The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-06-24
Opinion of Utilities Commission
Affects Service Charges.
Decision Handed Down Follow
ing Bitter Court Fight.
|ELL co. CONSIDERS APPEAL
Ordered to ReinState Rates in
Force Before Hearing.
Four Glass Exceptions in
Arkansas City and Winfield.

In an opinion today by the public
utilities commission, twenty-six of the
thirty classes of telephone service
charges for the towns of Arkansas
City, Atchison, Eldorado, Hutchinson,
Winfield and Lyons are denied. The
decision was handed down following
bitter fight in the courts regarding
hearing of the cases and establishment
of rates. The Southwestern Bell Tele-
phone company is bitterly arraigned
for so called moral perjury" and "a
bold attempt to deceive the public in
the opinion written by Clyde M. Reed.
chairman. Bell officials today consid-
cred an appeal to the supreme court.
The order from the state commits
sion orders the Bell company to re-
instate rates in force before the hear
ing. The four class exceptions in
clude: Arkansas City and Winfield,
where individual business rates were
increased from SO to $3.50; Atchison,
where individual residence rates were
advanced from 50 to $2.25, and Hutch
inson, where switching rates were in
creased from so cel4ts to rs cents.
Twenty-six additional class rate in
creases sought by the company were
denied.
Affects Six Towns.
Decision in the cases affecting the
six towns follows a bitter fight be-
tween the Bell company and the state
commission. The former court of in
dustrial relations ordered wage in
creases for employees of the Bell COM
pany in the towns. When the Bell
company asserted that an increased
rate would be necessary to meet this
expense, the company was advised to
file an application. The application
was filed but no hearing was held. In
consequence the company went before
the district court of Shawnee county
where it secured restraining order
against placing the new rates in eff
feet.
When the Hutchinson rates were
ordered in operation, the Reno county
district court enjoined the advance.
Judge Fairchild severely criticised the
former industrial court and public
utilities commission for playing poll
tics in the rate case.
Much Severe Language.
In the opinion today, there is ample
severe language to offset any feeling
remarks which may have been pre-
viously made in the case. The Reed
remarks are a severe indictment OF
the good faith and fair public policy
of the Bell company as well as con-
demnation of testimony presented in
the recent hearing.
1.-THE difference between the sworn
testimony offered by the witnesses for
the Southwestern Bell company and
the careful analysis made by actual
tent engineers and accountants for the
commission is startling" says the
opinion. "It represents the difference
between a studied and systematic ef-
fort to deceive the commission, the
public and in turn the courts, and ar
honest effort to ascertain the facts
From 81 to SO per cent of the traffic
expense of each of these exchanges IL
chargeable to toll business, yet nc
mention of such a thing was made by
the witness for the company. Aside
from the bold attempt to deceive the
public, a public utility should have
more respect for general morals thar
to require its employees to debaucf
| their manhood and stultify their con.
science by fathering such testimony
under oath as was presented in these
cases.
Charge Misrepresentation of Facts
In their pleadings the Bell official,
had shown by exhibits that the 1921
losses at the various stations were a.
| follows: Arkansas City, $9,0S3; At
Gibson, $11,221; Eldorado, $11,195
Lyons, S6,517; Hutchinson, S22,044
| and Winfield, $12,380. The commits
| sion charges that this was a misrep
resentation of fact since no allowanc,
was made for toll returns.
Instead of a loss the commission
| charges that a profit was made il
/ operation of the stations where in
creased rates were sought.
i Show Big Profits.
| In an estimate based on reports b,
| its engineers and accountants, tn,
| commission declares profits of tn,
company at the various stations to be
Arkansas City, s24,519.79; Atchison
| $34,860.21; Eldorado, $19,9S47S
/ Hutchinson, $59,3S2.4O; Lyons, So,
| 005.65; Winfield, s17,30s.17.
| 1t Is also charged by the commits
sion that the Bell company has failed
to develop its business or to use it
entire means in development of tn
telephone industry. 1t asserts that rec
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