The Washington herald., 1918-02-25
RATE ADVANCE
TOBE ALLOWED
TELEPHONE co.
Commissions Action Will
Be Followed by Fight
In Congress.

Request for immediate action by
Congress empowering the Postoffice
Department to take over and operate
telephone lines in the District prob
ably will follow closely the granting
Of an increase in rates to the local
telephone company by the Public
Utilities Commission.
An increase in rates, though not as
great as asked for by the company,
will be granted by the Public Utili-
ties Commission. Decision of the
commission will be announced tomor-
row or Wednesday.
p. o. Department Wants Lines.
An offer to take over the operate
the Chesapeake and Potomac Tele-
phone Company in the District was
made at a hearing before the Public
Utilities Commission Saturday by the
Postofice Department through Post
master Merritt o. Chance.
Although opposed to the offer, tele-
phone company officials said last night
they would await some action by the
department. Any move to have Con-
gres pass legislation taking over
their lines will be fought vigorously.
Under the increase to be allowed the
company all unlimited service will be
abolished. A service limited at from
1.50o to 1900 calls per year will be
substituted for the present unlimited
service in District homes. For this
limited service the rate charged may
be fixed at 81. For all calls over the
limit allowed a charge of 2 1-2 cents
each probably will be allowed
Information to Come High.
Where extra service, such as obtain
ing the number OF the telephone want
ed from information. Is demanded the
rate for local calls from pay stations
probably will be advanced to 10 cents
instead OF 5 cents as at present.
. Calls made from pay stations where
no special service Is required, how
ever. will remain at the present rate.
Hotel rates also probably will be
advanced. Many details still are to
be decided by the commission before
its decision is made public, but mem
bers are agreed that some relief
must be afforded the company.
Changes in the charges on private
branch exchanges and business teIe-
phones also may be allowed.
Decision Signal for Contest.
Until the announcement of the
decision Of the Public Utilities
Commission regarding the request
of the company for an increase in
rates no developments are expected
in the situation. The commission
has no power to take over the COM
pany, and, while the offer of the
Post once Department may have
an effect on its decision no action
on 1t can be taken.
Company officials last night re-
iterated their opposition to the pro-
posal of the government. "The
company is absolutely opposed to
it." T. P. Sylvan, Eastern telephone
representative, said.
Should Congressional authority
be obtained to take over the Dis
trict telephone system it probably
viii serve only as an opening
wedge and mean the beginning of
an effort to obtain government con-
troll Of all telephone and telegraph
lines in the country.
Pending Bills Give Authority.
Bills authorizing the taking over
and operation by the Postoffice
Department of telephone and tele-
graph lines have been introduced
In practically every session of Con-
gress for years. At present there
are bills containing authority for
such action pending. Ofacial in
dorsement of them has been voiced
In testimony and by letter by Post
master General Burleson and other
postoffice officials.
Plans for taking over the local
company are all. ready and could
be put into effect within a day,
Postmaster Chance said last night.
The postal service would operate
the lines of the company at the
present rates, he said, and would
not reduce the pay of any employe.