The herald. [volume], March 10, 1921, Image 6

About The herald. [volume] (New Orleans, La.) 1905-1953

Image provided by: Louisiana State University; Baton Rouge, LA

                
Soccer Team of Diplomats in Washington
7 *
- +i
The English game of soccer invaded Washington during the holidays with the result that bruises and sore mns
are being nursed along diplomatic row. The plgture shows the team of the British embassy attaches, winners
the firat game, played with an allied team from four other embassles and legatlons. The Englishmen won the
86 to 2, even though they loaned three men to the. allied team.
r DUNNO wot'a matter for leas tree
. foar werk. I no gotta ambles.
)Uryteeng too moocha hot for feels
Per fova sewn time everyday I
go someplace and da collar on da
es go seeck before getta start.
Other night I starts out for maks
weeth one girl and before dat
_a- qsetsa work I gotta roast
n en da arms. I getta Ides
weather u ea go t6 ieep on da
Mdbbe da machine wot he mskas
weeth sa broka down, I
at I gotta Isae sad aef I am right
al keek an more boats too moocha
TY know lss year rbS da year
i t one verybody dern cos
rt, "To H-- Weath da EKsier."
me myseml I say dat sam
W~d, whet a war rwas ght ena da
time we no goatt moocbs eoel
-abs dat pla er eehot Bet whea
amnser ma go to wet sa we
seta mooh use for da coal da
wet re dat glace me balth
beg are
SIa e Wg at a r e was ado for dat
wet smats war ma ast
-r ami . a., bO- H- We-th
h---i ." But et dat ma aso do
wr eserythtig tta so hot
between ye and me end aso fr
rensod I sap
..- Wee dr Weather."
Rtemedtable orem s.
erMis preest lmitsoao Umea
as to be podlvely weird. For
theres the ariya1y
btterty," whih when n oo
a If big gu.dy.waged lasses
ever It. The '"bee" orchid.,
A'W orchid and the "lard"
are equally remarable. One
bears a lower In the Ilknas
plaoia oteky; another we
the aspect of an opera dander
by the bed.
6B9
Phd._ bh "GCirs Beoo Marmnun
t.--ý .'..- -
110 Im
.1 .111 I
i /
i I I ý ýI I i i
' ý I
MR. PORCUPINE
O NE morning, Bob Rabbit and Tim
Hare were running through the
woods, when Bob espied Mr. Porcupine
sitting in the doorway of his home.
"There is old Mr. Hedgehog," he
said In a whisper to Tim Hare. "Bet
ter not let him see you because he can
throw one of those sharp darts he car
rles under his long, coarse hair."
But Mr. Porcupine heard Bob Rab
bit, for his ears are very keen and he
at once bristled; but before Tim and
Bob had time to run he spoke to them
and dropped his quills out of sight.
"Come here," he called. "I won't
hurt you. I want to explain a few
things to you youngsters so you will
Y'O WIRe
never call a Porcupine a Hedgehog
againta. It just maLes me bristle when
I hear that name."
"But we thought you were Mr.
Hedgehog" said Bob Rabbit, keeping
at a distance, la spite of Mr. Porcu
-pae's promise.
"Yes, I know, and so do many otb
ers think that is my name," said Mr.
Porcupine, "but if you lsten I will tell
you the diferene.
"In the arst place we are in no
way related, although Mr. H. has quills,
but he eats ants and many things
whlet I would scorn.
"And he is not nearly as large as I
e41A. MI.
may, 5,iký;.
C Ssdi'ursl
Salt iwl s. ow .
ýw~iflt ýK a~ iclf
be w tib 'p
(4 sy4n
~i(L~tlw%' F I -09
A swcil ere+ ý 9'
tkwalA.
am and if you could hear the story
from some animal that has tried to
harm him, I guess he would tell you a
very different story if he ever tried the
same thing on me.
"I do not throw my quills at an en
emy as many think, but I can easily
let an enemy carry away as many as
he likes so deeply buried in him that
they have to be drawn out.
"Now, Mr. Hedgehog uses his quills
to defend himself, but he cannot
wound as I can, and look at my tail.
Why, you should see me use that when
an enemy tries to attack me."
Mr. Porcupine sumddenly dropped his
head, arched his back and planted his
feet firmly with all his quills or spines
erect and swung around his club-like
tall with many more spines, so swift
ly that Tim Hare and Bob Rabbi.
ran.
When they were at some distance
from Mr. Porcupine's house they
peeped out from behind a tree where
they had taken refuge.
