The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-12-11
.DIScREPElCT SHOWN n
TELEPHONE INVENTORY

J. n. Botx and J. c. Dickerman. &C.
couptant and engineer, respectively, Of
the state corporation commission, were
on the stand during the greater portion
of the second day OF tho telephone
rate case hearing.
Major e. w. II. Ewei1, X. J. Noel
r. w Kline and John Robertson rep
resented the communities opposed to
the increase asked for by tho Chess
peake and Potomac Telephone com.
pany. the other attorneys having tacit.
ly agreed to leave the work In the
hands OF these four.
Several significant facts were
brought out in the testimony Of Botz
and Dickerman. The commission en-
gineer stated that be had been able
10 check the com pany's inventory OF
physical assets in Wise county and the
city of Lynchburg. In Wise he found
the actual number Of telephone poles
to be 400 less than the number claimed
by the inventory. The inventory also
included nine miles of wire not found
by Mr. Dicforman
The big difference in the cost of In
stallation in Virginia ana Maryland n
point raised by the company was
weakened by the explanation that the
Maryland cost was pre-war, tho rate
question having been settled in that
state In 1914.
Attorneys for the communities are
greatly dissat isfjed at the overhead
cost in The company's report. one
cised is that OF general commerce ex-
pense." a total Of s91.937 for the first
cludcs travelling expenses and some
salaries although separate from the
general salary account. This item was
$4,000 in 1915.
From an examination OF the COM
pany's books. Mr.. Botz reported q to-
tai average investment. up to october
30. of S1l.e75, 579.23, exclusive of land
owned by the company valued at
$4,000. Figuring on a basis Of the
postmaster generals rates for the en-
tire year, he found net earnings OF
sS4s,o0s. After deducting five per
Mt for depreciation. this left net
profit Of $2S4,203. or 2.23 per cent
on the average investment
The company charged ss7e TO each
phone for depreciation during 1919.
While the charge I'm 1918 was only
S4.3S. IT this appreciation charge had
been the same as last year. attorneys
declare. the company would have
hown net profit of $3.50 per phone.
or total of s2s3.500, instead OF a loss
OF 50 cents per phone shown by the
books.
Tho commission adjourned TO ten
o'clock this morning when the hearing
will be resumed. 1t is thought that
the hearing will be concluded today.
The decision will probably not be
handed down until January.
AS many communities are under the
impression that the fixing of rates on
state wide basis means that every
city will have tho So rne rate to pay.
it Is interesting 20 note that this is not
the case. The state has been divided
into six classes, the cities being group
ed according to population. Richmond,
Norfolk and Portsmouth are in the
FIRST class. the latter city being includ-
cd because il ~ practically a part OF
Norfolk. Roanoke. Ntutnn and Lynch
burg are in tho second class: Newport
News occupies the third by itself: Dan
vile. Stauuton and Alexandria in the
fourth; Hampton. Winchester, Falls
Church. Suffolk. Fredericksburg and
several other cities in the. fifth and
, the balance of the small com munities
In the sixth.
The, range. OF rates can be estimated
by tho following schedule Of, indi-
vidual business lines in the six classes.
The first class is. s9s; second. sT2:
third. ss6; fourth. $50 fifth. s4s, and
sixth s42. Single residence telephones
arc $4s. s42. sS8, s3s, s3s, and $50 in
the six classes