The Washington times., 1925-03-17
81 4 ! I On
At TACKS
POLICY
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WegId be doing the rankest in
Justice to telephone subscribers bI
accepting this valuation. TIT
people of washington would fact
eased rates for many years
Zee II the figure were accepted.
Vigorous Fight Predicted.
The phone company will make {
vigorous fight to put over this
value. It will bring before the
commission engineers with estab
listed reputation to prove its con
tention. It will spend 100000
probably more. in supporting its
claim.
But the commission, am sure
viii be just It viii weigh care
fully the arguments Of the utility
and then reach its conclusion, a
conclusion which can only mean
the material reducing Of the com,
pany's claims.
In two articles, shall attempt to
point out the outstanding defects in
the $25 900 900 estimate. This first
will deal with an item Of $500, 900
listed by the company under the
title Of Going Value"
1t is my opinion that going
value is q myth. 1t can never be
substantiated. never upheld by the
courts. Going Value" commonly
called good WILL" IL q charge
placed on telephone subscribers be.
cause they have made the phone
corporation sound and prosperous.
'GOing Value" Opinions
Courts time and again have de.
clared there il no such thing as
'tgoing value or ''good will'' with
q corporation which enjoys a
monopoly: a corporation which ex-
lists by the consent of the people
and is given exclusive privileges.
This item, In plain terms, means:
Telephone subscribers, by paying
hundreds Of thousands Of dollars
into the Golfers Of the phone com
pany, are to be charged for the
TACT that they have made the com,
pany prosperous.
The company, in effect, says to
It's patrons:
ssYou are q COED enstOnssg.
You haze 0luuys been. There l.
every prospect you lUiH continue
20 BE. your patronage - north
q Toe Of money to us-wovth
s., 500, 900. Bat you must pay
for the Untue of this patronage.
We h0Ue Increased our U0Eu1tioa
s., 500, 600 and ne expect you 10
pay ~ annually return Of 3 PEP
eenf on this amount.
I trust the Public Utilities Com
mission viii not Let the company
get away with that.
Cites Proof Of Claim
The company is not entitled to
one penny for "going value"
OF course, the company, with its
highly-paid engineers. will use many
high-soundipg terms. meaningless
phrases and countless explanations
TO put over "going value"
One item Of proof win probably
The salaries Of operators in train
ing are now and always have been
paid out of operating expenses.
Must the public pay twice?
II it costs, say $1,000, to train
one operator and this Is paid out
Of operating expenses, is there any
Justice in adding this 81 600 to the
valuation and compelling phone SUBJ
scribers to pay per cent annually
on Il?
The commission can find in law
sufficient cases to deny this claim.
It can beat the company easily If
forced into the courts.
Paying for Privilege
When the Chesapeake and Po-
tomac Telephone Company began
its operations here, it did 30 with
the consent Of the. people. 1t was
given the privilege over any other
corporation to provide telephone
service here. Must the people pay
for the privilege 1t has granted the
phone company, privilege which
has enabled II to earn millions of
dollars in Washington?
The going value" is typical Of
other claims Of the company. It
ig merely book figure. It is not
fair and should be disallowed. I
am confident the Public Utilities
Commission will not hesitate to re-
duce the SOS. ZOO. 900 figure by $780,
900 to eliminate this item.
Washington has heard much Of
S0l0dl4OIto past year % II WI
hear more. The valuation question
IL the most important of all utility
questions. Upon valuation the com.
mission establishes rates. II the
valuation goes down, rates do like
wise. II valuation goes up, rates
follow.
The commission, if it does the
right thing, will lower the valua.
ton and reduce rates. 1t can do
90 without doing an injustice to the
telephone company and without
giving the public any unfair ad-
vantage OF the corporation.
It Is up to the commission to es-
tahlish valuations. 1t Is now doing
50 for the phone company. In the
District building Thursday morn
ing valuation hearings will be re-
suned before the commission.
am presenting these facts to the
public that they may know I'm ad.
vance some Of the details of the
question now before the comm ssiOn
Tomorrow I shall discuss other
items in the valuatin, among them
VALUE of land and buildings" and
depreciation"
VETERAN OF THREE WARS
KILLED BY AUTOMOBILE
CHICAGO. March 17.-Major