. L. 148] Extension Stations: Outside of building in which main station is located: Residence, wall or desk type, if no pole line construction Additional directory listing, business or residence... Supplemental Equipment: Receivers, single head Receivers, double head Per Month $0 125 25 15 15 In its application, the company asks authority to establish and put into effect the following schedule of gross Extension stations located in same building as associated main station: Business: Wall type, each Per Month $1 00 Desk type, each 1 25 A discount of 25 cents is allowed from the monthly charge if paid on or before the fifteenth of the month in which it is due. Payable quarterly in advance. A discount of 75 cents is allowed from the charges for a quarter if paid within the first month of the quarter. Residence: Wall type, each Desk type, each [S. D $0.50 75 Extension stations located outside the building in which the associated main station is located, but on the subscriber's premises and within the exchange area: Business or residence, rate for extension stations located in same building as associated main station, plus extension line mileage charge. Extension Line Mileage (Extension Station). Extension line mileage computed on air line measurements, and separately for each circuit, from the building in which the main station is located to the extension station, per quarter mile or fraction thereof, per month.... Supplemental Equipment. Extension Bells and Gongs: $0.50 $0 60 Extension bells and gongs are furnished, provided they are located within the same building as the associated station or outside of the building in which the associated station is located, if the circuit is wholly upon the subscriber's continuous premises, and fixtures, at the following rates: Extension bells, each..... Extension gongs, each (and an installation charge of $5.00 or 50 cents per month).* Per Month $0.25 25 The fifty-cent rate may be applied only to subscribers for whom service was established prior to the date the other rate became effective, which was February 1, 1924. L. 148] Hand receivers are regularly provided for use at all subscribers' stations. Receivers in place of or in addition to hand receivers, are furnished at the following rates: Watch case receivers, each.. Single head receivers, each Double head receivers, each.. Switches: Per Month $0 15 25 40 Switching or listening keys for connecting a main or extension station with different central office lines, or cut-off switches, by means of which a main or extension station may cut off the other station from the central office line, are furnished at the following rates: Two-way switches, each.... Per Month $0 25 35 Three-way switches, each Transmitter Cut-Out Keys: Transmitter cut-out keys are provided at the following rates: Hand type, each..... Foot type, each Per Month $0 25 50 Hearing upon the application was held at Canton January 14, 1924. The applicant company appeared by Mr. A. J. McBean, attorney, Mr. H. A. Livermore, statistician, Mr. C. L. Swancutt, appraisal engineer, Mr. E. C. Hartley, general commercial engineer, Mr. R. L. Holliston, local manager, and Mr. F. A. May, division commercial manager. There appeared on behalf of the city of Canton, Mr. H. B. Rudolph, city attorney, Mr. H. A. Brown and Mr. C. A. Bennett, attorneys. Mr. R. L. Dillman appeared on behalf of the Board of Railroad Commissioners. Since the date of the hearing, representatives of the company, the city of Canton and this Commission, held conferences at Omaha, Pierre and Canton. Witnesses for the company introduced various statements of earnings and expenses, including income statement covering the operations during the period from Jan uary 1, to October 31, 1923, which is a part of Exhibit No. 9, and which is here set forth: Other revenue (net) (Accounts 310, 311, 316 less 320, 323) 41 Average plant in service and general equipment, period $45,613 43 Working capital 1,468 75 TOTAL AVERAGE PLANT IN SERVICE AND GENERAL EQUIP- Per cent. net telephone earnings to above (annual basis).. • Deficit $47,082 18 *9.06 [S. D L. 148] After the hearing, Mr. R. Miller, engineer, and Mr. H. A. Hanson, statistician, for this Commission, made a check of the company's records at Omaha for the purpose of ascertaining the correctness of statements introduced. It was found that all information contained therein was taken from the regular books and records of the company. Some of the items were charged currently against the Canton exchange on the company's records, while others were apportioned on various bases adopted by the company for setting up income statements for individual exchanges. All statements were set up to cover exchange service only. The methods used in eliminating toll service property and expense were practically the same as those employed in the Minnesota Rate Case. Of these methods we have no criticism to offer at this time. We do take exception, however, to certain apportionments of overhead expenses which will be discussed further in this report. Objection was made by Mr. Hanson to the practice of applying the average hourly rate for each class of plant department employees, for the district as a whole, to the actual hours worked by each class of employees at the Canton exchange. Mr. Livermore, statistician for the company, reworked the maintenance labor charges on the basis of actual hourly rates for the Canton exchange, and statements were furnished to this Commission showing the following corrections to be made in income statement heretofore set forth: Current maintenance reduced by..... General and miscellaneous expense reduced by...... Total telephone operating expenses and deductions reduced by Net telephone earnings increased by the latter amount, And net telephone earnings to average plant in service and general equipment, plus working capital increased $756 54 21 75 778 29 1.98 per cent. |