The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-09-09
INCREASE SOON
HERE IN PHONE
RATES EXPECTED
Official Word Lacking as to
Whether Original Schedule
49,. Goes Into Effect
TOLL RATES ALSO BOOSTED
Mandan and Bismarck Rates
Would be Increased Same
Under Schedule
TOLL RATES ALSO BOOSTED

Telephone rates in Bismarck, Man
dan and about 100 other cities and
towns in the state are expected to be
Increased about October as a result
of the federal court decision handed
down in Fargo yesterday, and toll
rates to be increased about % percent.
Three federal judges enjoined the
state railroad commission from pro-
hibiting the Northwestern Telephone
Exchange company and the North Da-
kota Independent Telephone company
putting into effect the proposed in
creases. Bonds were required from
the companies and If on final hearing
the railroad commission is sustained
rebates must be made.
Proposed Increase
The present rates and the proposed
rates in Bismarck and Mandan are the
same, as follows:
Present 1-party business, $3.50;
2-party business, $500; 1-party res
idence, $500; 2-party residence, none;
4-party residence, $3.50.
Proposed 1-party business, $3.50;
2-party business, 1915; 1-party res
idence, $2.75; 2-party residence, $3.50;
4-party residence, $2.25.
Under the schedule which the North
Dakota Independent Telephone COM
pany filed months ago setting out the
proposed increases it was estimated
that the increased revenue under the
higher rates in Mandan would be $6,-
362OO annually and in Bismarck, $14,-
251.0O annually. The estimated re-
turn under the new rates for deprecl-
alton and profit in Mandan was es-
timated at 3034 per cent and in Bis
marck, 1893 per cent.
The trunk exchange rate would be
increased from $3.50 to $3.50. The
switching rate for mutual farm lines
would be increased from $3.50 and
$500 a year to $500. The increase for
farm lines operated by the companies
would be generally about 80 cents a
phone per month.
The proposed rate in Mandan, Bis
merck and some other cities were
objected to by the railroad commits
sion majority on the ground that these
cities were being penalized by high
er profit than is justified being ex-
acted to make up for losses occasion
ed by operation of some exchanges IN
very small towns at loss.
Expected Oct. l
No word has been received by the
telephone company here as to whetner
the increase asked will go into effect
or when, although the increases are
exnected to be made about OCTOBER
/.
Under the proposed schedule of in
creases the 1-party business rate III
Fargo would be $500: in Grand FORKS
$3.50. The 1-rarty residence rate IN
Fargo would be $500; in Grand FORKS
$2.75. ..'-. ~
The decision was rendered by Judge
Kimbrough Stone of the United States
circuit court OF appeals and Federal
Judges Charles F. Amidon and }. W.
Woodrough. The case was argued be-
fore the three jurists Wednesday.
As a result of the decision the TWO
telephone companies may now put IN
TO effect the increased rates, as out
lined in schedule presented to the
state railroad commission in August,
1920. The court further ordered that
the companies give bond to insure
nayment of the extra charge to pa
irons in case the decision is carried 10
The United States supreme court and IS
there reversed.
Rail Board Admitted Need
When the telephone companies
the Northwestern Bell and the North
Dakota Independent, asked the state
railroad commission for authority to
increase rates, the majority members
of that body handed down a decision
denying the increases, admitting, how
ever. that an increase was justified.
The refusal to grant increased rates
was based on the theory that other
industries had been obliged to take
losses. hence the telephone companies
also would be obliged to accept flnan-
cial losses.
It was the refusal of the railroad
hoard to grant the increase that re-
sulted in the companies making ap-
nlication to the federal court for an
order restraining the railroad com
mission from interfering with them
in rutting the higher scale or rates
arto effect. The courts order does
enioin the railroad commission from
interfering with the companies III
establishing higher rate.