I consider
of hotel rstes and
Cempany ¢

t Satever

g the undertax:ng of > study, however, I

¥ to all the conrijefations which arcse out of
iY on rates to hetelshien was ordered in the
Commi :cients Judenent of September 277 16u9, th Company should be free
23 evaluate uy peculiar or apeeti) Conditioss, goth with reepect to its
ort citation ant that of fu totes which it cervio, nei to relate thea
te such consider: tions Particuiur the fyet tia: hetels du not, in
Everall, have peer; y the sams kind of Garructeristica ag other
businesces, a.

The Compary chould te directed to report to the Comzittee on
<sults of ita studies within a period ef four meaths.

the Clty 2 Tart toquttlam

Tate intervencra #3k the Comarcsion to ingiire into the
existence of certain alleged inequalities and to “satisfy itself ae to
their tree rature. They expregs the He tha Vonnisaion will
fEove the alleved dnequi ty and request, i: the cttemative, that af any
erte differentin) ig to be Continutcd, that at be besce upon a revealed
Stand3:d and that the Eritich Colustia Pelegione ty ny should be
required te desocstrate the validity of tuis standard froma tine to time.®
They viss submit that “increuaed profits ani Pvenme arising out of the
price dtrferentia), 42 that differential <9 tc te continued, should be
deronstrably oppliet to the necessary capital equipeent and technology
necessary to the elintnation of that differenttel ,.,"

The so-called “price differential" relates t9 the fuct that
the Port Coqui tha exchange of the Corpany iz in rare grcup SA, wherees
Cogustlos ts part of the Vancouver exclunge urea ead is in rute group 9,
The current monthly exchinge rates for rate grovp CA are higher than
thoce for rute group 3, ty the following suwonsts; £1.00 per month for
business service, ard 0 certs Per gonth for ecsivence service,

The rexaons for the higher retes in mite @ciup 9A are fully
eet vut in the cudgzent of the Pour? of Trin 73 Sonsisstioness for
Candi, dated August 7, 1962, in tie applicution of tne Company for
ap; roval of rates for extended-arey Selephone service, ,tulletrne caliing)

* ‘ change and cert:.in obier cachinges ia the area
surrounding Vancouver, B.C, A Copy of that upplicution wig served upon
the Corporations of the District of Coquitian mie the City of burt
Coysitian, In addition, & plebiscite of al} itn subs critters in the
areas affected wus conducted by the Conmay in Gstober, 1902, to
auCertaty. tuelr vicws, and the resulta of that plebiseite showed that
& Sstutuntya} Rajority of the sutseribers in the Fort fegutiles exchange
ato. were La tovour of the extended-arca service beh und the higher rates
which forced Fart of it,

In ito Judument of August 7, 1962, the Board pointed cut
nded-ures se ® coventially e matter
of the Counany, the
of the tolle stitch the
tintly a reurrangenent
In connection with the surcharge
Over the Vancouver rates, the Board had this to eays
“These Surcharges are part of the Flan acceptable
wo the mjority, It tgs quate evideat that to
bravide Vancouver extended-uree service te thease
exchanges involves the Cocpany an adda ticnad
expense because of the erester distunces lovolved,
as well as the locs of the toll revenue ror
Prevent lonyedistance sotmuntention to end fron
Vancouver. ‘The Value Of service te Heze
custorers who wil} Pay thea: surcharges, houcver,
ts greatly enpenecd by the Vabtly aneresed Funge
of caliing which wili ce mide availuble to theae
epalier exchange greas,"

The Board concluded by finding “nothing unreorcnible or unjustly
diecrininatory in the Propose! charges t.e., the sbarging of Vencouver
rates plus the aerchsrges .,,%

The Comalusion has GO pewer ta direct the Conzany to fumich
teilefree calling, but only to deol with the rutes resulting froa the
Cozpany's decision to Murnish such service. I en not Persuaded that
the continuation of surcharges over the Vencouver exchenge rntes for
rate group 9A reuits in unreacomble or usicustly discrintsatory
ehacgee. The éddi tional expense involved, the lors of toil revenue
froa what would Othefwise be leng aistance COWEMicutton, ond the value
of service te subscribers in the Poct Coquitlan exchenge &téa, are
factors which retaty, easentially the saca ue v were ut the tiac of
issuznce of the Board's Judyeent,

ATi seep INCHRASES Jt RATES AD CHAREES;

Aa ats love, I would authorize rate increaces effective
Septenter 1, 3972, tn fe eatinuted to pmauce 643iticnal reveaues
Of ssout 29,490,600 for tae 1 year 1972. The total increuses of
$27,069,000 upplied for Tepresentod ar overul) increase of 8.088,
whereus if increasen of about $9,400, 00a pre suthorized they would
amount to 4.45% tn total,

A guzairy of the Propused revenve increares Yas the year
1972, derived fron Fahibit “per 6A", shuns the sOllowing Desert bution
of the burden of increases Bouts