The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-06-11
PHONE RATES
JUMP ON ORDERS
FROM BURLESON
City Administration Will Fight
Proposed Increase of Dollar
on Business Phones and
Fifty Cents for Residences.

~Coincfdentally with the resolution
passed in. the United States senate for
the return Of the telephone and tele-
graph companies to their comes
the announcement that Mr.. Burleson,
the postmaster-general, has ordered al
increase in telephone rates in Memphis.
The increase will be 81 a month on
business phones and so cents a month
for residence instruments. For some
reason not known by Memphis officials
the acknowledgements did not order
any increase in he charges for installa-
ton or for extensions or other equip
ment.
The increase will date back to June l.
Toll rates we're advanced all over the
country, effective Jan. n. Increases
were also made during March in the
local rates in many Southern cities, but
Memphis was excepted from the order
because at that time negotiations were
pending for a consolidation OF the two
local companies. Nothing has come Of
those negotiations thus far, and the
rates which were held in allegiance in
March, when they were put In effect
in nearly all Southern cities, are now
ordered for Memphis.
Present Rate Contractual.
Mayor Monteverde and the city adj
ministratlon will oppose the proposed
increase by every legal means In their
~ a a.
H. ]. Livingston, city attorney, Tues
day on the matter, when he was in
formed by telephone officials that or
ders had been received to increase the
rates.
The city of Memphis has a contract
with the Cumberland Telephone n
Telegraph company binding the COM
pany to operate under the rates which
have been in effect until the company
shall have 10000 subscribers. That INIT
has not yet been reached.
Mr.. Livingston has wired to Washing-
ton for a recent decision Of the supreme
court, in which 1t was held that the
postmaster general had authority to
! order an increase in the rates of tele-
phone and telegraph companies doing
an interstate business. He has also
| asked the state railroad and public utili-
| ties commission at Nashville for a copy
Of the petition filed with that body by
| the Cumberland Telephone company,
asking permission to increase their local
rates in Tennessee.
Mr.. Livingston said Wednesday that
he had been directed by Mayor Monte
verde to take any steps necessary to
combat the proposed increase.
Consolidation Pending.
The negotiations begun last March
for the Consolidation of the Memphis
telephone system with that of the Cum
berland are still pending. The city COM
mission was asked to permit the con-
~solidation on the basis of a new con-
tract, fixing rates again at a somewhat
higher rate than the rate permitted
under the old contract, but not quite
so high as those promulgated by the
acknowledgement. The consolidation
would give the Cumberland company
the 1000 subscribers necessary in order
to permit a readjustment of rates.
Mr.. Livingston, as soon as he secures
the necessary data, will file the neces-
sary appeal from Mr.. Burleson's orders.
Meanwhile 1t seems probable that the
wire companies will speedily be re-
turned to private ownership, and 1t is
Mayor Monteverde's intention to pre-.
vent the actual putting into effect OF
the increased rates until the congress
has acted in that matter.
The question of rates would then re-
vert to the state railroad and public
utilities commission, where proceedings
would be much the same as in the
pending case, in which the city Is at
tempting to prove to that commission
that it should not grant the petition
of the Memphis street railway for In
| creased fares.