The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-11-13
RESUME TELEPHONE
CASE DECEMBER 9

The Chesa poake and Potomac Tel
ephone company rested its case yes
terday with the concluding testl-
mony of T. P. Sylvan and the state
corporation commission set Decem-
Der 8 as the rate on which the case
will be resumed The fight for rates
has been one-sided so far attorneys
for municipalities and groups OF IN
dividuals feeling that they would pc
At disadvantage II they were not
given sufficient time to study the
Statements made by the company
Witnesses
Mr.. Sylvan was by far the most
Impressive of the witnesses placed
on the stand by the company, he
exhibited marvellous tamlllaFity
with every phase of the business ana
was never at a loss to answer any
OF the innunnerable questions plled
by attorneys and members OF the
Commission.
Evidence submitted by Mr.. Sylvan
yesterday was the most interesting
Of the hearing. He stated that the
companys properties in Virginia
we're valued at $14.674.S03 and that
the proposed rates and charges
would pay four and one-Afth per
the existing rates were entirely in
adequate and that the company lost
the enormous sum Of $3.50. 600 during
the year OF government operation
nom August /, 1918 TO August l.
1919.
Another statement OF aonsidera bic
interest was that ii costs the com
pany $500 to install one telephone
He said the subscriber was charged
only 50 so in order to encourage ne"
subscribers, the company deemed II
profitable to bear this initial loss
Mr.. sylvan discussed the broader as
poets of the telephone industry, com
mending certain innovations mao'
during the period of government
control Chief among these changes
was the installation Of the toll sSs
tam for rural communities. The
old wav was 70 charge subscribers
SO much for A years service and lei
them use the telephone at wifi cali
ing other communities with no ad'
dit!onal charge. Under the toll sys-
tenn, those who use the telephone
must bear the krunt Of the expense
and the necessity for general IN
crease be obviated.
Another Rurlesou idea which Is
being used by the company Is tAf
service charge OF $500 for subscrih.
ers who take over telephones al
ready installed This defrays the
expense OF changing the account or
the books and helps 10 offset losses
incurred when subscribers have 8
telephone installed and move within
. month or two. before the corr pa ny
has been repaid for the installation
All OF the evidence Is being tran
scribed and will he submitted q thf
commission In about ton days EN'
perts in engineering and accounting
have been assigned the task Of veri'
fyt-sC the conpanys voluminous re
ports en valuation and other natter:
Pertaining 10 the requested increase
Major Alexander Forward mem
brr Of he commission. drew an in
teresting explanation Of the Chesa-
peake and Potomac's relation 10 tbs
American Telephone and Telegraph
company by asking Mr.. sylvan why
the company paid four and ore~h3l;
Ter cent OF it's gross earnings 10 the
parent concern Mr.. Sylvan 6eclar'
I'd that this was in consideration o.
legal and laboratory service and Il
: nancial asSisJa nee and thai II was q
low estimate Of the value rece ived
He said the A. T. and T. acted in g
supervisory capacity and leaned thu
C. and r money at six per cent Ir
his opinion. said Mr.. sylvan. the ser
vice reSdcred the c. and ?. company
was worth over FIVE per cent O
the gross earnings,
Major Forward has advised al
attorneys who were present that
they may obtain copies Of the evil
denoe from the stenogra pher en-
p,oyets iss- 1s4a ct>ssa pany 10 Fac0rx
the procce ts0-A