Evening star., 1918-02-24
TO OGVE PERMISSION
TO RAISE TELEPHONE
RATES IN DISTRICT
Public Utilities Commission
Expected to Issue Order to
Company at Once.
POST OFFICE THEN MAY
ASK FOR POWER TO ACT
Speculation as to Object of Postmas-
ter General in Offering to Take
Over Phone Service.


for telephone service in the District will
be given the Chesapeake and Potomac
Telephone Company by the Public Util-
tiles Commission.
An order to this effect is expected to
be issued by the commission tomorrow
or Tuesday.
1t may be followed by the Post Office
Department seeking authority from
Congress to take over and operate the
business of the. telephone company dur
ing the war at the rates now in force.
BY reason of having communicated
such an offer to the commission yes
terday afternoon. the Post Office De-
partment. it generally was agreed last
night, has made itself a party to the
rate hearing and established a basis
upon which it may suggest presiden-
tial Intervention or action by Congress
to the end that individuals as well as
the government may not have to pay
more for telephone Service than the
rates now charged.
Speculation as to Object of Offer.
The commission is without authority
to act on the Postmaster Generals
this must have been known to the
postal authorities. which has given
rise to speculation as to their object in
making the offer at the close Of the
telephone rate hearing. The general
view last night was that the Post Of
fee Department had a definite object in
view in petitioning the commission at
this time. which will be developed
after the commission has passed on
the rate increase application.
Merritt O. Chance. postmaster OF
Washington. presented, without dig
cusaion. the proposition of .tha Post
MASTER General. He stated that the
Post Office Department, II given
telephone service in the District and
operate it without increased charges
to patrons, and without reducing the
salaries of employees and pay for it out
of the surplus from the postal service.
Permanent, View Of Many.
No reference was made by Mr.. Chance
as to operation for the period of the
war only, and while it was considered
government control for that limited
time, the position was taken by others
that the proposition was so broadly
stated as to contemplate purchase OF
its permanent operation by the govern
ment.
Mr.. Chances statement brought to a
close the rate hearings before the COM
no comment upon the offer and left the
board room Immediately after submit
ting it. Representatives of the COM
pany made no response to the sugges-
tion. They refused last night to dis
cuss 1t.
The governments sudden entrance
in the case surprised the telephone
utility officials and the public generally.
Commissioners Gardiner and Brownlow
refused to comment upon it, but stated
that the offer would be taken into con-
sideration along with the evidence sub
mitted. They began a review of the
testimony Immediately upon the con-
clusion Of the hearing.
Experts Have Investigated.
It is known that experts Of the
United States bureau of standards have
been looking into the local telephone
situation. That suggestions from this
quarter may have Influenced the move
by the Post Office Department was one
of many theories advanced last night:
1t was suggested also that the White
House may have been advised of the
departments intended action, and that
the offer submitted to the commission
was meant only as an opening wedge
for government Intervention in the tel
ephone situation as soon as the COM
mission has disposed Of the rate ques-
ton.
Commissioner Brownlow. just before
Mr.. Chance communicated the offer of
the Postmaster General, announced
yesterday afternoon that the commits
sion is convinced some relief should be
given the telephone company. Experts
of the commission yesterday advised
that relief be given.
Early Decision Expected.
While it is assured the company will
be permitted to charge higher rates, 1t
is entirely problematical as to how far
the commission will go in this respect.
There was every indication last night.
however, that the utilities board will
have made up its mind by tomorrow
or Tuesday, and that order will-be
issued with the least possible delay
Representatives of the company expect
an immediate decision, and General At
torney Robert v. Mayre of New York
ticipation of the commission announc-
ing it's findings in the next day or two.
The company. it was pointed out, has
not asked for definite rate of return
the commission to make certain
changes in schedules which will give
traffic relief and enable it to meet op-
Grating expenses. T. p. Sylvan, as
sistant to President Bethel of the tele-
phone company. in concluding his tes-
timony before the commission yester-
| day, stated that IL the changes sug-
gested by the company should be found
to be more remunerative than antici-
pated the company would willingly re-
duce the proposed rates. He said the
corporation desired that the commits
sion should keep closely in touch with
the situation and grant only such re-
lief as is imperative.
Sangster's Suggestions.
Andrew Sangster. former chief ac-
countant for the commission, was the
principal witness at the afternoon ses-
sion. He advised maintaining the pres
ent fiat rate service at cost of 81 a
month to each subscriber. but suggest
ed a limitation of 100 calls per month.
| with an excess call rate of cents per
message.