Evening star., 1918-01-20


ord. he said. Leaving financial questions
for determination by the commission
when the inquiry shall have been COM
pleted. M.r. Crawford stated that ''it
might be desirable to grant a portion of
the application as a war measure. and
for the purpose Of facilitating the oper-
ations of the government under adverse
conditions. for which the companys own
pviicy is responsible
Would Reopen Case After War.
He advised. however. that the COM
mission. in the event 1t should go this
far, inform the company that such or
ders as it might issue would be for
the period of the war only. after which
the matter would be reopened on the
commissions own motion. for the pur-
pose of giving the capital the best
reasonable cost. consistent with an
earning by the company of fair re-
turn on it's investment.
The delegates to the federation ap-
proved the report without debate, ex-
tending a vote of thanks to Mr. Craw-
ford for his work.
Mr.. Crawford stated that he might
present a brief on behalf of the fed
GRAFTON before the commission finishes
taking testimony in the case. He re-
ferred to the assistance being given
the commission by the bureau Of stand
ards and stated that the bureau is in
vestiSating telephone conditions in
other cities with view to making a
report to the commission before ac-
tion is taken on the rate increase ap-
plication.
Aside from disposing Of the telephone
report. the federation. which met in
the boardroom of the District building,
listened to statements by Edward r
Colladay on the war savings campaign
and plans for back yard and vacant
lot gardening during the coming season
Support OF the citizens associations in
arousing interest in these matters was
urged.
Principal Facts Developed.
In presenting the principal facts as
to equipment and operation developed
quiry. Mr.. Crawford summarized them
as follows:
81 That the local company is a sub
sidiary of a foreign corporation to
which it pays Az per cent Of it's gross
earnings for certain contract privileges,
engineering advice, etc, and that it
must formulate its policies in accord
ance with the wishes Of the parent Or
ganiZation which owns or controls prac-
tically all the stock Of the local COM
pany.
''2-The increased utilization of the
telephone since the beginning Of the
war and the company's inability to
keep a sufficient force of trained oper-
dtoTS tQue partly TO In6 OemanQS MADE
by the government for expert opera
tors) are alleged by the company as be-
ing responsible for present conditions,
threatening complete breakdown in
its service. and as furnishing reasons
for restricting utilization by the public
in order that the government may be
better served, and for an increase in
rates. in order that certain additions
may be made to present equipment to
take care Of anticipated extensions dur
in ha inc
'3-That, for a long period of time.
and until about one year ago, the COM
pany conducted an extensive campaign,
both by expensive advertising and by
RODS as high as six months without
charge. encouraging both the extension
and the utilization OF the telephone as
conservator of labor and as a means
of increased efficiency.
"4-That by the company's own
count. recently made in one of the To-
cal exchanges for short period OF
time. the average calling rate on un-
limited residence phones was found to
be far below what is known to be the
calling rate for similar classes of serv-
ice in several other cities.
3- That the exchanges in the Dis
trict OF Columbia are equipped with the
manual type OF switchboard. which
than does the automatic switchboard
and renders far less efficient service.
"s. That the parent company has bur
chased the right to use and actually
manufactures through its subsidiary
many, if not all, of the mechanical an.
pliances used by the automatic com
panies. and has actually installed such
equipment In it's exchanges in other
cities.
''7. That the company had notice as
Tar back as 1912 Of the claims made
for the superiority OF the automatic or
semi-automatic over the manual type
of switchboard; and at the beginning
OF the war anticipated the increased
demands which would be made on the
service here. without taking effective
steps to meet the same
IS. That the proposed additions of
manual switchboards in the local ex-
changes. while promising temporary re-
lief, will increase the labor problems
operating expense, which already ap-
pears in the company's statement as the
greatest single item Of expense. when
II could be materially reduced by using
either the automatic or the semi
automatic.
"9. That the increased revenue which
the company expects to receive, IL its
application be granted. will be suffi-
| cient to amortize the entire equipment
| OF all Its exchanges in this city in a
| little less than two years. time.
40. That a 10-cent calling charge for
public pay stations 10 not in effect in
any city in the United States, nor has
! the flat rate unlimited residence sery-
| ice been abolished in any other place
except in a portion of New York city
where the zone system is in effect and
conditions are not at all comparable
with conditions here.
I'll. That reliable statistics showed
practically 100 per cent profit for pub
lie pay stations in Chicago a few years
ago on scent calling charge. and the
local company regards it's limited class
of service here as being its best rev
| enue producer, though no figures were
| given. Considerable Significance at
| taches to this fact when considered In
| connection with a statement by Mr.
Bethel less than year ago in the hear.
| ings on the bill that restricted or meas
ured service had for long time been
regarded as the ideal form Of service.
.'l2. That at that hearing it was also
stated by Mr. Bethel that the government
was using more than 10 per cent of the