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It is intended to give the rural line subscribers where the line is in part owned by the company, the option of paying 75 cents per month, the company to maintain that part of the line owned by it and the subscribers to maintain the remainder; or to pay $1.00 per month and have the company maintain the entire line.

The Commission holds that the company should be permitted to increase the monthly rates charged by it for telephone service as follows:

$1 50 to $2 50 1 25 to 1 50

Business, direct line, from...
Residence, direct line, from....
Rural lines where part of the line is owned by the com-

pany and the company maintains that part only and

the subscribers maintain the remainder, from...... Rural lines where the company owns a part thereof and

the subscribers the remainder and the company agrees with subscribers to maintain same, from...

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An order will be entered in conformity with the foregoing report.

ORDER. This case having been duly heard and submitted and the Commission having on the date hereof made a report in writing containing its findings and conclusions, which said report is hereby referred to and made a part hereof,

It is ordered, 1. That the Shelbyville Telephone Company cancel and withdraw the schedule of rates as presented by it, for the reasons given in the report herein.

Ordered, 2. That the Shelbyville Telephone Company is hereby permitted to increase the monthly rates charged by it for telephone service, as follows: Business, direct line, from

$1 50 to $2 50 Residence, direct line, from.

1 25 to 1 50 Rural lines where part of the line is owned by the company and the company maintains that part only and the subscribers maintain the remainder, from......

50 to 75 Rural lines where the company owns a part thereof and the subscribers the remainder and the company agrees with subscriber to maintain same, from....

50 to 1 00

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Ordered, 3. That this order shall be in full force and effect on and after the first day of February, 1924.

Ordered, 4. That the secretary shall forthwith send a copy of the report and order herein to the Shelbyville Telephone Company, the mayor of the city of Shelbyville, and John A. Cristy of Shelbyville, Missouri.

January 25, 1924.

In re RATES OF THE PACIFIC HOME TELEPHONE COMPANY.

Case No. 3864.

Decided January 30, 1924.
Increase in Rates as Requested Authorized.

REPORT. A hearing was held at Pacific, Missouri, before one member of the Commission, January 24, 1924. The Pacific Home Telephone Company, hereinafter referred to as the telephone company, was represented by counsel and the objectors by the several presidents of the respective farmers' lines. No one appeared to represent the city of Pacific, and no objections were presented in behalf of the telephone subscribers within the city of Pacific.

The present rates are as follows:

Business telephones, 46 at $2.00 per month... Residence telephones, 146 at $1.25 per month. 78 Farmers' telephones, 78 at .25 per month.

$ 92 00 182 50 19 50

$291 00

or $3,528 per year.

The proposed rates as suggested by the telephone company are: Business telephones, 46 at $2.50 per month.

$115 00 Residence telephones, 146 at $1.50 per month.

219 00 Farmers' telephones, 78 at .50 per month.

39 00

$373 00

or $4,476 per year.

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The evidence adduced the facts that in 1921 the company had to borrow $1,000; in 1922 the company had to borrow $500, and for the year 1923 the deficiency was about $350, making a total indebtedness of about $1,850.

The objectors to the increase of 25 cents per month on farmers' telephones based their objections on the theory that they owned and maintained the telephone lines to the switchboard at the exchange. They also testified that they renewed the batteries at their respective instruments and considered the present rate of 25 cents per month, or $3.00 per year, as adequate compensation for the use of the drops in the switchboard.

The telephone exchange is open and regular service rendered from five in the morning until ten each night, every day in the year. When a call is made between ten at night and five o'clock in the morning the operator answering the call receives 5 cents as special compensation for the service and is chargeable to the telephone from which the call comes. The company receives a percentage on all long distance calls originating with the subscribers connected with the switchboard.

In response to the inquiry regarding the service rendered, only one complaint was registered and that was where a call was made about four months ago at about four o'clock in the morning and the subscriber was at that time unable to get an answer from the operator.

The expenditure of the company in salaries paid was as follows:

Per Month Manager and line man.

$125 00 Two operators

80 00 Housing two operators.

14 00

$219 00 Per Year $2,628 00

President
Secretary.

25 00 25 00

$2, 678 00

The present actual expense claimed by the company is:

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The plant value was testified to as $8,750. The total annual revenue from all sources is estimated at $5,016.17, an estimated increase of $942 over the previous year, but the expenses are increased by increase of salary to three employees which will reduce estimated net income to about $369.79, or about 414 per cent. on $8,750 valuation.

The valuation is about $45.50 per telephone, and as the switchboard, lines and equipment have been maintained in good condition, the Commission deems this a fair tentative value.

The Commission, after due deliberation and full consideration of the facts presented, is of the opinion that the rates submitted by the Pacific Home Telephone Company should be accepted for filing and permitted to go into effect from and after May 2, 1924.

An order will issue in accordance with this report.

ORDER. This case having been duly heard and submitted and the Commission having on the date hereof made a report in writing containing its findings and conclusions, which said report is hereby referred to and made a part hereof,

It is, therefore, ordered, 1. That the order of suspension in this case on the fourth day of January, 1924, be, and

C. L. 147)

the same is hereby, vacated and the schedule known as P. S. C. Mo. No. 3, is hereby accepted and the company allowed to put in force the rates contained therein, on May 2, 1924, under certain terms and conditions.

Ordered, 2. That any and all increases in rates authorized herein shall remain in effect from and after May 2, 1924; provided, that the Commission may at any time thereafter change or modify the rates of said company.

Ordered, 3. That the Pacific Home Telephone Company of Pacific, Missouri, file sworn reports of its revenues and expenses for its exchange at Pacific, Missouri, at the expiration of each six months' period and twelve months' period from May 2, 1924, and continue to make reports each six months therefrom, showing such revenue and expenses for and during said each six months' period after May 2, 1924; said reports must contain a list showing the expenses for labor and materials used in repairing the plant and putting the lines and other equipment in a serviceable condition, which reports shall be in addition to any other reports required by law.

Ordered, 4. That the Commission fully retain jurisdiction of the parties and subject matter of this cause upon the evidence now before the Commission, together with such further evidence as any interested party may offer, to make any further orders in this case as may be just and proper or otherwise change or modify the rates of said company.

Ordered, 5. That this order shall be in effect on the fifteenth day of February, 1924, and that the secretary of the Commission forthwith serve a certified copy of the report and order herein upon the parties to this cause, and that the Pacific Home Telephone Company of Pacific, Missouri, notify the Commission on or before February 15, 1924, as required by Section 25 of the Public Service Commission Law, if the terms of this order are accepted and will be obeyed.

January 30, 1924.

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