Show HONE RA RATES TES SET TO YIELD PER CENT CENTi i Engineer Holds Holds Low Lower r Toll I r Three points of oC interest to tele- tele nc users were brought out at r capitol Wednesday at the hear- hear I ig i in the states state's Investigation of ii ite structure of oC the Mountain t tates tes Telephone Telegraph com com- iny fly Translated from the technical t. t mony of oC Miles S. S Cahoon genal gen- gen 1 al rate engineer for the com com- iny Iy my they were 1 1 Although the c company con- con iders the economic condition of h he territory it St serves in making fites ates tes no major changes have havel l i icen n made in rat rates rate during the thel l I 2 Cities 1 of oC Utah to some ex- ex ent eat pay the rural telephone bill 3 A return of ot less than 8 per tnt ent ht from operations is consid- consid red confiscator The admissions were made b by r r. r Cahoon in the course of cr cross cross- by John D. D Rice dep- dep y attorney general and G. G R. R rate engineer of Los An- An l les s specially retained by the state bIle bUc service commission t L Line of ot Attack Opened Sir r. r. r Rice at one point likened the them's them's ms m's rate making malting methods to a circle comparing the actions of oC various company oHi- oHi Is to those of directors of-directors directors assistant advisers and others in a motion picture Che rhe assertion that 8 S per cent is the fair return was made madelie lie ile questioning was being con- con by Mr Kenny Mr Rice took over the ss examination his questions in- in he would hold in part to a ory advanced in the states state's un- un attempt to order ns as in rates of the Telluride Pow- Pow comp company ny in southern Utah mely that a u utility till t may not exit ext ext ex ex- ex- ex it t the same return in lean years does in prosperous times Umes tr r. r Cahoon told Mr Rice that conditions are a factor factors i not the basis of making rates rate Yet there here have been no major l in rates since 1929 Mr e asked That is true except for minor Mr Cahoon replied Is the ability of oC the consumers nay Day a factor Yes a factor but hut not a basis venue needs and development of oC hanges are arc factors From 1929 to 1935 then you ou forthe forthe forthe for- for the ability of ot customers to pay i l made no rate changes Hollywood wood Circle lr Cahoon said it was necessary make no major changes that needs were paramount fr r. r Rices Rice's comparison of rate king methods to a Hollywood cle followed Mr Cahoon's my ny that numerous officials par- par in the process I he rhe deputy attorney general testimony that about 45 changes hanges anges in Utah are not meeting venue needs while others are ning a return He estimated the urn for the state system at 3 cen cent tSo t. t So you add all aU the revenue det de- de I de-I ct t all aU expenses and get 3 per perIt perit perit it asked Mr Rice I to dr r. r Cahoon replied that he was lowing a conclusion from evidence 1 the hearing and the deputy ed ced ed that the answer regarding urn rn of 3 per cent be stricken grounds It was hearsay fter ter an argument the answer answers answer'S s 8 allowed to stay in the record r. r Rice brought out that some Changes hanges anges did not meet revenue re- re because their s systems stems re expanded You make up the losses from froma a h expansions a against the confers con con- fers in the city then 1 he asked I That PIat is true to some extent the I tes ess replied 1 |