Court Opinion

ID: 9527512
Source: CourtListenerOpinion
Date Created: 2023-08-07 03:31:14.651656+00
Date Added: 2024-06-11T13:25:49.774814
License: Public Domain

HAMLIN, Justice
(concurring).
In the majority opinion it is stated, and I believe correctly, that, while it may be that no formula can be laid down which will apply uniformly in all cases or to all kinds of utilities, yet, in fixing a rate of *231return consideration must be given to the rate of return allowed other utilities similarly situated.
In Southern Bell Telephone & Telegraph Co. v. Louisiana Public Service Commission, 232 La. 446, 94 So.2d 431, we held that it is the result reached, not the method employed, which is controlling. It is not the theory, but the impact of the rate order which counts.
In Vicksburg, S. & P. Ry. Co. v. Railroad Commission, 132 La. 193, 61 So. 199, citing authorities, we held, in substance, that it is not only the right, but the duty of this Court to determine whether the order complained of was justified by the facts of the case; and, that this Court is bound to interfere when it finds that the judgment appealed from is clearly wrong on the evidence.
In Texas & New Orleans R. Co. v. Louisiana Public Service Commission, 235 La. 973, 106 So.2d 438, 442, decided November 10, 1958, we said:
“While it is true that the.orders of the Commission are entitled to great weight and the burden is on the railroad to show the invalidity of the orders of the Commission, if the findings and conclusions of the Commission do not conform to the law and are not supported by the evidence, so that the order of the Commission is unreasonable, the court may reverse or vacate the order.” (Emphasis added.)
In the instant case, the only witness for the Commission was Arnold H. Hirsch.
For the purpose of brevity and to simply set forth my thoughts in the matter, I call attention to the gist of the evidence adduced by the Company regarding the rate of return on property rate base as regards other telephone companies — utilities similarly situated.
Rate of Return %
R. R. Stubbs and
Dr. John Langum . 7.50
Alfred Burke-------- . 6.80
Dr. Ralph Badger----6.50 (to 7.50)
3/ 20,80
Mesne average of above — 6.93
Dr. Badger also testified that other Bell Telephone Companies in the Bell System were earning up to 7.7%, while the lowest companies in the system earned 6% or better.
The testimony of Mr. Stubbs is to the effect that the rate of return on property rate base is 6^4% (6.50) for the telephone industry as a whole and the Bell System as a whole.
Raymond A. Nolan testified as to the rate of return to Southern Bell in eight southern states as follows:
%
Alabama ------------------------- 6.87
Florida--------------------------- 6.86
Georgia -------------------------- 6.32
*233Kentucky......... 5.92
Mississippi------------------------ 6.19
North Carolina-------------------- 6.86
South Carolina-------------------- 6.34
Tennessee ------------------------ 5.56
50.92
8/ 50.92
Mesne average of foregoing-------- 6.36
Since the testimony of Mr. Nolan was adduced, the Supreme Court of Mississippi, in the case of Southern Bell Telephone & Telegraph Co. v. Mississippi Public Service Commission, 113 So.2d 622, has reduced the rate of return in Mississippi to the range of 4.96% to 5.08%. Accepting the former figure and reducing 6.19% to-4.96%, would reduce the foregoing mesne average from 6.36% to 6.21%.
Considering the testimony of Mr. Stubbs (6.50% for the telephone industry as a whole and the Bell System as a whole), the testimony of Mr. Nolan, and the above mesne averages of 6.21% and 6.36%, it would appear to me that in the instant case a rate of return of not less than 6.25% 1 ■on property rate base would be fair and reasonable at this time, to allow for the great necessity for an immediate expansion program in Louisiana, the reasons for which being set forth in the original opinion.
Inasmuch as the ascertainment of a fair return in a given case is a matter incapable of exact mathematical demonstration and is one of reasonable approximation, having its basis in a proper consideration of all relevant facts, I believe that a return of not less than 6.25% will strike the happy medium and will not be unreasonable, whether considered from the viewpoint of the subscriber, the investor, or the Company.
I am in full accord with the reasoning of the Court and the decree rendered herein, subject, however, to my views that the rate, as fixed in the decree, should be “not less than 6.25%.”