In Public Service Commission ex rel. Washington, Idaho Water, Light & P. Co. v. North Coast Power Co. No. 4979, March 1, 1921, the Washington Commission held that an electric utility purchasing current from another power company is entitled to the same demand charge as all other large users of power plus the additional expense necessary to cover the fixed charges of a special investment devoted solely to the use of the purchasing company.

V. Rates of particular utilities.

a. Electricity.

In Murtaugh Canal Co. v. Idaho Power Co. (Idaho) Case F-381, Order No. 760, March 23, 1921, it was held proper to charge a rate higher than the general power rate for electric service for irrigation. pumping, for the reason that when irrigation pumps are thrown into operation, they are customarily kept in full operation throughout the entire irrigation season, day and night every day, and such service under a general power rate would result in operation at a loss.

b. Express.

In Re American R. Express Co. Decision No. 8488, Application No. 5192, Dec. 23, 1920, the California Commission holds that an express company desiring an increase in express rates must make an affirmative showing that its business in that state was being operated at a loss.

c. Railroads.

In Re Southern P. Co. Decision No. 1217, Docket No. 1162-R-54, Jan. 6, 1921, the Arizona Commission held that two railroads under single control should be considered as one, and that they are not entitled to receive an arbitrary over the tariff rates prescribed for one line haul between points on their line.

In Re Gomph, Docket No. 1229-R-67, Decision No. 1226, Jan. 13, 1921, the Arizona Commission held that a carload minimum on grain and articles taking grain rates, should continue, although the car shortage which had caused the fixing of such minimum, had passed, since the carriers are confronted with reduced revenues resulting from a falling off in traffic and it is essential that they should be enabled to take advantage of every possible economy to the end that operating expenses may be maintained at the lowest practicable figures which may be accomplished, in a measure at least, by maximum car loading.

In Re Southern Pacific R. Co. Decision No. 8379, Application No. 6292, Nov. 26, 1920, in an application for increased rates for the

handling of lumber at wharves the California Commission held that to permit common carriers to perform a service at less than the outof-pocket cost, places a burden on other traffic and is a practice which should not be permitted.

In Western Brick Co. v. Atchison, T. & S. F. R. Co. No. 10577, Jan. 7, 1921, the Illinois Commission holds that the rate relationship authorized by the Director General of railroads under authority granted by the Federal Control Act, would establish rates without affording to complainants, that full and complete hearing, which is contemplated by the Public Utilities Act of Illinois and which act provides for appeal for the purpose of having the reasonableness or lawfulness of any rule, regulation, order, or decision inquired into and determined. Therefore, the Commission holds that the rate should be restored to the status that would have been obtained had not these arbitrary advances been placed upon the rates.

In New Orleans Joint Traffic Bureau v. Morgan's L. & T. R. & Steamship Co. Order No. 2384, No. 3071, Jan. 26, 1921, the Louisiana Commission ordered certain railroads to cease and desist from absorbing switching charges on intrastate carload freight in New Orleans while refusing to absorb such charges on like carload shipment under substantially similar circumstances in other cases.

In Commuters on Rochester & S. R. Co. v. Rochester & S. R. Co. Case No. 7813, Jan. 27, 1921, the New York Commission, Second District, granted the railroad a rate of 2 cents a mile on commutation tickets and stated that a public utility company is entitled to receive a fair return upon each class of business conducted by it, notwithstanding the fact that the aggregate results of all its business may give such return, but the record of the company indicated that upon its entire business it would not with commutation rates increased to two cents per mile receive the amount to which it was

entitled.

In Re Increased Sand Rates, Case No. 7714, April 7, 1921, the New York Commission, Second District, said: "The contention that because more revenue is needed, increased rates should be charged for these commodities is not controlling. If so, any increase of rate proposed by a carrier would be justified. The fact that a

smaller

income is derived from the increase in rates than was expected indicates that the traffic cannot stand up under an indefinite increase but at some point an economic limit is reached after which an increase results in a depletion rather than an increase in

revenue."

Corporation Commission v. Atchison, T. & S. F. R. Co. Cause No. 4025, Order No. 1815, Nov. 26, 1920, the Oklahoma Commission held that a railroad may transport shows for a special rate under a contract releasing it from liability. The Commission said that the speculative or uncertain value of tamed wild animals and trained

animals is such that in the event of damage in transit the carriers would be practically at the mercy of the judgment of the show owner as to the value of such animals or the amount of the damages.

In Re Southern P. Co. F-938, F-936, P. S. C. Or. No. 690, March 1, 1921, the Oregon Commission suspended increased rates on wood and wood products and stated that uniformity of rates could be accomplished by reduction, as well as by increases of specific commodities. The Commission stated that the thought apparently never occurred or had been studiously avoided, that adjustment involving cancellation after cancellation of commodity rates might properly be equalized through lowering the distance scales substituted, correspondingly. It is in this way that original basic rates established for the fostering of industries are ignored. The idea of supplying rates that will freely move the traffic seems to have grown antiquated, and obsolete.

In Re Los Angeles & S. L. R. Co. Case No. 368, Feb. 16, 1921, the Utah Commission held that rates on ore moving within the state of Utah should be based upon the actual value as shown by smelter returns, rather than upon the value of the ore as declared by the shipper, on the ground that before smelting the true value could not be known, and the shipper should not be penalized for estimated undervaluation:

d. Street railways.

