C. L. 86]

The distribution of operating revenues and expenses as shown for 1917 is admittedly in error. A more nearly correct statement of the distribution would be as follows:

On a value of $16,409.64, the sum available for interest, depreciation and taxes of $1,637.86, amounts to slightly less than 10 per cent. We are of the opinion that about $2,461.45, or 15 per cent. of the cost of the property, should be available for these purposes. It appears, therefore, that the earnings for the year 1917 failed to yield an adequate return by $823.59.

Consideration should be given to increases in the cost of furnishing service above the 1917 cost, especially as to central office operating labor. The total amount of increased revenues which it appears reasonable to provide for at this time is about $1,050.

Analyses of the traffic, line and subscriber data appear in TABLES II., III. and IV. respectively.

C. L. 86]

TABLE III.

LINE ANALYSIS, UNITED TELEPHONE COMPANY'S ALBANY EXCHANGE, BASED ON
LINES REPORTED SEPTEMBER 30, 1918.

SUBSCRIBER ANALYSIS, UNITED TELEPHONE COMPANY'S ALBANY EXCHANGE,

BASED ON SUBSCRIBERS REPORTED SEPTEMBER 30, 1918.

Taking into consideration applicant's need for increased revenues, the nature of the service rendered and the traffic as reflected by the study summarized in TABLE II., we are of the opinion that rates similar to those authorized by us recently for applicant's Monticello exchange should be authorized for its Albany exchange.

Applicant performs switching service for but one company at Albany, namely the Attica Mutual Telephone Company. Said company has 128 subscribers on 10 lines, or an average of 12.8 subscribers per line. At Monticello the switched companies had 125 subscribers on 19 lines, or an average of 6.6 subscribers per line. Inasmuch as part of the costs of the switching service per switched subscriber vary inversely with the number of subscribers per line it