The Washington times., 1919-11-04
PHONE RATES
DUE TO- STAND
Utilities Commission Believes
Present Charges Will Give
Ample Return to Company.
By BILL PRICE.

BY BILL fNANEs
The Public Utilities Commission
sees no other action to take than TO
continue the present schedule of tele-
phone rates in the District Of Column
oIs.
This schedule is the one put into
effect By, President Wilson. on the
recommendation of Postmaster Cen
eral Burleson, who had charge OF the
telephone and telegraph service Of
the country for one year.
Under act Of Congress this sched-
ule Is in effect until December l. At
that time the rates would revert to
those in effect prior to Government
control unless the existing rates are
continued by the Commission. Under
the old rates there was unlimited
service in residences of the District
at 81 per month. The charge is now
50. with the same proportion OF in
crease in all classes Of service.
Before signing an order continuing
the present rates after December 1,
the Commission will carefully exam
inc and analyze, through its experts,
the figures and data presented by the
local company. which is owned by the
Bell Telephone Corporation.
Figures Are Pulling.
In many respects the claims and
figures OF the company are absolutely
pulling to the commission, especi-
ally the bald statement that although
the company's operating expenses are
in excess of it's revenues, giving a
large deficit for this year, it does not
at this time ask for increase in rates
A..
in 1918 the company sustained a defi-
cit In operation of 1926, 900. leaving
nothing for dividends or payment of
interest upon bonds. For the year
1919, up to September 80. the same
sort of a deficit continued, and this,
with estimates for October. November
and December fix the deficit for this
year at about 100000. This also
omits dividends or interest on bonds.
For 1915, although the war began
in April OF that year. the company
enjoyed net revenues OF S465,590.
more than sufficient to pay a per
cent return upon the valuation of
S6i 300 made by the Utilities Com
Hresion as OF date December 81, 1915
IL was about November 80, le17,
that the company made its first ap-
peal to the Utilities Commission for
higher rates in Washington.
May he Ample In 1870.
There are a number of things
which cause the Utilities Commission
70 think that a continuation of the
existing rates may me almost ample
in the year 1920 to give the company
returns upon proper valuation. One
10 that the Burleson rates in the
District have been in operation herc
only since June I. and that If they
had been in effect from the first uf
the calendar year the company
revenues would have made a much
better showing.
Another point to which the mem
hers of the commission are devoting
some attention is that in the actual
and estimated expenditures for this
year there are included depreciation
and amortization items aggregating
1914. 300, while in the year 1918 the
company carried only s37I,S20 for
these items. The company claims
that it's depreciation and amortization
charges have been too low in the
past. IL these items for 1919 are cut
about in half. leaving a greater sum
for this account than in 1918. there
will be no deficit for 1919, as now
estimated
Not Al Bad As Reprrsented.
So the company's financial outlook
for 1920 is by no means as bad as
presented by the attorneys of the
concern.
II Is understandable to the Com
mission that the telephone company
finds il difficult at this time to make
a definite petition for rates that will
yield a return upon actual valuation
owing to the fact that the company
is not yet able to separate its large
expenditures for capitalization in the
last two years as between the Govern
ment, for its war activities, and the
portion chargeable to the public.
AT the close Of 1917, for instance,
the company claimed a book value of
s7.059. o36. not a large increase over
the valuation fixed by the Utilities
Commission at the close of 1916. The
heavy capital expenditures that he
gan in that year really were not
charged until 1918
In the two years OF 1918 and 1919
the company expended in the District
s7,755,364. increasing its book yaIua-
ton TO S14,S14, 400. The Government
assumed some of this obligation, but
all adjustments between the COM
pany and the Government have mot
yet been made. A considerable por
tion OF these capital expenditures
will be salyaged.