The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1919-07-11
NEEDOFPH0|NE
INCREASE NOT
PROVED, AYERS
STATE EXPERT
Railroad and Warehouse Body
to Launch Biggest Tariff
Probe IN It. Hi.toEy.
WOULD ADD
$s23, 900 10 REVENUE
Two Big Companies Raise
Rate. Million and a Half;
Echo of Burleson Regime.

ECHO Oh 00k ASoO4A AAS8AAAS
St. Paul, July 1.-THE Tri state
Telephone company has yet to estab-
lish before the state railroad and
warehouse commission that the new
rates just put in, estimated to he
worth $62S.00O a year to the CONF
pany, in additional revenue. are
justified.
Schedules and information from
the books of the company, presented
to the commission, have not done
this, according to Fred W. Putnam,
member of the commission and it's
telephone expert.
Attack New Rates.
Describing the progress OF CONS
mission representatives In checking
up the books and property values CT
the telephone companies. Mr.. Put
nam indicated that soon after the
return of the lines to private control,
July 81, the commission will attack
the new rates, ordered in during the
closing months of the Burelson ad-
ministration.
Fortified by data it's Investigators
have been gathering for amost
year, the commission will launch into
the biggest rate case in It's history.
Increases in rates totaling more than
$1,5OO,0OO a year put in by the Tri-
State and Northwestern Telephone
companies in Minnesota June 20 are
involved.
: Under the~biu. passed by congress
and ready. for the" presidential sigma
lures, the lines are to be returned
July 81. Soon after that date the
railroad and warehouse commission
undoubtedly will summon the tele-
phone companies to appear before
the commission and show cause why
the increased rates should be main
tanned opening case that is ex-
pected' to cover the whole field Of
rate making in Minnesota. Mr.. Put
nam said.
Valuation Not Accepted.
The commission is not yet ready
to accept the company's estimate of
the value of its property, upon which
depends a very large proportion OF
the rate; in that the amount allowed
for depreciation and return OF capt.
tai depends directly upon the valua-
tion given.
Engineers of the commission in an
other month will complete a valua-
tion of the toll properties of the CON-
panies in Minnesota. Statisticians of
the commission about the same time
will conclude careful study Of the
books of the. two telephone COM
panies. In addition to this repre-
sentatives Of the commission are
making careful check upon the
valuation Of all telephone properties
being made by the engineers of the
company,
To complete the mass of data at
the disposal Of the commission in de-
Gliding the big rate issue, James w.
Howatt, supervisor of telephones for
the commission, and other repre-
sentatiyes of the commission are now
in New York gathering data from
the patent company Of the Bell or
ganization.
"The crux of the whole matter is
whether or not the companies can
suDstantlate the book values OF their
propeftfes,s y said Mr.. Putnam. 'They
have contended all along that they
should. These valuations will show
Proof Burden on Company.
"They are asking for rates on the
basis that the properties now are
worth every dollar which was put
into them: That may be true, and
again it may not. The companies
have yet to establish this. The bur
den rests upon the company.
''The commission is not going to
allow any permanent increase in
rates until satisfied that they are
justified on a fair valuation. We
certainly are not going to allow
new chedule to go in, making in
creases of $1.50O,OOO in the state,
without requiring the companies to
establish their valuation as fair