The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1921-05-26
PHONE SITUATION STATED IN
DETAIL.
PRESIDENT WIGGINS REVIEWS
ENTIRE BUSINESS.
If Railroad Commission Had Proper
Audit Would Possibly Reverse
Ruling Allowing Increase.


today confronted with problem and
menace, both of which are serious
enough to command the most careful
thought and vigorous action Of our
people.
On March 25th, 1921, the railroad
commission of South Carolina ap-
proved petition of the Southern
Bell Telephone & Telegraph COM
pany for substantial increase in ex-
change rates in this state and allowed
them to place inter-community tele
phone service on long distance toll
basis. At the hearing before the
railroad commission the telephone
company was represented by three
vice presidents, two Of them testify
ing as witnesses and the other one
acting as counsel The entire evil
dcncc submitted to the commission
consisted Of testimony Of these two
presidents. Thcre was no cvi-
dence submitted by the opposition.
A large mass Of statistical data was
submitted by the telephone company,
much OF which proved TO be mere cs-
Inmates and speculation on the part
Of the witnesses. Many people were
present at the hearing in opposition
to the petition of the telephone com
torneys, but they had no evidence to
offer nor any opportunity to investi-
gate any data bearing on the sub
jcct, in advance. There were no
funds available for the employment
Of engineers or accountants and the
public and the railroad commission as
well were in 4 position of being fore
ad to accept the statements Of the
v;ce presidents Of the telephone com
pany or of opposing it by nothing
more thaas,a general denial Of the
correctness Gesthe testimony offered
The conclusion 8 that the telephone
; company won out IN this petition by
default Of the opposes m rather than
on the merits of their cas-.
A careful study and analysis of
The evidence submitted by the vice
presidents of the telephone company
indicates that much Of this evidence
is, opcn to question. Much addition
al evidence also has come to light
chat will be presented in opposition
which will seriously affect the con-
cluson of any tribunal before which
the case is carried.
The executive committee of the
Telephone Subscribers Association of
South Carolina appeals to the people
Of the state for their moral and f.
nancial support in the undertaking to
develop and present evidence in this
ease. We have already secured suf-
iicient to justify rc-hearing before
the railroad commission and with the
assistance of expert engineers, ac-
countants and counsel, we believe the
case Tor the people can be won.
A f"w brief statements will indi-
cato o the public a fertile field of in
vest cation into the operations of the
telci,honc company. The realization
of the full effect Of the action of this
company on the social and economic
life of our people will arouse them
to the seriousness Of the situation.
In the first place, the telephone
business in the United States is vir-
tual monopoly headed by the Ame eri
can Telephone & Telegraph COM
pany, billion dollar corporation.
There arc several subsidiary opcrat-
ing companies, property owning COM
panics, manufacturing companies and
purchasing agencies, all Of which are
owned or controlled by the parent
billion dollar corporation. These
companies constitute wheel, within
wheels, some Of which ar, SO handled
as to grind out big dividends and big
earnings and others produce small
earnings. There are contract rela-
tions, rental agreements, purchasing
agreements, financial arrangements
Aags agsas eAd almost every form of connection
v between Mpd among these inter-lock-
ing and centraiIS. controlled subsid-
iaries so that the shifting of profits
and the manipulation Of interests and
expense can most readily be done.
Through the payment of royalties
fees, or commissions, one company
can. be made to show substantial
profits or substantial loss, according
to the wishes and purposes of the
controlling parent corporation. From
the facts in hand, we believe that the
Southern Bell Telephone and Tele