The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-31
WILL APPEAL TO !
STATE BOARD AS
TO PHONE RATES
CONTINUED nom First PaEe.l

0eaober, or until a hearing cot b
had before the commission.
The proposition made formally e
city by Hunt Chipley, general COO
for the Southern Bell and Cumber
systems, at Wednesdays meetingl
been outlined before The comp
asks for a two-year contract at the sd
vanced rates, those which subscripeFa
have paid for July.
rates during the proposed contract va
considerably modified in Mr.. Chipley,
formal written offer, from the PROPOSE
ton which 1t was understood woula p
made. The terms as to possible requc|
ton OF rates submitted by Mr.. emp
ley are:
In the event the rates agreed upol
are voluntarily reduced in n e1
change in a city OF approximately IT
same size as Memphis and operate1
under practically the same conditlcns
sueh reduced rates should Ell
fective in Memphis upon the first q
the succeeding month.
"If the rates in any Of the other citie|
should be reduced by. q governments
agency. then the rate u Memphf' -
be subject to such reaSonable
or change, after a hearing, as $50
and circumstances warrant
that the rates shall be fair,
reasonable.
sThat il the Tennessee railroa
public utilities commission orders
duction the reduction shall be pu'
effect.
New Company Bankrupt.
Mr.. Chipley said that his compa
planning 10 SPEND $1,000. 600 in va 81
extensions and improvements in m
nhiq within a wear. ~
Permission was ALSO asked of TIL
CITY commission BY Nhe Cumberland
10 buy the entire plant OF TIL
Memphis Telephone company. HarEel
Myers, president Of that npfnpany, as|
sured the commissioners that ms conl|
pany had long ago ceased 70 be adj
10 offer any active competition IN Mem
phls. 1t is at the point OF bankruptcy
he frankly said, and must either be soil
to the Cumberland company, or he SOL
as Junk. 1t has a splendid under -IS
conduit system, capable OF takir I
Of wires for 1000 Instruments, ~
of its other physical properties
the stock In the company would
be wiped out, II the sale Is ms.
bondholders will realize less th
cents on the dollar of their inves HI
The company has bonds outsC NJ
amounting to S7S2, 900. A cOnSid'
amount OF the bonds are held IN vi
phis as well as some of the stock.
No protest against the PROPOSED con
solidation was made except. by III
Block, who said that personally he pei
lieyed that there should be competi|
ton in the telephone business. he sus|
Rested that the mayor appoint a .ciT
zensi committee to spend a month !
investigating the situation. Commls|
sioner Quinn opined hat recent Won
of citiz ans committees In in~vestigaun
city affairs had not favcraby Impressed
members Of the city commission.
mayor Monteverde said before n|
session adjourned that he and the othe|
commissioners will take the matter uh
der Amusement. An ordinanc9 VIII pI
prepared covering the requests 81 u|
two companies which will probably III
introduced within 10 days Aiter Uni
ordinance has passed first reading, an9|
denominations or any citizen whit WI a
to be heard, will be given a 1e'
If an agreement should be ma
would have to be ratified IN any
by the state commission n tina
ing the fact, it Is possible that tf
tire matter may go befof1 IN n
commission. i seems 70 pe
has expired. That contract
that 1t shall expire when
shall have reached 10000
MI. Chipley explaired mat ny
ig meant a telephone instFu 8
that a subscriber, a larger but
for example, may have in its S
exchange a score or even q nunore1
stations"
The relatively poor service Q beinl
given in Memphis, Mr.. Chipley ,sal1
during the hearing, Is due to lack q
experienced operators. He said tn1
company now needs 342 skilled opera
tors in Memphis and has at work SOt|
many OF these beginners. He said ever
effort is being 1aae soStr nnssib yvug
average of 40 are being given jns
ton each month. 1t taxes four
training before a young WON AH
be put at work at the s@itei
and - months before she Is con HTH
an expert, :.