South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-06-06

Y late afternoon hearing and was on
direct examination when the hearing
adjourned until today.
The city sought contin-
uance on the ground that an
audit Of the company's books had
been received only that morning.
/ and that even were all the expert
I cOnsellors OF New York and Chica-
I go called in 10 assist the city, it
would avail nothing in the short
time allotted during the present
hearing for a detailed examination.
OvcrruIes Motion.
The public service commission
must satisfy the cities that whatever
decision is arrived at that It is a
fair one. Besides. the psychology
surrounding this commission is an
unhealthy one" the mayor added.
Ialluding apparently to the open
propaganda launched 10 abolish the
commission as a rate fixing body for
utilities. IF the commission per-
sists in holding this hearing the
city executive added. about all the
city can do is 70 wash our hands OF
the matter"
The mayor again took issue in the
hearing after Commissioner Van
Auken had overruled the motion 70
defer the hearing and W. H. Thomp-
son of indianapolis, chief counsel for
the Bell in this case, had made his
opening statement OF the tele-
phones side OF the case.
Challenges Experts.
The mayor charged that Thomp-
sons attempt 10 show in the record
that the city had approved of the
consolidation Of the South Bend
Home Telephone Co. in 1917 with
the receivers Of the Central Union
Co. was made that the utility might
lobtain a strong valuation and heavy
depreciation on an obsolete system
merged in the Bell system with the
Iunification, that such charges would
result In an increase in rates 10 JUS
ltify a return on an inefficient sys'
tenn.
IF you don't think this system Is
inefficient. just try It," the mayor
challenged. Just try TO call num-
Der over the Lincoln exchange from
1.-The Bell, and vice versa" the mayor
haunted in the faces of the array Of
, experts present at the hearing.
Free From Responsibility.
when the commission comes q
consider this angle OF tine case" tbs
mayor commented. cit would do wei
if liberal use OF the pencil were
made on this obsolete system IL
marking out valuation, or at leas
place the smallest valuation on
duplicate system. At least the re
sponbility for this consolidation cal
not be placed on the cities of Mish
awake and South Bend.
The mayor then explained hov
the merger of the two competing
systems came about in 1917 "A
that time the business men wer'
well satisfied with conditions, 10
under a competing system, the rate
were nominal and the business mai
had two telephones on his desk. II
that year, the South Bend or Hom'
people came TO us and told us tina
they were insolvent and that re
ownership was inevitable.
I'VE were told that a unifcatiol
of the two systems would result In
great savings, the same old story a
we are told now that an increase o
rates will bring about better servic
and better conditions The city per
mitted the merger to take place, AM
the hearing before the commission
the city's side of the case took bu
five minutes.
Solicited Clause.
THE Independent telephones wer
strong in the northern field. an,
they complained TO the commission
that the South Bend consolidate,
would prevent them from enterin
the South Bend field. 1t was a
, their solicitation that the clause wa
, written into the commissions orde
that the two systems be kept operat
. ing. That is the reason why we hav
the two exchanges today, the mos
q inefficient thing you ever conceive
Of"
, Although the mayor did not speci
, fcally state. the crux OF the utility
petition for rate increase seems {
/ lie in the question Of valuation. de
! probation, and what constituted
!
ton determines investment. and
, was for the purpose Of preventin
the telephone company from placin
a high valuation on what the mayo
charged TO be an obsolete systeT
that he intimated the city's positio
Z on that phaze of the rate contro
, versy
Present at the hearing were r.
Ferris examiner for the commission
!. Laurence Carter, assistant chief &C
countant for the commission, w T
/. / Thompson and Perry O'Neill of In
] dianapolis. counsel for the compan!
, / Thomas r. Keycs, general aucito
i, for the Bell sys EN- Of Indiana. an
!, other officials of the concern.
Cities Represented.
South Bend was represented
Mayor Seebirt, City Atty. Hammond
70 Frank Green. manager Of the Cham
Der Of Commerce. acting in uniso
IN opposing the increase Will
Mishawaka was represented
Mayor w. ". Dodge. City Att!
, Charles Bingham. and a cOmmittc
: of business men from the Mishawak
!, Chamber Of Commerce consisting c
w. L. Chandler, president. r.
Willett. +. c. Went. J d. WOlm'
r. s Feig, and John ] Murphy.
Commissioner Van Auken in deny
ing the city's motion for a post
ponement OF the hearing told Mayo
, Seebirt that the commission cor
: templated no hasty action in tn
: case. and that the present hearin
might only resolve itself into pre-
. liminaTy hearing He added thu
the case was never closed and III
!, commission was ready 20 enterta'