Show UTILITIES Bony BODY E ERRS ERR'S S AllEGED I II I i I Commissions Commission's I Decision Is Called Plea For Rehearing Declares Earnings Allowed l d Too Lo LowID Low 4 ID bECLAR G th that t the public utilities utilities utilities ties commission has adopted a fundamentally erroneous basis for the thc entire valuation of its property and that its result will be the Utah Light Traction company filed yesterday with the c commission an application application application ap ap- ap- ap for rehearing rehearing- and for permission per per- mission to effect operating economies nies an and l increase its revenues re No date for the tho rehearing was fixed The commission found the tho total value o ot tho property o of the company compan to be i 4 lic maintenance leaving as 36 Z a fair value for tor rate making purposes The company conten 8 that this de deduction deduction de- de sh should uld not be made where the reason retson for tor deferred maintenance is the tho failure of or the property to earn carn sufficient cleat return to permit the owner to meet financial obligations and keep the property in per pcr cent service value aluc The deduction It is maintained la is for depreciation and according to the modern trend of ot decisions should not be made except where the utility has hae earned and md disbursed in dividends or return to the stockholders mone money I which should hould have been put into the thep i property p ro pert I Point to fo I Tho company companO then points out that according to the commissions commission's own computation in the case caHO the company companO has failed tailed to earn a n. return without an any allowance for Cor depreciation ever cr since the Inception o of tho the present own own- The average of ot this deficiency I Is said to have been 2 21 per cent a ayca ayea yea year r. r It Is then declared that It is fair fall to Assume t that the present deferred maintenance maintenance main maln- ten has accrued during that period and in fact tho tim evidence so 80 Indicates Had full run maintenance charges been Continued on page pago 2 2 r AGREEMENT REACHED ON RAILROAD MEASURE Continued from Page 1 antistrike pro I provision lon of or tho the latter meas meas- ure House members also have havo op opposed opposed opposed op- op posed the Senate ratemaking section In a agreeing on labor provisions the tho con conferees crees struck out the clause of tho the Senate bill which would virtually make strikes illegal 1 by penalizing railroad or employers for tor entering into conspiracies for the purpose of interfering In Interfering In- In with Interstate commerce and providing providing- in lieu thereof settlement settlement settlement settle settle- ment of ot labor disputes b by boards com corn composed composed posed equally of ot and employ employ- boards must ers Tho The findings finding's of these be bo accepted lJ by a federal board appointed ap appointed ap- ap pointed d by the tho President with tho the Senates Senate's Senates Senate's Sen Sen- ates ate's approval to which appeals must be taken In In Incases cases in which a agreements arc arc not reached b by the other boards board Though the tho size of oC the latter board has not been definitely fixed Senator Cummins Cum Cum- Cummins mins said It would probably be of ot five members Alt All classes of ot railroad es Senator Cummins said are to have representation representation rep rep- res upon the tho lower wa wage c boards As the government will not be represented upon these boards tho the senator explained settlement of or labor disputes cannot be be made compulsory b by them but It la to compulsory or that In event of ot disagreement the dispute be referred to the federal board for settlement 5 51 a Cent Promised I Under the tho agreement on the ratemaking lag ing section a a. return of or G Ci GJ per cent upon pon the net railway operating operating- Income is guaranteed for a period of ot eighteen months to two years after aCter tho the bill be becomes be- be becomes comes comps a law The exact period would Ii be fixed later b by tho the conferees The Senate bill prescribed a year five pe pe- Provision Pro is a also so made mado in the compromise com corn promise that with the tho interstate commerce commerce commerce com com- merce commissions commission's approval i of or 1 percent per percent cent of the earnings ma may be given to the railroad responsible fo for the earnIngs earnings earn earn- ings an and used for tor such unproductive improvements as erection of or terminals or elimination of oC grade crossings I Considered FlU Fifty per edit of or the earnings in excess of ot tho the G E per cent will go JO to the railroads producing producing- the excess return while the other half hair will go to a railroad rail rail- railroad roa road contingent fund administered by 11 bythe bythe the and used for the lie purchase purchase purchase pur pur- chase o of oC rolling stock and other equipment equipment equip equip- ment to be bc rented to the weaker roads to whom loans loans' from this fund also aso m may mij maybe be bo m nude The bill as compromised further authorizes au- au authorizes authorizes authorizes' au au- th the interstate commerce commission com- com mission to prescribe rates which will hl revenue re by b- which this fixed return re return return re- re turn mn may b be guaranteed and after the thc termination of or the period for tor which this return Is effective the commission I Is authorised to agree upon the percentage percentage per per- of ot return and fix rates ac ac- ac cordingly States May He lie Suspended The Cummins bill provided that one one- half halt of ot earnings s in excess of ot G per cent end not exceeding 7 per cent would I have hayo been pla placed ed in a reserve fund and the remaining one half would have gone into a general railroad contin contin- gent fund Another Important agreed upon b by the conferees Is expected to prevent much state litigation It provides provides pro pro- vides that the thc interstate commerce commission ma may suspend or change chanso rates in the six months' months period after atter the roads arc released by the govern govern- ment mente The rhe conferees also agreed with a slight modification on tho ho Poindexter long IonS and short haul amendment |