Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1921-02-06
Z, i2,-PEARTY / LINES
HERE GO FROM
$2 $3.50 MO.
Business Service Lifted
From $4 to $5
Monthly


ATLANTA, Feb. 5. 49, The Geor-
gia Railroad Commission handed
down an order and opinion Saturday
granting the Southern Bell Tele-
phone company authority to revise
it's schedule Of local exchange rates
substantially in conformity with the
petition filed by the company about
six months ago. The new rates are
made effective March l.
The increases authorized by the
commissions order are on local ex-
change service, including private
branch exchanges, mileage revenue,
etc, but the order declines that part
of the petition asking authority TO
increase the rates ona. farmer-lnes,
] as we'll as the installation charges
applied for.
Calculations, according to the COM
pany, made show that TIE rates pre-.
scribed in the order will give the
company a little less than 6.59 per
cent on the actual cash investment
in Georgia, provided all the possible
economies outlined are carried out.
Had the petition been granted ex-
actly as drawn it would have amount
ed to an increase of 18.11-100 per
cent in the total gross revenue in
Georgia under the old rates, it is
said. Under the order of the COM
mission the company gets approxi-
mately $4,000 a year less than it
asked for.
The Americus Increases.
The rates made applicable to Am
CIRCUS are:
Business Individual Line Service,
new rate $500, old rate $40o
Residence Individual Line Service,
new rate $3.10, old rate, $3.50
Residence 2-Party Line Service,
new rate $3.50, old rate $500 \
The five largest exchanges operat-
ed by the company-Atlanta, Macon,
Savannah, Augusta and Columbus
bear 87.7 per cent of the total in
creases granted, while 81 local ex-
changes scattered throughout the
state will bear, combined, 1913 per
cent of the total increase. In con-
nection with the announcement of
the commissions order it is shown
that the decision affects the individ-
ual telephone used in the state but
very little, and in its opinion the
commission recites the fact that the
general assembly of Georgia, in Gre
ating the commission, provides a re-
quirement that it make Just and
reasonable rates" that "the courts
of tfe land, without exception, have
decided that JUS and reasonable
rate is one that affords the utility
a reasonable return upon the fair
valuation of its property used in the
service of the public"
The company'g actual average in
vestment in Georgia in exchange
and toll plants in use, real estate,
furniture, fixtures, tools, teams, etc,
for the year ending July 81, 1920,
is shown in it's sworn statement to
be $15, 5,038, ,349, these figures being
admitted to the commission as sac
tual cost figures"
More Figures
For the year ending July 81, 1920
the amount included for depreciation
equals, at 5,75 per cent, $797634,
the total revenues for that period
being $5,163,A08, and the net return
to the compauy-actual income re-
ceiyed in excess of the expense of
operation, etc, as actually disburs-
ed-equalled $612, $50, which com
puted a return for that year on the
actual cash investment of 4.07 per
cent. This is compared with stats
tics for 1916, when the company
earned upon its investment in Geor
gia Q net return of ga per cent
but since that year, the company
showed it has been unable, under the
existing schedule of rates, to earn a
return Of per cent on its actual
cash investment" The companys
net earning for the four years pre-
ceding 1920 were submitted as fol
lows: in 1916, 6. "A per cent; Il
1917, 6.09 per cent; in 1918, 5.49
per cent; in 1919, 6.49 per cent, anu
last year this dropped to a net earn
ing Of approximately 4 per cent on
"actual cash investment" though il
figured, the company showed, on ''re-
placement cost at the present time"
it would work out below. a net re-
turn of 3 per cent. from the gross
earnings under rates existing at the
time the petition was filed.
Bringing the figures nearer. down
to date, the commission found, it
says, that The company made less
than per cent net on the actual
cost value Of its properties in Geor-
gia "during Che five months preeed-
ing December /, 1920"
Franchise Rates Killed.
A feature Of the commissions or
der IS direction that all municipal
and franchise rates now in existence
that is, all preferential rates-be
n. 4 y