The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1921-04-14
PHONE COMPANY STRIKES
SNAG IN NORTH CAROLINA
Commissioner MAXWELL Asks Stump
ing Questions.
Pee Dee Advocate.

permission from the =. e. railroad
commission to raise their rates in
South Carolina, discontinue out-of-
town service, ETC., they moved over
to Raleigh to get permission from
the N. G. state corporation commits
sion to do the same thing in North
Carolina. They have not yet sue
ceeded, however. Corporation Com
missioner A. j. Maxwell-who is a
brother of ]. B. Maxwell Of Ben
nettsville-asks questions which they
could not answer. and they had to
stop appeal and go off after the re-
js from the Charlotte Observer:
Raleigh, March 81 - The South
ern Bell Telephone company's fight
for higher exchange rates in North
Carolina furnished thrilling finale
t" spectators early this afternoon,
when Commissioner Maxwell, some
thing of an expert himself, clashed
with Vice President Hoxsey, star
witness of the company, and de-
manded figures to show the appor-
tionment of long-distance revenue
between the American Telephone and
Telegraph company, parent corpora
tion and the Bell.
ne NftSC WCll W lllO
without argument upon the agree
n:ent reached yesterday afternoon.
MIR. HoXsey resumed the witness
stand this morning and underwent
cross-eXamlnation by John w. Hins-
dale, representing the city of Raj
eigh, and j. A. Bell, representing the
city of Charlotte for four hours be-
fore Commissioner Maxwell came to
bat.
Prior to the Maxwell fusilade of
searching questions, the commission
had lent only orthodox ears to the
hearing and Mr.. HoXsey, the finan-
cial wizard of the Bell, had been
swimming along and having barrels
Of fun with the municipal lawyers,
who were against his company. The
only ripple on an otherwise placid
performance today was the cross
inquiry which developed that the
company doesn't enjoy the good will
of every newspaper in which it ad-
vertises particularly the New York
World and the morning paper here.
Each have been crusading a bit on
the increase fight.
Mr.. Maxwell matched wits with
Mr.. Hoxsey in a manner so gentle
that no one for the moment dream
ed that he was making n dent in the
plea for higher rates all the lawyers
had overlooked
Five of them have been battling
all the week with Mr.. Hoxsey and
other officials of the company but the
best they have been able to draw
from any witness was the old, old
story of the four and a half per cent
agreement. Attorney Bell has, in
a degree, paved the way for the
Maxwell assault. For an hour this
morning he parried with Mr.. Hox-
sey over the good business" of main
tanning Improbable exchanges at
the expense of more profitable ones
1T was patent that the company would
fall as public servant to do other
wise, but the parrying planted the
germ for growing a more dangerous
plant, and Mr.. Maxwell nurtured it
to full bloom and a promising har-
vest.
"How are the profits of the Ameri-
can Telephone and Telegraph com
pany divided with the Bell Telephone
system in North Carolina?" Mr..
Maxwell asked Mr. Hoxsey.
Hoxsey locke surprised. He ran
his eye up and down the bench which
held the members of the commission
and turned it to his attorneys in the
bar. There was no visible encoura ee-
ment anywhere.
II am unable to say" Hoxsey re-
sronded, admitting that for the first
time he was stumped.
You have insisted" continued
Commissioner Maxwell, that we
ought to take into consideration the
profits of the Southern Bell. as n
whole in passing upon rates for this
state and not the profits of the pay
ing exchanges. 1t appears to me.
then, that the commission ought to
take into consideration the profits
OF the parent company, and its sub
salaries in view of the fact that il
derives revenue from business orig
mating in this state and going over
the trunk lines of the A. T. & T..
company"
But the trunk line business is not
In ISSUE" returned Hoxsey, still flab
bergasted.
Hunt Chipley, general council of
the company, came to his assistance
III you are going to insist on these
figures" said Mr.. Chipley, striving
TO get the commissioner on another
subject. then we think that Won
should inquire also into the earnings
OF the Independent concerns in North
Carolina" James n pou 1ocoI
cousel did not move, Mr.. Chiplev
directed attention to the short and
long haul passenger traffic over the
roads as a parallel case
MI MAXWELL preferred to take the
railroads and express companies as
indanQndant carxo-4s