The Washington times., 1919-04-16
RATE
INCREASE To
NET$35O,OOO
Large Proportion of Amount
viii Come From Pockets of
Flat-Rate Subscribers.
ny BILL PRICE.

By BILL PRICE.
The increased telephone rates for
the District Of Columbia, which go
into effect May /, on fifteen days
notice to the public, regardless of
existing contracts, are expected to net
the Chesapeake 4 Potomac Telephone
Company about $500 additional
revenues, IL continued for a year. OF
this, about $50, 900 VIII come out of
the pockets Of the $4,000 flat-rate
subscribers In Washington.
The remainder will be produced
rom increased charges to Govern
ment and other switchboards and
various classes or patrons.
The company, acting entirely upon
directions from the Postmaster Cen
eral, claims that the $3.50, 900 will not
meet the deficit in operating eX-
penses, allowing nothing for return
20 the Investors in the capital stock
OF the concern. The annual report OF
the company for the year 1918 showed
deficit in operating expenses in the
District Of 1897 900, with no return
whatever upon a claimed valuation
OF $4,000, 900. Two years ago the
Public Utilities Commission fixed
the value OF the properties at some
thing over $4,000 900. agreed to by
both parties. 1t il stated that $S,-
100000 IA valuation has been added
since that time, owing to war activi-
ties and the demands Of the Govern
ment making a total valuation of
$4,000 900.
About Is FER Cent jump.
The incroased rate in the District
averages about 10 per cent through
out al classes, but IL Is claimed that
the increase in revenue will be little
better than per cent
The increase Ia washington Is not
local Il applies practically through
out the country. Baltimore rates
were increased virtually % per cent
The rates both here and In Balti-
more were made without consultation |
with the Public Utility Commissions.
The Commission here has felt itse1K |
without Jurisdiction, while teleph0nO !
properties are In the hands Of the 4
Government. Last July the Commits |
sion had before it the application Of /
The company for increased rates. The |
Postmaster General at that time, be- |
fore the Government took charge, in |
tSrVensd with the claim that he could |
install automatic telephones in Wash |
tngton and operate the system here |
on rates even lower than those that |
hGve prevailed to this time.
He has since that time ascertained, |
It - known, that the installation Of |
Sutomatics here would cost $1,000 900 |
and would save in operating expenses |
about $4,000 a year, instead of ST. |
100000 q year some Of his experts |
believed would be the case.
VIII Increase BE Permanent
The permanency Of the Increased |
rates remains to be determined. So |
long Is the Government Is in control |
they viii probably not be changed, |
bat when the company again passes |
TO private control it will be under the |
Jurisdiction of the Public Utilities |
Commission. which may retain the |
increased rates pending investigation /
or insist upon return to the old rates. /
Manager Clagett, Of the local COM |
oany. today explained that his COM |
pany has been losing money for more 4
than q year-revenues nowhere meet |
ing expenses, with nothing for divi- |
dends. It would have been impossible, |
ewing TO heavy increased costs, TO /
have maintained any sort Of decent |
service with a steady deficit. which is
continuing each month. He pointed
cut that the new rates will not give /
che company sufficient income to pay
operaingg charges and interest rates
May Resort to Courts.
It Is possible that the increased
rates in the District may be fought |
in the courts. The Postmaster Cen
eral permitted increased rates in
Massachusetts and New England
States, and this brought action in the
courts.
The main question is whether the
wire control board Of the Postoffice
Department has the right to ignore
the Jurisdiction OF the Public Utilities
Commission here and State commits
Rions elsewhere. Injunction proceed
SnEs brought in Massachusetts by the
Public Service Corporation of that
state were dismissed. The question is
On its way 20 the United States Su-
3reme Court.
Rates TO the Q. 8. Increased.
Il will be of decided interest in the
district to know that the United
states Government here il not TO get
preferential rates as in past years,
which threw the burden on citizens,
and that all Government departments
will pay the same for branch ex-
changes as commercial or other sub
Ecribers. For the first time the Gov
eminent viii have no advantages,
ouch a. it yet has in gas rates in
washington. over privSts subscribers.
The fiat rate charge for individual
use viii be s. per month after May 1.
II "a now S4 Individual line message
rates on q call basis Will be $3.50 for
6fty calls or less each month. For !
90 or less the charge will be $3.50
per month. with a proportionate de-
crease with each fifty calls. Al lover
COO calls will be 2 cents each.
For two-line residence or business
calls, 20 or less each month will cost
$3.50 for business and &2.25 for 35
calls or less for residences. Add !
tional calls viii be cents each. =
individual rates for lines with coin {
collectors attached are Increased, as :
veil a. private branch exchange {
rates. A guarantee Of 73O calls at 3 c
cents each is required where coin
collectors arc installed. ]
The company expects considerable q
decrease "a telephone use owing 20 r
thARGW 1teG "a