The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-04-05
CHAMBER COMMERCE
DISCUSSES RATES
Nj. s. SPIER GENERAL MANAGER
PRESENT AND EXPLAINS
Company Has Been Losing Mo=ey for
Several Years and to Go on Means
Either No Phone o. Foor Service

Der CT commerce rooms OH AolAay
to discuss the telephone situation.
The ruling of the railroad commission
to allow an increase in the rate has
caused considerable discussion in all
parts of the state and in some cases
there have been meetings held 20 pro-
test and to condemn the commission
as well as the company.
Mr.. NJ. 3. Spiers, general manager
of the company for the Caroiinas,
was present and made long and de-
tailed statement FOR the company,
showing the operations during the
past five years. He stated tina. the
company had lost money In South
Carolina during these years and had
to draw on its surplus to pay div
Gends. And that it was only. ques-
ton of rendering good service or 'sor-
ry service and finally no service at
all. The company had a capital
stock of 43,OO0,OO0 and no watered
stock and a few years ago had a sur
plus of S2,O00,00O and that has been
reduced in order to pay even IL
rer cent dividend until now it was
only around SSo0,0O0. That in order
to make some necessary improve
ments in the equipment and the SER
vice it would be necessary to borrow
large sums of money and that 1t
would be impossible to borrow money
with no prospect Of paying the IN,
tereyt ever. He recognized that the
town had a contract with the company
guaranteeing that rates would not be
increased but on the other hand If the
! contract showed that the company
was making fabulous dividends the
railroad commission would be JUST
fed in abrogating the contract and
reducing the rate so thatsa reasonable
profit might be made and he argued
that it was only fair of the railroad
commission to allow the company to
increase the. rate when the present
rate showed that the company was
facing bankruptcy if the rate was con-
tinued and on that ground the rail-
road commission had given the COM
pany the right to increase the rate.
There might be legal question
! involved as to whether the railroad
commission had the right to permit
an annulling of the contract and that
will have to be settled by the courts
! if any one desires to take it there,
! but for all practical present purposes
there is very little use to hold meet
ings or to discuss the question except
to give the officers of the telephone
company an opportunity to take the
people into their confidence and ex-
plain to them the reasons and the ne
eessity for the increased rate because
the increase has been allowed and
i the company will put it into effect and
the only recourse for the subscriber
! is to pay it or take his phone out. All
! of US regret to see the rate of any
thing increased in these times but II
the company is not making expenses
what else could it do except to quit
! business or increase the rate? There
/ would have to be an end some time.
The only thing we know that can be
raised at less than it cost and that
people will go on doing regardless OF
that fact is the growing Of cotton.
! The putting on Of toll charges be-
tween Prosperity and Newberry and
! Pomar:a, Mr. Spier argued, would be
to the advantage Of the business man
because he could get better service
and more prompt service because
there would be less use Of the phone
for idle conversations.
; Nc action was taken at the meet
| ing on Monday. 1t simply heard the
! detailed statement Of Mr.. Spler as to
the operations of the telephone and
the reasons he gave for the necessity
! for an increase in the rates.
Phone service seems to be some
: thing like newspaper ADVERTISING
the more phones you have in system
the greater the charges, and the more
circulation a newspaper has the
greater the rate for advertising space.
There will be a good many phones
taken out but no doubt most of them
will come back when the people un-
derstand the situation.