Evening star., 1932-01-12
HOTEL PHONE CALL
CHARGE IS FIXED
Limitation of Two Cents on
Service Ordered by Wis
consin Commission.
BY GEORGE e. DoYING.

A limitation OF 2 cents as the service
charge by hotels to their guests on each
outgoing long-distance telephone call
has Just been ordered by the Wisconsin
Public Service Commission, 1t has oeen
learned here, and the action Is believed
20 have established precedent
The order is applicable to all hotels In
cities of the first class which cater to
transients, maintaining a telephone
switchboard with 24-hour service and
a station in the room of each guest.
The action was taken as result OF
an application filed by certain hotels In
Milwaukee asking the commission 10 IN
crease the existing lawful rates OF the
wisconsin Telephone Co. and to pro-
vide Just division of the charges pc
tween the hotels and the telephone
company.
Inquiry Is Held.
The hotels and the company reached
nm agreement that the former mlght
assess a service charge OF 10 Genus on
toll calls from guest rooms, the cnaIge
for local calls being cents, ana the
felephone company was to receive
cents per call in either case. The pre-
ent scent charge is divided eQually pc
tween the hotels and the company, Ihe
commission, IlO"CNClt Woo INV SS'S@A1NNN.
with this arrangement and instituted an
investigation of its own.
I'VE are definitely committed, SAID
she commission, Ito the policy that out
side telephone service to and from
hotel is public utility service, the
scharpes for which must be established,
has for any other utility service, with due
Regard given to the cost OF furnishing
Ahe service.
" I'VE will therefore first establish from
fhe record the reasonable cost TO the
hotel of furnishing telephone service.
yThis cost must then be allocated on
Reasonable basis between outgoing ano
Incoming guest calls on the one hand
kand management calls ana calls enGife-
kv within the hotel on the other. 1t is
Then reasonable. for the purposes OF this
case and without prejudicing for the
future the possibility OF assessing IN
coming calls at their source, to demand
of the guests that they pay in telephone
charges the cost of incoming and out
going guest calls. The other classes OF
calls are distinctly costs OF furnishing
general hotel service and must be
charged accordingly.
Average Cost of Service.
From a strictly theoretical stand
DOlDU, INCOMING GALLO oAIOOAN SoAAJ
share of costs and be charged Tor
separately, since otherwise guest max
ing a large number Of out-calls and
receiving no meals would pay for
service he did not receive. For prac-
tical reasons, however, we believe that
for the purposes of this case substan-
tial Justice will be served by charging
against outgoing guest calls the cost
of both incoming and outgoing guest
service"
The commission analyzed the average
monthly cost of the hotel telephone
service, considering the items Of rental
for facilities, salaries and wages, en-
ployes' meals, stationery, allowances for
disputed bills, etc, advertising, rent,
light and power and interest and de-
probation An analysis of the number
of incoming and outgoing calls also
was made as well as of the inside calls
It was found that the cost of in
coming and outgoing guest calls-aside
from management and interior-com-
Inunication services, which the COM
mission said "are a part of the cost Of
furnishing general hotel service and
cannot be recouped by charges TO guests
for utility serviceS'-are substantially
met by the present local-can charge
of cents and that charge Of 2
cents each on outgoing toll calls, IN
addition to the regular charge OF the
telephone company. would be adequate
TO reimburse the hotels.
Copyright, ls32)