Evening star., 1922-01-20
TELEPHONE RATES
FAIR, SAYS OFFICIAL
CIarkson at Public Hearing
Opposes Any Cut-Users
Increased.

phone Company believes its present
rates are reasonable and satisfactory,
because under the rates the company
has greatly increased the number of
telephone users during the past two
years.
This, in substance, was the testi-
mony of w. B. Clarkson. general com
mercial superintendent. at the open
ing this morning of the public hearing
called by the Public Utilities Com
mission to determine what rates shall
be fixed for the period beginning
March 1.
In answering a question by Attor-
ney Osborne l. Yellott for the COM
pany. Mr.. gClarkson testified that in
his opinion none Of the present rates
needs revision.
At Tie opening Of the hearing Wal
ter c Allen. executive secretary of the
commission, read a letter from the
Columbia Heights Citizens Associa-
ton. asking that pre-war telephone
rates be restored.
Rates Are Compared.
At the request Of Col. Charles Keller,
chairman of the commission, Mr..
Clarkson read into the record list of
the rates for different kinds of service
in 1916 and today.
The rates now in effect, which the
company wants continued during 1922.
are: For individual business service,
81 month; two-party business serv-
ice, So, allowing forty messages a
month; individual residence service,
81, fifty messages a month; two-party
residence. $3.50. thirty-five messages a
month, and unlimited residence serv-
ice. $3.50.
The pre-war rates of 1916 were: For
individual business service. 1925; two
party business. $3.50; individual resi-
dence rate. So, fifty messages; two
party residence. 81, thirty messages,
and unlimited residence service. 81.
A. e. Berry. president of the COM
pany. stated prior to the hearing that
during the past year the company's
net income was $S22,614, or slightly
more than 5k per cent on the fair
value of the property used in render
ing service.
Mr.. Berry said that if present rates
are continued during 1922 the COM
pany expects $S51.000 of net income.
equal to SIS per cent on fair value.
Expect to Cut Cost.
The president said the company
expects to reduce traffic expenses
during 1922 by approximately $4,000
through the abandonment of Monroe
Courts, which was used to house i'm e.
ported operators during and after the
war.
MIR. Clarkson testified that the
telephone company does not attempt
to fix rates for the various classes
Of service to meet the costs of rem
dering those various services.
! What the company tries to do, he
said, is to work out a schedule of
rates that will invite hew sub
scribers. The more subscribers the
company has, he stated, the more
valuable is the telephone to each
user. because he can com communicate
He submitted a chart showing that
, In 1918 Washington. with a popuia-
tion of $4,000. had 47.2s7 telephones,
or 1871 per 100 of population. Today,
with $4,000 people. the city has
At present, the witness continued
there is a ratio of one telephone to
every five persons in Washington.
In answer to question from Will
liam NICK. Clayton of the Federation
of Citizens Associations, Mr.. Clark
son admitted that this included tele-
phones in all the government depart.
ments. He explained. however, that
/. in other large cities there are large
factories and. commercial establish
ments comparable to the government
departments.
In answer to a question from
Chairman Keller, the, witness said the
company. does not attempt to deter
tine whether each particular rate in
the schedule is remunerative.
"So,,iif all the rates in force pro-
duce, a reasonable return on fair
value, you regard the schedule as q
good one, regardless Of the relation
one rate might bear to another" Col
Keller asked.
Nj: ciarkson replied that was cor
rect:
Chief Accountant TestiAes.
Mr.. Clarkson was followed on the
stand by Harry c.: Gretz. chief &C.
countant, who. went over. in detail
| the company's' receipts and expendi-
lures for the year, showing how the
net income of $822.000 was arrived
at, yielding return of slightly more
than 5H per cent on fair value.
This afternoon It Is expected the
company will place Witnesses on the
ktand to eSplain the 800. -scs =. - = & q