'. L. 144]

On the other hand, the company has assumed an obligation to render adequate and efficient service in the Los Angeles territory. If, for any reason, it has failed to keep pace with the phenominal growth and development of that territory and now finds itself in a position where it must practically rebuild its entire facilities under conditions which necessarily interrupt and reduce the efficiency of the service, it must not expect the rate-payers to assume all the burdens and save the company from the result of its own lack of foresight or enterprise. Until the company is in a position to render a normally efficient service, it should not expect to receive a full or even an approximately adequate return.

The purpose of the present proceeding is to find methods and means to improve telephone service in the city of Los Angeles as rapidly as possible. The Commission, from its investigations, is convinced that the local organization in Los Angeles is endeavoring with the limited means at hand to meet the situation. The Commission is not convinced, however, that the plans which the company or the parent companies controlling Southern California Telephone Company have been following in the past, nor the present plans for the future, are adequate to meet the continually increasing demands for telephone service in Los Angeles. The Commission has already informally directed the company to materially increase the program of development, and Southern California Telephone Company will be ordered herein to submit to the Commission, within thirty days from the date of this order, a definite and adequate program to meet the growing demands made upon it and give adequate assurance to this Commission of its determination and ability to carry this out.

In Decision No. 10141,*supra, the Commission made its order directing the company to provide for credit allowance to subscribers in all cases of lapse of service. The rule, as now in effect, does not give proper weight to the effect of

See Commission Leaflet No. 125, p. 1194.

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interruptions to service. The order in this proceeding will provide for the determination of a credit allowance of 20 per cent. of the monthly exchange service bill for each day of out-of-service" for the first five days of such "outof-service" occurring during each month. A day of outof-service" is considered to exist when a subscriber is unable to complete outgoing calls during any twelve-hour interval.

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The city complains of certain injustice in the company's rules and regulations and of the company's alleged arbitrariness in the interpretations of its rules on file with the Commission. The company will be directed to file with the Commission, for its approval or modification, a more detailed definition of the various classes of service rendered and rules governing same.

In the proceeding of H. G. Brainard, et al., it is alleged that the company is charging and collecting unreasonable and discriminatory rates for telephone service. The specific complaint is against certain rates and rules and regulations with reference to so-called joint user service. The complainants ask that a reasonable rate be fixed for joint-user service for intercommunicating systems, and that the excessive and discriminatory charges heretofore charged and collected by the company be ascertained, and that the Commission order due reparation to the several complainants in this case.

The situation dealt with affects not only these particular complainants, but all other subscribers of this class of service under similar or related circumstances. The present rate for joint-user service from the private branch exchange is an amount equivalent to an individual business line unlimited rate. A joint-user subscriber receiving service from a private branch exchange then pays the same charge as a subscriber having an individual business line. The company maintains that such a rate is justified primarily on the ground that this service should be limited, and that each subscriber should take a separate service, and that two or more different services should not be joined

[Cal.

C. L. 144] together. It is apparent that the company can render to two or more subscribers joint-user service at a lower cost to itself than separate individual line service. It seems to this Commission that the Company is not justified in charging the individual line service rate to these subscribers rendered joint-user service over intercommunicating or private branch exchange systems, particularly in view of the fact that the company voluntarily filed a joint-user rate for individual line service of $150 per month. Considering these facts and the comparative rate for intercommunicating systems and private branch exchanges for firms, the Commission finds that a reasonable rate for this class of service is $5.50 per month. This rate will be made effective for such joint-user service rendered on and after November 1, 1923.

In Application No. 8145.

ORDER.

The city of Los Angeles having made application for a survey and investigation of telephone service conditions in Los Angeles and having asked the Railroad Commission to define a standard of service which may be regarded as reasonably efficient, and that pending the bringing of service of Southern California Telephone Company up to such standard that the rates heretofore fixed be reduced commensurate with the service now being rendered, a public hearing having been held and the matter submitted,

It is hereby ordered, That (1) Section A, Subdivision (a) of the order on rehearing in Decision No. 10142,* supra, shall be cancelled as of November 1, 1923.

(2) Section A, Subdivision (c) of the order on rehearing in Decision No. 10142,* supra, is hereby cancelled and shall, on the effective date of this order, be no longer in force and effect.

(3) Southern California Telephone Company is hereby directed to submit for the approval of this Commission, within thirty days from the date of this order, a compre

See Commission Leaflet No. 125, p. 1194.

hensive and adequate program for the improvement of service and supplying the demands for telephone service in the territory served by it at the earliest practical date.

(4) The following rules and regulations governing credit allowances for service interruptions shall become effective on November 1, 1923.

RULES AND REGULATIONS FOR CREDIT ALLOWANCES.

(a) The company shall allow subscribers credit in all cases where telephones are "out-of-service" for periods of one day or more from the time the fact is reported by the subscriber or detected by the company, of an amount equal to 20 per cent. of the monthly exchange service bill for each day of "out-of-service," but in no case shall the total allowance exceed the total monthly exchange service bill.

(b) A day of "out-of-service" will be considered to exist when outgoing service is not available for an interval of twelve hours or more during any one day.

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(c) When any out-of-service" period continues for a period in excess of an even multiple of twenty-four hours, then the total period upon which to determine the credit allowance shall be taken to the next higher even twenty-four-hour multiple.

(d) The "out-of-service" credit allowance shall appear on the first monthly bill rendered all subscribers following the "out-of-service" period, provided the trouble is reported by the subscriber or detected by the company and cleared on or before the twenty-fifth of the month. (e) The "out-of-service" credit allowance covering the "out-ofservice" period in cases reported by the subscriber or detected by the company, from the twenty-sixth to and including the last day of the month, cannot be determined in time to be included on the following month's bills, and shall appear on the first bill rendered the subscriber thereafter.

(5) Southern California Telephone Company shall file the rules and regulations governing credit allowances as set forth under Section (4) above with this Commission on or before November 1, 1923.

(6) Southern California Telephone Company shall file with this Commission on or before the thirtieth day of each month a statement showing the held-orders as of the twentieth day of said month, together with such other information in such form and manner as this Commission may, from time to time, direct.

C. L. 144]

(7) Southern California Telephone Company shall file with the Railroad Commission for its approval on or before December 1, 1923, revised definitions and rules and regulations defining and governing all classes of service rendered by it.

(8) The application of the city of Los Angeles for a reduction in rates be, and is hereby, denied.

In Case No. 1796.

H. G. Brainard, et al., having filed a complaint alleging that certain rates and charges applying to joint-user service being charged and collected by Southern California Telephone Company are unreasonable, and requesting that reasonable rates and charges for this class of service be fixed, and further requesting that reparation to the various complainants be ordered, a public hearing having been held and the matter submitted, and it now appearing that the existing rates and charges for joint-user service, insofar as they differ from the rates and charges herein fixed, are unjust and unreasonable and that the rates and charges herein fixed are just and reasonable rates,

It is hereby further ordered, That (9) Southern California Telephone Company cancel its exchange service schedule No. A-10, joint-user service as set forth in C. R. C., Sheet No. 27-T, as of November 1, 1923.

(10) Southern California Telephone Company charge and collect for joint-user service rendered on and after November 1, 1923, the following rates and charges:

EXCHANGE SERVICE SCHEDULE NO. A-10.

Joint-User Service Applicable to Joint-User Throughout the Entire Territory Served.

(11) Southern California Telephone Company file with the Railroad Commission, Schedule No. A-10 as set forth