The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-30
PEOPLES RIGHTS
ON PHONE RATES
ARE D|SREGARDED
Only Course Now Seems De-
mand That Franchise Con-
tract Made by City Com
mission Be Put to Vote.

It seems probable that steps will be
tRken within few days to test the
rights Of the neople in the question OF
telephone rates
-Four members Of the city commls.
siont Commissioner Leo Goodman being
absent. having attempted to bind every
subscriber to the service OF the Cumber.
land Telephone company, now the only
company operating In Memphis, TO nay
Increased rates which II Ii estimated
VIII amount to more than 100000 a
year, But that estimate does not take
into consideration the additional tele-
phone stations likely to be installed by
tract made last Tuesday ID 10 run, nor
the egains from the absorption OF the
Memphis company.
That contract was made by a resolu
tion passed without any publication,
without any reference to the rights vi
the people, The final draft OF the reso
luton was not prepared, Ms matter OF
fact until nearly 4 o'clock, about two
hours after the regular meeting time OF
the city commission, and Il was passed
at o'clock, after the commission hadd
taken u recess to allow the first draft OF
the resolution as fully approved by law
ytrs representing the Cumberland inter-
ests, to be typewHtten,
\ Effort was possibly made to forestal
any attempt to have the matter re-
ferred to the voters of the city by
fixing the rates under new contract
by resolution, instead OF BY ordinance
The city charter referring TO the Civ
Ing, grating or selling Of franchise
rights to any public utility corpora
tions, or In the language Of the char
ter, 'or other quasi-public corpora.
tions' distinctly specifies that within
20 days Of the granting Of such fran
chise, by petition OF at least 500 voters
Of the city, the proposed franchise must
be submitted TO referendum vote
That the resolution passed last Tues
day, giving the Cumberland Telephone
and Telegraph company the right tc
charge just exactly the amounts II had
asked for all telephone service, was In
the nature OF a franchise grant. seems
not to admit OF argument. The Cum.
berlani company began business In
Memphis many years ago without Sc
curing at the time any franchise by
regularly enacted ordinance.
There was litigation over the rights
OF the city and the demands OF the COM
pany, which extended over number OF
years, and which was carried on
company finally had to concede that the
people Of Memphis had some rights
both an to regulation Of service and as
to the question Of rates
Tho present city administration, how
over, seems to have cQme to the CON
cluslon that the people have no rights
that they arc bound to respect. The
mayor, and at least two Of the commits
sloners, were elected last August on a
platform positively pledging them as
follows.
I'VE favor A popular vote upon any
changes affecting existing contracts be-
tween the city and the public service
corporations.
1t remains to be seen what action the
members OF the present city adminlstra
tion will take II the proposed petition
signed by 500 voters, Ia presented tc
them, demanding a popular vote on the
changes they have attempted to make
In the contract between the city and the
telephone company,
such a demand apparently will GER
tainly be made.