The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-05-13
PHONE SITUATION
STATED in DETAIL
PRESIDENT WIGGlNS REVIEWS
ENTIRE BUSINESS.
If Railroad Commission Had Proper
Audit Would Possibly Reverse
Ruling Allowing Increase.

Ruling Allowing lncreasc.
To the Citizenship of South Carolina:
The people of South Carolina are
today confronted with a problem and
a 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 a petition of the Southern
Bell Telephone & Telegraph company
for substantial increase in exchange
rates in this state and allowed them
to place inter-community telephone
service on long distance toll basis.
At the hearing before the railroad
commission the telephone company
was represented by three vice-pres-
dents, two of them testifying as wit
nesses and the other one acting as
counsel. The entire evidence sub
mitted to the commission consisted of
testimony of these two vice-predents.
There was no evidence submitted by
the opposition. A large mass of sta
tistical data was submitted by the
telephone company, much of which
proved to be mere estimates and spec
ulation on the part of the witnesses.
Many people were present at the
hearing in opposition to the petition
of the telephone company, among
them several able attorneys, but they
had no evidence to offer nor any OPP
portunity to investigate any data
bearing on the subject, in advance.
There were no funds available for
the employment Of engineers or, ,ac-
countants and the public and the rail-
road commission as we'll were in a
position of being forced to accept the
statements of the vice presidents of
the telephone company or Of oppos-
ing ii by nothing more than general
denial of the correctness of the tes-
timony offered. The conclusion is
that the telephone company won out
on this petition by default of the op-
position rather than on the merits OF
their case.
A careful study and analysis of the
evidence submitted by the vice pres
dents of the telephone company indi-
Gates that much of this evidence is
open to question. Much additional
evidence also has come to light that
will be presented in opposition which
will seriously affect the conclusion 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 fin
ancial support in the undertaking to
develop and present evidence in this
case. We have already secured suf-
icient to justify re-hearing before
the railroad commisson and with the
assistance of expert engineers, ac-
countants and counsel, we believe the
case for the people can be won.
A few brief statements will indi-
cate to the public fertile field of in
vestigation into the operations of the
telephone 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 vlr-
tual monopoly headed by the Ameri-
can Telephone & Telegraph company,
billion dollar corporation. There
are several subsidiary operating COM
panies, property owning companies
manufacturing companies and pur-
chasing agencies, all of which are own
ed or controlled by the parent billion
dollar corporation. These compan-
les constitute wheels within wheels,
some of which are so handled as to
grind out big dividends and big earn
ings and others produce small earn
ings. There are contract relations,
rental agreements, purchasing agree
ments, financial arrangements and al
most every form Of connection be-
tween and among these inter-locking
and centrally controlled subsidiaries
so that the shifting of profits and the
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