Opinion ID: 2086798
Heading Depth: 1
Heading Rank: 5

Heading: exchanges in property account

Text: Appellants contend also that since no increase in rates was sought for services rendered to the 295 subscribers on the Ludlow and Seymour exchanges, which remained in manual operation and were not converted to the automatic dial system, the effect of the increase in rates on the other exchanges already converted to dial operation compels the subscribers served by the dial systems to contribute to the expense of the Ludlow and Seymour exchanges. There was evidence in the record to the effect that income and expenses of the Ludlow and Seymour exchanges would not affect the figures presented in any appreciable manner and that income and expenses from such exchanges are substantially equal and cancel out. In connection with the Ludlow and Seymour exchanges, it is true that the subscribers on these exchanges would be receiving service at the old rate. The mere fact, however, that such subscribers on the two exchanges not converted to the dial system are to be charged at the old rates and all others are to be on an increased rate does not render the action of the commission discriminatory. A mere difference in rates alone does not constitute undue discrimination. ( Illinois Central Railroad Co. v. Commerce Com. 359 Ill. 563, 568.) The Ludlow and Seymour exchanges are integral parts of one system with the same central office and the same management and supervision. It would be unjust to attempt to fix rates by eliminating expenses which are incurred in rendering a service which, though of a slightly different character, produces a part of the overall expense of the entire system. If we were to follow appellant's contentions logically, the cost of plant and income and expenses would be allocated to each exchange, and the conceivable result would be a different rate for each of the company's exchanges. Certainly the company would not have entirely eliminated the property, income and expenses of these two exchanges in seeking an increase in rates. All property, income and expense of the company must be included, and to omit the Ludlow and Seymour exchanges would not properly reflect either the fair value of the property or complete income and expense. On the record, the Ludlow and Seymour exchanges were properly included, and the rate variation was justified. Upon a review of the entire record, it is our conclusion that the rates approved by the commission provided a fair, just and reasonable return on the fair value of the company's property used and useful in the public service. Accordingly, the judgment of the circuit court of Iroquois County is affirmed. Judgment affirmed.