Every evening, Wilmington daily commercial., 1919-12-20
REASONS OFFERED
BY TELEPHONE CO.
: FOR PRESENT RATE
Present Mass of Statistics as to
Increase in Cost of Maintenance
and Operation.
HEARING NOT FINISHED

Officials Of the Diamond State Telephone
COMPANY At a public hearing before the
BOARD of Public Utility Commissioners
last night, offered a large mass OF statis-
tics, showing the great increase IN their
cost nf maintenance and operation, IN
support of their claim Tor authority 10
continue the rates which are effective At
present, and to which several formal OBJ
iections have been made. No decision
was made last night, however but another
meeting will bc held in a short time, at
which further examination will he made
Protests against the granting OF the
petition were fled by the Citizens Rights
Committee. consisting of John J. Dolan,
Samuel l.. Cook, Elmer T.. Shallenberger,
Robert T. Benson, Joseph A. Davis, h.
r Solomon and Irwin Stetser: III. Stckei,
Theodore w Deats, Charles Martin,
Joseph 4. Walker, private citizens; the
Central Labor Union. No attempt was
made by any Of the proteStants TO cross
examine the telephone company witness
IS, and no defense was offered TO contro-
vert the testimony of the petitioner
The Chamber of Commerce filed com
municstion expressing its appreciation Of
he necessity of adequate revenue to IN
sure good service and guarantee fair
return upon the investment involved and
recommended that the new rate bc based
on a schedule that would be product i've Of
improved service and Just financial re-
ward.
Harvey Narve, general solicitor OF the
Bel Telephone Company, and MS sssccia-
ted companies, examined the officials who
offered testimony 10 support of the claim
for permission 10 continue the present rate
Charles ". Hazard. cf Philadelphia,
.hief srrountant of tho BELL Telephone
Company Of Pennsylvania. and us rs
soristed companies. gave mass OF status
lcs showing the effect of the increased
,oss az materials. supplies and labor and
now on the other hand the company has
not heen making n fair return on the capl-
tai invested.
lie testified that the total assets OF the
tocal COMPANY aggregated SS.6SS, ,2S3.15
tn October 81. Of this year. OF the capital
stock 81 600 600 n owned hv the PcnnsNl-
cana corroration. this having been &C
CURED in various blocks from 1905 TO 1918
IN this stock the Bell Telephone Company
NJ Pennsylvania has never received cent
m dividends, wss the declaration he made
The man asset of the compsay Is the cost
fixed capital OF 81 4SS, ,26035
The Diamond state Telephone Com
osnv has declared since 1897 dividends
e,uouDung 20 s15. 70 80. The last diN1-
lend was p3ld IN May, Ipe
The balance sheet for the year 1914
bowed a deficit of s773. .925, while the &C
.-,icd undivided profits up 70 and IN
.l,dIng the fir~t ten months of this yesr
,-c sl55,3l0.S5.
.n interesting statement of the income
= the company from 1914 to 1919 was
presented. showing thst although the
,.,rnpanvs investment has greatly IN
roascd in value, the return has not IN
,rraScd proportionately For the year
fali the net revenue was ST. IA and
,.c fixed investment was Sl,915, ,799,
rIyruC = return Of 6-3 per cent on the
Investment
for the wear 1915 the revenue was
S->S12 and tho fixed Investment $685.
704 giving a net return Of IS per cent
For the wear 1916 the net revenue was
7,i2g and the fixed investment was S.
14S 4lS. giving q net return OF 3.43 pr
cent on the investment. In 1917 the
net rrvenue was s55.I5 ,snd the fixed
investment s.. .42S. $50, giving net r.
turn Of > - per cent on the investment
In 1918. the net revenue dropped tn s5l.-
Ts5 and the fixed investment IN creased
to s., ,670. .5Gi, giving q return OF l-94
per cent For this year, with estimates on
the last two months Of the year the cStl-
mated net revenue IS SS3, 900 and the
ayed investment s, ,951, ,725, or giving =
return Of > II per cent on the investment
Por 1920 the net revenue Is estimated st
SIS. 900 and the investment 81 s., ao, gZ1,
which would give return OF J i per cent
Mr. Hazard estimated that TO have re-
w-ed TO the pre-war rate during TINS
wear would have resulted IN . deficit of
SIS, 600 and that for go the deficit would
he $4,000
Commissioner Brnton ssked for an
exhaustion SIS to why the company's
operating expenses would increase
without having an attendant.
effect Of ln.y asIng revenue proportion
ateiy.
]. :. Francs, engineer Of appraisals
os the Bel Telephone Company, and
rs associated companies, testified that
S3. 600 600 is q far valuation to place
on the property OF the Diamond State
Telephone Company. This he said IS
uuch lower than an appraisal 81 present
p-1os would be An appraisal at present
prices would bring the value UP 70 about
81 A.50O, 900, while TO build the system
new today would cost about S5,O00,OO0.
Supplies used by the conpanys own
employees, purchased lD bulk by the Bel
Telephone Company OF Pennsylvania,
and sold TO the local concern at cost, he
testified, had increased approximately
% Sc per cent. switchboard equipment
approximately 40 per cent, while the
average monthly wage Of employees had
jumped % per cent.
II costs the telephone company s37
a year 10 operate each telephone station,
the witness asserted, tins a~e~age being
lrrived at by d division Of the total
1ulnDer Of phones with the revenue.