Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-02-25
COUNCIL TO
FIX PHONE
RATE TODAY
HOME OFFICIALS SUGGEST A
NEW COMMISSION
MAKE STATEMENT, BUT NOT
UNDER OATH
Auditors Report Points Out Where
Companies Have Ignored Re-
quirements of Utility
Ordinance

AFTER Two hours discussion the CITY
council decided to postpone it's vote on
the question of fixing the rates for the
Home Telephone and Telegraph COM
pany another day at least.
Secretary J. s. Torrance, pleasing
speaker, did nearly all the talking for
the company, though dozen attorneys
and stockholders were on hand as adj
visers, and no one was put under oath
in yesterdays hearing, though Mr. Tor
renee said afterward that he was per-
fectly willing to be sworn.
The hearing will be resumed at 8
o'clock this morning.
The company made a counter propo-
sition to the council that a commission
of disinterested business men be named
to go deeply into the question of tele-
phone rates in Los Angeles on the
theory that no councilman has any cor
rect knowledge of what the telephone
business is.
Commission Idea Tardy
Deputy City Attorney Louis l.. Works
suggested that the council could not
delegate it's Judicial powers to such a
commission, though he added that it
could accept advice, adding that the
telephone officials should have pushed
the idea weeks ago instead of waiting
till near the closing days of February.
when the rates had to be fixed under
the charter.
Messrs. Handy and Gooding, appear
ing for the public, resented any pro-
posed raise in rates, demanding, more
over, full information of the telephone
officials on whether they expected the
telephone users to pay dividends on
watered stock.
The report of Auditor w. G.. Mushet
went into the Home books as follows:
I'm accordance with your instruc-
tons / have, with the assistance of IL.
Ivor Thomas, made an investigation of
the statements filed by the Home Tele-
phone and Telegraph company. and
have also made a cursory examination
of its records.
The officers of the company afforded
us every opportunity to verify the cor
rectness of their statements.
Auditors Suggestion
1--WE find that from the gross receipts
the sum of $4,000 was deducted for
rentals outside the city, and that an
estimated sum of 100000 was deducted
from expenses as the fair share charge
able against outside rentals. 1t would
be better were a definite figure given
rather than an estimate.
1.-THE amou~' of $16,1S5.S3, reported as
long distance receipts. is 20 per cent
of the gross receipts for that purpose.
This company shows gross re-
ceipts .........-. .t...-.... .Sf3S,lEo'ol
And expenditures s............. 562,S92I'
Showing an operating profit of. .s1ee.2s O'
This figure is per cent on the sum
of s2,77O,56S
1.-THE expenditures, however, show an
item of $207,290 set aside to take care of
the depreciation in plant already taken
place. The Pacific Telephone and Tele-
graph company has made no such pro-
vision in it's statement.
ION the other hand, it must be re-
membered that the Pacific Telephone
and Telegraph company, being the old
err company, is expanding large sums
annually for maintenance of its exist
ing system, over $2S7,000 having been
charged to maintenance accounts this
year.
1.-THE statement of assets shows as
follows:
Land and buildings. .....,.......S 672,50
Underground conduits and under
ground and aerial cables. ...... 100000
Pole lines and open wire. 247,O0
Switchboards etc. .............. 762,OO
sunnlies - ........ 1000
Telephones Observation-Disclosures. $4,000
Franchise granted by city of Los
Angeles, net valuation. ......... 9S2,2s
Franchise 10 he a corporation - 972,54
Total .......... .......s5 .55s,Ss
This includes. however. two fran
cbises stated at ,..... 1884, Ss
Eliminating this would show as
sets at .............. .So'oVe'Vo
Mo Statement Last Year
s9TbiS cor1opanv roada No statement to