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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1918 Excerpt: ...--War Conditions Considered--Company's Records Held Proper Basis for Testing Adequacy of Rates. (Corporation Commission of Arizona) The Mountain States Telephone and Telegraph Company sought authority to change its air line toll rate from eight mills to nine mills for an initial three-minute period, applying to exchanges from twenty miles to forty miles apart, and to establish nine mills per air line mile for exchanges more than forty miles apart The result of the proposed increase, as to exchanges between twenty and forty miles apart, would be to effect decreases in some cases and advances in others, owing to applicant's block system, but for exchanges more than forty miles apart, the proposed rates would be increased twelve and onehalf per cent., errors due to the block system becoming inappreciable at that distance. Applicant's income statement showed that its earnings for 1917 were six and threetenths per cent, of the value of the plant reported, and for 1918, based on the operations for the first two months, would drop to four and sixteen-hundreaws per cent of the value reported. The commission held that applicant should put into effect an air line rate of nine mills per mile, applying to exchanges more than twenty miles and up to and including forty miles apart, and establish nine mills per air line mile as the basis for the block system, applying to exchanges more than forty miles apart, said rate being for an initial period of three minutes. It is the commission's policy to permit a public service corporation to increase its rates, where it is shown by the company's own records and accounts that its actual net operating revenue is being or about to be seriously impaired. It is more important now than ever for such corporations to be able to meet the...
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