Capital journal. (Salem, Or.) 1919-1980, 1921-08-27
Rate
ReHleariing i
Closed
Attorneys Briefs to Be
Filed In Lieu Of Oral
Agreement; Review
Of Case Is Costly

rate case before the public service
commission was concluded at 6:45
O'clock Friday afternoon after six
weeks consumed in the presenta-
tion OF testimony Oral arguments
were dispensed with in lieu there
Of both sides will file printed
briefs with the commission.
The city OF Portland, as plain
tiff In the case has 80 days in
which to file its brief Another
rs days Is allotted to the telephone
company for a reply brief and
Portland has 10 days thereafter In
which to file its rebuttal. Taking
everything into consideration 1t
will be three months yet before
the telephone rate payers OF Ore
Bon will know their fate.
Hearing Is Prolonged
The rehearing has been the most
prolonged and the most exhaus-
tive ever staged before the Oregon
commission. Testimony submitted
IN the a3 days will cover several
hundred typewritten pages and
eompetent consideration, Of this,
b0gether with the numerous ex-
Aibits presented by both sides to
the controversy, will require much
study on the part OF the commits
sion before an Intelligent action
can be attempted on an order.
Fridays session was given over
TO the presentation Of rebuttal
Testimony by the city of Portland
and by Attorney Cousin represent
ting various organizations OF pro-
testing telephone subscribers.
Tribute Is Resented
Regardless of whether It Is a.
~ per cent arrangement or 55|
cents per instrument per year, the
ratepayers resent the payment Of
either form Of tribute to the
American Telephone & Telegraph
company
This is the way Major Garrison
Babcock views the licensee rev.
enue as applied to the case OF the
Pacific Telephone & Telegraph
company in the present rehearing
OF the telephone rate case.
Complete elimination of. the SIS
cent license revenue Is advocated
by Babcock as one step toward a
reduction OF rates to the Oregon
subscribers OF the Pacific com
pany. The tribute" as Babcock
termed It, is already taken care
of, he explains, In the value OF the
telephone instruments which Is
figured In as part OF the rate
base upon which the telephone
company figures its returns.
baDcock also advocates an in
crease In toll rates to cover the
actual cost OF this feature. The
losses incurred in toll business
under existing rates, Babcock de-
eiares, are now saddled upon the
exchange subscriber, accounting
IN part for the higher rates to
This class of service. Babcock
ventured the guess that the toll
rates In Oregon might be in
creased as much as 40 per cent.
the increase being reflected in
reductions in the rates To en-
change subscribers.
Loss Saddled On Subscribers
bapcock intimated that the |
Pacific company probably pre-
ferred to operate its toll lines at
Q loss, saddling the loss onto the
exchange subscriber In the hone
Of ultimately killing off the com
petition Of the Postal and North
western companies.
The efficiency of the Pacific
company was also scored by Bah
cock, who had qualified as an ex-
pert telephone engineer. Increased
Efficiency by the adoption or
modern equipment. he told the
public service commission. should
result In reduction OF charges
necessary to a profitable operation
'i the business OF the company.
While Babcock was inclined to
'avor liberal rewards in the form
y lucrative salaries for the tech
lically trained experts of the tele-
none company. he yentured the
uggestion that these experts
night contribute materially to- g
ward earning their rewards by q
'dopting moro modern methods c.
y telephone operation. a
While Babcock was emphatic In G
lis declaration that telephone
ates In Oregon were too high a
nd Improperly adjusted" he ad- 4
nitted that the rates on one and II
wo-party business service ana "
q one-party residence service b
llght not be excessive. AT least W
e explained, the users OF this In
srvice should be willing 10 stand u
or seemingly high rate II II re- m
alted In the extension Of a rate ca
, the smaller user. which would
ncourage the greater use OF the r
'lephone and thus enlarge their A
phere OF availability. Of
Predicts Municipal Ownership "
IL the state regulatory bodies al
hich have been created TO act as NJ
fierce between the utilities and gi
le public failed to function.
abcock declared the "deplorable st
'xt step would be municipal and Of
'rernment ownership" Of the so
lliiies. ca
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