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Editorial
February 3, 1924
The Elkins Inter Mountain
Elkins, Randolph County, West Virginia
What is this article about?
Wheeling editorial expresses surprise and criticism at Chesapeake & Potomac Telephone Co.'s request to raise rates in West Virginia, despite parent American Telephone & Telegraph Co.'s prosperity. Questions necessity, urges investigation by Council and Chamber of Commerce, argues expanded service should yield higher earnings without hikes.
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The Telephone
Increase
An unpleasant surprise is the request of the C. & P. Telephone Co. to raise telephone rates.
It was generally supposed that inasmuch as the parent company, the American Telephone & Telegraph Co. (The Bell), who owns the Chesapeake & Potomac Telephone Co., were prospering and paying good dividends, that the present rates on telephones would be continued.
But it seems that such is not to be the case, as the Bell Telephone subsidiaries in many sections of the country, as in this state, are seeking advance.
Of course each tub should stand on its own bottom and if the Telephone company that operates in West Virginia is not earning a reasonable return on its investment it is entitled to an advance in rates—but is such the case?
This phase of the matter should be investigated carefully by Council, the Chamber of Commerce, or agencies supposed to guard the rights of the public.
The telephone people in asking for higher tolls also advance the theory that an extension of service calls for increased investment for equipment, and because of this, earnings must be sufficient to attract capital.
Quite right, but enlarged equipment also means greater business which should in turn mean larger earnings without an increase in rates.
Increased volume of business usually results in lower costs followed by lower prices in every other line of business except that of the telephone.
—The Wheeling Telegraph
Increase
An unpleasant surprise is the request of the C. & P. Telephone Co. to raise telephone rates.
It was generally supposed that inasmuch as the parent company, the American Telephone & Telegraph Co. (The Bell), who owns the Chesapeake & Potomac Telephone Co., were prospering and paying good dividends, that the present rates on telephones would be continued.
But it seems that such is not to be the case, as the Bell Telephone subsidiaries in many sections of the country, as in this state, are seeking advance.
Of course each tub should stand on its own bottom and if the Telephone company that operates in West Virginia is not earning a reasonable return on its investment it is entitled to an advance in rates—but is such the case?
This phase of the matter should be investigated carefully by Council, the Chamber of Commerce, or agencies supposed to guard the rights of the public.
The telephone people in asking for higher tolls also advance the theory that an extension of service calls for increased investment for equipment, and because of this, earnings must be sufficient to attract capital.
Quite right, but enlarged equipment also means greater business which should in turn mean larger earnings without an increase in rates.
Increased volume of business usually results in lower costs followed by lower prices in every other line of business except that of the telephone.
—The Wheeling Telegraph
What sub-type of article is it?
Economic Policy
Infrastructure
What keywords are associated?
Telephone Rates
Rate Increase
C&P Telephone
Bell Telephone
West Virginia
Public Investigation
Utility Earnings
What entities or persons were involved?
C. & P. Telephone Co.
American Telephone & Telegraph Co. (The Bell)
Chesapeake & Potomac Telephone Co.
Council
Chamber Of Commerce
Editorial Details
Primary Topic
Opposition To Telephone Rate Increase
Stance / Tone
Critical Of Rate Hike Request, Calls For Investigation
Key Figures
C. & P. Telephone Co.
American Telephone & Telegraph Co. (The Bell)
Chesapeake & Potomac Telephone Co.
Council
Chamber Of Commerce
Key Arguments
Parent Company Is Prospering And Paying Dividends, So Rates Should Remain Stable
Local Subsidiaries Seeking Advances Despite This
Each Company Should Stand On Its Own, But Need To Verify If Reasonable Return Is Lacking
Call For Careful Investigation By Public Guardians Like Council And Chamber Of Commerce
Extended Service Requires Investment, But Should Attract Capital Through Sufficient Earnings
Enlarged Equipment Means Greater Business And Larger Earnings Without Rate Increases
Increased Business Volume Usually Lowers Costs And Prices In Other Industries, Unlike Telephones