El Paso herald. (El Paso, Tex.) 1901-1931, 1919-11-06
Rate Hearing
Begins Before
City Council
Attorney Says Tn-State
Telephone Company Has
Been Operating at Loss.

The Tri-State Telephone and Tele-
graph company has invested in FL
Paso sl500.000 approximately in its
plant and business and, after a careful
study Of the progress Of this city and
its probable growth in the next five
years. our concern expects TO invest
ss0o.o0o more 20 give adequate service
which, as the agents Of the people.
they have a right TO demand"
This was the substance Of state
ments made by Milton Smith, Of Den
yer, vice president and general coun-
sci Of the company named. wnen he
appeared before the mayor and city
council Thursday morning and asked
that the present rates for telephones.
$3.50 for business phones and $3.50 for
residence phones. be continued.
Mr. Smith put q general valua-
ton on the physical plant OF
S1-30osoo0, less any depreciation,
and when mayor Charles Davis
called attention TO its assessed
valuation OF S45o.000, which was
figured on co percent Of the
nctual, the former suids eli thuf
IS the case, your assessment e.
too low. All our company wants
I'm the way OF assessment g. to be
assessed just like other concerns
and our property Ike other prop
erty.7
mr.. smith showed that the present
telephone rates were established and
pur in effect on Nay J. last, By the
government, when il found that tele-
phone rates in the United States were
such that the companies were running
behind az the rate OF S2o,0lQ.000
year. He showed that the local COM
date on rate fixed in FL PasO in
1907. with only small change" in
1917, and had run behind S159,000. be
said that since May J. last. the com
pany had been running behind at TIE
rate OF $1,000 20 5000 a month. But.
crease over the present rates We
ask for the present government rates
and we win try 10 dispose OF the
deficit some way or other"
AR Smith dWelt upon the increase
in costs Of materials ard said the
raise in wages not long ago had az
Ereg2tel $4,000 ana tnat it was
known that another would probably
have 10 be made January j.
1r. smith talked up to the noon
Aasr- l1a other representative OF
the company 90 appear before the
council tl-s afternoon are; F. r. Reid,
OF Denver. assistant 20 the vice pres
ident5 C. . Stratron. general man
aeer iii El Paso. and A. S. Peters, OF
Denver, valuation engineer
Before the uoon adjournment mayor
Davis called Mr. Smiths attention 70
telegrauis received b. the former
from other Texas cities. These showd
san Antonio as getting $3.50 and
$500 Houston. S. and $3.50, with suit
pending 70 ger rates raised; Dallas
IS and s. respectively, and Fort
Worth $3.50 and So Mr. Smith safe
those could be explained under Ger
tain conditions existing In those
cities as compared with FL Paso, al
though he admitted that they were
rates fixed BIZ the federal governmnt
the same as in u Paso-
1t was agreed that the telephone
company would be allowed 10 pre-
sent its case before others could be
attorney Ponder s Carter at the
beginning Of the hearing asked and
Obtained the privilege Of having
Eten0Eraphic report Of the entire pro-
ceadingz- This was granted At me
close Of the session be asked the priv
flese OF interroEariuE the company s {
rsureseutatives- Mayor Davis said /
he could not compel these men 70 an
svver but one OF them said they would 4
gladly answer ali questions
when asked privately whom OF
what he represented az this lelepn none I
vate hearing. llr- Carter replied-
represent myself am doing this /
at my own expense
Apparently no other interests we're I
REPRESENTED at the hearing some 4
tine ago the Central Labor Union I
took up this matter OF telep none r-tes
but so far as was apparent Lnat or
Eauizatiou hEd no represenrallr al .
tie hearing Ponder s. Carrier IS I
member Of the carpenters union