The Birmingham age-herald., 1921-01-23
CITIES WILL ASK
 FOR REHEAR|NG IN
 PHONE RATE CASE
Birmingham Lawyer Preparing Petition Seeking to Reopen Hearings Which Resulted
 In Service Increase
By FRED H. GORMLEY Montgomery, Bureau, T-he Age-Herald 22l-2 First National Bank HuiIding

Montgomery, January p. 22.-(SpecialJ-- Reports reached Montgomery today from Birmingham that the cities opposing the increase in telephone rental rates in Ala hama will ask the public service commis- sion for a rehearing of the case in which the Southern Bell Telephone and Tele- graph company was granted permission to make an increase of 20 per cent in the rental rates telephones in all cities and towns in which it is operating
 Few cases have attracted more atten- ton in Alabama than the case of the telephone company and few cases have been more bitterly contested. Lead by the city commission of Birmingham, large number of cities joined in a pro- test, contending that the service does not warrant another increase and that an improvement in service should be made before there was suggestion of more revenue.
 The company answered this argument with the statement that it cannot lm- prove the service in this state without obtaining new equipment and without making extensions in many sections. It contended that these improvements and extensions could not be made without money, that it has been losing on it's in vestment in Alabama and that it cannot borrow money with which to make the repairs and improvements until it can show those owning the money that it's in come from it's operations in this state is sufficient to pay the interest, create q fund for depreciation and replacements and yield a reasonable return.
 CONDITIONS CHANGE
 request was made of the commissions for an order making more substantial increase in rates. but the commission held that 20 per cent would be sufficient to yield the return necessary for the m- provements.
 Now that one member of the commis- sion which granted the increase has re- tired and new member has taken his place, tho opponents of the increase pro- pose 10 ask the new commission to take up the case again In this petition for the reopeuing of the case, according to information. the cities will contend that conditions facing the company now are vastly different from those when the pe- tition was filed that there has been a general reduction in the cost of materials and that labor is mos- plentiful and ob- tainable at a cheaper rate than it was last year. It will be proposed that in the reopening of the case the commis- sion will be able to require proof of the costs of material and labor at this time and it will be contended that this devel- opnent may throw new light on the fi nancial condition of the company.
 Walter S. Brewer, well-known attor- ney of Birmingham, is understood to be preparing the petition for the reopening { Of the case. All members Ol Ine puDlit service commission voted to give the company an increase of 20 per cent, but no members in so far as is known. favored the increase as proposed by the company.
 RULING IMPORTANT
 The action of the Alabama commission will be important as other state com missions have not rendered their decis- ions The telephone company has pro posed an increase in the various states in which it operates and evidence has already been submitted in support of the petition. but up to this time all com missions except Alabama have the case under advisement
 in deciding the Alabama case the pub lie service commission had before it a valuation of the companys property n Birmingham and Bessemer and was thus able to make an estimate of the actual investment of the company in Alabama However a material reduction was made by the commission in the estimated value of the property as submitted by the com pary.
 Users of the telephone in Alabama will receive their first definite impression Of the increase February 1, when they re- ceive statements of their accounts. The increase was made effective from the date of the order, January 13 therefore all statements February l will bear an item covering the increase from that lime