Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-11-03
DISCRIMINATION
OF PRESENT RATES
FOR PHONE SERVICE
Chesapeake and Potomac
Company Before Utilities
Commission Today.
OPERATING EXPENSES
MADE POINT OF REQUEST

VI lin INV INT 6NScS
MADE POINT OF REQUEST
Attorney Seeks Postponement OF
Automatic Return to Old
Schedule December 1.
Continuation of the present rates for
telephone service in the District was
requested by the Chesapeake and Po-
tomac Telephone Company at the
opening of the hearing before the
District building today.
The existing rates were put into
effect last May by the Post once De-
partment while the company was un-
der federal control and will automati-
cally go back to the pre-war rates on
December 1 unless the Public Utilities
Commission otherwise orders.
These are the rates now in effect.
which the company asks to be con-
| tinued.
Unlimited service. IS per month.
Limited service (ffty calls per
monthly, $3.50. Two-party line (thirty-
five calls per month";. $3.50. Direct
line. business rate (flfty calls). $3.50.
Old Rates Effective December 1.
The old rates. which will automatic
ally return on December / unless the
commission acts were:
Unlimited service. 81 per month.
Limited service (hfty calls), SO. Party
lines (thirty calls). 81 Direct busi-
l e2E L.
month";.
| R. v. Marye. in opening the hearing
| as counsel for the company. stated
| that even with the increased rates
ment the company is falling short OF
operating expenses. He said the COM
pany is only asking that those rates
be continued for the time being. He
tent to continue for a while with the
existing rates, because 1t Is not in a
position to suggest to the commission
what. would be a reasonable increase
existing in the District.
His explanation was made more
clear later in the morning by the
testimony of T. p. Sylvan. an of1cial
OF the company. who called attention
to the large additions to capital in
veBtment which the company had to
make in Washington during the war.
He said the company was not able
10 show at this time how much OF
those investments we're made to meet
the telephone ne5fs Of tho severn
4 msnt and how muH for the city. The
company. be said, ndeavoring now
to prepare figure II will show how
PAhese expenditures were divided.
/ Pays SANS Ests Is People.
william Mex. Clayton. representing
the Federation OF Citizens Associations.
stated that there is a good deal of
1 street talk to the effect that the tele-
phone company spent millions of dol
lars in improving its service to meet
the governments requirements during
the war. He said that II 1t is shown
these expeditures make a higher rate
for service to the private consumers
necessary he will oppose it.
Mr.. Marye replied that the federal
government pays identically the same
rates for the service 1t receives as do
private consumers in the District
Mr.. Clayton asked the witness IL
he could state what proportion of its
revenues come from the federal gov
the public. Mr.. Marye said those fig-
ures were not ready. At the sugges-
tion Of Chairman Kutz Of the commits
sion the witness said these figures
would be prepared and submitted
| later.
Mr.. Clayton asked Mr.. Sylvan how
much of the increase in the company's
capital investment was for govern
ment service and how much for the
| city as q whole.
| Mr.. Sylvan replied that it would be
| very difficult to divide these expendi- =
| lures exactly. because much of the :
additional expense was to improve
service both for the government and
| the public.
He stated, however that the COM
pany is waiting to see whether con-
| ditions are going to change any in
| Washington in order to determine =
whether any of the additions which
| were made during the war can be
salvaged or done away with. Up to
the present time. he said. there has
been very little reduction In service
| to the government.
Provision for Employees.
He called attention to the fact that
the company bought two apartment
houses for the out-of-town operators
| who had to be brought here and that
| these operators have been a large
| item of expense to the company. The
question of how long these buildings
! will be needed, he said, is one OF the
| things that prevents the company
| from stating at this time what would
| be a fair increase in rates to cover
| the deficit which he claimed exists
! under the present rates.
He said there Is no doubt that a
roodly part of the expense which the
Company underwent here during the
war was for government requirements
and that the company Is now en-
deayoring to ascertain what items the
government should bear the cost Of.
He indicated that an effort may be
made to have the government COM
pensate the company for any items
of expense which were made neces-
sary during the war solely to meet
government requirements for service.
Return to Old System Opposed.
Mr.. Clayton also wanted to know
what objection the company would
have to returning to the old system of
allowing limited subscribers 600 calls