In re PETITION OF THE ADVANCE TELEPHONE COMPANY FOR
AUTHORITY TO INCREASE RATES.

No. 7359.

Decided November 16, 1923.

Increase in Rates Authorized.

OPINION AND ORDER.

Under date of September 22, 1923, the Advance Telephone Company of Advance, Indiana, filed with the Commission its petition stating that it is a corporation duly organized and existing under and by virtue of the laws of the State of Indiana, having its office and place of business in the town of Advance, Boone County, Indiana, and is engaged in the business of operating and maintaining a public utility by way of a telephone exchange in the town of Advance, and serving said town and the inhabitants thereof and the public residing in the communities adjacent thereto; that it has lines radiating therefrom to the rural districts furnishing the inhabitants thereof with adequate telephone service; and filed with such petition a schedule of its present rates which shows that it is serving a total of 349 subscribers of all classes at the rate of $12.00 per annum each. The petition further alleged that the present revenues on account of the rate charged are insufficient to maintain the property and to furnish the service demanded by the community, and that no net return is being earned upon the invested capital.

After due notice to all parties concerned, a hearing was had on this cause on October 29, 1923, in the town of Advance, Indiana.

The evidence presented by the petitioner shows that the total revenue derived from rental of telephones was $4,180 per year, and the total revenue derived from tolls was $177.92 per year, this based upon the previous year's experience, and there seems to be no substantial change in this condition at the present time. The evidence further shows that the exchange was installed about twenty years

[Ind.

C. L. 146] ago, starting with about 25 subscribers and that for the last ten years the exchange has been serving substantially the same number of subscribers that are in service today.

The evidence also shows that the subscribers to the Advance exchange are afforded free service to more than 3,000 telephones distributed among 13 other exchanges in Boone County, including Lebanon, which really gives the subscribers of the Advance company free service with practically all telephones in Boone County; that during the entire period no returns have accrued to the owners; that one of the owners has for several years devoted about twothirds of his time to the business and that during all of this time he has only received in compensation for his services the sum of $70.00.

Several patrons attended the hearing whose names are in the record, and all of them, after listening to the evidence and adding to their knowledge the costs in other commodities and due to the fact that the rates for the service had not been increased from the date of the installation of the exchange, were willing to concede that the Advance Telephone Company, from all appearances, was entitled to an increase in revenue, and that it was believed there would be no serious objections to an increase in rates if they could be assured that the service would be improved, it being generally contended that the service was not first-class, and that any increase in rates should carry with it an assurance of better service. The officers of the telephone company readily conceded that the service was not of the best, but stated that they were doing the best they could under the circumstances and that they would apply any additional revenue granted in the direction of improving the service so far as it would go. It is understood on the part of the telephone company that the obligation to improve the service consistent with the promises made rests with them to fulfill.

The following statement reflects the present subscriber's rates and annual total revenue; also a statement of the total annual expenses and a schedule of rates that is au

thorized to become effective January 1, 1924. It will be noted that the increase granted is not sufficient to produce a full return on the capital invested, but due to the economic situation it is not deemed advisable to further increase the burden upon the rate payers, the sole purpose being to allow for such additional revenue as will sustain and improve the service for subscribers, and at the same time leave the burden as light as possible upon the community.

Depreciation, 5 per cent. on depreciable property ($17,408).

TOTAL

$2,398 00 1,254 00

400 00

85 00

260 00

870 40

$5,267 40

DEFICIT

$901 48

The Commission being fully advised in the premises is of the opinion, and finds, that the present rates of the Advance Telephone Company are too low and that its exchange rates should be increased, and it will be so ordered.

[Ind

C. L. 146]

It is estimated that the increased rates will produce a total annual revenue of $5,615, showing an increase over the present revenues of $1,258 per year.

It is, therefore, ordered by the Public Service Commission of Indiana, That the Advance Telephone Company of Advance, Indiana, be, and it is hereby, authorized and directed to charge and collect the following schedule of rates, effective on and after January 1, 1924:

To the above schedule a charge of 10 cents per month will be added if bills are not paid on or before the fifteenth day of the month in which service is rendered; on rentals billed quarterly, the additional 10 cents per month shall apply if bills are not paid on or before the fifteenth day of the second month of the quarter in which service is rendered.

November 16, 1923.*

In re PETITION OF THE MONON TELEPHONE COMPANY FOR AUTHORITY TO INCREASE RATES.

No. 7063.

Decided November 23, 1923.

Quality of Service Considered in Determining Rates Increase in Rates

Authorized.

ORDER.

On May 24, 1923, the Monon Telephone Company filed with the Commission its petition, showing that it is a corporation duly organized and subject to the provisions of the laws of Indiana; that its principal place of business is

On November 23, 1923, an order was issued authorizing an increase in rates, In re English Telephone Plant (No. 7267).

located in the town of Monon; that it is a public utility operating a telephone system in Monon with lines radiating therefrom into the rural districts; that its present schedule of rates and charges are inadequate and too low; that the revenue afforded thereby is wholly insufficient to meet the necessary operating and maintenance expense, depreciation and a reasonable return upon the capital actually invested; and that in many cases the bills are not promptly paid when due. Wherefore, petitioner prays for an increase in rates and asks that a penalty be imposed incident to unreasonably delayed payments.

After due notice, the matter was heard in the town of Monon, Indiana, on October 8, 1923.

Petitioner introduced as Exhibit No. 1 an appraisal c its property made by the engineering department of the Commission. Exhibit No. 2 is an audit of the books and records of the company, by the accounting department of the Commission, which audit petitioner accepted with additions, such additions being an increase in operatore? wages amounting to $1,518 per year over and above the amount shown in the audit.

The evidence further shows that petitioner's plant did not earn anything upon the investment in the year 1922 and that needed improvements to put the plant in proper condition would cost from $5,000 to $7,000.

Petitioner submitted Exhibit No. 3, showing the rates now in effect and the revenue derived therefrom, and submitted a proposed monthly rate with its proposed yearly revenues therefrom and the proposed increases. This statement is as follows:

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