Evening journal., 1920-10-09
phone RATES
IN STATE To
BEINCREASED
Ask Utilities Board Sanction
of 40 Cents to 81 Month
ly Rise
IN EFFECT OUTSIDE
CITY ON DECEMBER |

Application was made by The Dia-
mond State Telephone Company to
the Board OF Public Utilities Com
mlssioners last nisnt for authority
20 increase their telephone rates, botn
business and residence, throughout
Wilmington on December 4 The in
creases asked range from $50 70 y a
month for business service and from
20 90 go cents a month for residence
service. The increased rates VIII go
in effect in Delaware outside VII
mingtOn on December 1, and also 10
Wilmington on that date If the Utlll-
ties Board sanctions the increase. The
board has no jurisdiction outside
Wilmington.
The board members decided TO hold
a special meeting at Z o'clock tues
day evening 30 famlliarize themselves
with the petition. President Philip
j. lsaacs was also voted power to set
the time for the public hearing on
the petition following their meeting
Tuesday.
In ne petition OF the telephone
company, 10 is set forth that ulat
company has never been able, under
the old rates. 90 pay dividends 10 ine
Bell Telephone Company OF Pennsyl-
Vania on two million dollars OF It's
capital stock held by the Pennsy-
Nania branch.
In November Of last year. applica-
ton was made 90 the board by the
telephone company for permission TO
continue the old rates that had been
established during the government
control, and in February Of this year
this permission was granted them.
The company claims that ils net
earnings for the past six years nave
averaged less than three per cent or
the actual cash cost OF The property
and that the nei earnings for 1870
will be about 81 per cent on actual
Dividends on water" arc not
sought by the company, according 10
the petition. which sets forth that
The actual appraised value OF IT.
property is 30 per cent. above The
book value.
II is also set forth That the low rate
OF earnings is menace 10 the COM
pany's credit and prevents securing
capital for extensions, that no more
than a fair return is sought, and that
the rates sought are reasonable and
non-discrimnatOry.
For the leyying OF the new rates
requested the telephone service is TO
be divided into four classes IN which
cities and towns Of Delaware are
grouped so that each one in the
group Will have service on par WIFE
other places In The same group. Mi
ningion Is linked with Holly Oak
while BridgeVille Delaware CiiA
GEORGETOWN and Harrington Will
some other towns. are in another
group
town-State places are M thlrd
rterc are four towns In the lasl
grOup. far down the state.
In the city OF Wilmington the new
rates would be as follows:
Flat rate business In iiVidn1
lines. - a month; tw0-party line, q
month; fOur-party lines, 50
month; extension stations. 81
Flai rate residence -lndividua
lines. sli a month tWO-par.y lines
$3.50: four-party lines. 81; extension
stations. 70 cents.
Branch exchange service will bl
materially increased in some re
specte throughout the state lnstea.
1f a charge OF 80 a mohth lor az
lypcs of sWitchbOards. the new rate
sin range from s2l5 a month to Se.J
a month for each operators position
The company now charges So a monu
FOR any type OF board.
There are some increases In auNil
AIRY equipment and service asked 10
FOR. There are many paris Of The neN
-fNruule Ol rates lltil XIV NNt.t
lf charges for installations, serNlc
and payments, both for public an
private telephones. some OF Whlc
lre rcslatemenls OF present reguld
ions.
The Bell Holdings
one paragraph from the petlto
llled says
"On August 81, 1920. your petliione
lad outstanding capital stock to ih
lmOunl Of two million dollars, an q
Which Is now and for many years ha
1een owned and held by The ne
company OF Pennsylvania. and IA
which that company paid eash Z
par: that. as Of the said date, Nou
petitioner had floating interest De1l
ing indebtedness amounting To- elgi
hundred twenty-five thousand dollar
which represented cash which na
lren advanced TO 70 from time to iln
by the said The Bell Telephone Con
piny OF Pennsylvania. and ihat q
said date. The book cost of the prol
nrly OF your petitioner used in rei
irring service amounted TO s2,4e
lO0."
The following table shows revise
-alc schedule. effective through "
state outside Wilmington. pecemD
Continued on Page Two