been working on a revision OF their
rates also and the increase In the In
rate between Detroit ana
Cleveland was made before We put the
increase in our rate into effect. The
lines are entirely out OF
our control and we are compelled 10
maintain all existing agreements I'M
der the order OF the railway commits
sion. IL is true. however, that the
rate 70 Cleveland over the independ-
ent lines was under our rate OF %
cents before the Home company was
taken over This Is probably due 10
difference IN the method OF figuring
the mileage.
The rates are now practically the
same, | believe"