The Washington times., 1925-03-17
SEES MOVE
To BOOST
COST To
USERS
Attorney for Citizens Points
Out What Happened IN
Baltimore Case
By WILLIAM Nick. CLAYTON,
Leader IN repeated battles TO decrease
public utility service rates.

BY WILLIAM Nick. CLAYTON,
Leader IN repeated battles to decrease
public utility service rates.
Six months ago the Public
Utilities Commission moved to
reduce rates Of the Chesapeake
and Potomac Telephone Company.
It's action was halted by the COM
pany's demand for . new valu-
alton.
Successful in this initial move
TO prevent or delay lower charges,
the phone corporation now at
tempts to pave the way for
higher rates.
Baltimore, the telephone system
of which is associated with the G.
and p. Company, is now paying
increased charges, effective re-
Gently.
The National Capital should
profit by Baltimore's experience
and prepare to battle not merely
to maintain present rates but to
materially lower them.
Based on New Claim.
The local branch OF the phone
corporation tells the Public Utilities
Commission it is worth $25, 900 900.
An investigation will show this
neither fair, just, nor reasonable
to the public
Higher rates are inevitable Il this
claim is allowed.
The company asks for an an.
nual return or profit Of eight per
cent on this $25, 900, 900. In money,
this would be $2.00o.00O. Last
year the company's return was
the difference? The public, OF
course. How? Higher telephone
rates.
have investigated the COM
pany's claims. Frankly, / am
amazed and astOnished that here
in the National Capital any utility
corporation should make such con. =
tentiOns.
Brands Claim Unjust.
The Public Utilities Commission
is making an inquiry. It can
reach but one conclusion; the
claims are unjust.
1 hope the commission sees fit
to show the public the results or
it's inquiry. Like myself, Washing
toms 100, 900 telephone subscribers
will be surprised, probably dumb
founded.
TO me, there appears but one
course for the commission to take:
First, reduce the 25,OOO,OOO
valuation to $17,OOO,OOO, at least.
Second, cut telephone rates
twenty-five cents per Instrument
per month, at least.
use the S17,00O,Oo0 figure after
an extensive inquiry into facts in
the possession of the commission,
and after considerable study. TINS
in nv opinion, is the company's
value after unjust, unfair, and
ridiculously unreasonable items nave
been paired down.
In another column of this news
paper / have prepared two sets OF
fiRures-one the estimate OF value
made by the phone corporation;
another, my valuation. The com
pany's figure is $25,111,6S4; mine.
$17,16S,15S.
Let's compare the two valuations.
Let's be fair and honest with the
company and with the public. Let's
allow the utility reasonable amount
on all Of it's claims, give it the
benefit of all doubts.
What is the result?
I find the S25.OOO,00O figure ex-
orbitant. No court of justice in
this land, in my opinion. would ever
uphold it. No commission will ever
uphold it-of this / am confident.
Company engineers with intimate
Of the condition of the
phone company prepared, this figure.
1 hold, however, that person
with ordinary and average intelli-
gence would. after a thorough study,
term the amount unreasonable.
The Public Utilities Commission