The Birmingham age-herald., 1923-03-18
EVERY TELEPHONE. USER INTERESTED. IN PROPOSED GUT
Service Commission Hopes by Informal Conference to
 Reduce Phone Charges
STATE CAPITAL BUREAU I
 THE AGE-HERALD ! Mont tgOmcry, Ala, March 1S

vice commission and representatives of the Southern Bell Telephone and Telegraph company, which have been held during the past two weeks in an effort to agree on q schedule of tel ephone rentals (Which will be lower than the preeent schedules, have formal case coming before the com- mission in many months.
 The telephone company touche- greater number of persons than any ether public utility. 1t is the one company which is furnishing a ser vice to practically the entire state. And communications from various sections of Alabama indicate that the people are watching the negotia- tions with more interest than those involving any other case.
 Members of the comission today expressed the hope that the informal conferences will be productive of re- suits and that an agreement may be reached which will give the users of the telephone a reduction of rates and at the same time will give the company a fair return on sthe in yestment.
 Many Issues At Stake.
 But the negotiations cannot be concluded in the immediate fntn' Many issues must be threshed out. It has been pointed out that the law of Alabama guarantees public util- ity a fair return on its investment. This was necessary, according to members of the commission, because the state requires public utility private business, public utility !, cannot quit if it is losing money. It cannot operate when money Is pour ing into its treasury and quit when business is bad and expenses are not being paid. In fair weather and foul, it must furnish a service which will meet the approval of the peo- pie and of the public service com mission. which is charged with the duty and responsibility of seeing that this service Is given.
 Before the public service com- mission can force the telephone company to make a reduction in rates it must be satisfied that the new rates will give the utility a fair return on its investment. The commission. at this moment is try ing to determine whether or not a 2 reduction can be given without inn pairing the finances of the com paEy.
 Must Get Fair Returns.
 Members of the commission today pointed out some of the burdens which are before them in the nego- tions with the company. First. the commission is required by law to allow fair return on the invest ment. The commission would not have authority to make rate so low as to prevent the company from O. taining this fair return. If such a rate should be established the utility could go into the courts~and obtain an injunction preventing the en- forcement of the commissions order. This would leave the issue in the position which it occupied when tn. negotiations were started. r
 Before any order can be issued the commission must have evidence to satisfy itself that there is evidence to support it. The gathering of this evidence would take many months and a great expenditure of public funds is the case of the telephone company 1t would be necessary to go into minute details regarding the cOmpany's business in Alabama and an. investigation of all books and records of the company would be into informal negotiations with the company in the hope that this time and expense could be saved. Ss
 The commission will determine what the company is willing to do before issuing any formal citation.
 
 the commission to require the com pany to present it's books and papers and to justify the rates which are now being charged. If the informal negotiations do not produce an agree ment between the commission and pected. Understanding Sought.
 citation would mean many nwpth oA SS~~x ~~<-- q A delay reduction in rates until the latter part of this year at least. It would be necessary for the commis sion to set the case for formal hear ing, giving the company and citizens involved reasonable time in which to prepare their cases and to submit their evidence. After all evidence had been obtained attorneys for both sides would be allowed time to pre- pare their briefs and after all briefs had been received and oral Qrgu- ments made. the commission would During the time the commission was considering the case it. would be necessary to read the transcript, showing every sentence of testimony and every exhibit filed.
 With all these facts, 1t may be un- derstood why the commission Is hope- ful that an understanding may be reached without formal citation.
 If the telephone company should request a valuation of its property permits public utility to request a valuation of its property and to have schedule of rates based on this Yal- uation. It also permits the public service commission to order q valua- tGn Mtbop of the pT0perty 9f E. utility hy utility asks for the valuation 1t must pay the expense. If tho commission orders the valuation the state must bear the expense. stt |s es E 7s.
 A valuation of the property of tho graph company would take many months. as it would be necessary for. \ the commission to send it's engi- neers and examiners into practically every city and town of Alabama and into the offices of the company. g Commissfon's Policy.
 The negotiations of the commission with officials of the company are in line with the policy established when the new commission was inaugu- rated January 15. An informal docket is being established. On that docket will be entered cases which the com. mission believes can be settled by agreement. thus saving the expense case formally docketed. If agree n1ents are made no citation will be issued to the utility. involved to come before the commission in a formal way. If TO agreement is reached and the commission is not satisfied that the operations of the utility. either in the way of service or charges. are not proper, formal citation may be issued and the company brought be- fore the commission for an >investt- gati2n. .<.a
 FRUIT UNINJURED