Evening star., 1922-11-03
Chesapeake and Potomac
Company Voluntarily Ap-
plies for Reduction.
$1,000 TO BE SAVED
FOR $4,000 PATRONS
Public Utilities Commission In
vestigating-7.13 Per Cent Re.
turn Caused Action.

The Chesapeake and Potomac TeIe-
phone Company has applied to the
Public Utilities Commission for
voluntary reduction in the rate for
unlimited service, it became known
today.
According to reports, the company
has asked permission to cut the un-
limited rate from $3.50 to IS per
month, which would amount to a
saving Of Sc a year for each sub
scriber.
$4,000 to BENEFIT.
Since there are $4,000 households
using unlimited service, the effect OF
the reduction would be to cut $10s.-
600 a year from the company's in
come.
Oficials of the commission would
not discuss the matter today, further
than to say that there is a telephone
matter under consideration. No an
nouncement will be made, 1t was
stated. until the commission has had
time to investigate.
1t Is understood that tho company
was prompted to apply for a cut in
the unlimited rate when 1t was found
turn on fair value OF approximately
7.13 per cent.
Income Over Per Cent.
The value of the company's prop
erty at the present time is SIS, ,761 SAT.
Based on operations for the first nine
months of the year. the company's in
come for 1922 would be approximately
$l.104,35o.22, or a return of slightly
more than z per cent on fair value.
1t Is believed that If the commits
sion approves the cut of SO cents a
month for unlimited service the COM
pany's return would be brought down
TO about per cent on fair value.
No Change Asked in Other Rates.
So far as could be learned the com
pany has not asked for any change in
other rates. which are as follows:
Limited residence service. 81 per
month, with an allowance of nifty
calls.
Two-party line residence service.
$3.50 per month. with an allowance of
thirty-fivs calls.
Rumor has it that the company felt
it would be better to give the reduc-
ton to the large group OF unlimited
users than to spread 1t over the sew
eral rates To split the reduction up
among all telephone users, 1t is said.
would result in only a small saving
to each class of subscribers.
Thorough Inquiry Expected.
The fact that the commission has
not made public the company's re-
quest for a cut in the unlimited rate
was taken to mean today that 1t is
making q thorough inquiry into the
books of the telephone company to
determine whether the reduction
should apply to that one rate only.
This is not the first time that the
telephone company has taken the
initiative in reducing rates.
Back in 1886 the unlimited rate
was $3.50. In 1901 it was reduced
to So, in 1904 to $6, and later in the
same year to IS. In 1906 the un-
limited rate reached a minimum of
81. In 1919 it was raised by the Post
Office Department.. which took over
telephone and telegraph companies
during the war, to IS. After the war
the commission raised the rate to
$3.50.
May Date From December L.
II the commission approves the
companys request, the new rate OF
IS probably will take effect on De-
cember /.
AS these rates also apply to resi-
dents of Chevy Chase. Md. the com
pany probably will apply to the
Maryland commission for a similar
change in its tariff in that jurisdic-
tion.