Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-09-15
TELEPHONE INQUIRY |
PLANNED BY BOARD
Service eCommission to lnvesti-
gate Relations Of Bell and
Telegraph Companies
WILL EXAMINE CONTRACTS

Harrisburg. Sept. 15.-Probably the
next step that will be taken In Penn
sylvania and other states in trying to
establish fair rate for telephone serv-
ice will be an investigation into the re-
lations existing between the Bell Tele-
phone Co. and the American Telephone
and Telegraph Co. and the effect that
has on the rate issue.
In formally adopting the agreement
reached last week between counsel for
the complainants against the Bell COM
pany's rates Of last April and May
and counsel for the company, tne ruplic
Service Commission in its order says it
is willing to cooperate with similar
commissions from other states in such
an inquiry. In that connection the
commission says:
"While the commission found and
determined that the estimated revenues
Of the new tariff schedule do not ex-
ceed fair return upon the used and
usable property of the respondent,
there are two important features in the
ALLEGATION of a portion OF the revenues
which REQUIRE discussion. One is the
DaNmPnI OF = - Itl WIN
revenue TO the American Telephone and
| Telegraph Co, and the other Is the
dividend of toll revenues between the
| American Telephone and Telegraph Co.
and the Bell Telephone Co. of Penn
sylvania.
parent company too much under the
Az per cent contract, and does lt
receive too little as It's share of the
revenues through toll and long distance
| business? These questions and parucu
| larly that in reference TO the amount
and conditions Of the license revenues,
have been and remain troublesome to
| this and every other state utillty com
mission which has had to deal with
them.
''It occurs to this commission that
the only way in which it is possible TO
correctly and permanently solve the
| license revenue and other questions en-
tering into the relations between the
American Telephone and Telegraph Co.
and its subsidiaries is by an arrange
ment to hold an exhaustive and con-
elusive investigation of the accounts
and contracts between them.
The action by the commission virtu-
ally terminates 100 complaints against
the tariff schedule effective last April
| Tor toll calls ana III May lOI EShtois'
The order restores free exchange areas
to points within ten miles with hexi-
Bile provision to 60 beyond that limit
where the question of community in
terest is involved. Classifcations are
modified also. One classification fixes
rates for communities with 5000 to
| 10, 900 telephones, such as Harrisburg,
| Altoona, New Castle and similar places.
| That is allowed to remain as it is, but
new classification is created for
municipalities with 5000 or 1900 tele-
phones. and these will get a slightly
lower rental.
The classification relating to ex-
changes with 1000 to 2000 telephones,
was modified to apply TO places with
1000 to $500 telephones.
There is to be % per cent reduc-
tion on private branch exchanges, the
four party line service in Philadelphia
and Pittsburgh is restored and "a modi'
fication is effected for free zones in
farmers exchanges, the length of the
line being extended from one to two
miles.
The question of the Philadelphia de-
partment store exchange rates will bt
disposed of after briefs have been filed