In Hillside Cemetery Co. v. Philadelphia Rapid Transit Co. (Pa.) Complaint Docket No. 3460, Feb. 21, 1921, it was held that the analogy between passenger service and the service rendered by a funeral car does not entirely hold good because the operation of a funeral car is distinctly and admittedly a special service, in which all the elements pertaining to passenger service cannot obtain.

e. Telephones,

In Arnold v. Santa Barbara Teleph. Co. Decision No. 8709, Case No. 1491, March 5, 1921, the California Commission held that a telephone utility should eliminate toll charges between two communities upon a showing that a sufficient community interest existed between the two exchanges to warrant such removal. In this case, one of the communities was both commercially and socially dependent upon the other, and the toll charge was eliminated.

In Re Wray Teleph. Co. Application No. 114, Feb. 16, 1921, the Colorado Commission holds that the existence of a free district service which is the privilege of one subscriber and not the privilege of another and by which free service is furnished between two towns, is a discrimination, directly in conflict with the theory and practice of regulation and control provided by the Public Utilities Act.

In Re Farmers Teleph. Co. No. 11240, Jan. 5, 1921, the Illinois Commission holds that a reduced rate cannot be allowed to a subscriber who owns his own telephone, although the company may purchase or rent a telephone in use by subscriber, which rental shall in no case exceed $1.60 annually.

In Re New Richmond Teleph. Co. No. 5793, Jan. 21, 1921, in discussing the application of the telephone company for an increase in rates, the Indiana Commission said: "The Commission is of the opinion that, as a general proposition, there should be no difference in the rate charged for rental of desk and wall telephones, especially by smaller telephone companies, for the reason that the difference bethe actual original cost, installation and maintenance expense of the two styles of telephones, is comparatively small. The real difference in value, if there is any, lies in the service convenience to the patrons."

In Re Decatur County Independent Teleph. Co. No. 5916, Feb. 25, 1921, the Indiana Commission authorized a telephone company to put into effect a rule limiting length of conversation to five minutes and providing for payment for overtime in excess of twenty minutes in one month at the rate of 5 cents per month.

In Camas Commercial Club v. Camas Teleph. & Teleg. Co. No. 5076, Feb. 1, 1921, the Washington Commission included in a rate schedule a rule that all calls by nonsubscribers, except by the members of the family or guests in the home of a subscriber or guests of a hotel, which is a subscriber, shall be charged for at the rate of 5 cents per call. Guests in the home of a subscriber must not be construed to include neighbors to whom telephone service could be supplied upon application.

consin

In Re Hawkins Creek Teleph. Co. U-2366, Feb. 10, 1921, the WisCommission held that the practice of giving lower rates to stockholders of a telephone company amounts to a discrimination against nonstockholders and is forbidden by law.

In Re Calumet Teleph. Co. U-2401, March 18, 1921, the Wisconsin Commission held that a charge of 25 cents for night calls on a telephone line was exorbitant and unfair, but that a rate of 10 cents for night calls was a fair charge.

In Marshfield Rural Teleph. Co. v. Marshfield Teleph. Exch. U-2006, U-2084, U-2151, March 28, 1921, the Wisconsin Commission holds that the fear that subscribers would remove their telephones in the event of toll rates being placed in effect, should not be seriously considered, since experience has proven that reasonable increases in rates do not result in permanent removal of telephones, although temporary discontinuance may result.

P.U.R.1921C.

1. Water.

In Re Montgomery (Cal.) Decision No. 8366, Application No. 5770, Nov. 26, 1920, it was held unfair to require consumers receiving water during the entire year to bear a large part of the extra expense because of those receiving service for a few months only, and accordingly two minimum rates were established, one of $14 per year providing for four months' service, and the other $18 for twelve months' service.

In Re Manteca Water Works, Decision No. 8659, Application No. 5976, Feb. 21, 1921, the California Commission held that a distinction between single and double outlet fire hydrants was not warranted in view of the fact that all hydrants were attached to the same size mains and their delivery capacity was limited by the capacity of the mains rather than by the number of outlets.

In Re Wilton Water Co. F. C. 314, Jan. 18, 1921, the Maine Commission held that where a water company furnishes both fire service and water for domestic consumption, the rates for the fire service should be approximately 30 per cent of the gross revenue to which the company is entitled.

UTAH PUBLIC UTILITIES COMMISSION.

RE UTAH POWER & LIGHT COMPANY.

Commissions

[Case No. 248.]

Jurisdiction

Transmission across state line. 1. A state Commission has jurisdiction to fix rates of a power company, although a large portion of the output is generated in adjacent states and transmitted into the state of the Commission's jurisdiction.

2. An advance in rates may be authorized before a physical valuation has been made, provided it is shown that the utility is in present need of, and requires, more revenues in order to maintain its property in a condition to furnish reasonably adequate service.

3. The cost of a steam plant is a reserve unit for an entire hydroelectric system and should be allocated so that a power utility under consideration in a valuation proceeding, should bear only its proportionate share of the plant.

4. A utility rendering a community service almost state wide in its extent, should maintain uniform rates rather than rates for differ