The people's voice. [volume] (Helena, Mont.) 1939-1969, 1949-04-01

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average farmers.
Under the stimulus of the REA
financing program, the percentage
of farms receiving electricity in
creased from 1919 percent at the end
of 1884 to nearly 70 percent at the
end of '48. Today more than four
million rural customers have electric
light and power.
Benton Stong of the National
Farmers Union told the agriculture
subcommittee that the REA has sup
piled the technical knowledge for the
extension of rural power lines to
farms in an adequate, modern way
at has achieved costs sufficiently
low that service can be supplied, at
prices which farmers can pay, in
areas of such low population density
that they are unattractive to the
power monopolists :. as to the tele-
phone monopolists."
The Bell system has advertised it's
current expansion program to pro-
vide million new telephones for
American farms by 1850. Gwen
with this program completed" Sen
ator Hill told the committee, "more
than half of the farms will still be
without services-some three million
farms and three million non-farm
establishments" Given low-interest
federal loans, without REA super
vision, the Bell System would extend
lines only so far as high and ex-
tremely profitable rates could be col
lected, possibly only three or four
more miles from town.
Legislative Acknowledging
AT&T Understands
In the south, where only 10 per-
cent of the farm homes had tele-
phones in 1910, rural service has fall
len to inexcusably low levels. Cor
don Persons, president Of the Ala
bama Public Service Commission,
noted that as of January 1, 1949,
Southern Bell (AT&T subsidiary
had 45,750 untitled applications for
service in Alabama; 35, 900 |
in North Carolina; more than 10000 |
in Florida and Georgia; $4,000 in
Louisiana; 10000 in Mississippi; 25,-
300 in South Carolina; and $4,000
n Tennessee. 'In my own district"
said Representative Poage, "the rural
service offered over the Bell lines
vas so bad, before first introduced
telephone legislation, that it was
often quicker to get in a car and
20 talk with a farmer than try to
each him by phone. Since l
Introduced my first bill there has not
My been marked improvement of
he rural service in our area, but the
Bell people have been most active in
extending their lines to new sub
cribers."
Bill Would Aid Independents
Joining AT&T opposition, headed
" Frank Quigley, $25, 0O0-a-year {
obbyist, are the so-called "independ- g
mt" telephone system spokesman e
he Independents" like Jean Shot /
yell of the Lufkin (Tex.) Telephone |
company, differed with the Bell Sys-
EN- on only one point: the AT&T
1ants NO federal financing, while e
he Independents want SOME fl S
ancing from the Reconstruction FL v
ance Corporation rather than the o
EA. Actually, the Independents d
-ould benefit greatly under the bill, "
nee the companies could receive j
leir telephone loan from the REA
two percent, considerable saving p
YER the current three and half to h
x percent they pay for loans. o
AT&T is both an operating and a Il
olding company. Today there are d
1 Bell operating companies. AT&T 81
vns 100 percent of the stock of n
even, more than SO percent of five
hers, and the majority interest in
lree of the remaining five. In only h.
70 of the 81 companies Cincinnati Fl
I'd Suburban Bell Telephone, and g
outhern New England Telephony ~
,es it's stock interest amount to less II
an a majority. In addition ATT
Is large Canadian and Cuban hold h,
gs. q,
Antitrust Suit Against AT&T IL
Has Special Significance w
T., Tox,,or,r of +b,c x,oa,, H. H.