Evening Republican, Volume 23, Number 90, Rensselaer, Jasper County, 13 April 1920 — ’PHONE RATES ARE INCREASED [ARTICLE]

’PHONE RATES ARE INCREASED

PUBLIC SERVICE COMMISSION OF INDIANA AUTHORIZES ADVANCES. We have before us the report of the Public Service Commission of the state of Indiana in the matter of the petition of the Jasper County Telephone company for authority to increase its rates. The following is taken from said report : On November 21, 1919, the Jasper County Telephone Company filed with the Commission, a petition alleging that it is a public utility, owning and operating a telephone exchange in and about Rensselaer, Indiana, and that it has on file and in effect the following schedule or rates, to-wit: Per Mb. Independent metallic telephone with automatic equipment-_52.50 Jndependent line business tele-phone-'—magnetic equipment $2.00 Independent line residencephone:—automatic equipment , r 51.50 Grounded line residence teletelephone—magnetic equipAutomophone business extension $1.25 Magnetic business extension__sl.oo Automophone residence extension — _ -75 Magnetic residence extension __ .50 Extension bell .—'2® Telephone in Lodge hall, independent line SI.OO Telephone in church, independent line SI.OO Telephone in public school, independent line _52.00 Telephone in public library, independent line --- $1.50 Petitioner further avers that said rates are insuffcient and inadequate and do not -produce a sufficient income to enable petitioner to keep its lines and exchange in proper repair, pay operating expenses, provide a proper depreciation reserve and pay a fair return on the investment in its said property. Petitioner therefore asks this Comminsion to make an investigation and to determine and fix a proper rate for said exchange service. A copy of said petition was served on the Rensselaer Republican,, the Jasper County Democrat, and the City Attorney and City Clerk of the City of Rensselaer December 1, 1919. „ , '' After notice to all of the above parties, a hearing was had at the rooms of the Commission in Indianapolis, March 10, >1920. An audit of the books of petitioner was made by the accounting x Department of the Commission, and an appraisal of its physical property by the Engineering De-, partment of the Commission. The Commission’s engineers fixed the reproduction value at $71,784, and the present value at $56,691. Mr. J. K. Johnston made an ap-

praisal of the same property end fixed the reproduction value at $78,798 and, the present value at $65,848. These values do not include any allowance for going value or working capital. The Commission believes that $60,000 is the fair value of the property for rate making purposes, including going value and working capital. Deducting working capital, material and supplies and land from the physical values leaves depreciable property of the value of $53,741. The number of telephones installed as of the date of the hearing at the present rates would produce an annual income as follows:

Revenues. Subscribers station rentals $16,672 Net toll receipts 4 3,000 Installation and move ' charges -- 66 ‘ Miscellaneous operating - revenues *•**!» :", a ■ Total gross revenues —521,569 Petitioner’s requirements may be estimated as follows: Requirements. Officers’ salaries and wages of employes $17,715 00 insurance’ '' “ 11" "” - 324.00 Office and garage rent-- 650.00 General office supplies--- SVU.UU Garage and automobile / expenses - 1,475.00 Transmission and power 1.09900 Printing and advertising 450.00 Directory .expense 145.00 Material for repairs 1,300.00 Total operating expens-' • es, taxes and rents--$24,517.71 Depreciation, 5% bn ’ . $53,741) 2,687.50 Return on $60,000) 4,200.00 Total requirements -..531,405.21 The revenues therefore -fall snort by approximately SIO,OOO of meeting the reasonable requirementr of petitioner. , The Commission believes the schedule of rates in the annexed order, With the increased number of subscribers that may reasonably be expected in the near future, and the possible reduction in maintenance cost that should follow the period required to take care of deferred maintenance will be sufficient to provide for operation and depreciation and a moderate return on investment. > It is therefore ordered by the

Public Service Commission of Indiana, that petitioner be, and it is, authorized and directed to charge and collect the folowing schedule of rates, effective April 1, 1920: Individual line business, (automaphone) SB.OO Individual line business (magneto) ~. —$2.50 Individual line residence, (automaphone) —52.25 Individual line residence (magneto, metallic) $2.00 Individual line residence (magneto, grounded) $1.75 Four-party line residence (au- . tomaphone, metallic) $1.75 Four-party line residence (magnetb, selective) 1.50 Individual line, rural business (metallic) *52.75 Individual line rural residence (metallic) ----*52.25 Individual line rural residence (grounded) *51.75 Party line rural (selective) *52.00 Individual line school or . „ library $3.00 Individual line, lodge or Church .-.—a sl-50 Joint user __sl.oo, Extension, business or school P. E. X. —— >IOO Extension, residence .50 Extension bell ----------- -35 Desk set in residence, extra.2s ’The above rural rates shall apply to stations 12 miles or less from the exchange. On stations from 12 to 18 miles from the exchange a line mileage charge of 25c per month shall be added. On stationsfrom 18 to 26 miles from the exchange a line mileage charge of 50c per month shall be added. Theabove rates are payable in advance. If _ not paid by the end of the month in which service is rendered, a delayed payment charge of 14 per cent shall be added. '