Arizona republican., 1921-11-15
PHONE CO. GETS AN INCREASE IN TIC TOLL RATES

An order signed by a majority of the members of the state corporation commission granting the Mountain States Telephone and Telegraph com pany an increase in certain toll rates was issued yesterday. The order was approved by Commissioners Betts and Johnson. Commissioner Vaughn filed dissenting opinion.
 This matt r had been before the commission since early last summer. It was stated in the application that it was not made for the purpose of increasing the revenues of the com pany though they had suffered deficit in this state, but for the re- moval of a discrimination that, ex- isted in toll rates and to simplify the accounts of the company and make the system in Arizona conform to that of the other states in which the Mountain States operated.
 The order, signed by majority of the commission, finds that the rates under ne increases asked for would add only about S15,000 to the revenues of the company. It finds also that since 1915 the company has suffered heavy deficits from s63,-
 900 that yea. to S35.000 the follow ing year: $45, ,000 in 1917; $112,000 in l5lo, Stt,UUU III F-tsVVO III 4o-O with an estimated deficit of S56,O00 this year, making the total deficit in this state about $360,000. Account,
 too is taken of the increased taxes of the company, ranging from $31, 900 in 1916 to s101, 900 in 1920.
 The order takes note of the fact that the new capital requirements of the company are in excess of s400,-
 900 for new construction,A part of which is already under way. / But | that is mentioned only incidentally and the order states that the pro-
 posed schedule is approved primarily l for the purpose of removing discrim- l ination in toll charges between the
 respective states in which the com pany operates and is in harmony with l charges made for similar service
 throughout the country.
 The schedule does not effect ex- 1 change rates
 The following is the approved scledule:
 From 0 to 10 miles, station to sta- tion, 10 cents
 From 10 miles to 70 miles, station to station, cents for each six miles Over 70 miles station to station, 5 cents for each seven miles.
 The standard person to person, ap- pointment messenger and other class ifications as now in effect apply to the foregoing station day rates and llso standard evening and night rates. all in the same proportion as they
 now bear to rates now in effect. The dissenting opinion of Commis- sioner Waugh. calling attention to
 the hearing that were held on the publication at various points through out the state. mentions that they
 were ex-parts hearings. except at Douglas, wherA one objector was heard. But he says that he does not
 construe the silence of the public
 with respect to the application to
 be consent to the granting of it. It l was the understanding of the com missioner that the proposed increases
 would add ss0,000 to the revenues 1 of the com any. But his chief ob- jection is that the increase having
 been once granteo could not be low
 cred.
 Commissioner Vaughn also dis
 sents from the theory that a public
 utility shout be kept at a certain
 revenue producing point, which he
 admits is a theory gaining a great ! foothold. H objects further on the ground that the company during the war period had granted increases
 both toll and exchange rates and he
 calls attention to the fact that no
 other company operating in the state
 would be benefited from the proposed ! increase.
 Commissioner Vaughn relied upon | certain figures in the tax commission which he said showed that the per | eentage net income of the company | in Arizona in 1920 was 7.93. The majority opinion touching upon that statement says 'It has been | stated that the reports filed by the company with the tax commission
 showed earrings of 7.93 per cent upon | ts invested capital. The evidence
 If representative of the commis- ! ion disclosed that the numerals 7.93' found in ths document on file
 n the tax commission were placed
 here by d representative of the tax
 commission and in no wise related
 O the rate Of return to the company,
 put were figures which showed the