The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-08-13
PHONE RATE MOVE
UP IN u. s. COURT
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the rates asked by the company.
The average difference would be about
60 cents a subscriber. although in
some instances the difference would
be only rs cents, il was stated.
Exception was also taken to the
fact that the commission s order fixed
the rate OF depreciation on various
classes of the company's property.
Says Power Is Usurped
Power to do this rests only with
the Interstate Commerce Commission,
1t was asserted. The rate of depreci-
alton fixed by the commission was 4
per cent on a book value of s29. $780,
e54.12 on April 80, it was stated. The
proper rate should have been Sos
per cent. the complaint said, which
meant that the company was en-
titled to $500, 900 more depreciation
than was allowed It by the commits
sion.
The suits We're filed by William II.
Thompson. attorney for the company.
Taylor E. Groninger corporation
counsel for the city. said the city will
take no further action in the case.
He declared. however. he was not
satisfied with the order.
The valuation found by the COM
mission still is too high" he said.
THE minority report of Commissioner
John w. McCardle which says that
under proper operating condidnos
present rates are sufficient. is the
meat OF the cocoanut That state
ment expresses my sentiment"
Demands Cut in Half
The order gives the company in
most cases approximately half Of what
It asked for 1t was signed by four
members Of the commission. Chair
man John w. McCardle dissenting on
the ground operating expenses are too
high.
Among other things, the order
authorizes a four-party line residence
service in Indianapolis at $3.50 a
month. Individual line business tele-
phones were increased from SO to $40
a month and two-party business SER
vice from 81 to So. Individual line
residence service was increased from
1878 to 81 and two-party line service
from s2.75 to SO.
Measured residence service was
eliminated by the order. The bust
ness rate was increased from SIS for
the first 1870 calls and 3 cents for each
additional call to Sc for the first nine
ty calls and 31s cents for each add.
tional call.
Increases in Other Cities
The commission also ordered sub.
stantial increases in South Bend, An
derson, Kokomo. Vincennes, Elwood.
Frankfort, Crawfordsville, Newcastle.
Shelbyville, Bluffton and Spencer.
Slight increases were ordered In thir-
ty-one other places and slight de
creases in eighteen cities and towns.
Rates remain stationary in Blooming
ton. Evansville, Huntington, Logans-
port, Marion, Muncie and New AL
bany
There was no change in the charge
for long distance calls under thirty
miles. Five cents was added to each
station to station call for longer dis.
lance and Is to 20 per cent was
added to the charge for person to
person calls for a greater distance
than thirty miles.
The commission refused to grant
the entire increase asked for by the
company on the ground the com
pany's valuation was too high. The
company claimed a valuation of SAB
260,S28 and the commission reduced
it to $31, 955,S60, a reduction Of S11,-
304;e63. The commission believes the
new rate will give the company a
s per cent return on the valuation.
The commission also fixed 4 per cent
as q proper rate of depreciation
The company had asked for Cos per
cent.
A. t. and t. Allowance Cut
The commission also cut the al,
lowance to be paid to the American
Telephone and Telegraph Company by
the local company to 81 a year per
station. The company has been pay
ing Az per cent, which is nearly twice
the amount allowed
In the order the commission said:
THE commission Is satisfied that
considerable economy in the opera
ton Of the company's property and
business may be effected
The order was written by Commits
sioner Glenn Van Auken, who pre-
sided in the telephone hearings. Van
Auken has resigned from the com
mission and the writing and signing
of the Bell order probably is his last
important official act.