Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-28
PHONE COMPANY
MAKES PROTEST
Will Abide by Rulings, but
Brands Them Unfair.

The new schedule of telephone rates for
Central Union properties operating in In
diana will so into effect Monday, under
protest by the company. The company
objects to the valuation placed on its
property by the commission on which the
new rates were based; to the reduction
Of tie AZ per cent license payment to the
American Telephone and Telegraph Com
pany; to the apportionment of toll rev
enues to the various exchanges, and to
the new rates as inadequate.
The company will abide by the COM
| missions ruling, the petition says, but
| 1t wishes Ito protest against the order
respectfully but firmly, as unjust, unfair
and insufficient to enable the company
to establish and maintain its credit and
discharge its duties to the public"
| COMPANY MAKES
| FORMAL PROTEST.
The protest is summed up as follows ::
Il. The tentative valuation of the
property of the company, both toll and
exchange, is wholly insufficient, does
not include all the proper elements of
value, and does not represent the fair
value thereof
Inc dppOTIlOHme0L or TOLL reYe
nueS to the various exchanges is unfair
because 1t is predicated upon a rate of
return to the company from the opera
ton OF its toll lines provided by the or
de-s which Is wholly inadequate, does
not permit the charging of a sufficient
rate of depreciation, and is based upon
an insufficient tentative valuation of
the toll property.
IS. The rate and amount of deprecia-
ton provided by said orders are insult
ficient.
Il. The finding of the commission in
relation to the payment to the American
Telephone and Telegraph Company. IN
der the license contract is erroneous
and contrary to law and to the evidence.
D. The findings OF the commission
upon the items amortization OF intangible
capital and amortization of landed
capitaI and amortization Of intangible
eapitaF are erroneous and are contrary
to the law and to the evidence
70. The rate OF return which the or
ders are designed to produce is based
upon tentative findings of value which
are wholly insufficient; is not a reason
able rate, but is wholly Inadequate TO
meet the requirement of the company
as appears from the analysis of estI-
mated annual requirements and esti-
mated annual revenues made by the
commission IN its finding; is not sufn-
cient to attract capital necessary for
additions, extensions, betterments and
the relief from traffic congestion which
the commission orders and recommends.
or for the maintenance Of that high
standard of service which it is the de-
sire and duty Of the company to furnish,
as well as the province of the commits
sion to require.
PROTESTS CONDITIONS
SURROUNDING HEARING.
The rate cases of the Central Union
Telephone Company were tried under
circumstances which made it difHcnlt for
the company to present its evidence in
such detail as the Importance OF the issue
deserved, and under conditions, which. no
doubt, imposed restrictions against the
deliberate and mature consideration bv
the commission of all the questions in.
vo1ved"
The commission has granted the In
diana Bell Telephone Company authority
TO issue $9O00,00O of capital stock and
Sl1.oOo.O00 three-year per cent notes
with which 10 purchase the property OF
the Central Union in this state. The
american Telephone and Telegraph Com
pany was given permission to acquire all
or part or these securities.