The Hawaiian gazette., 1916-03-24
MUTUAL TELEPHONE
CHARGESLARGE SUM
TO DECAY or PLANT
Treasurer Balch Tells Utilities
Board Rapid Transit Appar-
emily Charged Not Enough
SWEEPING EXTENSIONS ARE
CONTEMPLATED BY COMPANY
Federal Wireless Expected To
Enter lnter-Island Field and
viii Conform To Law

Discussing the fact that the Mutual
Telephone Company has charged Some
remarkably large sums TO depreciation
of Its working plant, J. A. Balch, the
company's treasurer and manager of
its wireless department, told the public
utilities commission yesterday that IL
was precisely the opposite method Of
figuring which had caused the recent
Misunderstanding between the Rapid
Transit and Land Company and the
territorial government - a. rF
''The trouble between TIE govern
ment and the Rapid Transit said he,
appears to have been due to the
fact that the company charged less to
depreciation than the government
tho"ght it should. Just the opposite
is true in our case. " ''' AK. =
Depreciation Is Rapid g.. N.
His inference was drawn from the
line of questioning to which the com.
mission. subjected him. From the figures
CLEANED from the telephone company's
commission, and from the statements
made by Mr.. Balch before that body
Monday evening, 1t appears that this
concern suffers probably greater depre.
citation In its plant than any other
large corporation or utility in the Ter
ritOry- Chairman Forbes remarked yes
terday that it seemed the telephone
plant deprecated about 100 per cent
in six years time. 30 g.. ,... %.
At one point in the discussion Mr..
Balch remarked: 1--WE have never in
any year lived up to our theoretical
Depreciation 49,, y 49, ..,.-,,.y
He recounted the financial history of
the corporation briefly, from the time
1t replaced the bell system with the
automatic, stating that when that event
occurred the entire switchboard was
"junked," and that in the succeeding
years practically the entire line avs.
TEN was renewed, all of which involvv
ed expenditure Of many huRdreds Of
thousands of dollars. p
slreat Expansion Contemplated Jsr7f
p, He added that within the next few
years the company expects TO spend ap-
proximately $1,000,000 in repair and
Improvement construction. eEeG 4 o.
In his talk with the commission on
Monday night, Mr.. Baleh,s had given
Chairman Forbes the impression taat
he had said the company IL encounter
ing competition from certain corpora
tions which are not subject tosthe com.
mission. He was called to the meet
ing yesterday to explain that in parti-
cular; the chairman having the idea
that If there are other concerns en-
gagged in the telephone or wireless bust.
ness in the Islands In competition with
the Mutual, they also should be under
the commission 3 Jurisdiction, according
to the territorial law, He wanted to
ascertain names Of such companies.
Asked for the names, Mr.. Balch said
he had reference to q threat byysthe
Federal Wireless Company, to enter into
the inter-island wireless field In the
near future. He thought that since
the Federal Wireless Company 10 not
now subject to the commission and
its financial status not open to inves-
legation by that body. IL would be IN
fair to reveal to it the books Of the
Mutual =.
Federal Must Conform
He was assured that just as soon as
the Federal does enter the inter.island
Du5inoSS ~ VIII uoCOulb puuJOCt " tno
commission and its affair open to gov
ernmental inspection. -
Before the next hearing on, the Nut,
ual' s investigation, which win be held
in about week 3 time, Treasurer Balch
win submit an approximate inventory
Of the company's property and ajcopy
Of his own annual report, which he ex-
poets to be printed and on the press In
the next two or three days, III.
The commission opened bids on, the
contract to print 400 copies of its an,
nual report, the Hawaiian Gazette Com.
pany presenting the lowest Of four ten
ders, offering to do the work for fifty.
eight dollars. The bids were referred
to the secretary for tabulation. James
L. Coke was employed to serveHas spe-
cial legal counsel for the commission