South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-09-08
LEWIS PRESENTS
TELEPHONEPLEA
TO CLUB MEMBERS
Company Official Outlines
Reasons for Petition-An-
swers Many Questions.

me Ctense Tor the company inter-
este in an address before the Lions
club 40 their MONDAY luncheon. He
spoke on "the Telephone Company's
Position on the proposed Increase
pa Rates Lewis addressed he club
by request OF the investigating com
n,1ttee Of the Lions club. which or
sanitation passed a resolution sew
cral weeks ago % study the proposed
80 percent increase in rates.
After the address the speaker was
questioned by the members OF the
club on certain facts that they could
Tot conclude from his talk.
II honestly believe that 4 each
of you gentlemen were fully in
formed OF the company's actual
financial condition. as I know IL 10
DE. and knew these things TO be
facts. YOU would not utter a single
protest but would say. If higher
telephone rates are necessary TO in
sure the kind OF service suitable u
the needs OF South Bend. bE all
means let them come" Lewis said
IN opening his address.
Cites Illustration.
TIE value Of the telephone TO the
community was emphasized strongly
By the district manager Lewis
bringing out the value or the phones
in cases OF sickness aud emergency
and also in the business.
The speaker cited an example Of
q physician whose phone was out OF
trouble for a considerable time. and
who complained 20 the company
that he was losing from SOS 10 $40
q day on this account. He was pay
ing 90 cents q day for its use. Lewis
saiG
Lewis entered into a comparison
between other business and the teIe-
phone business. implying that during
the war cost in usual lines OF III
dustry went SKY high" and that
the merchant and manufactures
raised their prices to cover the high
costs. Telephone companies are un-
der the control OF the public service
commission and an Investigation
must be made before an increase can
be secured, pleas often being denied.
he said.
Further comparison by the speak
er In business lines was that when
a concern is overstocked or bust
ness becomes slack, It reduces the
force Of closes down indefinitely
The telephone company can not re-
duce It's force or close its plant the
speaker said.
Controlled by 4. T. r..
eve do not believe IL is your de-
sire that the service he cheaDened,
because a cheap grade of telephone
service il not satisfactory either 10
the public or the company" Lewis
said in his argument on the operat-
inE expense of the company. He
assorted that the operating expense
in NEishavaka and south Bend ex-
Ceeded their total revenue by over
100000 with out allowing a single
cent for dividends on the money in
vested.
"AU the economies possible have
been made without going so far as
20 impair our service TO the pub
lie" stated Lewis.
Entering into the question OF the
control Of the company by the A.
T. T. which is awarding . per cent
dividends. and 20 which the Indiana
Bell company pays four and one
fourth per cent of its gross revenue.
he said. st do not know OF a single
case where the amount so paid to
the American Telephone & Tele-
graph has been judged excessive.
Lewis explained that for the four
and onc-fourth per cent payment TO
the a. T. T.. the Bell Telephone COM
pany is supplied with transmitters
and receivers and when defective
they are replaced or repaired That
they furnish the local company with
all modern advice on accounting.
traffic. commercial and legal mat
ters. and improved inventions. and
that the payments to the A. T. T.
amount 90 about nine cents n month
90 the telephone.
THE law under which the corn
mission OF this state works requires
that the utility is TO be permitted 20
charge such rates as will enable It
Co pay an the reasonable operating
expense including a fair wage scale.
and i'm addition. 20 provide a fair re-
turn on the money actually invested
in the business" explained Lewis
Tie further implied that his business
wanted a reasonable rate of income.
end once this IS accomplished they
can improve conditions as the state
requires an adequate return IN in
vestment 90 further capitalize.
In closing the speaker said.
You are men Of vision. You arc
building for a greater and more
prosperous south Bend. Nou Will
not overlook the necessity OF proper
Is safeeuardinE the great utilities OF
your city for unless they grow and
kecr abreast Of the times your city
cannot be expected 20 develop "a
YOU have planned our case has
been submitted 20 the public Ii Is
as much your problem as IL is ours.
We have faith i'm the reasonableness
of the public and are. convinced thar
when an the evidence IS i'm its hands.
IT'S sense Of fair play and recOgni-
tion Of the necessity Of good te1e-
rhCne service IN South Bend, viii
viudica-e our Judgment in asking for
this increase 40 this time.
Lewis Becomes Target
After che address Lewis was
"bomoarded" with questions FreeSC
opened the discussion asking IF 81
were possible 20 give the amount
paid 20 the a #. r. from south
Bend and lrshawaka telephones
Lewis Between $4,000 and SIS
ttcO monthly
Ray Cortripht-Why. IL the com
uany has been going tn debt. have
they not asked an increase before
Lewis-Appiicatio was made. but
because quality OF service rendered