The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-04-29
MEMPHIS Will
ESCAPE HIGHER
PHONE RATES
Only City in Tennessee Not In
Cluded in Raise Of May |.
But There's a Reason.
Companies Want to Merge.

Memphis is the only city In Tennes-
see In which local telephone rates will
not be advanced May /.
Patrons Of tho phone companies,
however need not give three hcafty
cheers vet awhile, either for the off,
cials Of the city administration or for
MIR, Rurleson, for this proud distinction
may not he claimed by Memphis very
long. .fEM
Schedules filed by the Cumberland
Telephone and Telegraph company and
the Southern Bel company with the
state ruinuAd aud public utilities COM
mission Monday, not oniy in Iennessee,
but with rate controlling bodies IN plRo-
tteRlly every southern state IN NhIch
the companies operate, provide for adj
vances OF from 10 to IL per cent in
luLN rates.
hv.t tsdiu patrons OF tho public util-
ity companies will have an opportunity
OF seeing tne beneflts--to the companies
-~oi the new law placing such corpora
tons under lue control Of the sLatt
railroad commission,
Memphis, Tor example, has con
tract with the Cumberland company
made IN 1914, under which present
| rates, which were agreed upon at tha
time, can not be inoreaseu until The
company shall have installed 2oCo'
phones in MVmphls. As a matter o
fact the company now has. slightly ors
| 10000 Instruments IN Memphis ant
| probably win increase them by l,OO
| this year But this fact will have M
| bearing, probably, on the action OF thu
! state railroad and public utilities com
mission when application Ia made T.
them to increase the rates in Memphis
The only reason that Memphis is no
| included now Is because negotiation
have been pending since Jan. | betweel
the two companies ana the city admin
| lstratiun regarding tho proposed con
solldation OF the Cumberland and th
Memphis companies,
. A condition of tho consolidation, a
presented to the city commissioners, !
that the Cumberland company, whiol
would, Of course, absorb the Memphl
plant and franchise, shall be permitte
toNincrease Its rates approximately !
per cent. s...
A valuable consideration was added
that the new rates should be automat
ieally lowered when the, rates n az az
ID sRs MI III NJ II ii Il ssskssis AEl
further consideration offered Ii thatttf
Cumberland company, II the conRolida
tion is permitted together with the raj
increase, Ia to expend quarters
million dollars IN acquiring th
sions and improvements,
The Cumberland company Is said
have, In round figures, a $1,000, 600 lr
vestment In Memphis, The Memph
company has bond issue OF three
quarters OF million dollars, but ad
mlttedly the plant has been allowed
deteriorate and the company has mad
no money for years
The rates to he put into effect May
In Nashville are precisely the San
rates proposed In the proposition to Il
city commission, 10 bo put into ete'
at Memphis under the pending negt
tiationB.
Roth Memphis companies, like ever
, other In the United States, Is beir
I, conducted under Mr. Burlesona order
and any losses made by the compani'
are to be made good by the Unite
, States government the rate OF con
, , pensation being based upon the earninl
for the two years before the wire con
paniea were taken over by the go'
eminent
; A statement made ny J, Eppa Brow
> president of tho Southern Hall ~
. | Cumberland compani les, points out tn
! AZ present, owing TO Increased wage
!, half OF every dollar received goes =
( wages and the other half lacks consi,
erabla OF paying the cost OF mRint
7 nance and operation. 1t 10 claimed tn
Z The Cumberland company alone fac
u an estimated deficit OF more t20W, o
this year and that redusSto roy =,
o creaaed rates would have been made
The companies, even haa Hot Tho 60,
7 srrment been In control of che vi
service
2 n 10 also assumed that che. cover
! ment control N 20 CONTINUE FOR son
u time 20 come, ~ Mr Burlsson propOa
90 kssp HE authority over them un
q some action Is taken by congress. Nhi'
Q p,obably will not meet before June.