The Birmingham age-herald., 1920-11-05
BROWN STATES
 TELEPHONE RAISE
 IS NOT NECESSARY
Commissioner Comments on Published Statement of Com pany-American Company
 Bleeding Southern, Stated

Charging that the Southern Bell Tele- phone and Telegraph Co. has on hand at the present time sSoO.0OO with which to make improvements in the tele- phone service in the state, Commissionel Ellis Brown yesterday issued state nent to the effect that raise in rates vas not necessary for the good of the l telephone service in AIabama. Con1mis- sioner Browns state,Ient follows: "ln the advertisements asking for a raise in rates that the telephone coul- pany is running regularly in the papers of the state it is stated that "The busi- ness interests of Birmingham and the state of Alabama demand prompt de- cision in this case. Each days delay postpones the improvement of the service and further denies service to the thous- ands now without servce.
 we cannot understand why a raise of rates is so urgent and the refusal to give and make improvements So neces- sary when the company has $SeoOo on hand now for that very purpose and which their witness testified it would
  dela' may have it's effect, however, be- cause the peak of high prices has passed and the cost of operation fs probably decreasing every day.
 ..The company has had substantial
 increase in rates during the war period. an increase of approximately 20 per cent. Also they are charging now s3,50 to in stall a phone. g. 50 to move phone and s1 GO to reinstate a subscriber if he is cut off RaciGag is charged for aats1 call to Bessemer They propose to con tinue these charges if rates are raised.
 "The advertisements state what the company has earned each year sincs 1916 It does not state what the Southern Bell has paid the parent company, the American Telephone x Telegraph Co during that time It does not state that the American Telephone X Telegraph Co , owns 9S per cent of the stock of the Southern Bell and is bleeding the South ern Bell each year for Az per cent of it's gross receipts for rent on trans mitters and receivers and that it Is exacting practically all the toll charges; and then the Southern Bell must with out delay have an increase in rates SC it can borrow more money, from whom, the American Telephone x Telegraph Co.,. to make improvements.
 'It is stated that the Alabama public service commission allowed the payment of this ih per cent and the payment of most all the tolls to the American Telephone & Telegraph Co. But it does not state that several of the most pro- gressve states have disallowed this same payment in whole or in part, and that an appeal has never been taken from one of the decisions disallowing it.
 It does not state what the Southern Bell would have earned if these unjust payments had not been made to the American Telephone & Telegraph Go.
 '"rhe telephone company has two main charges or the amount collected per or the money collected for talking over long distance. The Southern Bell owns and maintains all the plant and equip ment and pays all the employees and does all the work in putting through a long distance call.
 "A person. say in Birmingham, Selma or Huntsville, or any other city or town in Alabama, calls a party in, say At lanta, Nashville or New Orleans The call mounts to, say s3.60. The Southern Bell gets 20c and the American Tele- phone and Telegraph Go. gets $40, or in other words. the Southern Bell gets 15 per cent of the charge. but never over 2oc on any charge, regardless of the amount.
 ~aThe American Telephone and Tele- graph Co. owns the long distance wires in Alabama. Can q raise in rates in Alabama be considered fair and equitable with conditions like this existing? It has not been SO considered in other states.