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Newspaper
Cincinnati The Sun
Location
Cincinnati, Ohio, United States of America
Date
Dec 17, 1948
Page
8
Ohio Bell Telephone seeks an $8 million annual rate increase, arguing a $12 million 1947 net profit plus rising costs justify higher charges. City solicitors for Ohio oppose, saying the company should serve the public and build reserves without burdening consumers.
Ohio Bell reported a 1947 profit of 12 million but faced questions over what counted as fair profit. President Randolph Eide testified the company is wholly owned by AT&T, with 4 percent of stockholders controlling about half AT&T’s stock, and that Ohio Bell buys all equipment from Western Electric. AT&T provides advisory services and claims one percent of gross revenue from Ohio Bell, plus dividends totaling about 7.50 per share in 1947, while surpluses fund the extra payout. The witness argued that increased business increases investment and ties up more capital in equipment.
Atlanta police chief says motorcycle officers who led a 50-vehicle Ku Klux Klan parade last week were policing, not participating. Rev J K Brown protested the sight, while Ellis notes no law bans parades. Brown aims to push a state ban on masked processions.
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