"Did you ever see your friend Mr.
Bedgehog, do that?r called Mr. Porceu
pine, looking very aelm agan.
"He is not a friend of ours," an
swered Bob Rabbit. "I just thought
you had two names and that Hedge
hog was one of them."
"Well, I have only one name and
don't you let me hear you call me by
any other," said Mr. Parcupin4 walk.
lng toward them.
"You will never hear us call you
anything." called Bob and Tim as they
scampered of threo the woods.
"I know why he was so angry," maid
Tim Hare, when they we safe to
their part of the woods. "Mr. Hedge
hog is the little fellow that rolls ug
like a ball when be is scared and Mr
Porcupine thinks he is a coward for
not fighting as he does.'
"Well, they both have very shar
quills and I think Mr. Porcupine is
very tfussy," said Bob Rabbit, "but I
will not get near enouga to call him
anything again. I an tell you that.'
(Coprright.)
The Facts About the Teleph
Railroad Commiia
Order No,
Cumberland Telephone & Te
Ex part
On September 22. 1920, the Cumberland Tde,
phone & Telegraph Company filed with the Com
mission an application for an advance in telephone
exchange rates at various exchanges in the5State of
Louisiana, amounting in the aggregate to approxi
mately 20 per cent over the rates for exchange
service then in effect.
The application was first assigned for hearing
at Baton Rouge, Louisiana. on October 15, 1920,
at which time several parties appeared and filed
protests against the proposed rates, and urged an
extension of time.
Feeling that the proposed rates had not been
fulls explained and understood, the Commission.
on its own motion, continued the case, and required
th~e applicant to print the rates proposed for every
exchange in the state and furnish five hundred
copies to the Commission. The order was complied
with, the pamphlets containing the proposed rates
were thereupon furnished by the Commission to
every municipality where exchanges were located,
and to all parties to the proceeding.
The case was then assigned for further hear
ing at Baton Rouge on December 15, 16 and 17,
1920. when an exhaustive presentation of the case
was made by the company and at which time pro
tests were received from various sources against
any advapeces in telephone rates. The case was
taken under advisement, but before a decision was
reached, the Commission Council of the City of New
Orleans filed an application to reopen the case, in
order to introduce the evidence of expert ac
countants who, it was alleged, had made a study
of the company's books, and prepared certain data
therefrom, as well as other statistics, considered
by such expert to be of value in aiding the Comms
sion to arrive at a proper determination of the case.
The case was accordingly reopened and further
hearings held in Baton Rouge on February 24, 25
and 26, 1921.
Counsel for the City of New Orleans moved for
a continuance of the case at the beginning of the
hearing, on February 24, which was denied. The
Commission believes that all parties have had ample
opportunity in the four months that have elapsed
since the first assignment of the case in October,
1920, to prepare and present all facts which were
pertinent to the case. After hearing the evidence
of the City of New Orleans, we are of the opinion
that a further continuance is unnecessary as all
of the pertinent facts to such an inquiry as this
are fully before us.
A careful consideration of the case has fully
acquainted us with its full importance, and we
approach its solution with a thorough consciousness
of the responsibility which the law giving us our
being and defining our powers and duties, places
upon us.
The public interest in the case, therefore, de
mands that our decision be prefaced with a review
of the relevant facts upon which we base our de
cision.
The primary rule in all cases of this character
is that the rates charged the public for the service
rendered by a public utility must not be greater
han will pay the cost of furnishing the service
and a fair return upon the value of the property
used in furnishing the service.
In this case the first of these questions--the
cost of furnishing service--presents the most dif
ficult of the problems, because the second has been
greatly simplified by the fact that the telephone.
company is asking that its actual average invest
ment in the State of Louisiana be taken as the
basis for its return, rather than the cost of repro
ducing the properties.
We have, therefore, definite figures as to the
property investment, upon which computations as
to rate of return may be properly based.
The telephone company has shown that its
operating expenses have been steadily increasing
and that the increased cost of operation has more
than absorbed its increase4 revenues. There is a
very small margin between the operating expenses
and the operating revenues, which in a short time'
will entirely disappear.
The company has shown that on account of
conditions prevailing at the time of the war, and
since, it has been unable to furnish service to many
of the public who desire it, and that on that ac
count the business interests of the state have great
ly suffered and will continue to suffer unless it is
able to pgovide more facilities with reasonaole
promptness and at reasonable and just rates.
