In submitting its application in a cordance with the above terms the Company stated that, in spite of all possible economies in construction and operation, consistent with good the net returns were inadeind under present conditions ikely to remain so. Tu 1934 they were equivalent to 6.13 per cent. on the invested capital, and to incre this figure to 10 per cent. per annns from April 1, 1995, it was estimated that an overall increase in gross rev~ fenues amounting to 2289 per cent. was required, and this could be achieved (1) by. increasing subseri~ bers' bills by a flat percentage, or (2) by a more equitable distribution of service charges as between individual subscribers by adopting the message rate principle. The Company considered the second alternative the mote equitable and economical, at Yeast for business telephones, and submitted a schedule of tariff changes: giving the net Increase desired. viz. 2289 per cent, under which heavy users would be subjected to substantially increased charges, whereas about 65 per cent. of users of all lasses would have to pay increases not exceeding 15 per cent.
Text read from the printed page and cleaned; old type leaves the occasional error.