Omaha daily bee., 1921-12-29
Telephone
Fin a nCeS
Are Probed
Representatives of 7O,OOOSub-
scribcrs Seek to Trace Slt..
100000 Taken From Earn
ings for Depreciation.
Stahstlclans on Stand


Lincoln, Dee. 2S.-(Spccial Tclc-
gram What has become OF Sl4,
100000 taken out of earnings OF the
Northwestern Bell Telephone COM
pany and charged 10 depreciation:
Twenty representatives OF 10000
subscribers OF the Northwestern Bell
Telephone company spent the entire
afternoon cndeavoring to locate the
whereabouts OF that sum at the hear
ing on the application OF the COM
pany for an increase III rates, which
on exchanges alone would net $685.
600 year in excess OF present reve-
nue.
The hearing was held in the senate
! chamber because the ordinary hear
ing room OF the state railway COM
mission would not accommodate tho
crowd of protcstants.
The commission refused to comply
with request of the protesters to
refuse the application OF the company
to continue the 10 per cent wartime
surcharge until a final decision is
reached on the application for perma-
]
an increase over the surcharge now
being imposed. The commission ruled
! that on the showing of the company
at this time decision would be
reached on the surcharge application,
while time would be given the pro-
testers to study and analyze the
showing OF the company for pcrma
ncnt rates before a decision was
handed down.
Show Plant Earnings.
Statisticans on the stand this after
noon presented report OF the plant
value and earnings for November ct
this year. This table showed that
before dividends on the plant invest
ment of the month were made pub
lie, $64,S9598 was Topped off TO
charge against depreciation. THIS
sum, it was explained, was only Ne
braska's share of the regular monthly
depreciation of the entire company,
which encompasses Minnesota, North
and South Dakota, Iowa and Ne
braska.
Pressed as to the total of deprecia-
ton fund on the books at this time,
the statistician said it would aggre-
gate $l4,000,0O0.
what is this depreciation?" the
statistician was asked.
1T represents the consumption Of
our property in giving service was
the reply.
Money Not Spent.
"Now is all of this money spent"
he .,., was asked.
"Where is that which is not
spent:'
Invested in bonds and securities,
no doubt"
Does the revenue from Nebras-
ka's share OF, these bonds show on
your table before u.s."
mo, the table, here is just the
actual earnings OF the physical
plant"
H. A. Livermore was the statisti
clan on the stand.
Quote Parent Company.
Protesters pointed to prospectuses
OF the American Telephone and
Telegraph company, admitted to be
the parent company of the NORTH
western Bell Telephone company.
which, in selling bonds throughout
the country, declared it paid 9 per
cent dividends on stock, while the
Northwestern Bell Telephone com
pany in its application declared it
paid only 4.l5 per cent book divi
Gends on its stock
We'll, in November we paid the
parent company Sl7,2&5l," Liver
more replied
This sum, like the depreciation, is
taken from book earnings, before
the Northwestern Bell Telephone
company made public its 4l3 per
cent dividend
Are you absolutely sure that was
all paid to the American Telephone
and Telegraph company" he was
asked.
The exact transactions between
those two companies are best known
TO administrative heads who will be
on the stand later" Livermore saii.
Question Labor Cost.
Protesters pointed out that the
Lincoln Telephone and Telegraph
company operated for 25 per cen.
lcss/iabor cost because it maintained
a piece work plan-while the North
Turn to Page Two. Column six.)