thered by a spirit of cooperation on the part of the company toward the city, and a corresponding spirit of cooperation on the part of the city. Additional rules covering accounting and kindred subjects to meet such automatic system could, after hearing or consultation, be established by the Commission, which would also establish a system of inspection of equipment and property to guarantee the maintenance of such equipment and property in good operating condition. If such a fair basis could be worked out and established, we are of the opinion that many of the problems connected with the street-railway system would be easier of solution. Matters of service would be subject to easier adjustment and handling. There would be some advantage to the company in the securing of more stabilized income, and on the other hand there would be a distinct advantage to the public in securing service at the lowest reasonable rates at all times. The working out of this order and the result of some experience under it will undoubtedly be helpful in working out a basis for a possible order along the line here proposed. The suggestion contained in this memorandum is made in the hope that it perhaps may lead to a larger consideration of this subject and its possible benefits, and with a distinct assurance that if it shall appear to those interested to be feasible, the Commission will be glad to work along lines of making it effectual. [U.-1561] AMERICAN SOCIETY OF EQUITY VS. MENOMONEE FALLS TELEPHONE COMPANY Decided October 31, 1919 MEMORANDUM OF DECISION Petitioner, American Society of Equity, complains of the telephone service rendered by respondent, Menomonee Falls Telephone Company. An inspection made September 26, 1919, shows that the operation of the switchboard is substantially in compliance with the established standards, but that the rural lines are somewhat overloaded and poorly maintained, and there are many missing and defective pins and insulators. ORDER: Respondent shall reduce the number of subscribers per line to a maximum of 12, and properly repair and maintain its system. [U.-1647] IN RE APPLICATION OF THE CLARK COUNTY TELEPHONE COM. PANY FOR AUTHORITY TO INCREASE RATES Decided October 31, 1919 MEMORANDUM OF DECISION Applicant, Clark County Telephone Company, seeks to increase net rates as follows: Business main-line service from $2 to $2.50 per month; residence main-line service from $1.40 to $1.50; rural subscribers from $4.15 to $5.50 per quarter; and switching rate from $1.10 to $1.80 per quarter. The present rates were fixed April 29, 1919, and the total operating costs as fixed at that time were $20,002.46. Applicant claims that the minimum-wage order for women will increase these operating costs $4,116, and the same increase in revenue will increase the taxes $103. Proposed Rates. The increased expenses to be now provided for are almost wholly such as are properly apportionable on a traffic basis. In the decision of April 29, 1919, the total operating costs were found to be $20,002.46, of which $2,155.49 was chargeable to switching service, to which $1,057.40, the amount of the increase in operators' wages, should be added. This sum means a cost of $6.05 per subscriber per year. A switching rate of $6 per subscriber per year, or $1.50 per quarter, therefore, appears reasonable. The other proposed rates, if the rural rate is made $5 per quarter, should also be authorized, according to computations of the cost of service. These rates will net subscriber and switching-service earnings totaling $22,758. When to this amount are added $1,408 of toll earnings and $212 of miscellaneous earnings, the amounts earned from these sources in 1916, the total revenues will be $24,378. Service. Representatives of the connecting companies complained of having difficulty in getting central, and of the central-office service, but probably this has been their fault as much as applicant's. With the higher wages now provided for central-office operators the difficulty, so far as it may have been due to incompetent operators, should be removed. The connecting companies and applicant by concerted action could greatly improve the service. ORDER accordingly, gross rates of 25 cents in excess of the above net rates being provided. [U.-1648] IN RE APPLICATION OF THE OWEN TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES Decided October 31, 1919 MEMORANDUM OF DECISION Applicant, Owen Telephone Company, seeks to increase its business one-party net rate from $2 per month to $2.50; its rural net rate from $1 per month to $4.50 per quarter; and its switching rate from 25 cents per month to $7.20 per year. The book value of the plant is $17,794.48. Disregarding the amount of $3,073 for materials and supplies, the amount of the book value appears reasonable, and since the materials and supplies are for immediate use and will result in the betterment of the service, the full valuation will be used for computing depreciation and return. The total operating expense for 1918 amounts to $4,393.24, an average of $18.56 per telephone, which is unreasonably high, and should not exceed the average of Class D companies, or $10.17 per telephone. The high expense is due to the general-officers' salaries which, for an exchange of this size, should not include more than $1,200 for a maintenance man. Operating expenses based on 1918 averages amount to $3,295.08. The minimum-wage order will increase the annual salaries to about $1,882. Increases in other salaries and materials will not exceed $300, and will bring the total cost of operation to $4,294. Interest and depreciation will add $2,520, and taxes, $210. ORDER authorizes a schedule providing for business one-party rate of $27 per year; business two-party, $24; residence one-party, $21; residence two-party, $18; rural residence, $4.50 per quarter; the gross rates in each case being 25 cents per month additional, and an annual rate of $5.25 for switching service. [U.-1654] IN RE APPLICATION OF THE SULLIVAN TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES Decided October 31, 1919 MEMORANDUM OF DECISION Applicant, Sullivan Telephone Company, seeks to increase its present rate of $1.25 per month per telephone to $2.25 for one-party business service, $2 for two-party business service, $2 for one-party residence service, $1.75 for two-party residence service, $2 for twelve-party rural business service, and $1.75 for twelve-party rural residence service, with a discount in each case of 25 cents per month. The expenses for 1917 and 1918 have been erroneously, reported, and an analysis of the expenses of similar telephone companies indicates that normal expenses per telephone would have been about $10.15 for the year 1918. Normal total annual expenses, including taxes, depreciation, and interest, will approximate $4,511. An allowance for taxes, depreciation, and interest will bring the annual cost to $7,085, or $1,546 above the revenues for 1918. The rates proposed will produce revenues slightly below the estimated normal annual operating expenses, and they will be authorized. The utility must revise its accounting so as to segregate construction items from amounts chargeable to operation so that its reports will be more representative of the actual financial standing of the company. ORDER accordingly. [U.-1677] IN RE APPLICATION OF THE LUDINGTON TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES, TOLLS, AND CHARGES Decided October 31, 1919 MEMORANDUM OF DECISION Applicant, Ludington Telephone Company, seeks to increase its rates for single-line business from $1.50 to $1.75 per month; all other service from $1.25 to $1.50 per month. Taking into consideration the increased labor costs properly chargeable to operation, it appears that the total cost per annum will approxi mate $4,000. Allowances for taxes, depreciation, and interest, amounting to about $2,330, will bring the average cost per telephone to $17.80 per year. The same rates should not be charged subscribers who are receiving different kinds of service, but differentials in rates should be provided for the different classes of service, and a new schedule which will provide for rates for single-party business service at $1.75; two-party business and single-party residence at $1.60; two-party residence at $1.50; rural business-service, $1.60, and rural residence at $1.50, will be authorized. ORDER accordingly. [R.-2494] GREENWOOD FOOD PRODUCTS COMPANY VS. WESTERN UNION TELEGRAPH COMPANY Decided October 31, 1919 MEMORANDUM OF DECISION Petition alleges that adequate service demands the construction and operation of a telegraph station at Greenwood. Respondent, Western Union Telegraph Company, proposes to provide such service on or before June 1, 1920, and consents to the order covering the provision of such service. There is on file a toll rate of 15 cents per call for messages from Greenwood to Owen over the lines of the Badger State Telephone and Telegraph Company, and telegraph messages to and from Greenwood should be routed via Owen, pending the installation of telegraph service at Greenwood. ORDER: Respondent shall, on or before June 1, 1920, install and maintain a telegraph station at Greenwood. |