The Hawaiian gazette., 1918-09-24
New Charge Ordered
By Government yer nllmlnenlt For
Phone Installations
MutuaI Company Learns Of Re-
. quirement Through Magazine
Postmaster MacAdam Con-
firms 1t

yesterday when they read in the mag
aZine " Telephony ;, for Sept emher, that
Postmaster General A. s. Burlesun. who
is now in supreme charge of the tele-
graph and telephone systems through
out the country, has issued orders for
new scale of charges dated August
2S, and put into force everywhere else
on September |, by which all new
customers of a company having phones
installed would have to pay the fol
lowing scale:
"Where the rate is 80 a month, or
less, s..
Where the rate is more than 81
but not exceeding 81 a month, $40.
Where the rate is more than 81 n
month, $l5.'
Manager F. G. Hummpl Immediately
stnrted an investigation, as he had
received no official, or iIy other kind
of notice, about charging these extra
rates for installing new phones, and
many have been installed here since
the first of the month and no charges
made. When Mr.. Hummel called upon
Postmaster H. d. MacAdam the latter
admitted that he had received these
orders from Washington sometime ago
and was on the point of calling the
attention of Mr.. Hummel to them
Charges Explained
In connection with these new rates
comes an explanation for the charges
as recorded, in which it Is stated that
owing to the necessity for conserv-
ing labor and material and to elm nate
cost which is now borne by the per
manent user of the telephone, read.
mess to serve or installation charge
will be made on and after September
l, 1918, for all new installations; also
a charge for all changes in location
Of telephones.
One of the questions which puzzled
the officers Of the Mutual Telephone
Company was whether or not under the
new rules the federal authorities al
together superseded the jurisdiction Of
the public utilities commission. Ac-
companied by w. 8. P. Hawk, of the
contract department of the company,
Manager Hummel held a conference
with W. T. Garden, chairman Of the
commission.
Mr.. Garden advised the management
that the federal government was now
in full charge Of the telephone system
and that all orders as to rates and
rules issued from Washington should
be followed. The only connection here
after between the commission and the
company, it was stated, will be by the
company keeping the commission in.
formed as to its activities and fling
the usual reports.
One particular point calculated by
Mr.. Garden was in regard to charging
one of the new rates for a customer
who takes over a phone in a building
vacated by a former customer, and in
which no new phone is installed. 1t
was stated that in this case the extra
charge is not to be made, as no extra
work is done, other than a change Of
name and number.
Hummel Is Puzzled
This relieved Manager Iummel from
one puzzle, but there is another which
is troubling him; namely, that before
finding out about this order about fifty
telephones have been installed since
September !, and for each of these
phones from $5 to $40 is due, under
the government ruling, in advance,
but this charge has not been collected,
and what is bothering Manager Hum
mel now is the collection of this money
by the government, which the com
pany may have to pay.
Manager lIummel in an official state
mPnt last evening in regard to the
policy to be followed by the Mutual
Telephone Company hereafter, said:
There is only one thing which can
he done by the management Of the
Mutual Telephone Company, and that
is to comply absolutely with the orders
issued from the postofic department,
not only as to charges for installa-
tions, but for any rates which may be
made later This rule compelling the
company to charge for all installations
since September l., may be retroactive;
but we do not propose to collect these
new charges from our customers for
the fifty telephones installed since the
first of the month, or from those who.
have made deposits on contracts up
to dates.
Forestalls Raise
eve believe that this extra charge
for installations has been promulgated
for the purpose Of forestalling a de-
mand upon the part of the mainland
companies for a considerable raise in
rates. BY the paying of these install
latiOn charges large part of the ex-
pense for material and labor is placed
directly upon the beneficiary Of the
newly installed phone, instead Of being
divided prO-rata among the permanent
customers Of the company, without any
special charge against the new sub,
scriber.
"Due to the tremendous increase in
the price of material recently, which
is shown by the extra price Of 100000
feet of telephone wire this company
has Just ordered, as well as the higher
price of labor of all kinds, this com
pany has also been considering a de
mand for an advance in rates from
the public utilities commission, but II
Is probable that the new installation
charges may defer this proposed in
crease, unless conditions continue TO
force prices of material and labor up
ward.
" Hereafter all customers who secure
phone contracts with this system will
be compelled to pay in advance, ac-
rording to the government schedule,
making the payment upon the signing
of the contract.
Ie sixth annual meeting Of the lIa-