Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-25
LONG DISTANCE
TOLL IN STATE
is CONTINUED
State Public Service Body
Orders Increases and
Some Decreases.
PROTESTS ARE EXPECTED

Long distance and toll rates estao-
,ished by the United States government
while exercising wartime control of teIe-
phone lines were ordered continued by
the Indiana public service commission,
IN findings made public today.
Exchange rates established by the
postmaster general in six cities and
towns by the Central Union Company, in
twenty -four exchanges of the Southern
Indiana Telephone Company and in eight
Indiana exchanges of the Chicago Tele-
phone Company were ordered continued
by the commission. In eight Central
Union exchanges decreases were ordered
and in twenty-one increases were granted.
Increases were also granted in five south
ern Indiana exchanges.
Value Of the Central Unions property
for rate making purposes was determined
to be $15 100000; Southern Indiana com
pany. 5000, $40, and Chicago Telephone
Company, $2,114,OOO
The petition of the Central Union
Company had asked increases of from
% to 80 per cent in all the Indiana cities
and towns served.
TWO CITIES
GRANTED INCREASES.
The commission decided that inferior
service due to obsolete equipment in
decreases in rates of those exchanges
In Alexandria, Bunker Hill. Elwood.
Fairland, Granger aud Smith Valley the
Central Union was ordered to continue
the federal rates. Increases were allowed
for the following exchanges: Auburn.
Bedford. Greenwood. Indianapolis. Ken
dallville. Levisville. MANILA, Muncie
New Carlisle, Osceola. Peru, Rome City.
south Bend. Mishawaka. Washington
and Yorktown
Increases of % cents a month were
denied the southern Indiana Telephone
Company on individual and four-party
residence service. That was the chief
plea of the southern Indiana company
for exchanges operated in thirteen coun-
ties. The company was allowed in
creases at Gentryville, Lynnvile, Ma
rengo and Oliver.
Confirmation of the federal rates were
granted in the following cities served by
the Southern Indiana Company: Boon
vile, Charlestown, Chrisney, Corydon,
Evansville. Grandview Hatfield, Jeffer-
sonvilIe. Lamar. Mt. Vernon, Newburgh,
New Harmony, Newtonvire, Richland.
Rockport, Savah, Troy, Utica, Tennyson.
Cannelton. English, Henryville, Salem and
Tell City.
EIGHT CITIES
IN CHICAGO AREA.
The Chicago Telephone Company was
granted continuation OF the wartime rate
in the eight cities named in its petition
The cities are: Gary, Hammond, East
Chicago, Whiting, Lowell, Dyer, High
land and st. John, all in Lake county.
Financiers who have followed the tele-
phone situation in Indiana are appre-
hensive that one phase of the commits
sion's order may give rise to protests.
Several smaller cities are given rates
higher than those ordered in ueighboring
cities which are much larger.
The basis for computing telephone
rates has nearly always been the num-
Der of subscribers in the exchange, or
in other words, the number of persons
who might be reached without toll
charge. The commission based its find
ings on the rate Of profit accruing 10
the company through the exchange, that
is the rate of return on the investment.
In some cases where the company
spent an unusual sum for new equip
ment for an exchange in 1918 or 1919
higher rate was granted in order to
maintain fair proportion of return on
the investment. Then again in r larger
city. where no unusual sums were ex-
PENDED in the last two years on new
equipment the rate was fixed at a lower
figure.
Valuation of exchanges on which rates
we're determined for the Central Union
we're as follows: