Capital journal. (Salem, Or.) 1919-1980, 1921-08-17
Expense OF
Reheariing
Broached
Request for Informa-
tion On Company's
Expenditures Precip-
itates Lively Clash


the telephone users Of Oregon?
This is a question which, ac-
cording to Attorneys Tomlinson
and Cousins, representing, respec-
lively the city of Portland and
farmer patrons of the Pacific
Telephone company, the patrons,
who must ultimately foot the bill,
have a right to have answered.
The question arose when Cous-
ins, cross examining e. T. BUS
selle of Salem, consulting engineer
in the employ of the telephone
company, asked Busselle how
much the company had paid him
for the preparation of a volumin-
Gus exhibit introduced by Bus
selle comparing costs Of materials
paid by six independent telephone
companies buying in the open
market with the cost of the same
material If purchased from the
Western Electric company from
which the Pacific company secures
all of its supplies.
Says Patrons viii Pay
"The expenses incurred by the
telephone company in preparing
for and conducting this rehearing
will eventually come out Of the
public who have right to know
in detail just what this expense
is,' declared Cousins insisting up
on an answer to his question. I'VE
insist that the company has been
extravagant in its expenditures in
preparation for defeating the
commission in this case. Expense
is one of the important elements
In this rate case and we propose to
go right down the line and find
out whether or not the telephone
company has been judicious In Its
expenditures or not"
II had intended asking that
same question, declared Attor-
ney Tomlinson.
Attorney McNary for the tele-
phone company was on his feet
with a protest.
Request 0verruled
"No expense incurred by the
company In this case figures In
the rate base upon which the rates
granted by the commission are
based. We have no objection tt
giving these figures to the com
mission If 1t desires to know but
we do object to giving them tt
Mr.. Cousins who asks for then
only through curiosity. We are
not asking the city Of Portland tc
tell us how much 1t is spending In
this case, neither are we asking
the clients OF Mr.. Cousins how
much they are paying him In this
case"
After a hasty consultation be
tween members Of the commission
1t was ruled that any stipend
which may have been pa3 t.
Busselle for his services could
not possibly be great enough t.
have any bearing on the rate
problem and the commission
would therefore not require hin
to answer. An engineer was en-
tilted to some protection in hi
relations with his employer, 4
was held.
At this Tomlinson arose Il
move the telephone company b.
required to prepare for the com
mission a detailed statement o
its expenses incident to the pres
ent hearing.
McNary moved that IL the tele
phone company be required t
prepare an expense statement thu
other side Of the case be required
to do likewise.
Equipment Costs Differ
If independent telephone com
panies operating in oregon II
191s-1s20 had purchased thei
supplies from the Western Elec
trio company under the same con
tractural relations which the Pa
cific Telephone & Telegraph com
pany enjoys with that concern
they would have saved "a percen
in their actual expenditures TO
telephone supplies.
This is the showing made Il
exhibits introduced by Col. c. I
Blanek, special engineer for tn
. telephone company. Blanck's ex
} hibit compares actual expendi
lures for supplies made by six in
dependent companies in Oregon
with the prices at which the Pa
cific company could have pur
chased the same materials unde
its contract with the Westerl
Electric company. The saving un
der the Pacific company's con
tract is shown to run as high a
141 percent on certain material
while on other materials It !
shown that the independent com
panies purchased to better ad
vantage In the open market.
\ Blanek's exhibit was intro
; duced to refute statements to th
: effect that the Pacific comDan
$ was paying exorbitant prices 10
a It's materials from the Westerl
--r-.s-rn oornuorr
! Dana C. Acuff OF McMinnviIl'