El Paso herald. (El Paso, Tex.) 1901-1931, 1917-03-31
DECIDE RATE
CASE TUESDAY
Final Conference With the
Phone Officials Feat
urad BY Explanations.

after listening 10 the ARK ulllf4lA, VI I
the officials Of the Tri-State Telephone
company. who contended that a reduc-
ton of 50 cents per month on residence
telephones would result in preventing
the corporation completing extensive
improvements. installing "A new branch
in East FL Paso and would hamper the
service to such an extent that the pub
lie of this city would make complaints,
the city council adjourned Friday az
ternoon to convene Tuesday. when it
viii likely reach decision IN TIE case.
q Following the completion Of the ar
guments Of the telephone officials.
auditor +. T Rooms asked the councils
permission 10 submit an addition TO his
report OF two months ago. taking sta
tistics Of the phone officers TO COM
pare with his. This was granted. The
auditor said he would have his addi-
tiOnal report completed Tuesday
Growth OF City Demands Extensions.
During the afternoon session Friday.
n d. Clark commercial sUperintend-
ent. made a brief talk. in which he said
that the growth of Fl Paso made It
necessary for the Trf-State Telephone
company to make large expenditures in
extending branch lines, for equipment
and other supplies large expense is
entailed. he said. in installing cables
poles, wires and for the wages and SAL
pany's efficiency ~ to a high standard.
The SPEAKER said that in 1916 alone
the Tri-State Telephone company put
in and took out 5000 telephones in this
! city during a gain OF 1900 phones. He
said that in New York and other
. larger cities the rate charged was
much higher than that charged by the
Tri-State Telephone company In clos
ing he asked the council not to force
the so cent reduction
Pleads for Stockholders.
Milton Smith, OF Denver, attorney for
the corporation. presented his closing
argument, in which he said the stock
/ holders of the corporation were not
getting the proper return from their
/ investment. The speaker stated that
only about seven percent was made by
the stockholders on their investment.
he stated the Investments were greater
now because the growth of the COM
pany and the necessity Of develop
ment and the returns less He stated
this was caused to some extent by the
necessity OF increasing the wages and
salaries Of employees to maintain the
efficiency of the company and 10 give
the people Of FL Paso a good telephone
system; one equal to that OF any city
its size in the country
Invites Investigation of Plant.
Mr.. Smith said that the price Of all
material for telephone companies had
1 increased and that il was necessary to
spend large sums in FL Paso for deveI-
opment work In closing he asked
council not to cause a reduction and
asked the members Of the body to visit
the plant OF the corporation and make
| a more thorough investigation.
Auditor F. T Rooms. in replying for
the city. said he would like 10 have the
statistics OF the corporation to make
an addition to his report, which re-
quest was granted by the officials OF
the telephone company
In an executive session with the city
council he stated that he was unable at
this time to ascertain whether a re-
duction in the rates would result in
such a loss to the company that would
prevent them carrying out their con-
%Party LInes' Cost 81 Mouth.
There are two rates now charged
by the Tri-State company for its resi-
$3.50 is charged for the straight fndi-
vidual telephone This gives the sub
scribers direct individual line A
rate of 81 is charged those having
party" lines, on which two phones
are connected It Is the $3.50 rate that
council was discussing in the investi-
cation asking for its reduction
Mayor Lea during the hearing asked
II the double service was make
shift. Milton Smith. attorney for the
company. replied that the double. or
who can pay only 81 He said II was
not as good as the individual service
Is not the two party line OF great
assistance to you on account Of taxed
tAlN may VI a. htu
Mr. Smith replied that he did not
believe that had any bearing UP to
this time
SHES Mt General Reduction
9. j. Teschner, superintendent Of
plant. said that II the reduction was
made the company would have 10 spend /
Sl06,000 to comply with Interstate com /
merce rules
Mayor Lea then asked why not
charge - for individual lines and $3.50 |
for the two party lines He said this
would save the S106, 900 expenditure.
Mr. Smith replied that the company /
was not getting sufficient returns for !
its investment now and the reduction '
would work a further hardship on T.
them.