The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-10-04
Phone Officials
Ignore Summons
to Salary Probe
Failure to Appear for Hearing
at Lincoln Arouses Ire
of State Railway
Commission.

Lincoln, Oct. S.-Offcers Of the
Platte Valley Telephone company
and the Wehn Telephone company,
both having headquarters at Scots
bluff, Neb.. failed to appear before
the state railroad commission as the
commission requested. The railroad
commission had asked that they ap-
pear and explain high salaries paid
TO the Platte Valley officials. and the
declaring Of an alleged illegal divi-
dend by the Wehn company.
E. NJ. Morsman, attorney for the
companies. which Is said to be inter-
locking, appeared before the commits
sion and stated that he was filing
formal appearance for the officers.
that the companies had nothing TO
offer in the way OF explanation and
that although they were unable to
determine whether the summons was
meant for the companies or for the
individual officers of them, they were
willing to comply with any legal
proceedings or investigations that
the commission was authorized to
make"
Say Salaries Exorbifant.
The Platte Valley company had
been cited TO appear to show cause
why "exorbitant salaries" should not
be readjusted out of fairness to the
30ss subscribers of the company. The
commission charges. through its
counsel. Hugh Lancaster, that Off
GERS OF the company receive. per an
mum. s97, ,707.50. figure which is out
OF line with salary expenses OF tele-
phone companies Of approximately
the same size.
The commission wants to know il
they are unreasonable and unwar-
ranted and it is desirous OF ascertain
ing what action should be taken
Lancaster entered. as evidence. re-
ports OF the company for the past
four years. applications to sell stock,
and reports OF salaries paid in other
companies. To all of these Morse
man objected as immaterial and ir-
relevant. it being his contention that
the commission has no right TO distate
salary figures.
His point OF view aroused the wrath
OF Commissioners Browne and Ran
dayy who demanded to know II Morse
man thought public utility companies
had a right TO pay out large sums 10
ther officers and then come 10 the
commission for a rate increase in or.
n a
dividend
Asked to Explain Dividend.
The Wehn company, whose officers
are practically the same as those Of
the Platte Valley company, were
asked TO come before the commission
and explain why an per cent divi-
dend had been declared and s4,SO4.sh
had been paid out in interest when
the company had failed to earn divi-
dend. In its resolution to the COM
pany the commission cited Section 5
Article Y Of the state constitution
which declares that dividends shall
be paid out OF earnings after all oper-
ating expenses and a reasonable sum
for depreciation have been met
The failure Of the officers to ap-
pear was n source of considerable as.
gravation TO the commissioners. Com.
missioner Browne told Morssman that
his clients would have no ground for
complaint against any action Nof the
commission II they could not take tho
trouble TO personally attendn the
hearing. and Commissioner RandayN
stated that in his opinion the officers
had stayed away In order TO hide
facts that would be determined TO
their case.
The commission has insufficient
funds to send an investigator to
Scottshluff, hut Lancaster was en-
powered to pursue an investigation OF
the activities Of W. X. ostenherg Of
Omaha. an officer Of the companies.
In the course OF trip he had al
ready planned 10 make. II was La.
masters contention that ostenhers's =
activities in other lines were so great
that his duties in the telephone com
panies were more or less perfume.
tory.
The officers cited In the resolutions
of the commission are T.. ID. Warner.
w. II. ostcneerg, Il. NJ Carmean, and
Otto Fuerst.