The Washington times., 1924-03-18
Telephone Rates in the District,
and Depreciation
By BILL PRICE.

The Federation of Citizens Associations through its able
representative W. NICK CLAYTON makes strong showing
in its request to the Public Utilities Commission that telephone
rates in the District be considerably reduced Mr. Clayton
presents figures showing local company which
owned outright by the American Telephone and Telegraph
Company earned close to 10 per cent its investment
valuation.
Of this unnecessarily large sum- taken pockets of
telephone in the District the G. and p set aside $7
for depreciation about per cent of its investment value
turned to its owners the A. and T. Co.. $24O0 ~
per cent Of investment value and then had left 1856 per
The A. T. and T., the great telephone monopoly of the
United States got about ~ per cent of gross earnings
cOrding to Mr. Clayton who has fought the public utilities
battles of Washington people for many years before the Pub
lie Utilities Commission and has received of pay
for his valuable services
It should not be forgotten of course that the A. and
Co.. besides getting its fat rake off of $2000 bonus
last year. also pocketed the balance Of the net earnings for
its own
That portion of the Washington public which wants to see
all enterprises and utilities receive fair returns honest in
vesments will acquesce in ruling of the Commission
which fair alike thousands of telephone users and
to the monopoly which the telephone business here and
throughout the country The public however in no mood
to pay to this monopoly other corporation returns far in
excess of what they entitled to
No attack be made upon the Chesapeake and Potomac
keep it's plant requirements Of business That company
during the added millions of dollars worth of capital its
plant largely for the benefit of the United States Government
and its activities fine building item of
Whether the Government made good these
expenditures has been revealed and the people of Wash
nave D0eu
qued to pay telephone rates sufficiently high enable the
local company to much Of its expense for the
eminent
AT rate the company has been arbitrarily putting into
It's depreciation each year excessive of
money Curousy enough too under the practices of local
corporations depreciation charged to investment
making for the public pay returns upon its
money from year to year.
It is well that the Public Utilities Commission carefully
considering this subject of depreciation for public utilities
the District The deeper it looks into the the
certain to find that there much Juggling depreciation
Tor the sole benefit Of corporations and to the big disadvantage
Of users of utilities.
The object depreciation is care for and upon
propees to replace that which becomes obsolete or
useless It is highly technical proposition and much de-
ponds the character of the property how much
depreciation should be-.
The properties Of all public utilities will depreciate value
the sole aim Of directors and stockholders is to pull down
large dividends for capitalization that is often watered
the Public Utilities Commission will require monies that
set aside for depreciation to be used at upkep and
maintenance then there would be- in most little depreci
ton to for.
So it behooves the Public Utilities Commission to keep
closer watch the anpaons that 60 under the heading
OF depreciation and attempt enforce rules that will require
all utilities to depreciation in such way
guard against what generally covered under the word
probation
At any the p u G. should permit excessive sums
to be charged to depreciation which is just another scheme
when not checked permit corporations to extract large
Of money from the public pockebooks to be used the
porations desire, often not for actual depreciation at ALL