Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-11-29
Citation of Cases.


That Congress has the right to fix maxi
mum rates for telephone service in the Dis
trict u Columbia.
That such right of regulation is subject
only to the Limitation that the service is
rot required without reward, or upon con-
dilior- amounting TO the taking of the
properly fo- public use without just COM
TrGSi.tiJII.
That in determining if statute rates are
reasonable. the courts will not he con-
trpIleI hy The fact that at such rates
particular company cannot pay dividends to
lis stockholders. but will ascertain if such
rates are reasonable for the service rem
dered, and if 80 viii sustain the statute.
That to declare the statute void the court
must bc convinced ny proofs which leave
no room for reasonable doubt that the rates
fixed are 50 low Is TO amount to confsca-
tipu.
The complainan,s assert that not only
does the proof in The pending case not
show that the rates fixed by the act are I'M
reasonably low. but it demonstrates that
the rates are generously high, and will yield
an ample return 10 the stockholders if the
affairs Of the company be administered
without tho grOSscSt CXtraNasaAc1.
Company's Capacity.
1t has been brought TO light in connection
with the proceedings that the Chesapeake
and Potomac Telephone Company has
II I-le miles Of conduit averaging s%4 ducts.
=
49, Of which .457 miles are of steel or
iron and the remainder Of copper; poles,
ao21. Of which 1.4DO are in the city and
;.t17 in the county.
October II. ISIS, there Were in use, all
told 1uyH tptephones of which ~ were
dead head Al We're in use by the de-
PENDANT company and 2t5J were installed for
the government between January, 1897, and
October 81 1895 The total of government
telephones is not ascertained, but it is de-
IIIr red there hardly he a :
$50 telephones in use by citizen subscrib
eTs. The duct capacity is far in excess of
the needs of the present business, it is
maintained, the total duct space being Suf-
ficient 10 provide for 5000 TO 1900 lines.
The conplainants allege that the plant is
not exceptionally good. The work has been
Vel done, but the subscribers equipment
is in great part antiquated. Grounded cir
cult lines have been almost wholly super
seeded by metallic circuits in modern con-
struc,ion, yet of the 1856 lines i'll opera
ton December 81. 1857, 23S were grounded
circuit lines and only GIS were metallic.
The company pays royalties of 81 per year
for each switchboard drop actually in use.
and $50 per year for each receiver and
tranSmittcr. Royalties paid in 1891 SIP
77I.7l, and for the first nine months Of 1895
ST. 4NJ.u1.
Cost of Duplication.
The claim Of the defendant is that to
duplicate its plants would cost at least
$42S $50. The claim of the complainants is
that The plant could be rebuilt for about
$110 per telephone station. $22Oo0O for
il plant To serve 2.U0 subscribers lines.
1t Is claimed by the defendant that the
annua, cost of exchange service in Wash
ington for the six years ended December
n. 1891, averaged per telephone $66J7, the
total expenses for exchange stations for the
six years being $72S, }2i -, an average OF
$12t ,SSI.21 per annum.
This aggregate is reached, so the COM
.1,YN a.
ing To expense everything that ingenuity
could provide excuse for putting under that
head, appears from the charge to main
tenanCe. in 1897. of s1O6 1860 as against
in 1884 Sss sOo.2T in 1898 and $51,94S.S5 in
1896, an average for those five years of
Si3.2S9.lo. as against the 1913, 1886 which
the increases in 1891 makes the average
maintenance for the six years.
Specific items found in the charge to
expense. and not properly chargeable there
to in determining cost of exchange service
for the six years. say the complainants
are as follows:
Travelling. s9.119.4f; ditto. s9,s4O.45; mis-
cellaneous interest. ss3o6.i0; interest on
first mortgage bonds, S4S,O27.3O: deposit to
sinking fund. $4,000, or $l04, 293.
Reasonable Charges.
since ascertainment of what are rea-
sonable charges to the pubic requires elm
ination of unnecessary expense, the sum of
s106, 20l,l2 paid for instrument rentals and
switchboard royalties must be stricken
out argue the complainants, for it is
abundauty established that Instruments
may be purchased outright at little more
than the annual rental paid by this COM
panX. and that switchboards may be pur-
chased from any of many manufacturers
without royalties. No rentals or ROYALTIES
are paid in Europe or in Canada and none
are eNacted by the many manufacturers in
TINS country other than the Western Efec-
tric COMPANY Justice TO the people does not
require that the defendant shall deaI -
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