The Board of
Railway Commissioners for Canada.

Order no. G.O. 338

Wednesday, the 13th of
April, A.D. 1921

In the matter of the application of the Bell Telephone Company of Canada, hereinafter called the Applicant Company, for an order authorizing a general increase in its telephone tolls.

955

S. J. McLean
Asst. Chief Commissioner

W. B. Nantel
Deputy Chief Commissioner

A. C. Boyce
Commissioner

The application was heard at the sittings of the Board held in Ottawa, September 21, 1920, and January 5 to January 24, 1921; Hamilton, November 4, 1920; Toronto, November 5, 1920; and Montréal, November 10, 1920,—Counsel for and representatives of the applicant company, Boards of Trade of Québec, Montréal, Ottawa, and Toronto, the Chamber of Commerce of Hamilton, La Chambre du District de Montréal, the cities of Ottawa, Montréal, Sherbrooke, Québec, Toronto, Hamilton, and London, the Union of Canadian Municipalities, Union of Municipalities of the province of Québec, the King Street Improvement Association of Toronto, the county of York, the Canadian Manufacturers' Association, Tenants' League of Montréal, Montréal Publicity Association, Butchers' Association of Montréal, Ontario Medical Association, Central Ratepayers' Association, Caledonia District Ratepayers' Association, the Academy of Medicine, Insurance Companies, Canadian Bankers' Association, Toronto Harbour Commissioners, the Government and Attorney General of Ontario, the Board of Education of Toronto, the Retail Merchants' Association of Canada, the Canadian Lumbermen's Association, and the Ontario Municipal Association were represented at the hearing, evidence was offered, and argument submitted; and the Board, by its Judgment dated April 1, 1921, found that there was a deficit in the applicant company's necessary revenue of some two million one hundred thousand dollars; that, as against this, the increased long-distance charges and the service connection charges would produce approximately one million one hundred and fifty thousand dollars, leaving the sum of approximately one million dollars to be obtained from the rates and charges for exchange service, to provide which the Board directed that an increase of ten per cent in the rates and charges for such exchange service be allowed—

Whereas, after the judgment was delivered and before the order issued, it was made clear to the Board that an error in computation as to the earnings of the company had been made, and that an increase of twelve per cent in the rates and charges for exchange service was necessary to provide the required revenue—

And whereas the substantive judgment of the Board, dated April 12, 1921, reciting the fact of the said error in computation and setting forth how the mistake occurred, authorities and allow an increase of twelve per cent in the said rates and charges for exchange service—

The Board accordingly therefore orders as follows:—

  1. That the applicant company's tariff of tolls for long distance service, to replace all existing tariffs of tolls for such service, as set out in schedule 2 of the application filed with the Board under Case No. 955, be, and it is hereby, approved.
  2. That an increase of twelve per cent in the applicant company's tariff of rates and charges for exchange service be, and it is hereby, authorized and allowed.
  3. That an increase of twelve per cent in the applicant company's tariff of rates and charges for miscellaneous equipment and service be, and it is hereby, authorized and allowed.
  4. That the rates and charges for exchange service at present applicable in the city of Montréal be reduced to those at present applicable in the city of Toronto; such rates and charges thereafter to be increased as provided for in paragraph 2 hereof.
  5. That the applicant company's service connection charge, as shown in schedule 5 of the application, be, and it is hereby, authorized and allowed.
  6. That the application for the change in rates as shown in schedules 1, 3 and 4 of the applicant company's application be, and it is hereby, refused.
  7. That as an emergency provision, the applicant company's allowance for depreciation be computed on the basis of four per cent of the average depreciable plant.
  8. That the increases herein allowed may become effective in not less than seven days after the filing of schedules with the Board.
  9. That the increases hereby allowed be regarded as a temporary measure, to meet an existing emergency situation; the applicant company to continue to file the same monthly reports as at present, with such further special reports, if any, as may from time to time be called for by the Board.

S. J. McLean
Asst. Chief Commissioner,
The Board of Railway Commissioners for Canada.