The Washington times., 1925-04-10
BA 7 Tie: IN
COUR I s
IS NOW
SEEN
Utilities Commission Knocks
$1,000, 900 off Concerns
Figure-Rate Slash Next

The Public Utilities Commits
sion today announced the valua-
ton of the Chesapeake and Po-
tomac Telephone Company as
$1S,576, 956.
The figure is nearly $1,000, 900
below that claimed by the COM
pany.
The Commission also announced
that in the near future, public
hearing will be held to consider
a reduction of telephone rates.
This was understood to mean
that the new valuation is low
enough to permit lower rates
within the next few months.
Court Fight Looms. 9
The new valuation is about $780,
900 below that which heretofore has
been in effect, since its establish
ment by the commission.
The decision means that the tele-
phone company not only loses its
fight for a higher valuation, but
must accept a valuation lower than
that now in effect.
The likelihood Of the company
going into court to attack the new
valuation doomed today.
The valuation follows: Right of
way, $3.50; land, $675.000; build
ings, $500, 534; other physical prop
critics, SIS, 1903 .490; overhead and in
tangible assets, including going
value, $2,S10,0O0.
This makes a grand total OF
So, $780, 54. Fro mthat, the commits
sion deducted depreciation, running
to $4,000 900, leaving SIT ,SS?,3o4.
To this is added working capital
materials and supplies, amounting
to 1921, 534, and working cash, $46S,
O68. The final fair value to be
used for rate-making purposes was
4. established as of December 81, 1924
as $18,576,956.
The new value was prepared un
der direction of Major William E
r. Covel, assistant engineer com
missioner, assisted by Byers NICK
Bachman and Earl V. Fisher, and
Frank H. Stephens, officials Of the
commission.
Features OF Decision.
The principal feature of the
Commissions decision was the de
duction from the valuation of &C
crued depreciation.
In past years, the commission s
policy has been to add this sum
to the company's value.
The decision in this one item cut
down the valuation by more than
$3.OOO;OO0.
In dealing with going concern
the commission ignored the com
pany's claim for a 81, 800, 900 allow
ance.
1t did. however, allow a small
amount for this item under lover
head"
No definite or stated amount was
given for the going concern"
The decision today came after a
conference at the home of Com
missioner James F. Oyster, who is
afterward.
Regarded as Victory.
William NICK. Clayton, represent
ing the Federation of Citizens
Associations, declared the decision
was a partial victory for the peo
pie.
Il am glad the Commission did
not allow any preposterous claim
Of $25. 000, 000," Mr.. Clayton said
for that figure was unjust, un
reasonable and unfair"
Lower telephone rates are likely
to follow. officials Of the commits
sion declared.
A public hearing, to consider re
auctions, is expected to be hello
around May l.
The valuation case dates back Il
last fall, when the commission in
stituted steps to obtain lower rates
A hearing was called for NoVem
her 10. Instead of a rate hearing
it developed into a valuation case
The company declared it was en-
titled to a revaluation of it's prop
eIty before rate revisions were
considered.
The company asked to be allowed
four months to make an inventor,
of property.
Severed weeks ago, the inventor,
completed, the company appeare,
before the commission and pre-
scented evidence to show the nee
Of = $25 200, 900 valuation.
William Nick. Clayton attacke
this valuation and demanded tina
the figure be reduced to SIS, 500, 00(