The Washington times., 1919-04-19
OFFER
TOLAY CARDS
ON THE TABLE
Federated Citizens AssoCia-
tons Already Preparing to
Accept Offer.

The Chesapeake and Potomac Tsle-
phone Company is going to lay its
cards on the table before the public on
the increase in rates, which become
effective May 1.
This was announced today by c. T.
Clagett, division manager. who de-
clared that the company is ready 60
answer any and all question pro-
pounded oy the public or by citizens
associations, either at q public hear
ing at any place and time designated
BY the District Commissioners or
other authoritative body, or In ths
newspapers.
The Chesapeake and Potomac TeIe-
phone Company Is following the lead
established by ". +. Ham, president
OF the Washington Railway and Elee-
trio Company, which was the fFst
public utilities corporation to grant q
public hearing and answer all ques-
tions asked by the public on q pro-
posed increase In rates.
VIII he Accepted.
". Mex. Clayton, chairman OF the
public utilities committee OF tie Fed
GRAFTON Of Citizens Associations. de-
elared that this proposition OF the
company would undoubtedly be ac
cepted by the association.
We will pursue the same policies
and grant the same courtesies to the
telephone company as we did TO the
Washington Railway and Electric
Company" he said. I'VE are always
willing to have anything explained
and to consider the company's side
Of the matter as well as our own"
At the regular meeting OF the Fed
Grafton tonight in the District build
ing a resolution win be introduces
directing the chairman TO appoint q
committee to take action toward en-
joining the telephone company from
quitting these increases into effect.
According to Mr.. Clayton Il Is Be
lieved that court action win be re-
sorted to as the only means Of accom-
plfshing this end.
Net Due to q. s. Control.
Mr.. Clagett declared that this in
crease was not due to the Govern
ment control OF telephones, but
would have had to come any way on
account OF the increased cost Oe
everything that goes to make up an
efficient telephone service. Copper
wire, for instance, he said, has in
creased more than $50 per cent In
cost in the last few years. Everyone
Mr.. Clagett was in conference this
morning with ". B. Clarkson, gen
eral commercial superintendent of the
company in Baltimore, on the sub
tect. On account Of what they both
believe to be a Misunderstanding Of
many features OF the increase on the
part Of the general public, It was de-
cided to grant a public hearing to
any and all who wish to PROFOUND
questions.
The citizens associations seem to
be under the Impression" said Mr.
Claggett. that we are granting q
lower rate to the Government than
to commercial subscribers. This is a
mistake. This was the case at one
time, but does not hold now.
100000 DeacIt In 1918
Mr.. Clagett said the cause Of the
increase was that their last state
ment showed a deficit of nearly $500
900 for the operating year of 1918
We are capitalized at $4,000 OOO'
he continued. "and 3 per cent is the
minimum return that should be
earned. This makes nearly $I,1OO,OOO
additional revenue that is required for
the company to exist.
THE fact that many subscribers
since the increase was made are going
from the IS a month service to the
S. 80 service really makes the in
crease amount TO but $35O,0OO, or
per cent. This will hardly, IL at all.
take care Of our deficit"
In anticipation OF the public hear
ing, Mr.. Clagett and Mr.. Clarkson are
already preparing answers to many
questions they expect will be asked
They will require two or three days
after questions are sent in to formu-
late their answers before delivering