The Wrangell sentinel., 1954-09-24
THROUGH THE SENTINEL PERISCOPE
Phone Company Issue

For the first time in years the city election this year may have a deciding issue - is you for or IS you against" a rate raise for the phone company
 The present city administration rejected a request for rate ln- crease in July. September first, the phone company tackled on smaller increase anyway without permis- son of the Council and that leaves the present Council with some un- finished business and only one reg ularly scheduled meeting to finish it in.
 The meeting is after the election. Oct. and the new Council takes over Oct. Is. Of course, any number of special sessions can be called but time is short and legal action takes time. Why the legal action follows:
 After the company tied on a straight $2 a month raise on all phones Sept 1, the city, on advice of it's attorney Howard Stabler, in- formed the Alaska Telephone Com panv it had not been officially not flied of the rate increase and in ac- cordance with city ordinances and Alaska law 1t will be necessary for the company Ito file with the Town of Wrangell certified facts and figures to any proposed raises or decreases in rates"
 Citing the burden of proof lies with the utility under Alaska law the city said it was unable to re- cognize any rate change until the figures were presented.
 Concluding, the city said, it considers the present defiant rate boost in violation of the franchise. v
 ATC President A. J. Proctor ans wered that the company had pre- scented statements of financial situ- ation and mo question was ever raised as to the desirability or ne- cessity of furnishing the source of the statements"
 Also at the meeting of July 13. 1854, Proctor said, no question was raised "nor was any interest shown by anyone of you in the future de- velopment of the telephone system for the town of Wrangell.
 Subsequent action taken by your body (rejecting the rate raise request) was considered by the company and it's attorneys to be ar bitrary, eapricious and unreason- able, and it was felt the company was not required to proceed further before placing reasonable telephone rates into effect"
 That letter was referred to the city attorney for advice on legal action.
 Declare Increase Ineffective
 Stabler lult that the city should call for d rate hearing and that "in the meantime, l think the Council might publicly declare the increased rate ineffective unless and until the Council finds the in- crease justified. ATC seems to over look the fact that it's telephone ser- vice is a public service subject to council regulation. When the sub scribers fail to pay the increase un- til the council finds the increase justified, I think you will get what you want without injunctiye pro- ceedings.
 "In giving such public notice to subscribers, it would be well to state that the council is calling for a rate hearing to determine wheth- CT or not the. rate increase is jut( tified Incidentally, if the increase is found justified it might be made effective as of the date of the in crease"
 The council has written the at- torney for the proper papers to publish a notice for rate hearing and to serve upon ATC.
 Who'll Preside?
 Whether the rate hearing will be by this council or the next one is the question. And will the next council be like the present one or will it give the company the rate increase because they are tired and want to go home, as an earlier council did? That is where the vot- CTS might have a say.
 Councilmen whose terms expire this year are Val Beals, L. T. Campbell and Lennie Engstrom.
 Mayor Lew Williams term also runs out, and although not having much effect on the phone company, so does the term of Mrs. Joyce Hay on the school board.
 AS yet, only one person has ob-