The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-11-30
Phone Rate
Schedules 5
Re. !, :. ',.;:t.,d '..,sted'
Temporary Order Will Hold
Until Hearing Can Be Held
in Federal Court for
Affirmative Relief.
Contentious in Dispute

gram. Federal Judge r. C. Munger
issued temporary restraining order
against the Nebraska Railway com.
mission forbidding that body 10 put
into effect new rate schedule for
tho Northwestern Bell Telephone com
pany which was 10 become effective
December /. This temporary order
will remain in effect until n hearing
can be arranged before three Judges
when the telephone company will de-
mand affirmative relief from the al
legged conhscatory rates now in effect.
Tho company has filed proposed rate
schedule with the court asking for
approximately 25 per cent more rev.
enue through rates than II obtainable
under existing schedule. and II II
through acceptance Of this proposed
schedule It win seek affirmative relief.
r.. NJ. Morsman, attorney for the
company, told Judge Munger that the
company had never been able to get
everything in tho way Of rate in
creases 1t desired from the commits
sion since 1918.
Revenue Increases.
II have this to say In answer to
that statement" H.. G. Taylor, MEM
ber Of tho commission, said. THE
revenue Of the telephone company In
Nebraska Is 100000 more annually
than In 1918. Not including the in.
crease demand by the company sever.
al months ago. the increased revenue
would have been s1.200,000 annually"
Mr.. Morsman questioned the right
of the commission to specify the per.
centage to be set aside for deprecia-
ton.
"That right was taken away under
the Esch- -Cummins bill which specified
such matters should be regulated by
the Interstate Commerce commission,
and our books are kept In absolute ac-
cord with that tribunals rulings" Mr..
Morsman said.
Mr.. Morsman also served notice on
Judge Munger that when a hearing
"for affirmative relief" was held the
company would prove still greater
on its holdings in Nebraska
than the valuation shown in hearings
before the Nebraska Railway COM
Complain OF Expense.
Mr.. Morsman complained that grant
ing new rates pending the Affirmative
relief hearing would cause much ex-
pense and trouble in the company's
bookkeeping department.
In the next breath he told Judge
Munger that the temporary restrain
ing order he sought contemplated re-
straining the commission from collect
ing new rates pertaining to private
telephones and permitting the tele-
phone company to collect the new
rates pertaining to long distance and
private branch exchanges. The latter
rates In the commissions order are
higher than the present while the pri-
vate phone rates are lower.
Just a moment ago, Mr.. Morsman
was complaining Of the added book
keeping necessary during the short
period intervening until the main hear
ing and now he asks for a portion Of |
these rates to become effective" Mr.. |
Taylor said
Mr.. Morsman made no reply.
No can't do that for the COM
pany," Judge Munger said. "All l |
will do is to grant an order enjoining
Of the commissions rates
until the next hearing
Continuing, Mr.. Taylor gave facts |
and figures concerning the revenues
and costs of operation Of the North
western Bell Telephone company In
Nebraska and in iowa, Minnesota and
the two Dakotas in which the COM
pany operates.
State Expense Varies.
In the four other states the aver
age per person exchange revenue Of
this company is s24.45. while in Ne
braska. 1t is s25.50." Mr.. Taylor said.
THE average exchange expense of the
In the other states Is s25 60 |
while In Nebraska the expense is |
s27s5.
In many of its departments the
books show the expense OF |
operation has been steadily increasing,
while the same departments operated !
by the Lincoln Telephone and Tele- |
graph company and other companies
In Nebraska show steady decrease
Yes, but we get higher rates In |
certain states than we do in Nebras.
ka." Mr. Morsman said.
Six siatistieians sat near Mr.. Mors |
man a. he talked. Corporation coun.
sel Lambert ~ Omaha aided the state
commission,