The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-07-25
WANT PHONE RATES.
FIXED BY CITY ON
WARTIME BASIS
Attorneys for WoLocaI com-
panies Also Confer With
Mayor and Commissioners
on Proposed Merger.

A. proposition involving three oues-
tons was laid before the mayor and
the other city lssioners Friday by
attorneys representing the Cumberland
First, the Gun. b-rland system wants a
new rate agreement with the city. in a
contract to be mutually agreed upon.
running at least for five years. Sec
ond, they will agree to a provisio that
II rates during the contract period are
liar number of phones Memphis shall
have advantage automatically of such
reduced rates The rates asked for are
those put into effect by govefnment or
der which are effective now.
The two companies also want an
agreement that they may consolidate.
or that the Memphis company will be
taken over by the Cumberland inter-
ests.
In consideration OF being allowed to
advance rates to the present war scale.
the Cumberland people agree to spend
not less than s750,000 this year in ex-
tensions and other improvements which
will result in better service.
Could Improve Service.
Harvey Myers, president of the Mem
phis company, suggested that so soon
as his plant has beer turned over TO
the Cumberland, II the merger is car
ried out. the trained force OF operators
of the two companies, working then for
the Cumberland alone, would be suffi-
cient to handle the business much more
rapidly and efficiently than at present
is possible when both companies are
short of trained switchboard employees
Hunt Chipley,, general counsel for the
Southern Bell AID Cumberland interests,
from Atlanta, l.. p Miles OF local coun-
sci for the Cumberland company; e. M.
In h0
Memphis company, and H. J. Livigston,
city attorney, met with the commission
ers, J. r. Brown, president OF the
Cumberland company, is III and did not
come to Memphis.
Mr. Chipley said that pending the me-
gotiations as to the Memphis rates and
a new contract, his companies have
filed application with the public utili-
ties commissions in the nine states in
which they operate, to have the war
time rates now In effect made perma
nent. He asserted that under these
rates, the Cumberland company win
barely earn between three and four per
cent this year. although the government
control guarantees them six per cent.
Comparison in Rates.
He presented tables of rates in other
cities to prove that the Memphis rates
now In effect are not out Of line, but
are lower than Atlanta or New Orleans.
although higher than the smaller cities
of Jacksonville Fla. and Chattanooga,
Tenn The rates for Birmingham, Louis
vile; KY. and Nashville are the same
as In Memphis.
Mr.. Chipley's charts and tables OF
statistics also showed that cost OF ma
terial. which was lowered between jan
uary and April to nearly SO per cent
of war. levels. has risen now to GA per
cent of the general war level costs. lie
also showed that In 1914 labor costs alb
sorbed 27 per cent OF the gross receipts
while the percentage now is 81 per
cent.
The mayor and commissioners. II Is
will take the question pre-
sented under consideration but viii re-
auire any definite proposition to be
made In writing at a regular open yes
siSi OF the city commission.