Show PHONE EXPERTS EXPERT RESUME ATT ATTACK Ok Attack on capabilities and nd t t i many mony of oC state tl public service e eo mission experts was resumed by bj Mountain States Telephone and Telegraph h company experts In S t session of oC the investigation lation of ot the th utility r rate U structure r- r A. A S S. Peters valuation engine engIn of the telephone company testified that methods used by Frank I U chief accountant for the thi tj commission in setting up fig for tor depreciation salvage e values an and average life of the tho company's company equip eqi ment were ere based solely upon ii hi hb experience Mr Peters contended that dst data dat compiled by Mr I is I. not adequate adequate ade ade- quate to produce a a reliable table of ef rates because of ot errors of f fAe fact and calculation judgment r figures on salvage se values and average life Ute are Me bB based ed on put ut present or future calculation calculations Whichever best but favor his conten contentions tion and theories Mr Peteri charged Mr p Peters discussed at length r re reproduction production n coats cota of the company company's system and declared that G. G GR B JU Kenny expert retained by the com mission for the telephone rate hew hewing ing apparently is confused a as to what reproduction cost really Ii SL IL Mr Peters Petera said that the U. U S. S preme preme- court repeatedly has heW held that estimated reproduction costs cosla of ofa a utility must be considered a ain anlin a ain in some cases is the dominant f ftc ie J tor in a rate hearing J Mr Kinny contended that bo book k values of the compan company's s 's equipment and plant represent the actual r re replacement replacement placement cost J Mr Peters said the company company's book values represent actual construction con con- co costs b. b but do not necessarily ily have any relation to replacement ment cost since much of at the utilities utilItIes's tys tern tem was constructed during an er erI err of high prices prIce A considerable part of or the system he said was wa c co constructed con i just prior to the World Wadd War Var when costs were c considerably t Ie less than at present J Only a comparatively small p part pAil rt of ot the system was put into service since 1930 when construction costs costs' Its were comparable to present costs Mr Peters said Con on Conditions Conditions and prices are constantly changing hence Mr Kinny's cori con contention that book values represent replacement values is in error lh the utility's expert testified Mr produced a comparison of book and replacement values value showing additions costing 1075 9 SOS had been made to the Mountain States system stem from 1923 to 1934 inclusive a high price period |