Middletown transcript., 1920-11-20
EXPLANSPl0NE
RATE 'fyCREBSf
f" Base Charge" !" Only. on
Subscribers Within 3.Mile
Exchange Limit
NODlSCRIMINATION
UNDER NEW PLAN

Speculation as to the increased
rates for telephone service In Della
ware, outside of Wilmington, which.
will be put into effect on December
l, was set at rest to-day by &. p.
Bardo, general manager Of the Dia-
mond State Telephone Company.
The present rural line rate, or
what Is known as the multi-party
rate, is $3.50 fiat for all exchanges,
except Wilmington and Holly Oak.
This rate would be raised, under the
proposed plans, to 1925, as q basic
rate for all exchanges except Will
mington, Holly Oak, Delmar.- Sharp
town, Selbyville and Whitesville.
For the last four places named, the
base rate will be 81. The Whining.
ton and Holly Oak rate will be s.,
providing sanction is given by the
Public Utilities Commission, which
has control Of the rates within the
city. -: /.
The base rate applies to all sub
scribers within two miles Of the
base rate area. The base rate area
comprises the corporate limits Of
the city or town in which the tele-
phone exchange is located, or q ra-
dius Of one mile where the corporate
limits of a city or town do not ex-
tend that far.
This practically means in the case
of all exchanges outside of Whining
ton that the multi-party subscribers
located within three miles of the
; central base rate Office will pay me
base rate only. Those located be-
yond the three mile radius will pay
an additional charge Of Is cents q
month for each two miles.
There are two reasons for such
changes. Mr.. Bardo said. First, the
company has always charged mile
age beyond the base rate for each
quarter mile or fraction for ipdivid-
ual, two-party and four-party sub
scribers. A four-party subscriber
located two miles from the base rate
pays 20 cents q month for each
quarter mile or $1.6O a month in
addition to the base rate. This con-
stitutes more or less of a discrimi.
nation, which the company is de-
sirous of correcting.
The second reason is that the ex-
pense of maintaining communica-
tion for subscribers at distance
from the central Office increases nat
urally in accordance with the dis
tance, both for maintenance and as
investment by the company. Fur.
thermore, the subscriber at q dis
tance from the central office, it 10
held, gets service of much. greater
value than the subscriber in the CEN
trail community.
In support 0f the increase ip rates,
Mr.. Bardo pointed to the fact that
there had been no reward in the
form of dividends to the stockhold-
ers of the Diamond State Telephone
Company for the past twelve years.
I'm short" he said, "the owners Of
the system who provide the service
have had nothing. The new rates."
he continued, will provide return,
and at fair rate only, on the money
they have invested in the business"
It is the hope of the telephone
company officials that decision will
be reached by the Public Utilities
Commission in time to make q uni
form increase in rates both in Will
mington and outside. on December
1. The commission has set Novem.
Der 19 for a hearing on the applica-
tion Of the eor,nany for the proposed
increase within the city-Wilming.
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