Salt Lake Telegram | 1935-09-18 | Page 13 | Users Bearing Phone Company Pensions Cost

USERS BEARING BE-ARIN PHONE COMPANY PENSIONS COST COSIT Experts Attack Plan PIan at at Hea Hearing ing on Rate a Charges Utah telephone users are bearing the cost ot of pensIons accruing to officials officials officials of of- as well a as r the rank and file tile oV of oF the Mountain St States tes Telephone and T Telegraph company the state public service commission was told Wednesday d y The third day of the public hearIng hearIng hearing hear hear- ing in tHe states state's probe of asserted excessive rates of f t the e company In Utah drew an attack by state experts experts ex ex- perth on the administration of ot of the pension fund It Ji now wt totals more than and the tho state stale disclosed disclosed dis dis- closed the fund is Is' charged as a a apart part of operating expenses against rev rev- One Per Cent Questioned as to the operation of ot the pension system P. P E E. Remington ton chief accountant for the company company com corn pany testified the pension is figured figured fig fig- at 1 per percent cent for each year of service of at the average annual salary salary salary sal sal- ary for lor the last ten years of em em- An receiving an average of per year for tor the last 10 years who had been employed for 40 years would receive as a pension 2000 examined Cross-examined by R. R R. R Carey state expert Deputy Attorney General General General Gen Gen- eral John D. D Rice and Frank L. L chief chief- accountant for lor the commission Mr Vr Remington said officials of of- as well as are eligible eligible eli ell gible for tor the pension Rice Takes Issue Mr Rice took issue with the the statement Mr Remington admitted that his testimony concerning interest rates was a conclusion based on on observation observation observation tion of past transactions and not from actual experience He conceded ed cd that banks are paying le less les than 4 per cent on borrowed money The charge that in one instance at least the company paid more than the tho properties were worth in taking over privately owned Utah t telephone utilities during past years was made by Mr in a rather heated verbal exchange provoked provoked pro pro- yoked by the cU q of f Ml Milton n Smith Jr of Denver general coun cou counsel cotin- cotin sel for the company to certain phases of of- the questioning of Mr Remington Purchase Cited Citing the purchase of the Southern South South- em ern Utah Telephone company properties properties prop prop- in 1930 for Mr Os Os- tier contended the firms firm's annual report in 1929 showed the tho i investment invest invest- vest vest- ment mentin in plant and equipment to be and nd depreciation The state expert conten contended ed that on the basis of these figures the company had paid at least more than the actual value of the plant and equipment Mr Remington however pointed out that in buying telephone properties properties properties prop prop- good goodwill will going conc concern rn value alue and other intangibles entered into the transactions as well as the physical physical- value of the purchased utility The hearing Is expected to continue continue continue con con- until the the end end of the of-the the week and may carry over until next week Salary Range Runge Shown Shoun Official salaries commission records records records rec rec- show range from for forthe forthe the company president to around for vice presidents and other ex executives It is the states state's contention stockholders stockholders stockholders stock stock- holders of the company should pay paya a proportionate share of the pension cost on salaries above a fixed maximum maximum maxi- maxi mum num suggested by some com commis commission commis- commis mis- mis Ion sion accounts at annually Mr Remington expressed the tho opinion that after next January 1 under classifications of of the federal communications commission th this s procedure re pro probably ably will be adopted in bre breaking down th the the pension pension fund