South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-12-04
DECEMBER 4. 1922
WHY TELEPHONE RATES ARE HIGH

The next time you arc called % a telephone stor
moment and consider the mechanism which has
caused the boil to ring Within the bell box Is lit
tie induction coil. invented back IN 1884. used by
Edison 1871 and still a basic essential OF
telephone bell ringing mechanism. This induction
coil f. cheap-lt costs about so cents-and lasts in
definitely
Now consider what engineers Of the telephone
company tell your public service commission the
Investigation. now being conducted in Indianapolis
20 determine whether there shall be an increase in
phone IN many parts OF the state ST Jo-
seph county in particular
Last week II brought out at tho Investigation
that the Indiana Bell Telephone Co. pays the Ameri-
can Telegraph and Telephone Co. which is the par
ent company OF the Indiana Bell four and one half
percent Of its gross income This payments rent
ais OF the receiver transmitter and induction coil in
telephone instruments and for maintenance OF that
staff OF experts of the a. T. & T. Co. which keeps
abreast times by its research work in invent
Ing and improving devices for the Improvement Of
service.
The state IS attacking this four and a half per
cent rental which the Indiana Bell Co. pays the par
ent company. unreasonable and IN a large meas
responsible for the alleged Improbable opera
lions of the Indiana company.
Take Just the of the induction coil. It is
part of the bell box and is physically connect
ed With the transmtter receiver. The bell box
is sold outright by the a T. & T. Co. to its subsi-
diaries but the title TO the induction COIL which
inexpensive. and which lasts indefinitely IS re-
tanned by the parent concern It is,a device which
all telephone companies use more or less commonly
and yet the A T. & T. CO. continues to collect a
rental for its from its subsidiary companies
AS for the staff OF experts which is in charge Of
the experimental laboratories of the A T. & T. Co,
the statement the states representative MunsOn
d Atwater. is enlightenlng '"The tremendous iner-
tia Of the a T. & T. is the only reason I think
OF for the fact that the company continues TO do
what it has done from the beginning" he says.
DESPITE the better organization that the A. T. & T.
Co. claims It has and despite its claimed superiority
in research staff the public service commission has
been independent concerns are in the lead
in the development OF new devices in telephone SER
vice. II has also heard that the telephone equip
ment OF the Indiana Co there are a number OF much
more complicated devices than the induction coil
hook switches as an example--which are sold out
right the subsidiary companies by the \. T & T.
Co. instead OF being merely rented
the face Of brought out at this investiga-
ton the public service commission will render de-
cision that affect great many citizens Of this
state. The telephone comrany has offered figures
to show it making a profit on its invest
ments Until the investigation its claims could
be contradicted the facts it set were true
it was entitled to an increase.
The payment Of rentals and rebates on such de-
vices as induction coils maintenance Of staff OF
experts which follows the lead OF Independent
Germs which have no such vaunted research staffs,
and many other points brought out the investiga-
lion. make It appear that the figures submitted by
the telephone company book figures.