The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-03-29
TELEPHONE
RATE FIGHT
RENEWED
Subscribers Associa-
ton Hope to Obtain
Reductions in Rate
Through the Foster
Law

Hartsville. March 23.-Appeal
to the people Of the state TO carry
forward the fight for reduction in
telephone rates and for a COM
munity long distance service thar
will better meet their needs was
made tonight by the Telephone
Subscribers association. through its
president, a. L. VI. Virgins 1t is
the first public announcement by
the association since the beginning
OF the fight in the legislature to
reduce the rates and to reorsaniZe
the railroad commission.
The legislature, says Mr.. Wig
gins. has given telephone users
in South Carolina Il new deal In
spite OF the many difficulties in Sc
curing passage OF measures Of this
kind the legislature has put
through the laws in good workable
shape. The association. through its
thousand members. has worked un-
tiringly in order TO help undo what
is admitted on all sides TO have
been n grave injustice TO the pco-
pie Of South Carolina.
The legislature has done its
part. AS soon as the Foster bill
is signed by the governor the tele-
phone rates in South Carolina VIII
be restored 10 their status OF jan
uary. 1921, where they stood be-
fore the action OF the railroad
commission last spring.
We have kept in constant touch
With all parts OF the state and
while there seems little doubt but
that the governor will sign the Fos-
ter bill. much surprise is evidenc-
ed AT his failure to sign the bill
promptly on its passage. Every
element OF fairness and justice is
on the side OF this legislation and
it represents the Overwhelming
sentiment Of the people OF the state.
The public has entire confidence
in the bill and the belief is prac
tically unanimous that the gov
crnor will sign it as soon as he
gives li73l CONSIDERATION.
The newly. reofgaaiZed railroad
commission with It's larger person
nel and additional funds for nee
essary investigation assures both
the telephone company and the
subscribers ample protection in
consideration Of rate changes The
forme1. hearing before the old CON-
mission and the methods adopted
by the telephone company to in
fluence the public and in presenting
its case before the commission is
now an old story. AS the case was
handled and received by the COM
mission ne. her the public nor the
commission had reasonable
chance to controvert the broad
claims of the telephone company.
1t is impossible to detail here any
great part Of this wholly incGui-
table proceeding. but it is perhaps
sufficient 10 mention the few fol-
lowing points:
First. Almost no original evi-
dencc was introduced by the tele
phone company on any point.
Second. The telephone COM
pany asked for high enough rates
TO e>rn Il definite dividend on its
invt... .nent, but no evidence was
presented and no investigation OF
any kind was made as to the in
veStment values on which n return
was claimed by the telephone
company.
Third. One OF The very largest
items of expense of the telephone
company was for depreciation,
Iand this is q large item in the eN-
pense Of any public utility) but no
evidence was submitted 10 show
how much depreciation they had
charged as expense, nor the rate ot
depreciation. nor the size of the
depreciation reserve fund previous
lv accumulated hy the company.
Fourth. No separation was
made rs to income. expense or in
veStment of exchange service as
distinguished from toll or long dis
tance service. and nothing what
eyer was shown rs TO distribution
of toll revenue or expense be-
tween the Southern Fell and the
American Telephone and T"''-
graph company.
Fifth. The rates asked BY the
telephone company wert ha:'"i on
IN estimated future expense and
an estimated future income @ad
not on actual opcratiEG iHrom" ana
expense. How could tn. reason
ablcneSs Of any rate b.. arrived Il
under such conditions II ..aS le
Gently come 10 light that the .N;ncr-
lean Telephone and Tel"2rap;i com
pary Of New York. which nwnS 700
per cent. OF the common stock OF
the Southern Fell. is paid 81 per
cent of the Southern Erl!'S toH
rcvcnu. on outgoing messages
and 100 per cent. OF its tol! rcve-
nue on incoming messages. while
The Southern Eell pays 100 per
cent. OF the expense OF handling
every toll message in the state
TheSr facts We're not before tl.c
commission when il made its recent
order increasing telephone rates.
Are the above natters open lo
serious question? They certainly
must be " hen il is known that only
last week the public service COM
mission of New York ordered Il vc
duction in telephone rates, to quote
them not only on account OF the
t,,anl nt y,