The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-02-25
FOR
PROFIT ON
RADIO
Telephone Company Official
Expects Monetary Return
From WCAP in Future.

The Chesapeake and Potomac
Telephone Company has entered
the radio field for "the public
good" and in the future expects
to build up a profitable business
by charging for broadcasting.
A. E. Berry, president Of the
company, made this statement to
the Public Utilities Commission
during public hearing today on
a reduction in telephone rates.
Cites Service to Public.
Mr.. Berry told the commission
that station wCAP was broadcast.
ing all sorts Of public functions,
meeting and entertainments which
otherwise would not be available to
radio fans.
IF we did not broadcast no one
else would" Mr.. Berry said. Some
time in the future we expect to
earn money through this station.
The New York Telephone Company
Is making money on it's station and
we feel that we can do likewise. We,
however, are hesitating at this time
about charging generally for broad
casting though even now we have
had offers from several corporations
who are willing to pay for the ad-
vertising."
1t was brought out at the hearing
that the radio service cost the tele-
phone company $33,950,000 during
1928. Experts of the commission
testified that this money is not car
ried as an operating expense of the
company and in no wise affects teAc-
phone rates.
Dozier A. De Vane, attorney for
the company, added to Mr.. Berry's
statement and said that the radio
station was also an experiment
laboratory.
1.-THE telephone company is keep
ing up with the times" he said.
Eventually radio will become a
part and parcel Of wired telephony,
Wireless will undoubtedly in the
future be a regular adjunct to
telephony"
Urges Cuts i'm Rates.
Arguments for reduction in tele.
phone rates were presented by viii.
liam NICK. Clayton, representing the
Federation Of Citizens Associations.
He pointed out that during the year
1928 the telephone company earned
rate OF return on its valuation
OF 1888 per cent.
Mr.. Clayton devoted the greater
part of his argument to a discus
sion OF the AN per cent of gross
receipts paid by the local company
70 the American Telephone and
Telegraph Company and also the
question Of depreciation.
The representative of the fedora.
ton sought at the beginning of the
hearing to. have the commission is
sue an order making the American
Telephone and Telegraph Company
and the New York Telephone Com.
pany a party to the hearing. The
commission took no action on his
motion, postponing decision.
Representatives of the connpanv
contended that they are now earning
only a fair and reasonable return
on their investment. They opnosed
a rate reduction.
Bell Studies Figures.
:, Commissioner Bell, chairman of
the commission, studied the figures
presented by the company and asked
many questions pertaining to vari
Gus items included in operation and
other expenses.
p: V. Fisher accountant of the
Public Utilities Commission. pre.
sented evidence at the close of tho
nearing which may have an i'm
portant bearing on telephone rates.
Mr.. Fisher was asked by Mr.. Clay
ton what would be the companies
rae OF return II the commission de.
cided to deduct from valuation the
accrued depreciation of the com.
pany:, Mr.. Fisher replied that it
would be i1.9s per cent.
Mo decision on the Federation's
petition for lower rates will be
announced until after March 8,
when a public hearing will be heard
10 determine whether 1t is legal for
the commission to deduct accrued
depreciation. This will hoya ~, ~,