The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-12
AN OPEN LETTER TO THE 49,.
STATE UTILITIES COMMISSION
Col. r. A. Enloe, Chairman.
Gen, II. II. Hannah,
Hon. George N. WEIGH.

Hon, George N. Welch,
State Utilities Commission
The Cumberland Telephone and Telegraph company, through
its counsel, has filed with you a petition for permission to con-
tnue the war rates in effect in Memphis
The city government OF Memphis is so intimately associated
with the public utility corporations that the people not only are,
at the present time, without representation, but are in the de-
plorable situation OF having an administration hostile to the best
interests OF the community.
For this reason The News Scimitar as a public journal is
impelled to set forth some reasons, fully shared by practically
every citizen Of Memphis, with the exception Of those who are
allied with or have been subsidized by the utility corporations,
why the application Of the telephone company should not be
granted.
While you are fully acquainted with the devious methods
resorted to by the city administration and the telephone COM
pany in this matter, it may not be out of place, for the purpose OF
keeping the record straight, to review the circumstances that
led to the filing of the petition with the utilities commission.
When the government assumed control Of the telephone
company the rates were increased. There was some question Of
the right to do 50 in the face Of a franchise fixing the rates, bit
nevertheless, there was no protest, and the rates went into effect.
On July 81, when the government r~einqushed control Of the
telephone company, Mr., Burleson, the acknowledgements, an
nounced that the government rates would remain in effect for
four months, unless there was positive action to the contrary
by the rate-naSng authority having jurisdiction over the cont
panyy
Evidently the state utilities commission assumed that 1t had
this authority, for, following closely upon Mr.. Burleson's order,
the minutes of your commissoh were made to show that the
government rates went out Of effect with the termination OF gov
ernment control N@
The telephone company and the city government of Mem
phis ignored your action. Evidently they assumed that you arc
without authority for, in the face of your very specific order, the
telephone company continued to collect on the basis ct the war
rates.
The next step of the telephone company was to consolidate
with the Memphis Telephone cor'pauv, with the approval Of the
city commission, after the Memphis Telephone company has suf-
fered a disastrous and regrettablc fire in a vital part of its equip
ment, rendering a resumption OF operation impractcablc, If not
impossible, said fire being due solely and alone to Providence,
which FASTENED to show in a very few days that all things work
together for good.
Whatever opposition there vas to consolidation was con-
sumcd with the fire. The Memphis Telephone company, not
being able to continue, and the Cumberland Telephone company
finding itself in need of certain equipment, which the Memphis
Telephone company happily possessed, the consolidation was a
natural and logical consequence.
Then the Cumberland Telephone company went before the
city commission, without the knowledge of the people, without
their consent or approval, and secured the passage ola resolution
altering the franchise SO as to give the company an increase in
With a sense Of resentment and outrage some 1000 citizens
exercising the right guaranteed to them under the charter OF
Memphis, signed petitions demanding that the mayor and city
commissioners submit this amendment to the franchise to the
people fer ratification or rejection, There las been no answer
to the signers of these petitions.
The action OF the mavor and city commission in granting ar
increase in rates for a period Of two years was against the senti
ment, will and Judgment Of the people,
Tits regarded by many, not only as unnecessary, but treason
able.
Under our form of government this act of the mayor anC
city commissioners, without a vote of the people, was a usurpa
ton Of the rights of the people, unwarranted and uujuaifed.
There is no reason to expect that the mayor and commits
sioners will grant the petition of the 1000 citizens for a referen
DUN election. but the people feel that the courts are adequate t
compel a recognition OF their rights.
No sooner were the petitions for a referendum election file,
with the city clerk than the telephone company, fearful either o
what the courts would compel the city administration to do O
what the people would do to both the city administration an
the telephone company in the event of a referendum e~lecior
apparently abandoned the fight locally, where it first elected t
stage it, and appealed to the state utilities commission, which
had ignored at first, and hopes now to secure more than $1,000
annually without giving the people an opportunity to expires
themselves.
The News Scimitar would welcome a referendum vote on th
question, and since the telephone company first elected to secur
this bounty from the people through the generosity of the nave
and city commission. we urge YOU to DENY the application an
order a refund for the excess of the legal rate collected sine
July 81 by the telephone company, or pledge yourselves to abit
the result OF a referendum election. Since the telephone compau
deliberately chose to institute its contest in Memphis, let us figl
the question out in Memphis.