There have been filed with the Commission
complaints from citizens of Shreveport, Louisiana,
and likewise a complaint from the City of Shreve
port, demanding service which the Company has
n unable to furnish. The records of the Com
mission are filled with complaints that service is
not being installed when and where urgently needed.
The officers of the company admit that the
service has not been up to the pre-war standard,
but explain that same is due to its overloaded
facilities and that tis condition cannot be remedied
until new facilities are provided that will take care
qf this overload.
The company states that it now has on file
in its various ofices throughout the state about
9000 signed applbations for telephone service, none
of which it has been able to fill on acount of the
eonditions set forth above.
It has shown that on acecouat of its small earn
ings that the investing public are not attracted by
its securities, and thus, unless it obtains some re9
Il3s, it will be ungble to secure the new capital by
the issuance and sale of securities, or borrowed
money, with which to make additional investment
in extensions and development that re so neces
Itt has own that the ave e wages paid its
n iats n Louisiana is $59.45 per month and
t these wags cannot be decreased, but on the
ontrry will bae to be increased. That on so
count of the wages paid by other industries it ij
experlncing great trouble in keeping its trained
operators and that in eonsequence of old ones lav
ing, attraeted by bhigher wages, and new ones bhar
lagb to be constantly trained, the service ne ee
rily uffedw.
It has at this thms well deflned&jas for ,
tre develdopment, dependent ubon b abiity to
attct new capital to invest In t securities, which
onaditis nehemrly depends upon I abli to
ehew bnker and the Irvestin pubic, t # it
rbnal g suffleent to pay the itesent on the money
• aus to be obtained.,
Val=w of Property in Loaisin,
In order to determine the rate of return it is
necessary for the Commission to first aseertain
the fair value of the property of the Cumberland
Company in ouisiana, used in furnishing telephone
service.
In arriving at this vaye the Commission is
governed by decisions of the courts in such
matters.
The Supreme Gout of the United States in the
case of Wilcox vs Consolidated Gas Company. 212
U. S., held that the fair value of the property is to
be determined as of the time when the rate inquiry
is being held, that is to say, it is the present value
of the property which must be ascertained.
It has been shown that the present value of
the Cumberland Telephone & Telegraph Company's
property used in furnishing telephone service in
the State of Louisiana is over $17,200,000. We
think this value too high. It might be true that
the plant in Louisiana at present day prices could
not be produced for a less amount, but still we
are in an abnormal period and it would not, in
the opinion of the Commission, be just to the pub
lic to fix this value even though the courts bold
that this method is correct.
Investment and Oprating
Expenses
From the exhibits fled by the ofleisl of the
Com , which have not been succesfully as
saied the accountant employed by the City of
New Orleans, or others the actual investment, reve
nues and expenses In the State of uLomila. using
the average figures for the invr ment ad ad al
figures for operating revenues and operating e
penses, were as follows:
Stat-Wm ýt of lnoestment, Resenses and
Expenses Louisin--,bor Months,
A, cgt, Ssp~ember, QeMob
and Noomnbr, 19a
INVESTMENT:
Average Exchange ...............$ 7,506,99.9
Average Tell ................... 3,102,047,68
Average Real Estate--Lad ...... 191,845.486
Average eal Estate-Bldlags .. 70,745$4
Average PFurniture and ltures .. 57,148.50
Average Tools, Teams, Vehicles, etc. 140.114
Average Working Capital ........ ..40.0o
TOTAL AVERAGE INVESTMENT $1S,2S7,47.57
REVENUES:
Exchange ......................=$ 070, 7.40
Toll ......... ................. 618,525.08
Miscellaneous ................... 4,588.18
TOTAL REVENUES ............$ 1,51,898.64
EXPENSE8:
General and Miscellaneo .......$ 45,110.81
Commercial ... ................ 20818.72
Traffic .... .................. 441,804.05
Repairs ....... ................ 249,004.80
Station Removals and Chanes .... 21230,2
Depreciation ...... ............ 233,620.0~
Rights, Privileges and Use of Prop
erty ........................ . 79,71.18
Insurance ..................... .848.98
Taxes ......................... 109,,84.44
TOTAL EXPENSES ............$ 1,890,841.74
NET REVENUE ................. .... 23,00.0
Per cent per Annum of Net Reve
nue to Investment ............ 3.03
The above figures were furnished at our re-a
quest in order to have before us thb latest avanlab
a stistic as to the Telephone Company's operations
in this state.
