The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-12-14
ASK A REHEARINC
City Will Ask Industrial Court
to Open Case.
Increase in Phone Rates Is
Excessive, Is Claim.
FILE APPLICATION DEC. II
Action Was Urged by Square
Circle Club.
City Attorney Says Rehearing
Is Justified.

The city of Topeka will ask for
re-hearing of the Southwestern Bell
Telephone company rate increase case
cause the increase granted by the
court is considered excessive. accord
ing to plans announced today by City
Attorney D. H. Brannaman.
The application for a re-hearing of
the case will be filed on or before De-
cember IT. thirty days after the order
Of the court granting the increase, as
the petition for re-hearing could not
be considered if filed later than that
date.
Square Circle Urges Action.
The action which City Attorney
Brannaman decided to take in asking
for a re-opening of the telephone rate
case was urged by the committee of
four members of the Square Circle
club, which called upon the city at
torney this morning. The committee
has been insisting that the city use its
power in the attempt to protest and
alter the decision of the court of in
dustrial relations in the matter for the
past two weeks. The committee is
composed of H. H. Lewis, W. w. Eden,
F. L. Love1ess and w. H. Shields. The
committee has held that the rate in
crease granted was far in excess of
what the citizens of Topeka should be
asked TO pay
Upon the information you have
presented L think the city is justified
in asking for a re-hearing of the
case" the city attorney told the COM
mittee at the close of the conference.
I'VE will not fail to have the applica-
ton for a rehearing filed with the
court by December IT."
Did you feel that the courts deci-
sion in the matter was what it should
have been?" Lewis asked the city at
torney during the conference.
81 felt that the telephone company
had shown cause why it should have
been granted an increase" the city at
torney replied. II can't say whether
the amount granted is fair or not"
do you think that the city should
ask for a rehearing ?" he was asked.
Possibly So" Brannaman replied.
Discuss Engineers Estimates.
The engineers estimates set forth in
the order of the court were discussed
at length by the committee and the
attorney. with much comment as to
how such values should be found, and
the pointing out by the committee
that after all possible values and work
ing capital had been included in the
courts estimates, a sum of approx
mately $4,000 had betn added as
either going value or good will'' to
the basis for determining the increase
for the company.
'If the telephone company has fig
ured in original cost plus working cap
| ital without depreciation subtraction,
then the amount of going value added
tamounts to 20 per cent and is excess
sive," Lewis said. 'If. on the other
hond, the actual value of the plant
today, or its deprecated value, is con-
sidered, then the going value added
to the engineers estimates is A per
cent and decidedly excessive. In
either case we have a right to pro-
test"
Cites Supreme Court Decision.
The committee cited the well known
decision of Chief Justice Charles E.
Hughes of the United States supreme
court in the appeal of the New York
public service commission in the
Brooklyn Burroughs gas case, allow
ing only 4 " per cent going value
| The case is similar enough to COM
pare in detail with the telephone rate
| case, committee members pointed out,
stating that a 20 per cent or "A per
cent going value in the local case
, is manifestly unfair, according to the
best legal judgment in the country.
| Twenty Per Cent Increase.
| The court order allowed the COM
pany a 20 per cent increase in rates,
| effective December 1. The rate in
| crease makes residence telephones cost
$500 per month, where they had for
\ merly been $2.50. 1t sets the rate OF
business telephones at $500, rather
than $500.