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Show WILL PROBE TELE-P1HEJUESTI TELE-P1HEJUESTI Utah Development League Has Selected Committee TO STUDY RATES & REPORT TELEPHONE COMPANY WILLING TO GIVE THEM EVERY POSSIBLE AID. To hear the complaint of those localities lo-calities In the state that chargo tho Rocky Mountain Bell Tclcphono company com-pany with unwarranted nnd unfair Increase In-crease of tclcphono rates, and to take whatever steps were advisable to settle set-tle the quostlon, the board of governors gover-nors of tho Utah Development league held a special session yesterday at the Salt Lake Commercial club, with eighteen members present, aside from representatives of tho telephone company. com-pany. Th complaint of tho Tlntlc district, which Is ono of the three localities that havo felt the rate increase as result re-sult of the readjustment policy, was heard In detail, the aniwers and explanations ex-planations of the telephone company wero listened to and the executive committee was directed to appoint a commttteo of five to probo the telephone tele-phone situation thoroughly and report at a later meeting. ' Tho members of tho committee were appointed from the state at large, with no regard to their connections connec-tions with tho league. They are: Goorgo B. Greenwood of Mtlford, George J. Kelly of Ogdcn, George E. Merrill of Salt Lake, Gcorgo Haver-camp Haver-camp of Provo, and C. R. Mabey of Bountiful. Their Investigations will extend over several months and will follow closely the readjustment process pro-cess now under way In the state. It Is understood that tho telephone com pany will give them every possible aid and co-operation. This action was taken at the urgent ur-gent invitation of H. Vance Lano, president of the company, who, though unable to be present, addressed addres-sed a letter to the league setting forth tho company's stand, and at the personal per-sonal request of H. M. Fennemore, division di-vision commercial superintendent, who represented the telephone company com-pany nt the meeting. Company to Play Fair. At tho conclusion of the two hours' discussion, Frank M. Drlggs, piesldent of the league, told tho representatives of tho aggrieved districts that from the evidence nt hand Uiere was every Indication that tho tolephone company proposed to play squaro In tho matter mat-ter nnd suggested that thoy await tho Investigation by the league committee commit-tee before passing judgment on the mo lives of the company. Ths committee will have every ac,-cess ac,-cess to tho company's books, and according ac-cording to tho representatives of the company, will bo Invited to corpor ate with tho company In Its rato adjustments ad-justments throughout tho state. Mr. Fennemore declared that the telophono company would abide by the decision of the committee and that If It was found that the lncreaso of rates was not justified then the money collected collect-ed from pntions In excess of tho old rates during tho Intervening period will be returned. 'I nm confldout that your committee commit-tee will seo tho justice of our plan," ho said "We simply desire to adjust the entlro system so as to make each and every unit of tbo system self-supporting, self-supporting, Wo nro abandoning the Ipld mothod of maklug the big centers stand the losses of tho .jpnrsely cct-Coatinued cct-Coatinued on Pngu 2. Will Probe Telephone Tele-phone Question (Coutlnued from Pago 1) tied regions." Eureka Complaint Aired. The hearing opened with a presentation presen-tation of tho telephone history of the Tlntlc district and what wns purported purport-ed to be tho facts In the recent raise of tales In the towns of that district. I). C. Stott, a member of the committee commit-tee appointed nt a recent muss meeting meet-ing of tho business men of Eurekn, mado the argument for Tlntlc. He declared de-clared that the Bell company holds nn unlimited franchise In that district nnd Is bound by neither time nor price conditions. Because of this the citizens of uieka had considered themselves defenseless against the proposed Increase of rates, he snld, and had so called a mass meeting to consider some way of coping with tho situation. Mr. Stott pointed out thnt tho now rate charged for business telephones In Eureka Is within $1.50 per month of that In force In Salt Lake, despite tho fact that Eureka has but 350 telephones tel-ephones as compared to Salt Lako's 10,000 or more. Ho declared that the rates should bo made moro In proportion propor-tion to tho extent of tho service rendered, ren-dered, ending up with tho declaration that If tho Bell telephone was going to tnke full advantage of Its unllmlt-' ed franchises nnd of tho defenseless! localities throughout the state, then I It was high time to reconvene tho leg-' islnturo and put a stop to it. ' , Company Loses Money. To this argument Mr. Fennemoro of tho telephone company replied with figures which ho said showed that tho company hud been losing money In many of the smnller exchanges, such as that at Tlntlc nnd that it was only on-ly seeking to end its losses by a fair Increase of rates. To a question put to him by Joseph E. Calno, secretary of tho leaguo, Mr. Fenenmoro said tho Itocky Mountain Hell