Giant American Telephone & Telegraph Co. last week reminded the Government of the ancient law of economics, that lower prices tend to increase demand. The reminder was a perfect answer to Government summons for a cut in telephone rates.
The skirmish started when FCC charged the company had "excess earnings," should therefore slash "burdensome rates" on long-distance calls. Retorted A.T.&T. : lower rates would "stimulate traffic at a time when such stimulation would be contrary to public interest." With business running 33% above last year, the company's lines are already so talkpacked that additional calls could be handled only with more...
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