Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-01-04

questions had to do with the relittl'iS'llp
of the Indiana Bell Telephone company
to the American Telephone and Telegraph
Company, the finances Oh lhe lp'''aI,''
company and unifcatiou plans and re
suits. 80, .,,.
In setting out its relationship with the
,,,-,,+ ,ornnauv the Indiana company
said: a..
..Tba petitioner has "a contract with me
A n and z. Company, pursuant OF whI'h
tbara is paid TO the A r. and j. tom
many. roughly speaking, A.. per cent "I
tbe petitioners gross revenues IN inc
rrasent0tiop of this ease, however, the
financial statement will not show III the
exnanse account a credit for the payment
of any nprcentage Of gross income, bus
instead thereof the fiat sum Of SloS per
set Of Instruments rented. This credit
is taken pursuant to the provisions oil 'u
order of the commission dated rem. ~
1920. i'm which order an allowance was
made Of S1.0S per set to cover approVI-
mately the rental value of transmitters'
receivers and induction coils leased I"
petitioner and services directly incidental
thereto and includes nothing for general
services or other benefits received.
COMPANIES CONTRACT
HELD NOT MATERIAL.
For these reasons the petitioner has
not thought that the contract between
the two companies is material in the
present hearing Of he petition Tor temp
orary emergency rates weere no credit is
claimed in the expense account for an
amount greater than the allowance al
ready made by he commission. At the
hearing Of its petition for permanent
rates the petitioner will claim he right to
take credit in its expense for the fun
amount Of payments required TO be made
under said contract as an obligation law
fully assumed by The petitioner in the
proper exercise Of its functions in The
management Of its business The contract
and its provisions aud the services per
formed it may then become issues to he
presented and determined, but they
should not be made issues in this hear
ing"
In answer 10 a question concerning tho
reduction Of Labor and material costs the
company stated there have been prac-
ticalIv no reductions. Il also stated that
it does net expect TO lose any sub
scribers through the new rates except
those who now have both tclcL ZONES.
REFUSES AUTOMATIC
RATE PROPOSAL.
Mr.. GrGniunin2er made proposal 10
the company at the outset Of the hear
ing in which he asked that the auto
matte be increased to the level of the
present manual rates and the hearing
continued in order that the situation
might be more carefully studied. He said
he believed this would obyiate the neces-
sity for emergency rates. The company
promptly refused.
Mr.. Davidson made n statement recit-
ing the history of the telephone compa-
MES and setting out facts that were
shown in the answer to the citys inter
rogatory and in the petition.
The first witness called was T. r.
Reyes, general auditor of the company
who presented the statement concern
ing the financial condition Of the com
papy.
In these figures the total estimated
revenue for year Of both automatic and
manual service was placed at S3143,-
1858 and the total expenses at $3324.-
4262G, leaving the deficit Of SlSOGJ7.13
The total valuation of both properties
was placed at Slt 90. $500 The com
mission stated in an order some time