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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Nov. 30, 1956)
Phone Rate Hike . .. " Statesman, Salem Ore., Fri., Nov. 30, '56 (Seel 13 Decision May Fall to Demos Bj PAUL W. HARVEY Jr. AtMlatH Pre Writer It takes a lot of work and col let economics to increase your monthly telephone bill, nd some times there"s some politics tossed in for good measure. " - Public - Utilities Commisioner Charles Heltzel will begin. a hearing in Salem Wednesday on the Pacific Telephone Telegraph Company's application to boost Ks Oregon rates $3,200,000 a year, or about 5 per cent. ' ' The company says it needs the money to provide capital for ex pansion, and to make up for mounting costs of labor and ma terials. Have F Might Boost The interesting point is whether me oraer win De issueo Dy Hcnzn, or whether jt will wait until the Democratic administration takes over on Jan. 14. In the past. Dem ocrats have fought rate increases. Hcltzel doesn't know whether he will be able to decide. It depends on whether the hearing lasts two of three weeks, as they often do. Per Cent Allowed It isn't a hard and fast rule, hut Oregon usually permits th t utilities to earn about 6 per rent, based on the original cost of their properties less depreciation. Some fttates (o as high as a per cent. Few allow a smaller profit than Oregon does. The phone company, however, wanttthis yardstick changed. It has Knftfjjt to have the rate base changed ttf production cost new, or what it would cost to replace the present plant. This theory, ol course, would permit higher rates. Heltzel has' ben investigating the company's rate increase appli cation since it was filed last Sep tember. He finds that it now is earning 5.7 per cent, based on original cost less depreciation. II he granted the application, t h e rate of return would be 6 7 per cent. Third Burh Case Hut will be Heltzel'i third such ease. In 1952, the company asked for $$.188,000 more, and got 853, 441. A year later, it asked for $3,960,000, and got $1,436,524. One trouble faced by the phone company is inflation. For instance, ia the last phone case, he granted (.1 per cent rate of return, but higher costs and increased invest ment quickly cut it to 5.9 per cent. , The company has tax troubles, too. Every time It gets a rate in crease, half of it automatically goes to the federal government. And it has to pay -state and local taxes out of the other half of the Increase. Wm'I Be Areasd Heltzel doesn't know what he'll after the new administration comes in, but iff almost certain he won't be around. The Democrats have trained their (una on him ever since, in 1952, he let the power companies add i 20 per cent surcharge for severs months to repay them for added costs of steam generation. That was the year of the low atreams, when hydroelectric plants couldn't fill the demand for power. The Oregon Supreme Court up held Heltzel, but the Democrats continued their running attack on him. A public utilities commisioner doesn't make many friends. The ntilities get sore at him because they don't think he lets them have enough profit. Lots of consumers get angry because he lets the utilities increase their rates at all. Oregon Tax Collections Up Oregon State income tax collec tions in the tour months ended Oct. 31 totaled $3,893,964. or $17. 751,959 more than in the same four ' months of last year, Ray Smith, tax commissioner in charge of the Income tax division, said Thursday. Personal income tax collections totaled $28,949,305, or mora than double the $13,788,740 collected In the same four months of 1955. The increase was paused by the 45 per cent surtax imposed by the 1955 Legislature and with im proved economic conditions. Corporation income tax collec tions were up from $4,912,234 to $7,489,927. tlHiniMtHtminflltHHMal Why Hot! & 1 I Y - (aiV r - ' i . - - - - ; I ' ' " ' - ' h . - , . ,' I . - ' ' 1 ,ymMm!m Shop Friday from 9:30 a. m. to9 p. m. - Come early! 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