Daily Kennebec journal., 1925-09-18

unsettled conditions that would re-
suit from drop In price leVers'
Commercial Manager Testlfies
General Commercial Manager
whitney. who is at the head of the
commercial department of the New
Eng. Tel. ta Tel. Co, and which de-
partrnent develops the rate schedule
of the company, said he has been IN
the telephone business about ~
years, and has been associated with
numerous telephone compa n e
throughout 1.-The country. particularly
in connection with their rate prob
lens.
Seven Fundamental Principles
There are seven fundamental prin-
ciples underlying the preparation OF
a proper telephone rate schedule, ne
said. These were described by the
use of an exhibit, and an example
of the application of each was CIV
en-. The seven fundamental princi-
pies were stated as follows:-Q)
An equitable distribution of charges
to patrons according to the value of
the service received. (2) A contin-
ued development Of the telephone
business. CD A maximum telephone
service per dollar paid by the pat
ron. (4 A proper total revenue for
the company. 60 A selection of units
for the service that are adapted to
the requirements of the patrons. (6)
A protection of the service. CD A
simplicity of administration.
Development of Proposed Rate
Schedule
The development of the proposed
II J0y.
consideration by the Commission
was conducted by a committee, of
which Mr.. Whitney was chairman,
and involved several months work.
In order that the work might be
conducted thoroughly and expedi-
tiously, the Maine schedule was di-
vided into three parts: the first
part covering the main station SER
vice-that' is, the ordinary residence
or business telephone; the second
part covering toll service; and the
third part covering miscellaneous
classes of exchange service-such as
extension service, private branch eX-
change service, etc.
In connection with the part of the
schedule covering the main station
service In Maine. exhibits were pre-
sented showing general telephone in
formation and the growth in sta
tions and poulation among the vari-
Gus Maine exchanges during the past
Is years, indicating a growth in
population in the Maine territory
served by the New England Com
pany of about s percent and an In
crease in telephone and stations OF
about $50 percent.
In connection with this part of
the schedule an exhibit was pre-
sented showing the chart which the
committee used in developing this
part of the schedule. This chart in
dicated all services now being fur
nished and the rates therefor. Ad-
iacent to the present rates were
shown all the proposed rates. 1t al
so showed changes in the rate
structure where some classes of
service had been withdrawn, pr1-
marily for the reason that there Is
little demand from the public Tor
such service. Some new classes OF
service also have been established
in order better to provide for the
requirements of the Maine patrons.
The Maine exchanges are now ar
ranged in eight groups. all exchang-
es in a given group taking the same
rates. On account Oh lne STOWtu III
the Maine exchanges. the new sched-
ule is arranged on the basis of the
number of stations in the different
exchanges. This re-arrangement OF
the exchanges has been made neces-
sary on account of the extreme va
ration IN the growth of the differ
ent changes-Portland, for in
stance, showing a growth in stations
during the last 10 years of 16S per-
cent, from approximately 5000 sta
tions to over 21,000 stations. This is
one of the rapidly growing exchang-
es. Throughout the state the growth
varies, to the little Searsport ex-
change which las shown very
small growth, having 105 stations in
1910 and Ill stations at the present
time. BY re-arranging the ex-
changes on the basis of their pres
ent stations, the proposed schedule
not only provides for the increased
revenue which the company requires,
but also provides for obtaining it in
the fairest way possible. Mr.. Whit
ney said.