Lincoln County leader. [volume] (Toledo, Lincoln County, Or.) 1893-1987, 1922-10-19
JUSTIFY
INCREASED RATES
FOR PHONE COST
Public Service Commission
Postpones Pacific Telephone
Rate Hearing Until Oct. 70;
Will Prepare Data.

Portland, Oct. 3.--After one.day
stand the public service commission
adjourned the Pacific Telephone rate
hearing for rs days, or until October
26 at 20 o'clock IN the morning, in
order to give the company 10 days
more time to prepare and submit data
asked OF it, and H. NJ. Esterly and
the commissions experts Is days in
which to consider and digest. what
was offered.
But before the commission took its
adjournment two developments, start
ling to the spectators, If not to the
principals in the case, relieved the
mathematical tedium of the day-thc
testimony of Alexander Young and j.
P. Newell, given in behalf Of the tele-
phone cmopany.
Both Young and Newell have long
been associated with the state govern
ment, the city of Portland or the pub
lie service commission at Different
times and during prior consideration
of the telephone rate cases. Newell.
in particular had much to do with
the formulation of the previous rate
decision. Both went upon the witness
st"A' and gave their testimony aB
e. t accountant and distinguished
CT quilting engineer to the effect that
the accounts, records and accounting
system of the company were above
reproach, while Newell contended that
the rate increases given the company
heretofore were not adequate in his
opinion.
Costs Held Reasonable.
Young said he had not found the
operating costs Of the company to be
excessive, but on the other hand the
company was continually trying to
keep these charges down. Nor would
1t be possible to Judge accounts,
Young contended, under the account
commerce commission. and that any
attempt to divert charges from one
account to the other would "necessi
tate collusion from the president
down to the office boy"
Newell testified along the same
line. He said that, in his judgment,
the first increase in rates had not
been adequate nor the second in.
crease excessive. He insisted that
the telephone company could not go
back to the old schedule Of rates and
carry on its obligations of extension
and service and pay expenses. He in,
sis. ed that the return earned by the |
under the increase was not
fail return because 1t gave the COM
pany less than the cost Of money in
the market. The company could not
nave financed any development work |
had 1t been standing alone, he con-
tipued
Witnesses Cross-Examined.
Both Young and Newell were cross |
examined by e. M. Cousin, who dwelt |
a good deal on the fact that Novel;. |
had been paid $50 day for his serv
ices rendered to the public service
and that Young had ac.
quired some Of the information upon
which he now based his testimony !
favorable to the company while in the
employ of the commission or the
city.
During the early afternoon session
N. Wigton. rate engineer for the com
pany. submitted exhibits showing the
of the company. During 1921,
when 10 months under the new rate.
he showed that the total revenue OF ,
the Oregon properties amounted TOD
s5,043, ,463, while the expenses were
$4,71S,852, giving net revenue OF
$324,611, or a net return Of 1.SS per
cent on "a rate base Of $17,313,104.
When the case is resumed on Octo-
ber 26, the company will have pre-
sented all Of the data called for by the
and the hearing viii. then
be carried on to q conclusion.