Telephone company com-pany lost $264,000 on Its exchango business during 1910. This loss, no said, wns offset by tho long distance levetiuo. Ho oxplnlned tho methods of handling theso two departments In detail. Thoro wns a genoral discussion or the question by tho momburs of the board, at the conclusion of which u motion was put that tho matter bo I laced in the hands of committee i leeommendod by the lotter from j 'resident Uno of tho tolophono com-.'ttuy. com-.'ttuy. which wns road befdYo tho board Secretary Joseph E I'anu- Mr inos later follows Continued on Page 7. I Will Probe Tele-phone Tele-phone Question Continued from Pago 2. "I regret that n business engagement engage-ment made prior to your Invitation to meet the Utah Development lcaguo on June 28 In this city prevents me from doing so. "I feel the Importance of that meeting meet-ing and the bearing It will havo upon up-on tho future of our compnny In Its efforts to maintain friendly relations with the community while wo aro trying try-ing to adjust rntea as to enable each town In Utah to pay its own way. For that reason I wish to say a few word1? In explanation of our portion on tho rate question. "Tho position of the Hocky Mountain Moun-tain Dell Telephone company In reference refer-ence to rates Is a very simplo one. It Is a question of so much revenue, so much expense, tho revenuo being just enough greater than tho expense to take caro of tho depreciation 'and pay seven per cent on tho Investment. Tho rates In every town In which they havo been adjusted havo been figured on this basis, nnd arc, wo believe, Just to both tho public nnd tho company. Fats' Carry the 'Leans'. "In tho development stage of any enterprise of tho character of tho company I havo tho honor to represent,- It has been tho accepted custom In the Interest of extension of service to mnko the "fat" localities carry tho "lean" localities. While this sort ot procedure Is accepted generally by the public ns n good policy In tho upbuilding up-building of a useful public utility, capable ca-pable of giving servlco that reaches out everywhere to tho ranches nnd lonely mining camps, the time Invariably Invar-iably comes when the law of diminishing diminish-ing returns demands that better and more Just business, methods ho re ugnlzod. The history of tho struggle for supremacy In Utah Is known to all, even to the financial loss that has attended tho efforts of both com panics to keep their heads above water. wa-ter. "Under tho circumstances that there-foro there-foro exist, the meeting of tho pay roll and tho proper maintenance of tho plant have been well-nigh Impossible, saying nothing of paying for tho uso of money wo borrowed from tho people peo-ple to build up our plants to their picsent stnte of usefulness. "I sincerely hellevo thnf tho tele-phono tele-phono question will not be treated by your lcaguo In any other way than Justly and fairly. That Is all that Is asked so far as our company Is concerned. "It Is our aim to glvo tho people ot Utah a better and a moro up-to-dnto service, and It is not our aim to glvo our patrons tho worst of It. As has already been stated, our engineers Inform In-form us that a general raise ot rates will not bo necessary to provldo an lncomo sufficient to meot our payroll, properly maintain our plant and to pay Interest to thoso who havo given us tho uso of their money to build tho plant. Must 'Adjust' Some Rates. "In somo localities It will bo necessary, ne-cessary, In order to do Justice to all users of the telephone, to adjust some rates, but when changes have been made every user of tho telephono may rest assured that he Is paying for his own telephono and Is not being called cal-led upon by reason of some generally unknown condition to help pay for tho use of a telephone In a different local- "In conclusion, let me say thnt we court tho widest nnd fullest Investigation Investiga-tion of our plans and purposes, and to that end I would Invito your honor- .jblo bogy l- appoint a commlttco to cc.inirc k. ,ci.s, Inventory our holding hold-ing and i s st us In the adjusting of rat3 when! they need adjusting. "Our Intel ests aio Identical you nee.l tho teloi)honc nrd wo need you. Let it get together It.to good business busi-ness men should and go over any differences dif-ferences that muy exist and settle them Justly, even though there may be uninformed people who oppose tho adjusting ad-justing of rates, no matter how unfair the present rates may be In ceitnln localities, "Assuting you of my earnest deJlro to co-operate with you In every way for success nnd harmony, I beg to remain," etc. At tho conclusion of tho open meeting meet-ing tho board went into executive session ses-sion to consider routine business ot the league. During this mooting the Investigating committee was appointed, appoint-ed, nnd n communication from Edward W. Hammer, who la promoting an Independent In-dependent automatic telephone device, was considered. This communication charges the Hell with the grossest methods or monopoly Imaginable and seeks to enlist tho support 6f tho Utah Dovelopmcnt league for the proposed new system. It nlso was referred re-ferred to the special telephone committee com-mittee for consideration. |