Evening journal., 1920-12-04
SWORN TESTIMONY VS. DEMlcoGIc GRAFTON.

SWORN TESTIMONY VS. DEMACOGIC GRAFTON.
f,1NcE the Diamond state Telephone Company made ap
- plcaton to the Public Utility Commission for the
privilege OF increasing service rates TO an extent which
wq enable It 10 meet expenses and reasonable re-
turn upon the investment much has been said that OF
critical nature There has been an outbreak in City
Council Many chronic corporation haters have seized
upon the application golden opportunity for airing
their views which. rule based upon pronounced
ignorance and dsemper rather than upon intelligence
and fairness OF mind. Smal-fry politicians, eager to
make themselves solid with the people," have advanced
objections based upon msnformation, half-nformaon
absolute Ignorance and personal selashness
The simple truth Of the matter is that The Diamond
Stale Telephone Company knowing that users OF the ser
vice cheap Il is possible for it to supply It,
does desire To increase the rates The milk In the
Is that It must do so II Il to continue to live
to operate and to serve the pubAc.
we feel that hose who the service and whose
ears have been nled with the yocerous yaporngs OF
certain rrends OF the people should be made acquainted
with certain facts which brought out at the public
hearing before the Public Utility Commission. They are
worthy OF repetition bearing upon the Justice OF the
proposed and also 81 owing The absolute gnor
ance senshness and vindlcveness Of some Of the OBJ
jectors who always are grinding their at the public
expense while protesting 10 be doing for The public
benefit
Among the facts brought out at the nearing the
following:
firSt-lne
Telephone Company, amounting 10 s200OoOO owned by
te Bell Telephone Company of Pennsylvania avng beer
bought up at par value several utility cor
poration cannot continue business without new money
being constantly poured into IL to provide for extensions
10 care OF It's many subscribers. 10 build new toll
hines. to put up buildings. 10 build conduiis
and thousand one other things To do these things
The Bell Telephone Company Of Pennsylvania has loaned
10 the Diamond State Telephone Company nearly million
dollars al per cent interest in recent years To con
tnue lending at six per cent would represent direct
boss to the Bem Telephone Company OF Pennsylvania for
the reason that in loan OF s25OOOoOo, just noated in
Pennsylvania It necessary for the Bell Company TO
pay eight per cent.
Second-Durng the development OF the property the
Bell Company willing TO continue to lend money IA
the Diamond state Company and willing TO foregC
any dividends on the s2OO0OOO originally invested tn,
business AS matter OF fact, not cent Of dividend
has been paid by the Delaware Company in The pas
twelve years The Ben Company claims that il has bee
vng to do his in the past but ha the time has nov
when dividends must be paid further none
be put into the business The argument is mad
tla nobody rs willing in these days OF high nteres
rate and good sound substantial investments paying hg
returns. to put money into a concern which is nc
paving a return and which for more than a decade ha
not paid return II would hardly fair TO ask h'
such condition be allowed to continue
1hrd-Tabes presented TO show that but ltt
relief be expected in the future from fauin
prices First and foremost must be TO eyorybod
thai ihe telephone business is not industry. Viii
other industries depending hgh wages to a
tract labor during the war the esprit de corps Of u
Diamond State organization held the employees ogeihe
and that esprit made II possible for the service TO
maintained. Wages were increased 30 be sure but on
sufficient to allow the employees 10 live under The il
creased living COSTS and reduced prices at this time
tanly not warrant taking from these people porlc
OF The wages they fairly earning The demand &,
service the country is great that the faoior
manufacturing telephone equipment cannot meet moi
than fraction OF The demands for materials. But ltt
hope be looked for therefore this direction towai
reducing the costs Of operating the telephone bushes
There has been criticism Of Increasing rates at IN
time because Of falling prices but The above facts mu
be kept In mind in this connection.
fourth-Accoriing 10 the valuation OF the proper
submitted by the company, the rates will provide
return Of but Ga per cent This certainly not an e,
eessNe hglre u is generally conceded by commission
IN country over that eight per cent fair return Il
pubic utaiiy companies. n The new rates viii give
return OF but little more than six per cent lhs ne
raies are certainly not excessive. As the bookkeepr
III ods OF the Diamond State Company in arriving
these figures N is pretty generally understood that
telephone companies using the methods prescrih,
by The Interstate Commerce Commission and the teepho,
company officials claim that their books and an 0eur
are open for inspection by the public
These are the salient facts brought the e,den
at the hearing II the figures given correct here
be no question about the Justification Of the rat
and this Is where the Utility Commission viii play
part These figures and all data submitted by The co.
pany should be scruinized carefully. II The figures
correct the rates justified II there is qnesti