The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-29
LET THE PEOPLE VOTE
ON TELEPHONE RATES

III IG II governments, SHOULD, III Il IcTtHu ClD CNplCoS
their approval or %disapproyal Of the amendment to the franchise
by which the Cumberland Telephone and Telegraph company
has been given the right to advance its rates aa cost of more than
100000 a year to its patrons.
In the platform upon which the mayor and commissioners
were elected last year was the solemn pledge that under no cir
cumstances would the rates or tolls of any public service corpora.
tion be raised without the question first being submitted to the
people and receiving their approval in a referendum election. This
may not be the language of the platform, but it is the spirit of it.
1t is one OF the panks in the PLATFORM. tits one of the things
that The News Scimtar insisted upon. N
1t will be recalled that the platform pledged the administra-
ton to amend the charter to provide for the city manager form
OF government. 1t is not the purpose here to revive any un-
pleasant memories, but the mayor declared that he had no idea
OF supporting so radical a change in the fundamental govern
rnent without the approval OF the people, and upon that specous
argument and with the free use OF money succeeded in defeating
the councilmanager bill in the Legislature
It's never unpopular to leave such matters to the will Of
the people, and although the people had elected the ticket with
the express stipulation that the bill was to be passed, the mayor
succeeded in establishing an abb in the minds Of some of the
voters by insisting upon a vote of the people,
But in the matter of rates and tolls charged by the public
service corporations there was an expressed provision that there
should be a vote OF the people before any change was made. And
as the mayor violated his pledge by insisting that the people had
not voted on the question of city manager, he now violates the
platform again by refusing to give the people a chance to vote
on the more vital issue of an increase in telephone tolls.
When the telephone company was restored by the govern
nent to private control on July 81, Postmaster C General Burleson
announced that unless there was positive action TO the contrary
by the rate-making power, the government rates should remain
IN effect four months after the government reinquished control.
me public utilities commission Of the state followed Mr.. Burle-
sons statement with the announcement that the government
rates would no longer be recognized and that the former rates
were in effect,
The city commission and the telephone company ignored the
ruing Q the utilities commission on the grounds that the law
creating the commission exempted corporations doing an inter
state BUSINESS from its regulation. That being true, there is a
provision III the charter giving to 500 qualified voters the right
within thirty days after final passage of a franchise ordinance to
demand a referendum election.
The city administration aided in the passage of the puhGc
utilities act IN order to give the commission power to raise the
street car tare, which the city administrator lacked courage to
90 NOW that the state commission has Indicated a disposition
not to raise the telephone rates, the city commission ignores the
STATE commission and proceeds to raise the rates for the company.
The people are not concerned with the consolidation OF the
TWO companies. The Cumberland company drove a good bargain
and secured some good equipment at a rdculously low price.
Inc Memphis company got more for its equipment than it could
have gotten for it if it had been sold as Junk. 1t is perhaps
better to have one company than two.
But it must be remembered that the Memphis company had
many subscribers who could not afford to pay the Cumberland
rate under the old schedule. Now, instead of getting telephone
service, as they did from the Memphis company, at $3.50 a
month, they must, under the amended franchise, pay $3.50 a
month for the Cumberland telephone or do without.
The telephone company is not in the position OF the jeweler
who places a price upon a diamond and tells the customer that
he can take it or leave it, Diamonds are pretty, decorative and
much to be desired, but some people are obliged to be satisfied
with small ones and others are able to get along without any at
all The telephone is indispensable to our modern civilization.
The company enjoys certain valuable franchise rights bestowed
by the people in consideration of service and a reasonable rate,
II the telephone company desires to advance its rates or OBJ
tain additional concessions it does not so to the people, 1t bides
its time and when an exceptionally weak or wicked administra-
ton IS in power it gets what it wants through the administration
Ii the people become dissatisfied with the rates or service they
must go to the company. We have never heard OF a public ser
vice corporation making any concession whatsoever to the people
" "N III tN hhhoN VI u NplidN iHN dHlpul ll lS IGNuS
ton OF the high cost OF living, The city administration has con
tributed to the cost by giving the people a tax rate OF $50, with
an unparalleled increase of 81 on the $1,000 valuation; it has
helped to fost upon us a sixcent car fare; il. is planning now tc
aid the gas and electric company to put over an increase in rates
The street car fare matter is a thing Of the past. The gas
and electric company request Tor an increase is in the future. The
increase in telephone rates is a matter that must be dealt witt
at present.
Unless the people demand a referendum election to undo
what the city commission has all but succeeded in doing, th
increase in rates will be foisted upon the people for two wears
and even then there can be no change in the rate without the con
sent of the company.
There is something strange, suspicouSy strange. about th
desire OF all the public service corporations in Memphis to rusl
through their applications for increased rates while the present
city commission is in power.
The only thing that stands between the people and thei
rights and the corporations and their desires is the saving claus
IN the charter giving the people the right within thirty DAYS tt
demand the privilege OF registering their verdict at the polls.
The only thing that remains to be done is for a petition 4
be circulated and SOU names secured, demanding a referendum
election, in which those opposed to an increase in rates ma
record themselves. and those who, along with the city administra
ton, are in favor OF paying more for telephone service, ma,
display their generosity,