These figures show that the telephone company
earned for the period stated 3.08 per cent oe Ms
investment and working capital. The evidence,
however, shows that during the past few moaths
therb has been a steady deereas in toll revnes
and if same is kept up it will receive a still less
net return on f1 invt eant:
It is claimed that new capital cannot be ob
taied by a public utility except where rates are
such as will earn an amount to meet fixed charges
and establish a basis of credit. There most be some
such assurance otherwise capital will be attracted
to other business ventures. We think this is sound
businemss logic. The deplorable condition of mapy
of our most useful public utility companies is due,
in a large measure, to their inability to earn the
return needed to attract new capital in order to
meet the demands for service, and the public suf
fers from poor service or .lack of service for no
other reason than that old fities canunot be used
indefinitely to meet new growth, sand eannot be
extended beyond ertaba limitstios without dda
new and additional facttles for which new esp_ .
must be provided.
SIt was shown thast the prevasltng rate of In
terest is 8 per cent. Commissli and couris hi
this ecountry have hel thit a fair return on the
investment upsd by tthe blie should eq~a the
prevaling interet rats. The bk of tie contry,
its insurance ompnl and most private bei
esses pay a much larger perantsge and unaless a
atr return is allowed on the inveamt in puble
utlties, they wi be unablse to pt ew cspital and
will en to function with lesrults to
the.puaic who depend upon them for servics.
It must be berne in mind that for seral yeass
-t property nt td to puble use hs m
many istn ests l abnrmal profitaes re.
turns without - ; whereas t, e 6w s at
Ise utlities have made samh g raters
that they as* o ths wi of ) rall over
tih eountry.
vosmied in the lat 9Ek yeasr huseases
...s..alsss sl per o...
In re: Rate Read
A rule of primary ipor
public service corporations and
the public is that its man---
efficient and economical.
sidered this phese of the em
testified, an no partyo the
ha charged, that the affai of
pany are not so managed Th
calse, the wages paid enplo
vantages gained by the co"ntr
company has with other eft
sions paid on toll messag
the wires of other compal-e
closest scrutiny, and we find thn
ciency have been reduced to a
economies practiced all point to
efficient management
We appreciate fully ,hat t
there is great distress in the
of this state and it is urged by
count of the present deprems
public utilities should only reed.
or even suffer actual lose T
our duty an unpleasat one, h
is fur better to hold jurid
following our plain duty as hi
stitution of making "just and
than to deny what we coumd
rates for merely sentimental
It is unfortunate that the
application has to be conidwy
the prices of many omodjta"
it must be borne In mind that ia
as well as the owners of thse
unprecedtd peoe y
after the war,, wi t,
srvd the publbe withbot a
in its revenues.
After ilegenel t
notices sent out by the
del organisatlon, firm and
out the stat, have appoved t
Among the Chambera of
increases are the New Oulem
Shreveport Chamber of
Chamber of Commere; Bopgrl
ta o sad othea.
Ti, Amnianm Td.pae.m
Company and Wail.
Coamp Co
The relaton between
these two compaes was d
evidene, and, theretooe, w
Mined and e i ted i tis ta
Camberiand Copay has mi
Electrie and American T
Companies. The sole queuties
reference to these eontrac b
are reasonable and are
beeland Telephem end
therefore do not impose a
telephone service. If they me
and advantageouns to th
then they are proper costwr
burden on the uaers of the
tdephonae service, they shoel b
eidence in the case shows
contract with the Amedrican
graph Company is
pny paysh the mAerican
Sroesoj rseveaues, sad
Sappll tim
induction oils that re used l
ton, the America Tdeephe
puny furnishes the ervise df
ants and research laboratory
and other valuable service to
pny. It also gives to the
flnascl advice and amltammse
rowngth ey have aien it d
ontract wm deen ts baai o W
saos in the United Stas
the telephone companies, ad
Commisdons have approved o
cases the courts of ths
to pass upon this onrath
they have given it their
contract of Lowasadvantage
pnthe on Within the te
vicot bindRailroad thoy
furnish sabma~ Arkanas
on dand oappred thde is ce
ease of tt Soeuthwestser
Company v. Thea t of
field Jack, of the S. Coem
trict of Louisiana. i a
the ontract While the
not inding on as. they are
furnmberla safCome, reaonaM
casebl the stion t ~o
Amberian Telephone sa
of0 the o b sd o a
Orkans do maTka Im
t e ratoe chs1 e l5, i .
Cumberland iCompanry
to nsr  cacepted he
athe cr e rtsy tah
It was asker sen e
So fa r as tbh oat._
Cmp u were -eh..
h of th mm m " "
.,Uv. by C~rbedaa