Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1919-11-04

I linen IOllOWS tdule VI the IcfCHuCo
and expenses of the company for the
period from January l, 1908, to De-
cember 81, 1913.
The Commission then continues IN
order to check the distribution of ex-
pense, an examination was made OF
the books and records of expense, an
examination was made of the books
and records of the company for the
| twelve months ended June 80, 1919.
The Commissions, distribution of ex-
pense for this period is shown in
table H. This table also shows the
operating statement for the first six
months of 1919" ****s**** Ii ap-
pears both from tables and III that
the return to the company is grad
ually declining due to increasing cost
of operation"
***** From our examination of the
plant of the Wausau Telephone COM
pany, together with data submitted by
the utility, it is apparent that cogniZ-
ance must be taken of the relation be-
tween the investment and the develop
ment of the business at this time. 1888
1t is evident in this case that if the
rates are based upon the return ON an
investment which is taken at point
when the investment is very large
relative to the business what appear
to be reasonable rates at that point
may prove to be unreasonable and eX-
ceSsive at a point several years furth-
er on. The converse of this is true al
| so. What may appear to be reason
able rates when the investment line
| has fallen below the business line,
| may prove to be much lower than suf-
! ficient to produce revenue which will
give reasonable return on the in
vestment will have to be materially
| increased in order to meet the de-
mands of the business. ************
| 1t is noted that for the six months
period ended June 30, 1919 the utility
| had available for return upon it's
investment an amount equivalent to
5.2%. If the utility is allowed to en-
JOY the average return received DUR
ing the past eleven years, or 1860
the amount available for interest must
be increased $8,112. If we are to give
the proper consideration to the in
creased investment in power plant.
cable, ETC., approximating $125,0OO.OO
the bare carrying charges will amount
to at least $7,50000. The total in
crease to cover these charges will
then equal $15,612.
To provide additional revenues to
meet these items will necessitate a
material upward adjustment in rates.
1t appears to us that rates adequate to
take care of the total increase should
be promised improvements to plant
The rates proposed by the utility our
analysis shows, will cover existing
Operating conditions and a small part
of the carrying charges on the addi-
lions to plant now underway. ***##
1t is noted that no two-party resi-
dence service is being furnished. From
the standpoint of economy we believe
it to be in the best interest of sub
schibers and of the applicant that two
party residence rates be established.
The commission will not authorize
a lower rate for an extra single line
or additional line in excess of one to
la subscriber, but provision will be
made in the schedule for receiving
lines used only for traffic routed into
the subscribers premises. If an extra
line is required by a subscriber for
both in and out service, the regular
class rate must be paid.
1t is therefore ordered That the
Wausau Telephone company be and
the same is hereby authorized to
discontinue its present schedule OF
rates and put in effect the schedule
outlined below: