The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-07-26
TELEPHONE COMPANY
WOULD BOOST RATES
Files Application With State Coruo-
ration CommissiOn-OfIicial
Says Increase Is Necessary.


Says Increase Is Necessary.
The Chesapeake and Potomac
Telephone company yesterday flied
with the state corporation commits
sion application for an increase In
4 rates for telephone service as 1t
stands. which already include the in
crease made by Postmaster-General
! Burleson and which became effective
May /. 1919.
| Substantial interest in Richmond
and throughout the state are en-
! bodied in the petition. A complete new
| schedule of charges for the entire
state was fled with the commits
! sion. Proposed rates are designed to
distribute the increase equitably
among various communities of the
state on the basis of service furnished
according to officials of the COM
pany and are expected to yield re-
| turn of slightly less than six per
cent on the investment.
| With the new schedule of rates. the
company filed with the commission
rates established by Postmaster-Gen-
eral Burleson on May 1. with re-
quest that these charges be continued
(, in effect pending consideration and
action on the new schedule sought.
| AS filed with the corporation COM
mission yesterday, the new schedule of
rates for Richmond are as follows:
| Individual business line IS per
month; two-party business line, IS
per month; four-party business line
GOO messages), $3.50; individual resi-
dence line, 81 per month. two party
residence line, 1926 per month, and
four party residence line tiS0 mes
/ sages) $3.50.
t4. .t.t
/ ent charges. as established by the
postmaster-general on May l. as fol
lows:
I individual business line 81 per
month: twoparty business line, So;
four party business line t6oo mes
sages), $3.50; individual residence
line, $3.50; two party residence line,
s2.75. and four-party residence line
i t4so messages). 81.
( BY this comparison it will be seen
that tho individual business line
which, prior to May /, was Sc. was on
that date Increased 10 81. and the
company now seeks In obtain further
increase to IS. The individual resi-
dence line was So. and $3.50 after
May /, ard will now become 81 The
two party residence lines. which are
so popular in Richmond. WAS 50 per
month prior to the S2.75 rate estah-
lished by the postmaster general
and will now become $2.25 if the
corporation commission approves the
new schedule.
on July /. 1919, there were total
OF 24.7l4 telephones in Richmond
serving a population of $50, 700, ac
iccrding TO officials OF the telephone
company, Included in that number,
however. are 4.500 residence and mes
avta r,
the rate will not be increased it is
ANNOUNCED. There are $500 buine IS
extension stations on which an in
Grease OF % cents per month is asked.
! District Manager A. s. Tanner. of
-; the Chese peake and Potomac com
pany, when asked regarding the
proposition submitted TO the state cor
! poration commission, made the fol-
| lowing statement:
1T was thought that the increased
rates made effective by the post
meet the company's expenses. but
these rates have proved inadequate
and earning only 2.19 per cent on the
icompanys investment in Virginia.
Earnings are obviously too low and not
sufficient to enable the company to
obtain new money for extensions and
lbetterments and more remunerative
rates are accordingly necessary
| Due 10 shortage Of material,
labor and government restrictions of
various kinds, the telephone plant gem
ferally became exhausted during the
war periods, and large sums of
money are needed to restore the plant
TO normal conditions. to provide for
ibetterments and to meet the require
ments for new subscribers. Repre-
sentatives of the telephone company
have therefore presented to the state
corporation commission today q Pc
tition for new schedule of rates for
the entire state of Virginia Rates
submitted to the commission are
aimed to distribute fairly the increase
among the various communities of
| the state on the basis OF service
| furnished with view of return of
! slightly less than per cent
This company only asks that the
new rates be established after thor
ough investigation and fullest sort OF
hearing before the state corporation
commission. at which all municipali-
| ties and the public generally can be
| fully represented"