Salt Lake Telegram | 1935-09-16 | Page 6 | Phone Company Appraisal Hit

PHONE COMPANY ANY APPRAISAL HIT Appraisal by the Mountain States Telephone and Telegraph company of its own properties in Utah was wa attacked b by experts of the state public service com commission day dayas as the commission reopened its own case against the utility firm The commission sitting both as judge and prosecutor in this case initiated the charges charges' on its own motion alleging Utah Ut-nh rates of the company are excessive In cross examination of ot the company's company's com corn pany's first witness R. R J. J Ashton local architect the commissions commission's forces Corces led by byR R R. B R. R Carey valuation expert sought to show that the appraisal appraisal appraisal ap ap- ap- ap g giving ving costs of reproducing Utah plants of the utility is higher than the actual cost Mr Ir Carey read into the record a summary purporting to show the reproduction costs listed by the ap appraisal appraisal were higher than actual costs casts despite a decline of 30 per cent in building costs He also charged that in figuring structural value or reproduction cost less depreciation Uon the appraisal appraisal appraisal ap ap- ap- ap shows hows a depreciation of ot approximately approximately approximately ap ap- ap- ap proximately on the Wasatch exchange in Salt Lake City while in its rate base the company placed the amount of depreciation to b be charged against revenue at about The rhe state e was represented nt d by G G. R. R Kenny specially retained rate engineer r of Los Ang Angeles les Frank L L. chief chiet accountant for the commission n and John D. D Rice deputy deputy deputy dep dep- uty attorney in addition to Mr C Carey rey Mr Ashton only witness Monday morning was a member of a com committee committee that made the appraisal for forthe forthe forthe the company The company was represented by Milton Smith Jr of Denver chief counsel Elmer Brock of Denver associate counsel W. W Q Van Cott local attorney R. R M. M Morris assistant assistant assistant assist assist- ant vice president P. P E. E Remington ton chief accountant and A. A S. S Peters and Miles Ues R. R Cahoon valuation valuation tion Lion experts