Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1914-12-11
Nebraska
RAIL BOARD AND PHONE LINE
Question Over Authority to Refuse
Company Right to Organize.
CASE COMES FROM STERLING
Application on File to Install New
system because OF Raise In
Rates ny Lincoln TeIc-
phone Company.
Iron q San Corresnondentl


LINCOLN Dec. lO-(Special HAS the
state Railway commission authority to
prevent duplication of telephone sys-
temsH Is question brought up today by
the application Of citizens of sterling
johnson county. for permission to issue
bonds for the building of $4,000 tele-
phone system in that town.
In the application Il is set out that the
Lincoln Telephone & Telegraph company.
which has an exchange at Sterling.
charges $3.50 per month for business
phones and other charges in comparison
and that the service is not good. This. i'm
effect, is the reason why the company
desires 10 establish new exchange,
? agreeing to make a rate of 81 for business
phones and others In comparison.
G. Ross Hitchcock, an Attorney of that
place, is conducting the SAGE, assisted by
Attorney Adams of Lincoln. Mr.. Speed.
representing the American Electric aud
Telephone company, is also interested.
Double Service I'm Towns.
The Lincoln Telephone and Telegraph
company as intervenors in the hearing,
are Directing to the granting of the APP
plication on the grounds that duplca-
ton OF telephone lines is not needed and
will work an unnecessary hardship on
both companies and result in poorer serv-
ice and little If any profits.
Johnson county is considered one of the
largest users of telephones of any county
in tn estate A perfect network of lines
covers the county and should the new
company be allowed to operate, accord
ing to testimony given, II will be neces-
sary for 1t to buy right-of-way on pri-
vate land because the public highway is
so full of lines and poles that there is
no room 70 rthose of the new company.
The installation of the new company
will mean that the merchants of the
town will be compelled to put in the new
system OF phones adding to their phone
expense, a proposition which they had
to contend with before the Lincoln COM
any went in and purchased the local
telephone system and consolidated II with
its own.
According TO Manager Hurtz of the tel
ephone company, the exchange is one of
the most modern and up-to-date ex-
changes connected with the company
Some time ago a poll was taken Of
subscribers of the exchange and 90 per
cent of them expressed themselves as
satisfied with the service, ash shown by
petitions on file with the commission
Question of Authority.
In many eastern states the railway
commission is given authority over such
matters and Il is believed that this com
mission has equal rights, although 1t is
probable that no matter what the de-
cision of the commission will be that that
The matter will be taken to the supreme
court.
1t appears to be the opinion of those
who are watching the legal phase of the
case, that when commission is given
authority to order rates and permits
issue of bonds based upon the conditions
as they exist at the time the order was
made that it istill has the authority to
refuse the issue of bonds to any company
which will come in competition with an
old company which has issued bonds
under orders of the railway commission
under conditions then existing.
Money for Schools.
The semi-annual apportionment for
school purposes. as prepared by State
Treasurer George, shows that 1882 421. 62
will be distributed over the districts of
the state. The funds are divided as fol-
lows, coming from the sources mentioned
Interest on bonds. ..........,...... $l91. 400 70
Interest on warrants. 3,46l.16
Game and fish licenses ............ 5,642.00
state school taxes.................., 1920
Interest on school and saline
Lease on school and saline lands, 1888. 20
'fhe amount has been certified to the
state superintendent. from which the lat
ter will specify the amounts due each dis
trict according TO the number Of children
- Of school age.
Food Department Earns Money.
According to Food Commissioner Har-
man, he will turn over to the state at the
close of the present biennium 100000
above the expenses of his department.
With four months yet to run, the food
commissioner has turned over to the state
treasurer $1.94s. Expenses of operating
the department. which includes the oil,
dairy, food and drug portions, has been
81 200.