Evening star., 1924-11-19
ASK RETALIATION
TO FIX CHARGES
Telephone Company Seeks
Appraisal Before Rate
Change Order.

A revision of the valuation of it's
property before any change in rates
is ordered was asked for by the
Chesapeake and Potomac Telephone
Company when 1T appeared today at
the public hearing called by the Util-
tiles Commission to consider a reduc-
tion in telephone charges.
Alexander Britten, counsel for the
company, declared the company al
ready has a force of employees work
ing on a complete new inventory of
the telephone property and he said
he though the commission should wait
until that is completed before chang
ing rates.
Questions by Maj. Bell. chairman of
the commission. brought out the
statement that it would take the
company from 60 to 10 days to finish
the inventory and that the property
would then have to be appraised on
the basis of that inventory.
Chairman Bell then stated that the
commission would be very glad to
have the company's new inventory in
time to give it consideration in the
present rate case, but he made 1t plain
that the commission would wait only
a reasonable time.
Draw Tentative Reduction.
The hearing adjourned with the un-
derstandinE that the commissions ac-
countants would proceed to draw up
tentative order looking to a reduc-
tion in rates. which order will be taken
up for consideration at a future pub
lie hearing. At that hearing the COM
pany will have<>an opportunity to pre-
sent it's side of the case.
Maj. Bell made it plain that the COM
mission itself would not prepare the
tentative new rate schedule. but that
this work would be done by the ac-
countants. so that the minds of the
members of the commission would be
open on the subject when the next
hearing is held.
Since detailed testimony was not
taken at today's session, the question
of whether the company should be al
lowed to charge the cost of radio
broadcasting to telephone operating ex-
penses was mentioned only Incl
dentally.
e. V. Fisher. secretary to the COM
mission, testified that the company's net
ir@one for the IL months ending Sep
lember 80 was s1,34S,094.34. allowing
radio as a proper operating expense.
Excluding radio as an operating eX-
pense, the net income for the 2 months
would have been S1,465, 1861, Fisher
testified.
Attempts No Valuation.
Mr.. Fisher did not attempt in his
testimony to say what the present fair
value of the telephone property is, and.
consequently, did not show what the
company's return on fair value was for
the year.
William Nick. Clayton, speaking for
the Federation of Citizens Associations.
urged the commission not to delay ac-
ton too long while waiting for a re-
inventory and a reappraisal of the COM
pany's property. He also listed num-
ber of subjects which he requested be
gone into at the next hearing. They
included:
Is radio a proper charge to tele-
phone operating expenses? Should
the AZ per cent payments made by the
local company to the American Tele-
phone and Telegraph Co. be allowed
in. whole or in part? Should the COM
pany's Federal income tax be charged
to operating expenses? Should any
further additions be made to the
company's depreciation fund?
In asking that valuation be revised,
Attorney Britten pointed out that the
companys property was valued be-
fore the war and that new equipment
since acquired has been added at ac-
tual cost. He said great changes have
taken place since the valuation was
made, and that the commission should
make a new appraisal of the prop
erty before changing rates.