Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-06-15
DIFFICULT PROBLEMS INVOLVED
IN RETURN OF WIRES TO OWNERS
Public Utilities Commissions Certain to Find Themselves
Between Two Fires, Both Exceed
ingly Hot. s1sls

and more efficient service when the
wffes are returned. The employees
expect to keep the wage increases
they have received under government
control and perhaps to better them.
and to obtain other concessions in
the matter of treatment. The COM
panies expect to retain the rates fixed
while government control has been
in effect and to obtain still higher
true Of all wire companies, notably
the Postal. which. through its vice
president, Edward Reynolds, has stat
ed that it will be satisfied to knock
of the 20 per cent increase in tariffs
established by the government, pro-
Problem Hard One.
How the public the employees and
the companies all are to achieve their
desires is difficult to understand. The
solution of the problem will be, to
a large extent. in the hands of the
public utilities commissions-and their
job Is not an enviable one In many
communities and states the public
service corporations, the companies
claim, have been antagonistic to
them. have refused to permit in
treases in rates, and have been in
clined to favor the public in the mat
ter Of rates. But the question arises,
how can the higher wages be main
tanned. the public be served at lower
rates and the companies kept out of
bankruptcy.
Until the cost Of food. clothes and
rents come down there seems little
possibility of a reduction in wages
without serious social disturbances
Until wages come down, and the costs
Of materials used by the wire COM
panies, and the added costs for new
capital, the companies figure that it
will be impossible to make reduc-
tons in rates established by the gov
eminent and continue in business
Yet the public is clamoring for lower
rates for its telephones and telegraph
messages.
Local Telephone Rates.
Take the case of the telephones in
the District of Columbia. The rates
on phones in homes-for unlimited
service-were recently increased from
"a to IS month. a rs per cent in
crease. Somewhat smaller increases
were made on limited service phones
and on business phones. Many of the
citizens were aroused and litigation
to halt these increases has been
threatened by the Federation Of Citi-
bens' Associations, though SO far no
suit has been instituted.
AS a matter Of fact, when the gov
eminent took over the wires and
the Chesapeake and Potomac Tele-
phone Company along with the rest,
that company had submitted to the
Public Utilities Commission of the
District plea for increases in rates,
declaring that with the increased cost
Of labor and materials. they could not
operate at profit unless some meas
ure of relief were granted. While no
public announcement was made, or
has since been made, 1t is known that
the company had made out its case,
and that the commission would have
felt forced to grant an increase to
the company at that time.
1t is the contention of the company
that even with the increases allowed
under the government control Of the
wires, the company only makes a net
profit of per cent on It's invested
capital II this is true and means
.SContinusd On third F19SJ