Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1933-07-20
PHONE RATES
INVESTIGATED
Attorney General PeterSOn'S Office Is
Doing Good Work Toward Get.
ting Reductions.

Attorney General Harry H. Peterson
and Deputy Attorney General F. A.
Pike are waging a splendid fight in
behalf of the people to secure reduc-
ton in telephone rates in the state.
| For several weeks the Attorney
Generals office has been busy before
the Railroad and Warehouse Commits
sion showing the injustice of the pres
ent rates charged by the Tri-State
Telephone company in the city of st.
Paul. The same charges of high
rates that apply to st. Paul apply
equally we'll to other cities and COM
munities served by the Tri-State
company.
The fight being waged by the Attor-
ney Generals office is based in the
main upon an investigation made by
| D. F. Jurgensen, chief engineer of the
railroad and warehouse commission.
Mr.. Jurgensen completed valuation of
| the Tri-State company's properties in
the cities of st. Paul, Rochester, Owa-
tonna, Caledonia and Saltwater. His
figures and testimony are abundantly
supported by proof and stand as a
prima facie case against the tele-
phone company in the record made
at the hearings before the railroad
commission.
What Testimony Shows.
Here is what Jurgensen's testimony
shows:
! l. Telephone rates in the city of
st. Paul could be reduced at least
25 per cent and still give the COM
pany net return of approximately
| s per cent on the present fair
value" of the property which it de-
votes to the public service.
2. A 25 per cent reduction would
also allow the company to pay all its
fixed interest charges on its outstand-
ing bonds; pay per cent on its pre-
ferred stock, and yet provide the COM
pany with a 11.64 per cent return on
the par value of its common stock.
| 1t is on the basis of the above in
formation supplied by Mr.. Jurgensen
that the Attorney Generals office has
appealed to the Railroad Commission
to bring about relief to the patrons
of the Tri-State company.
Just what our commissions decision
in the case will be is difficult to pre-
dict for it must be borne in mind that
much of the delay caused during the
past three years was due to the utter
failure of Attorney General Benson
to perform. 1t was not until the
Farmer-Labor Attorney General took
charge that action in the matter was
had.
Public Ownership Solution.
1t is doubtful whether any public
utility company is more extortionary
in it's charges than is the Tri-State
Telephone company and other sub
salaries of the telephone trust What
is required as an ultimate solution
of this problem is government owner
ship of long distance lines and mum
icipal ownership of the local tele-
phone system.
In this connection it is of interest
to note the charges for similar serv-
ice rendered by the Garden Valley
Telephone company, a comparatively
owned company serving the people in
the Northwestern part of the state.
Rates Compared.
Let us compare the charges at Gale
donia now served by the Tri-State
company with the charges of the Gar
den Valley company at Mcintosh:
One Party Line-business Caledonia
1925, Mcintosh $500; residence, Gale
donia $3.50, Mcintosh $3.50. Two
Party Line-business, Caledonia $2.75,
Mcintosh $1.75; residence, Caledonia
l$1.25, Mcintosh slips.
Residence rates at the two points
are the same, while the difference in
charges for business phones amounts
to $1.25 per month for a one party
line and $1.O0 per month for a two
lparty line. The Garden Valley COM
lpany also affords its patrons still
lower rate where four party line is
used. No such service as that is af-
forded by the Tri-State at Caledonia.
Distribution of Profits.
The Garden Valley Telephone COM
pany has now been in successful oper-
alton for many years. During the
Years from 1920 to 1892 there has
been no increase in rates. At the
same time the properties of the COM
lpany have increased in value from
I$159.353 in 1920 to $313,913 in 1892;