The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-06-04
PHONE DECISION
TO AFFECT RATE
OF LOCAL UTILITY
Long Distance Service In
crease Will Cost Millions IN
Indiana Each Year.

Increases in telephone rates in In
diana that will cost hoosier telephone
users millions of dollars year
rates that several months ago when
they were promulgated were heralded
as decreases by the national admin.
istration-seem certain to those who
have been studying the decision of
the United States supreme court,
which held that the federal telephone
administration has authority above
that OF state utilities commissions tc
regulate interstate telephone rates.
The immediate effects of the decis
ION were not felt in Indiana be
cause this state was not party
to the suits resulting in the supreme
court decision, but the indirect effect
is to afford a basis for decisions
against the Indiana public service
commission, which in five instances
was holding of increases in telephone
costs until it could be determined
whether the rates proposed by the
telephone companies had any basis il
financial conditions OF the telephone
companies.
New Rates to Come Soon.
With the basis gone for the commits
sion's objection to the arbiter's rates
fixed by the telephone administration
| it seems certain that the BurlesoI
| long distance and standard toll ratei
| would go into effect soon in Indiana
! intrastate long distance and toll traf
| fic; that the telephone companies II
| Indiana can continue charging install
lation charges, authorized some time
/ ago by the federal administration, but
! objected to by the state commission;
| that the Richmond Home Telephone
/ company soon will increase its iptra
| state toll rates the specified 25 pc!
cent; that the Southern Telephone
! company of Indiana shortly will in
crease its rates; that the Home Tele.
| phone and Telegraph company of Fort
! Wayne, will increase its rates in its
| territory, covering much of northern
| Indiana; that increases of rates of the
/ Connersville Telephone company also
! are certain, and that scores of other
companies, including those IN Indiana
+; polls, probably will increase their
rates on authority of the telephone
! administration.
Injunction Delays Increase.
! AS to the Burleson standard long dis
| lance rates which now are kept out
of the state by an Injunction obtained
in the Marion circuit court by the pub.
lie service commission against the
Central Union Telephone company
and by the state of Indiana against the
| indianapolis Telephone company. il
seems possible that legal procedure
will delay the rates going into effect
for some time.
No Direct Bearing.
The federal court decision does no
touch this Injunction beyond affordins
a basis for its overthrow by the -
prer1e court Of Indiana on appeal o
the two defendant companies. How
ever. the overthrow is certain. At
torneys for the Indianapolis compa
MES already have an appeal on file
Such procedure is slow, and ii Nigh
be some time before the higher Indi
ana court reversed the lower court.
1t is in. the mind of some of the at
torneys for the telephone companie:
to confer with the encouragement O
Indiana and counsel for the commits
sion and to propose that they ask tbs
lower court to withdraw its injunction
and find for the telephone compa
MES.