South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-06-02
40 ACTION TAKEN
AS YET TO FIGHT
COMPANY ATTEMPT
Tear Petition Monday-Out-
come Hinges on Attitude of
Commission Members.

FIeleDh0ne Co without Opposition OF
the Fart Of the city. unless imme-
dlate action in protect is taken, is
hhe forecast OF the outcome Of the
hearing OF the telephone companys
petition 20 be- held here next Mon
cay. June 8.
At the present time there have
rbeen no steps taken TO combat the
irttempt Of the company 10 secure
fanother boost iu rates and the only
hope held out 20 users Of the tele-
.Thone that there viii be no Increase
granted is the precarious position
Tor HE i5bs 0f the members Of the
gpabuc service commission IN the
syes Of the people Of the state.
city Atty T.. W. Hammond In dis
Guessing the present situation Thurs
kav afternoon. stated that the grant
ing Of an increase was practically
= matter Of form. He said that the
rraisal of the properties Of the
COMPANY I'm the hands Of the COM
~ sslon. made last March warrant
cd an increase in rates, and that IN
the face Of such a condition the
tcnly recourse was 20 have the city
lempIoy engineers 20 make new ap-
s11rai saf for the city and also 70 Sc
kcure an audit Of the cOmpanv's
$books TO ascertain whether the pub
lie service commissions appraisal
was not too high. This. Mr. Ham
gsuond said would he a huge task.
1und an undertaking of doubtful
a1nerit. He did not believe that with
fout such steps being taken the city
,rould successfully oppose The tele-
a rf
hates.
Commission in DlsfavOr.
The seneraI disfavor in which the
public service commission has fallen
throughout the state and the fire.
,ouent demands from various bodies
FOR the abofshing Of the commits
sion. with the endorsement Of that
step last week by the republican
state convention. Mr. Hammond
eaid would probably be the most
important factor in determining
whether or not the commission
would grant the requested increase.
Tie said that the members of the
commission realize that their posi-
tions hang in the balance. and any
arOusing OF public opinion against
the commission would only hasten
the day when the people would
aholish that commission.
: Mr.. Hammond stated that he
'Culd represent the city's interests
at the hearing. and would cooperate
with the Chamber Of Commerce in
OPT osinE the increase If that body
determined to oppose it. He said
that an effort might be made 70 Sc
cure postponement OF the hearing
scheduled for next Monday so that
the city might take some positive
action TO oppose the increase. 10
stated that he had only received
notice Of the pending hearing about
o days ago. and that DO was less
than a week ago since he had re-
Cefved from the Public service COM
mission the appraisal on which the
demand for higher rates is based
Mr.. Hammond said the appra isaI
was valueless as basis for making
fight on the increase demand. as
70 merely set forth such facts as on
= face Of them warranted the in
crease.
The attitude Of the Chamber OF
Commerce was given as being en-
tirely open 10 conviction. Mgr
Frank Green stated that If the tele-
phone company could prove that an
increase was warranted the cham
Der would not oppose fl, but that
the burden Of proof was on the tele-
phone company 20 show that the
sought for increase was warranted
Nir Green stated that the chamber
would go fully into the situation be-
fore taking definite stand for or
against the increase
Appropriation for Fight
When the petition for the increase
- rates was filed last fall by the
Iephone company the Carson adj
ADMINISTRATION appropriated 81. 500 fol
additional council fees 90 fght the
increase for the city. In the ordin-
ance making this appropriation there
was Included provision that the ap-
preparation should not lapse al the
end of the year. or this amount il
IS estimated that there is still about
So 600 left the only money expended
our Of 10 up to the present having
been the expenses Of Atty Guliom on
"trip 20 New York CRY 70 inspect
the telephone companys properties.
particularly their investigating labor
atorieE This trip 10 New York was
in conjunction with the invitation Of
the telephone company 90 a number
of cities Of the state that they should
send representative 10 New York at
the company's expense 10 see Just
now many millions OF dollars were
expended annually by the company
tu investigation. Atty. Giuiom made
this trip al the city's expense in or
der that there might Ice no obuga-
ton incurred by the city 20 the tele-
phone company. ON this trip Atty.
Guiom made the discovery that
though 10 was true that millions
were expended for Investigation pur-
poses these millions were not spent
by the telephone company az all.
bur by the Western Electric Co. and
that consequently could hardly be
charged up 20 the telephone COM
aany
Two Previous Fights.
Durt-E recent years the city has
>2uEht two previous demands for
te increases. In the first hearing
= which the city was represented by
he city attorney and also by an at
toruey employed hy the Chamber Of
Commerce. the increase granted was
a very small part OF shat soushg by
ne telephone company Within
three months after the granting OF
that increase "a new upetiti0n was
fled with the commission. and again
the city successfully resisted the at
tempts 20 force higher rates on the
city At that hearing The city was
raurazar1fe1 nw fha civ attorney A.