Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-24

1t is stated by the commission that the
new rates are only temporary and to
govern operations of telephones pending
the consolidation and unifcation Of the
Central Union and Indianapolis Telephone
companies, which the commission adds
lis urgently needed and should not be
delayed"
Value of indianapolis property Of the
Central Union Company was tentatively
estimated at S6409, ,6J7 by the commission.
IOday's order is the elimination of a
long wrangle over telephone rates in In
dianapolis and Indiana between the tele-
phone companies, the federal wire adj
ministration and the Indiana public serv-
ice commission.
FEDERAL INCREASE
DURING WAR OPPOSED.
The commission opposed the Inaugural
ton Of the Burleson phone rates during
the war, contendiRg in the courts. both
state and federal, that the wire admin
istratiOn's order increasing phone rates
was Il usurpation OF the state commis-
sion's rights. The case was finally set
tied by til United States supreme court,
which upheld the Burelson rate.
Soon after the supreme court decision
was rendered announcement was made
that the telephone systems would be
returned to their owners Dec l. 1912
That meant the re-establishment of the
rates under which the systems had been
operated prior to the beginning of the
governments administration of wire bus
iness, unless state authorities saw fit to
make changes in those rates.
Because Of increased costs Of material.
labor, etc, 1t was conceded telephone
systems could only be operated at a
considerable loss if the old rate main
tained. The Central Union appealed to
the Indiana commission for relief, ask
ing increases more than 20 per cent
higher than the Burleson rates.
CONTINUATION OF
RATES GRANTED.
As a measure of temporary relief the
commission granted a combinations of
the Burleson rates until further hear
ing" The order announced today grant
ing a slight increase over the present
rates, which are in effect the BurIeson
rates, is the result of the further hear
ings.
More than forty local hearings weos
held in all parts of the state and more
than four months time was required for
bearing and considering the cases of the
Central Union Company.
"On the basis of appraisals hIed by
the company with the commission in
1918 the Indianapolis exchange property
had a reproduction cost of So 9a5, 600 aud
a present or deprecated value Of So
24T0OO," said Paul Haynes, a member
of the commission, today. THE conf
pany filed new appraisals in the recent
hearings showing a cost new of the ply
sical property of Indianapolis of SO 22S,-
900 and p present or deprecated value
of $S3S9, 900. To these latter figures
SO RnN
capital and 81 99S, ,S22 for going value.''
The Indiana Bell Telephone Company. a
newly incorporated company with can
ital stock of $4,000. 900. appealed to the
commission recently for authority to take
over all the property of American Tele-
phone and Telegraph subsidiary com
panies in Indiana. including with the
Central Union Company, the indianapolis
Telephone Company. eff and when it ig
purchased by the Central Union"
HELD UP BY
CONTRACT SUIT.
The Central Union Company has
entered into a contract to purchase the
holdings of the Indianapolis Telephone
Company for $4,250,OO0, but the merger
has been held up by a suit brought by
the indianapolis Company to compel
specific performance of contract. The case
- PVhuihS III IHt 1uuldud supreme court.
Members of the public service commission
are disposed to hasten the merger
Hearings on the Central Unions petit
tion for increased rates throughout the
state began Nov. Z. The case of the
Indianapolis exchange was heard Nov. "a.
A general hearing on cases of all ex-
changes in the state was held Nov. 25
and % to determine facts in connection
with toll rates. Orders on toll rates and
exchange rates in other Indiana cities
are expected to be issued soon.
The rates provided in the new order
Will produce a revenue for the Indian
apolis exchange this year of So ,472 ST9.5
which. on the basis of figures approved
by the commission. will bea S64 4.41S12