[U.-1838] IN RE APPLICATION OF THE DOWNSVILLE TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES Decided March 26, 1920 MEMORANDUM OF DECISION Applicant, Downsville Telephone Company, seeks to make effective the following rates: Business, one-party lines $24 per year, two-party $22; residence, one-party lines $22 per year, two-party or more $20, rural service, $20 per year. Applicant serves a total of 220 subscribers, 196 of whom are rural. A charge is made by the Wisconsin Telephone Company for service between Downsville and Menomonie at the rate of $2.50 per year for each of applicant's telephones in operation at the Downsville exchange, The book value of the plant as of December 31, 1919, was $5,664, which is conservative. Taking into consideration the increases in wages to operators due to the minimum-wage order, the increased cost of materials, and a sufficient allowance for depreciation and return, revenues between $4,000 and $4,150 per year, or an average of between $18.20 to $18.90 per telephone, will be required. While an increase in revenues is warranted, the rates proposed are higher for certain classes of service than the character of the service warrants, only a part of the system being metallic, and the hours of operation not being continuous. ORDER: Applicant is authorized to make effective the following monthly net rates: Business, one-party $2, two-party $1.75; residence, one-party $1.75, multi-party $1.55; rural, $4.65 per quarter; the usual discount provisions to apply. [U.-1815] IN RE APPLICATION OF THE CHETEK RURAL TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES Decided March 26, 1920 MEMORANDUM OF DECISION Applicant, Chetek Rural Telephone Company, seeks to make effective the following net rates: Business, one-party $2 per month, twoparty $1.50; residence, one-party $1.50, two-party $1.25, four-party $1.15; rural, party lines, metallic $1.50, grounded $1.15; switching rate, 40 cents per month; extension telephones, inside 50 cents, outside 75 cents; extension bells, 15 cents; moving charges, outside $2, inside $1. Applicant's plant is valued at approximately $18,910. Operators' wages have been increased by $639 per year; linemen's wages by $360 per year, and the manager's salary by $50 per month, increasing it to $225 per month, which is unreasonably high for an exchange of this character. The rates proposed will adequately cover operating expenses, including depreciation and taxes, and with the manager's salary at $175 per month, will allow sufficient for return. ORDER authorizes the local rates as requested, also the miscellaneous charges, the rural rate, however, to be $4.50 net per quarter for metallic service and $3.45 for grounded, and to be discounted in the usual manner. [U.-1859] IN RE APPLICATION OF THE VILLAGE OF WITHEE FOR AUTHORITY TO INCREASE WATER RATES Decided March 26, 1920 MEMORANDUM OF DECISION Applicant, Village of Withee, seeks an increase in water rates. The income accounts indicate that the plant has been operated at a loss for the past three years, but the village has never paid for fire protection, and no provision has been made for depreciation. A community of the size of Withee should normally pay from $600 to $700 per year for fire-protection service, and if such an amount were added to applicant's revenues for the past year, they would adequately cover operating expenses, exclusive of depreciation. There are always a large number of persons in a village who do not take water from the waterworks system, but receive fire protection and the benefits of street sprinkling, and when a charge is not made to cover fire protection, users of water are obliged to bear the entire cost of public service although they are benefited no more than a non-user. In order that proper allowance may be made for depreciation and return, the present rates must be substantially increased. ORDER provides for a fire-protection charge to be made to the village of $650 per year. Extensions to be charged 7 cents per lineal foot of pipe shall be assessed per annum on the basis of length of main put into use between hydrants placed, plus a fixed charge of $7.50 per hydrant set for each hydrant added to the system. Flat rates: Business consumers, $15 per annum, residence, $12; building purposes, brick per thousand, 20 cents, stone per cord, 30 cents, and plastering per 100 square yards, 30 cents. Metered rates: First 5,000 gallons used per quarter, $2.50, next 15,000, 50 cents per 1,000 gallons, next 30,000, 40 cents, next 50,000, 30 cents, and all over 100,000, 20 cents; commercial rates payable quarterly, and a 10 per cent penalty to be added if bills are not paid within 10 days. [U.-1854] IN RE APPLICATION OF THE WESTBY TELEPHONE COMPANY FOR AUTHORITY TO INCREASE ITS RATES Decided March 27, 1920 MEMORANDUM OF DECISION Applicant, Westby Telephone Company, besides its regular exchange service, performs switching service for the Newry Farmers Telephone Company, and the Timber Coulie Cooperative Telephone Company. It seeks to increase its switching rate from 25 cents to 50 cents per month, to increase its rate 25 cents per telephone, which amount is to be discounted for prompt payment, and to place in effect a charge of $1 for moving telephones inside, $2 for outside moves, and $3 for moving telephones in rural districts. Switching Rate. During 1919, $1,902 was expended for centraloffice operation. The total number of stations switched was 726, making the cost per station $0.218 per month. Applicant owns 41⁄2 miles of the switched line of the Newry Farmers Telephone Company, and assuming a valuation of $100 per mile, and maintenance and fixed charges at 20 per cent, the annual charge for these lines is $90, or 25 cents per month per station switched. The total cost of performing this service for the two companies is approximately 50 cents per station per month, which indicates that the business is carried at a loss. Discount for Prompt Payment. A discount provision works no hardship on subscribers who pay promptly, and compensates the company for the costs of collecting from those who allow their bills to remain unpaid for some time, and it has generally been found necessary to employ such means where the number of individual payments are large and the amounts small. Moving Charges. As a result of the Commission's order (U.-1752) of March 5, 1920 (In re Appl. Almond Telephone Company et al. for Authority to Charge for Service Connections, Moves and Changes of Name, 24 W. R. C. 411), moving charges may be handled informally before the Commission. However, as the application containing the moving charges in question was filed prior to the publication of this order, they will be allowed. ORDER accordingly. [U.-1829] IN RE APPLICATION OF THE OREGON TELEPHONE COMPANY FOR AUTHORITY TO INCREASE ITS RATES Decided March 27, 1920 MEMORANDUM OF DECISION Applicant, Oregon Telephone Company, seeks to make effective the following net rates: Business, one-party $2.50 per month; residence, one-party $2, two-party $1.50, four-party $1.25; rural, $5.75 per quarter; with the usual discount provisions. Applicant's property is valued at approximately $28,000. During the three years, 1917-1919, applicant failed to earn a fair return on its property, and in 1919, incurred a deficit. In order to realize an 8 per cent return, increased revenue to the amount of $2,363 will have to be provided, and applying the proposed rates an increase of but $1,500 will result. As the lines operated are full metallic, and good service is being given, and considering the fact that the cost of everything entering into the operation of a telephone utility has increased materially, the rates proposed are not excessive. Application granted, the provision of a two-party business rate being recommended. |