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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (June 6, 1985)
Thursday, June 6 1985 The Battalion/Page 5 filill AT&T official m not pleased with losses Company wants $139 million rate hike Foreign and Domestic Car Repair Alignments • Balancing • Brakes • Shocks Air Conditioning • All Automotive Work SEVCIK’S ALIGNMENT AND SERVICE CENTER Firestone 823-1319 3301 S. College Bryan 10% Student Discount with I. D. B.F. Goodrich Amex Texaco Master Card Visa ir y commiir.' J that, tab, he prurieiii; urbids shcv; Iren under , ordinance; ' punishak] Anyway!" (j Dreyfuss s resists a h® hm alive.!; ilso has ta tors andteic iovies show: lash of the; p Stoned.” P t bally abuse: . iied” by attfl rator after a Iwin Cajk it on Pam jet on a )1 £ meaning |S| lobby said. price decrti icral andk ctuation in: t Texas di*. Associated Press % rrow e Station 30 p.m. i our Choice; ens :tion- tr j. een was nel for a buffer ; distrac- / as r’s screen t adorns fs as a board, •en, even ture. nding hingeo isy mov- L. y° u , rolorof ame tchstick 5 ' e/ sen. ./white ie/ sn. ,,.59" lit i. utive, though pleased by a state ac countant’s recommendation for an $81 million rate hike, said Wednes day that AT&T’s upcoming rate hearing cannot make up for recent losses. The state’s largest long-distance company has complained about money losses in Texas since the Jan. 1, 1984 break-up of the nationwide Bell System. AT&T has had problems rear ranging its rates to produce more revenue while also making its long distance tolls more competitive. The Public Utility Commission on Mon day will begin hearing AT&T’s re quest for a $ 139 million hike. PUC staff accountant Judy Poole ; on Tuesday recommended an $81 million increase. Tom Jones, AT&T I vice president for external affairs in I Texas, said the recommendation left ; him with “very mixed reactions.” “That won’t do anything to ad dress what has happened to us for the last 18 months,” he said of the proposed hike. “We will never be able to recover those losses.” AT&T has claimed Texas losses of $300,000 per day, most of it in I payments to Southwestern Bell and other local phone companies. Jones said the Poole recommen- ; dadon marked “the first time we have had a solid recognition by the staff that what we’ve been saying is true — we’ve been losing money in I the state.” The $81 million recommendation I may be closer than it seems to the $139 million requested. The request includes about $31 million in gross . receipts taxes that AT&T no longer 1 has to pay because of a change in | state law. But Jones said part of that $31 million could be cancelled by antic- ; ipated increases in wages, Social Se- | curity payments and depreciation j expenses. The accountant’s recommenda- 1 don did not say which customers should cover the $81 million in- I crease. The “rate design” portion of I the staff report will be filed after the hearing begins. AT&T initially asked for reduc- l dons in intrastate long distance rates. But in April the company de cided that “increased financial f losses” made the rate cut impossible. The current request Seeks in- | creases in short-mileage, long-dis tance calls and for the first minute of all long-distance calls. For example, the cost of a five-minute, day call from Dallas-Houston would go from $2.10 to $2.14. AT&T also wants to charge 50 cents for long-distance directory as sistance calls. There is now no I charge for such calls. Attorneys for Texas Municipal League said AT&T is entitled to & $18 million overall increase, includ ing a $23.5 million decrease in reve- . nue from long-distance calls. “We’re recommending hn $18 million increase,” said TML lawyer f Grace Casstevens. “That doesn’t mean we agree with their assertion that they are losing money. The $18 million improves their earnings.” Dallas looking at high-speed train service Associated Press DALLAS — A high-speed, high- cost train has been proposed by a group of Japanese engineers as a way to quickly move travelers be tween Dallas and Fort Worth. The system would cost about $334 million to build, but would only cost passengers $5 to ride, according to the group recommending the train. It would offer commuters a 30- minute alternative to heavy inter state traffic. The Japanese Railway Technol ogy Corp., which conducted the free study for local officials, said that an electrified, double-track rail system along the Rock Island Railroad track between Dallas and Fort Worth could reach a top speed of 70 mph. The proposed system would have 12 stops between the two cities. The study will be reviewed for si* to eight months by Railtran, a group formed to develop passenger service along the 33-mile stretch of track bought jointly by the cities of Dallas and Fort Worth in 1983. Railtran Chairman Sid Stahl said the study is “a major first step for ward” in looking at the feasibility of a high-speed rail service between Dallas and Fort Worth. Dallas Area Rapid Transit Vice Chairman Dan Matkin said it re mained unclear how the proposal would mesh with DART’S rail plans for the Rock Island tracks. a ••••• af 4-10 pun. « Sunday Mon. Tues. Wed. Thurs. Fri. 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