Salt Lake Telegram | 1936-01-13 | Page 9 | Estimate Hit by Phone Firm as Excessive

ESTIMATE ESTIMA TE HIT BY PHONE FIRM AS EXCESSIVE Attack on States State's Figures Figures Figures Fig Fig- ures Renewed at Hearing A renewed attack by the Mountain Mountain Moun Moun- tam tain States Telephone and Te Telegraph Tele I c.- c. graph company on the states state's estimates estimates estimates esti esti- mates of depreciation and an attempt attempt attempt at at- tempt by the state to snow no the utility's utility's util util- interest payments to its itys ity's parent parent parent par par- ent the American Telephone and Telegraph company are arc excessive marked the hearing on Utah telephone telephone tele tele- phone rates at the capitol Mon Mon- day Charles L. L Smith president of the First National Bank ot of Salt Lake City was called as a company witness witness witness wit wit- ness to explain current financing methods In cross examination John D. D Rice deputy attorney gen general ral and counsel for the state public servIce service service ice commission which is probing Utah rates of the company attempted attempted attempted at at- tempted to show that the 6 6 per pcr percent percent cent interest paid by the utility to its parent on borrowed money is too high and that current interest rates on commercial demand notes are about 3 per cent Statement Read J. J R. R Spangler company engineer read into the tho record a statement in rebuttal of testimony by Frank L. L commission accountant Mr had bad testified regarding factors includable in depreciation accounts Mr Spangler contended that Mr took the position storms fires floods and other casualties had been included by the company as depreciation factors contrary to the uniform accounting procedure approved by the commerce commerce commerce com com- merce commission Is Vron Wrong Mr Ir is wrong in contending contending contending contend contend- ing these are arc not proper factors Mr Spangler said aid and testified such elements in depreciation actually actually actually ac ac- ac- ac are countenanced by the tho in interstate interstate interstate in- in commerce commission The company witness cited court decisions to back a contention de depreciation depreciation depreciation de- de is defined as loss not restored by current maintenance which is due to all factors causing ultimate retirement of property