The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1920-08-31
Rental INCREASE
ASKED Of COUNCIL
BY TELEPHONE CO.
Maysville Telephone Company Ask
That Rates for Service Be Increased
% Cents Per MOnth-COuncil
Must Change Franchise.

At meeting of City Council, as a
of the whole, held Monday |
evening at the Council Chamber, Mr. |
]. Wealth, of Paris, District Manager |
of the Central Home Telephone Com
pany, owner of majority of the stock
of the Maysville Telephone Company,
presented petition to Council asking
that the telephone company be permit
ted to increase its rates to local SUBJ
scribers at the rate of 25 cents per
month on all kinds of telephones in
use.
The Telephone Company's petition
says:
Gentlemen: All during the period
of continued rising prices of labor and |
material the Maysville Telephone
Company has continued to operate and
furnish telehone service at the rates
which were in effect during the period
of pre-war prices. We have done this
in the hope that the peak would soon
be reached, and that the trend of
prices would be downward until a
level somewhere near normal would be
reached, Contrary to this hope, how
ever, the trend of prices has continued
upward, the price for material now be-
ing higher than ever before and it
having become necessary to recently
make large additional increase in the
salaries of our operating force.
This being true and no relief being
apparent in the matter of expense of
operating the telephone property, we
respectfully petition your honorable
body to permit the telephone company
to increase it's rates for service as per
schedule attached, which schedule is
the same as is now in effect at Paris,
Frankfort and other similar sized
cities in Kentucky"
1t was found at last nights meeting
that the telephone company now had
in use 1869 telephones and that under
their franchise they were permitted to
increase their rates so cents per sub
scriber when they should have reached
1900 subscribers. 1t was taken for
granted that this was the case and
that the council need take no action on
the proposed increase.
1t develops, however, that there is
clause in the franchise which the
members of Council evidently over
looked which provides that the COM
pany cannot increase its present rates
for period of five years and that II
the company does increase its rates, it
will be necessary for Council to waive
this provision of the franchise which
says:
Provided, however, that for a
period of FIVE years after date when
this franchise shall become operative,
the company or person owning said
franchise shall not charge a rate in
excess of rate hereinbefore permit
ted to be charged when between 800
and 1900 telephones are installed. AZ
ter the expiration of said five years the
rates hereinbefore authorized shall be
applicable without any limitation
whatsoever"
The Telephone Company is at pres
ent charging the rate provided for be-
tween 800 and 1900 telephones and
this clause in the franchise says they
cannot increase that rate for a period
of five years after the franchise be-
came effective. The franchise became
effective on January 1st, 1917, and the
subscribers therefore has right to
receive service at the present rates
until January lst, 1922.
District Superintendent Veatch
stated this morning that 1t would be
absolute necessity for the Maysville
Telephone Company to be permitted to
charge the increase of rs cents per
subscriber per month asked Of council
because of the enormous increase in
the cost Of everything used by the
Telephone Company in the up-keep OF
its system. He proposed to increase
the cost of all telephones rs cents per
month and continue the discount of rs
cents if the bill is paid before the 18th
OF the month. This practically means
that the Telephone Company charges
each subscriber his discount each
month.
| While at Mondays meeting Of Coun-
Gil 1t appeared there was nothing to be
done by Council and that all the Tele-
lphone Company would have to do was
| to prove to a committee Of Councilmen
that they had 1900 subscribers and
then add the extra charge to the bills
1t now develops that Council will have
to take some action In waving the
city's right under the clause Of the
franchise heretofore quoted granting
them service at the present rates fol
two years longer and the matter will
come before Council at its regular
meeting on next Monday evening.