The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-12-21
U. S. Judges Will
Decide Today
on Phone Rates
Hearing of Injunction Suit
Against State Commission
Completed Last
Night.

Decision in the Northwestern Bell
Telephone company's suit to enjoin
telephone rates ordered by the state
railway commission. effective January
|, will be answered by Federal Judges
Robert L. Lewis, r. c. Munger and
J. w. Woodrough at 10 this morn
ing.
The state railway commission re-
Gently issued an order cutting out the
10 per cent surcharge on telephone ex-
change rates. The order left the North
western Bell company's other rev.
enue practically unchanged. Removal
of this surcharge deducts about $780,
600 from the company's revenue a
year, 1t was stated
Would Increase Rates.
The Telephone company. in its ac-
tion, seeks not only to enjoin this
order, but to get permission to estab-
lish increased exchange rates.
II. G.. Taylor. chairman of the state
railway commission, in defending the
commissions order. argued that the
operating expenses of the Northwest
ern Bell company are higher in Ne
braska than in any of the other four
states in which the company operates.
He said the commission has ad-
vised the company to reduce it's op-
Grating costs in Nebraska, that he be-
lieved the company would not do so.
and that this decrease should make
up any possible deficit in earnings.
Experiment on Switching.
"eW allowed the company to pay
the American Telephone and Tele-
graph company. its present organiza.
ton, about $200,800 year, for the
purpose of making experiments" con-
tinued Mr.. Taylor. Now the machine
switching system has been installed in
Omaha at an additional Investment of
100000 and the people of Nebraska
are paying for the experiment, rather
than the American Telephone and
Telegraph company.
The state railway commission has
always stood ready to guard the COM
pany's rights, and if at the end of
a period of months, the company
shows the need of more revenue; that
1t can't reduce operating costs, we're
ready to make an order which will
bring relief We are of the opinion
that the company will find relief, not
more economical basis of operation"
Charge Expense Different.
e. M. Morseman. jr., attorney for
the telephone company, argued that
the operating expenses differ in diff
ferent localities. He denied that the
machine switching system is an ex-
pertinent, declaring it a great step in
the advancement of telephone eff
cheney. Touching on operating ex-
penses, Mr.. Morsman quoted an au-
thority to show that wages would not
decline greatly in the next two years.
Presiding Judge Lewis tried to get
an agreement between the opposing
counsels shortly before the hearing
began yesterday morning. SO that a
master to arrive at new rate sched-
ule could be appointed. Failing, he
expressed a desire to leave for Den
yer last night, and insisted that the
case be cut as short as possible.
Rail Decision Today.
Attorney Morsman argued the case
for an hour, Chairman Taylor for
about 10 minutes and Earl M. Cline
of the attorney generals office for
about the same length of time, before
an adjournment was taken at 7 last
night. No recess was INDUCED in un-
til the late adjournment, but Judge
Lewis decided it would be necessary
to remain in Omaha until today.
A finding on the Burlington North
western Omaha railroad tax injunc-
ton suit also is scheduled to be
made by the judges this morning.