Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-08-14
WILL RESIST PLAN
OF Pre- WAR RATES
Telephone Company to Fight
Restoration of Former
Schedules.
ADMITS SERVICE IS FAULTY
Declares as Result of War,
Organization Finds It's
Plant Depleted.
ADMITS SERVICE is FAULTY

Restoration OF telephone rates in
Richmond 10 pre-war basis Will be
fought by the telephone company
city Clerk Alfred II. Mcdowell yes
tcrday completed the enrolment Of the
resolutions and ordina noes which were
concurred in Tuesday night by the
city Council and it is expected that
the Mayor will attach his signature to
them today. Chief among these meas
ureS - the one which orders the ChcSa :
peak and Potomac Telephone Gompany
of Virginia to cancel it's present tele-
phone rates in Richmond. and put in 10
effect the rentals which existed prior
TO the Burlcson order. The telephone
company will fight this order and off
Gals of the company express them
selves as greatly displeased over the
action of TIE City Council. Speaking
panys division manager for Virginia,
said yesterday:
Trying to Improve Service.
The company fully appreciates that
me service IN Richmond il not up to
its desired standard. but is doing every
thing in its power to improve the situa
ton. AS a result Of the war the com
PanE now hnds itself with depleted
plant, and no amount of censure or
resolutions OF condemnation by any
BODY VIII improve this situation Wha I
rs required is the expenditure of vast
amounts of money in enlarging the
demands of the growing city. To OBJ
tam that mocey we must compete with
toreign governments and with all the
industries OF the country and must
sho" an ability to at least earn in
terest on bonds or notes issued. The
restoration of pre-war rates through.
out the State OF Virginia would result
IN the company failing short nearly
sl.ooo,Ooo per annum towards meefinr
it's operating expenses and interssi
charges on its bonds and borrowed
with the constantly increasing costs
TINS deficit probab bly, would be larger.
IL must. therefore, be clear to every.
one one that II the telephone business Of
INC state is 10 be preserved, the com.
pany Will have to use every means in
It's power TO resist any and ali at
tempts to destroy its business and
credit.
VIII Resist Rate Repeal.
In the interest Of improving the
service and preserving the tclephone
business. the company must natiraIiv
resist 10 the utmost this attempt on
me part of he Council TO repeal the
rates authorized by the said act OF
congress. and that too without hav.
vestiEa ton"
Members of the Ciy Council vestcr.
day stated that when the resolution
passed the Board of Aldermen il was
with the general understanding that
me oouncli would give the telephone
company hearing on any applica ton
lor an increase in rates but that if
any increase was to be granted it must
not be double increase. and for this
reason it was of the highest import-
ance that the pre-war rates be restored
before increases were considered The
tounclimen declared that the city's ac-
ION non was strictly in conformity with
the act OF Congress in question.
Speaking of this attitude of the
councilHen. a S Tanner, district man
aver OF the telephone company, stated
last night that the company was los
inE so much money that il could not
stand delay and therefore it could not
consent 10 a restoration of pre-war
rates pending hearing which he
declared. might be long drawn out.