The Washington herald., 1914-05-19

War Is ON over
COST OF Phone
Utility Commissions Ruling
Hits Hundreds Of Old
Subscribers.
aFLAT RATES OBSOLETE
Original Contracts Must Be Cancelled
to Save Both Parties from
Laws Penalty.
"FLAT RATES OBSOLETE

Hundreds of old telephone subscribers
are affected by an important ruling by
the Public Utilities Commission. II the
ruling is enforced every contract Tor un-
limited business service at a fiat rate In
the District of Columbia regardless OF
the length of time they have been run
ming, will have to be Cancelled. else the
subscriber as well as the telephone COM
pany. will be subject to the penalty OF
the law. $50
The question was raised by Jesse Ia
HeiskeIl. prominent real estate broker.
after the telephone company, he says
had threatened to remove his telephone
because he had refused to cancel the
contract himself under the clause givins
either side right TO terminate the con-
tract by giving ten days notice after
the expiration of the term.
Mr.. Heiskell appealed to the Public
Utilities Commission, asking for an
opinion. In reply, the commission sent
him an extract from an opinion given
by it last May in similar complaint
by the Washington correspondent OF
the Brooklyn Eagle.
Service lis Obsolete.
Therein the commission held that as
the telephone company had notified the
commission that this class of service
and the rate had become obsolete, the
continuation of the old contract and
rate in any case would be discr:mina-
tory against those who have yielded
the point and have subscribed for a
measured or unlimited service at a
higher rate.
This class of service" says the COM
mission. known as the fiat rate business
service, was filed with the Public Util-
tiles Commission by the said telephone
N nhSnlafa rcfn The term
OF the contract has expired, and the
question before the commission is: Does
the continuance i'm force of the services
provided by this contract and other con-
tracts of like character constitute dis
criminatory rate in violation of the public
utilities law? The commission adopts the
opinion of its general counsel that the
fat rate business service above referred
to is discriminatory in the meaning of the
law. and that the continuance in force
of this and similar contracts discrimi-
mates against new subscribers who are
refused similar service by the telephone
company and perpetuates the very in
equality of service which the public util-
tiles law was enacted to prevent. The
commission is therefore of the opinion
that the fat rate business service is un-
lawful because OF such discrimination,
and that the telephone company and all
persons receiving this class OF service
under contracts similar to that referred
to above are subject, to the fines prescrib-
ed by the public utilities law"
HefskeII Asks Hearing.
Replying to this Mr.. HeiskeI took Issue
with the commission In Its ruling and
demanded a hearing in order that the
numerous subscribers affected may have
an opportunity to present their cases. A
bitter fight on the point is imminent.
This is a question of vital Importance
to old business subscribers who for years
have paid high fat rate for unlimited
service in the District" said Mr.. Heiskell
to Herald reporter last night. For
many years prior to the passage of the
public utilities law the telephone COM
pany endeavored to substitute a measured
service for the unlimited service. The
effect would be to increase the rate of
service to old subscribers. The whole
proposition is amazing to me. In other
words, the law as passed by Congress
and interpreted by the commission, is
effectuating the will of the telephone
company to increase rates. This is n
field for public service. 1t is we'll
known fact that our telephone rates now
are exorbitant, that the service is not
any too good, and that monopoly does
exist right here in the Dist ricf