The Hawaiian gazette., 1915-08-03
HAWAII TELEPHONE
COMPANY FILES ITS
Case ABOUT RATES
al / i (. - -
Presents Reasons To Utilities
Board Why Big Island Charges
1~s.a-@ Should Stand ".-
C0MMISSloN.ADVlSES gs,....,.
CONFERENCE WITH USERS
Array ofFigures and Data Show
q "a Concerns New Schedule
g.. Not Unjust

In reply to the emphatic and nearly
unanimous protest of HilO and all the
island of Hawaii against the new rates
of the Hawaii Telephone Company, tho
public utilities commission suggested
to the company last night that il place
} before the people Of the Big Island the
same facts and figures it produced 70,
the commission. o., q,tAAh
The commission rendered no forma
opinion on the complaints, but its sug
gestion was an equivalent. .a-
If you can make the facts as plail
to. Hawaii as you have to US, said
Chairman Forbes, ~ feel sure that tn.
very general dissatisfaction which OK
lists will disappear. o. r... j.. .. d.
As explained by Frederick @. Hun
mel, general manager, and John A
Balch, treasurer of the Mutual Telc
phone Company, which recently ha
c'ken over and rebuilt the system
the Hawai- Ieiepn0ne company, th
situation now is substantially this:
An Anticipated outworn plant, which
gave satisfaction to none of its sui
scribers and bad fallen far into deca,
and disrepair, has been replaced wit
new metallic circuits, new poles, neV
switchboards and new operatin,
system.
Old Plant Worn Out
Although the old plant was payin,
six percent dividends, they were no
.ually being earned, because non
but the most urgent repairs were b,
ing made and practically nothing bein,
get aside for depreciation. They weI,
beng taken out of the plant. J.
In short, on the present universe.
flat rates, the old system did not ant
is not paying. Certainly after an al
.ditional expenditure of $4,000 j
could not be expected to pay. ....,
General Manager Hummel testifie,
that there are in use on the entire islam
of Hawaii 1916 telephones, of whicl
i76 pay four dollars a month, 223 pay
SIX dollars, eighty pay five dollars
fifty-six pay three dollars, twenty-si
pay two dollars and fifty cents, forty
six extensions pay two dollars and
number of other extensions or specia
short distance instruments pay less.
Under the new rates, those that now
pay four dollars will pay two dollar
and fifty cents, those that pay six will
pay four, those that pay five will paS
four, those that pay three will pay tw,
dollars and fifty cents, those that pay
two dollars and fifty cents will b,
transferred from four party to tive
party lines and. the extensions
and others will continue to pay
the same rate; but all will pay tolls for
long distance calls.
Increase Is Slight j..
Under the present flat rates, thes,
1915 Instruments are yielding a month
! ly revenue of $45S4.5O. Under the
J new rates, if there is no growth of new
business, the yield will be 1882. Oper
ating expenses of the old plant hav,
been $2630.74, including. the INSULT
cient allowance for maintenance. L.
order to operate the new plant and
Keep it IN repair, the monthly expendi
ture must be raised to $4,000, which, il
a fair dividend, of say six per cent, is
to be earned, will necessitate gross re
ceints of $4,000, or $l04S more than IL
a--Lally i'll sight.
Gin fine" said Commissioner Will
liams, "you are giving up something
that you have now for something big.
ger you think you are going to get in
the future O..
Exactly" said Mr.. Hummel
"Five years ago." he continued, cor
little more than that, there were
forty telephones outside of Honolulu
on the island Of Oahu. They paid an
annual revenue of $3.50. AT cost
Of $l22,6s9 we put in a new exchange
aud cut the rate to two dollars and
fifty cents, making toll eharge'of ten
cents for every long distance call. As
result, we now have more than 500
long distance Instruments.
Subscribers Not Protected
''There are some seventy long dis.
lance instruments in use on Hawaii Al
present, and, under the high fat rates
the island is thoroughly saturated with
telephones, For a week We kept Al
accurate count of every long distance
call on every line running, out Of Hiio.
The figures show that thrse-quarters. OF
the conversations are idle talk, which
viii disappear when It has TO be Uaid
for In other words, the man who has
telephone on Hawaii now Is only
getting a quarter the value of his in,
tallation. The neighbors are getting
he other three-quafters and paying
othing for it, y
"QT to put it another way, the pres
Cnt fat rates are such that the poor
nan cannot afford an instrument FOR
local use. The complaints read tonight
ire all to the same effect-thst we are
I'aVing the old fat rate unc' ,nged and
raking an extra charge ? tolls We
I; VIC are lowering the minimum
charge and imposing toll rates which
connt of calls made shows win allow
early every subscriber the same mum.
er Of long distance conyersat ions ne
i using now.
lad Harpoon Out
Complaints were read from DR.. Arch.
cr Irwin, w: d. Irwin, surgeon for
tina Iauuahoehoe SUGAR ComDany.. R