The Birmingham age-herald., 1920-11-14

cations for increase rates are being heard.
 "As is well known, the parent com pany the American Telephone and Telegraph company, owns it's children, the subsidiary companies, practically entirely. It owns the Southern Bell 9S per cent perfect, the New York com pany 100 per cent strong, the Chicago Telephone company, the Cumberland company and number of others cover ing almost the whole United States in similar proportions. The parent com pany shows no partiality among it's subsidiaries. It endeavors to bleed them all alike.
 First 1t exacts 43s per cent of the gross receipts of it's subsidiaries for rent on transmitters and receivers. Sec ond, 1t takes from the Southern Bell and others practically all the toll charges. The parent company then through the voice of it's subsidiaries calls upon the people to pay higher rates that it may have another 6 1-b per cent return on its property.
 PLEADS POVERTY
 With these intercompany relation ships the parent company rolls in wealth, while the subsidiary company pleads poverty and begs of the people through daily advertisements that they pay higher rates in order that it may live and make needed improvements.
 "The 4h per cent of gross receipts paid in Alabama amounts to 32.46 per telephone per year. That Is $2.46 rent each year on the mouthplece and ear piece used in talking. What do you suppose the pieces of equipment are worth? Are they paid for in full over and over each year?
 '"rhe government took over the tele- phone companies during the war. They were returned to private owners Au- gust 1, 1919. During the period they were held the government raised rates. When they were returned, the compa- nies were allowed to continue the in creased rates.
 ' Tn it's advertisements the telephone company mentions a humber of things that happened just two years ago. During the first five months after the telephone properties were returned to private owners, the total operating revenue of the American Telephone and Telegraph company was $167,000, ,0e0. The net income was over S23, 000, ,000 Over $1s,500,o00 of this was paid out in dividends and nearly $7,0O0, 900 held as surplus earnings.
 What about parent company with a revenue of over $1,000, 900 a day and net income of over $1, ,00o, 900 a week, allowing it's child. the Southern Bel) company, to beg of the people of Ala bama a heavy increase in rates that it may not perish and cease to func- tion?
 The payment of the 4h per cent is, as stated by MT. Hill, chairman of the New York Public Service commission, a few days ago. nothing more than the American Telephone and Telegraph company taking money out of one pocket and putting 1t in another or In other words. making one of their many sets of books by manipulation show a deficit while the other shows an enormous profit.
 Through this process the American Telephone and Telegraph company with capital stock. of $500, 100000 makes a vast amount of net earnings, more than any public utility corporation in the United States
 MAKING LARGE RETURNS
 Since the American Telephone and Telegraph company owns the Southern Bell; since the American Telephone and Telegraph company is unquestionably making large returns by impoverisb ng the Southern Bell; since any advance in rates. although asked for by the south ern Bell, is nothing more than heap ing higher the enormous wealth and increasing the vast returns of tn. American Telephone and Telegraph company; since the public service com. missions of other states have disal- lowed rate increase under conditions as herein shown; since this uncon- scionable intercorporate relationship Is being attacked and scorned as unfair, unjust and burdensome to the people in other hearings in the land and will be so treated in Montgomery on the 1f tnr 1,xr- more than dozen cities combined.
 will the Alabama Public Service commission allow further increase in telephone rates?"