East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-02-28

increase in telephone ra;es, Minnesota
and Oregon being the last TO follow
the of the Federal Government in es- I
taHl.shlng increased telephone rates in ]
November, 1918. The Comm ssions of +
the latter states insisted on being per- +
m tied to regulate telephone rates .
within the states mentioned and as n /,
result, telephone rates have been held
down during Il period Of tWo years
while all other states experienced Il
very substantial increase. In Mime
sofa the Commission. on February 3,
1871, denied an increase on the ground
that inadequate service was being rem
dered. An appeal to the Federal
| Court was had, and that Court on
March II, 1921, overruled the Mime
sofa Commission and permitted the
/ increase. while the Oregon Comm s.
sion, on February 2S, 1921, appreCiat-
ing its responsibility to determine the
}accuracy of the revenue of public utiii-
ties generally within the state, (said
/ responsibility having been sGlemnly
4 placed upon the Commission by law.D
rather than shrk this duty, as mani
Tested by the record, granted in in
crease uninfluenced by any other con-
sideration whatsoever, which even
now aROws less than four per cent re-
turn upon the capital legitimately in
vested in the service of the public,
thus, in effect, compelling the tele-
phone company, should it desire Il
greater rctltrn to reduce its overhead
and operating expenses.
An Appeal from this Commissions
order to the Courts is provided for by
law in the event anyone thinks entire
justice has not been done. 1t shoula
be borne in mind that capital invested
in II regulated public utility differs
vastly from that invested in private
enterprises. The former is limited as
to its earnings to the basis of a fail
return upon the fair value of its prop
erty, while there is no restriction as tC
the amount of earnings of the latter
Further, private enterprises may make
n higher rate of return during one
year than a public utility would b,
permitted to earn in many years. If q
utility is to he held down to a fail
and reasonable return, does ii not
stand to reason that its earnings
should lie held up to that standard
when neither in 10y nor equity car
require its patrons one year to pay
sufficient rates to make up deficit!
occurring during another year?
The statement that decline 1t
rates might reasonably be cXpccte'
with the general fall of prices is cor
rect, provided rates had previously ad
vanced with with advancing costs
This utlitp went through the war per
iod without any increase in rates, and
as the record shows, at Il great los;
, to the company. wages having advanc
, ed 100000 per annum. Further thi
, Commissions order was contngen
upon the cXpCditure of five millions .
dollars of new capital in this state
Approximately one-half millions ha
, ! already been expended in new plant tt
, take care of the growing needs o
many communities This new none,
is not received from the increased
, rates as is commonly supposed, 70
that would ne manifestly unfair to tn
! public, hut is entirely new capita
-, which CODES from without the state.
g., Under my oath Of office as publ
q official | NUT re governed by princi
y rles of equity and justice.
=, II. II. COREY,
= Public Service Commission of Oregon