The people's voice. [volume] (Helena, Mont.) 1939-1969, 1951-07-20
the PROPOSED INCREASE In PHONE RATES

the PROPOSED INCREASE I'm PHONE RATES
Mountain States Tel Tel applied to the Public
Service Commission for approval of rate schedule which
be approved its entirety will result in resident
phone jumping much $20 month"; and business
phones, maximum increase of $3.50 per month.
of principal given for MST&T asking for
in 1851 is that the companys earnings
due higher operating COSTS have srunk 20 cent net
or 1850 and before Feb 1851 rate ncrease) on its Mon
properties This 20 the contends is
low attract the outside investment capital for
expansion purposes within the state.
factuaity this latter statement definitely open
to debate 1t has been used time and again by MST&Tand
time again. proven to be only come-on" for higher
tolls According to brief by the Attorney General in
position to the Feb increase MST&T had not offered its
stock the public Stock offerings had been made
ONLY to present stockholders 1867 of the capital stock is
in general circulation and $3.50 held by the parent organ
zation American Tel & Tel.
different occasions since the World
II, the brief continues American Tel TEL has taken full
advantage of the stock offered stockholders for
panson purposes.
There still another point question whether
the telephone needs increase this time
release this points that MST&Ts earnings
second quarter 1851 running annual of just
short of eight million dollars In 1913 1949 the companys
annual earnings 900 for each year those
earnings MST&T paid dividends of S. Sc per
share (83 and oneha cent of which to AT&T AS
utilities because of their favored monopoly position
economic fe Sc per share considered very healthy iv
dend stock having value of $780, Dividends 1850
and before Feb 1851 ncreasewere running at the rate
of S7.36
Mountain that among other things the
has recently increased employe by $4OOOOO
per year. that this important for higher rate
schedules legislative penury the peoples side
of this rate question: has little opportunity prove other
wise This brings the root problem in the making air
decisions rate increase requests by the Public
mission.
For example, MST&T said they had to have
than half million dollars in additional from
Montana to make the properties in this pay
reasonable return After months of delay the
sion finally granted sixty cent of the sought
phone subscribers of the opinion that
far too much The contends insufficient
Who is right? There for the public know except
for the limited assistance the Federal Communications
mission give PROVIDING that agency called by the
state rate-fixing commission.
Under the false of economy" the legislature
ssteny refused appropriate sufficient the Pub
lie Service Commission for adequate staff accountants
rate engineers appraisers etc. The result is that when
requests higher rates. the commission accept
work The Commission and the public generally
closed from determining the statement
Rateapprovng thus becomes political instrument with the
chances accorded either the public the utility Just de-
cson being slight
This is particularly true when considers
of the commission toward inviting FEC to participate
At the present time that federal agency only that has
any accurate figures the REAL worth telephone
properties and has the nvegatoy available
assistance to the various state commissions
The remedy for this 'no mans and establishing eou
able utility rates lies squarely with the legislature That body
must be persuaded that the public and the utilities
too) makes mandatory the appropriation sufficient funds
for the Public Service Commission lob it supposed
to do h
Should the commission approve entirety the latest
rate request will cost the telephone patrons of Mon
ana well over million additional dollars per year. From