Evening star., 1925-05-28
PHONE RATE CUT
TO USERS DELAYED
BY COURT APPEAL
c. & P. Company Will Ask
District Tribunal to
Stay Order.
UTILITIES COMMISSION
GRANTS EXTENSION
Sets Time Limit for Reduction as
June 10 to Permit Filing
of Appeal.

Formal announcement was made by
the Chesapeake and Potomac Tele-
phone Co. today that it will appeal 10
the District Supreme Court from the
recent findings of the Utilities Com
mission fixing a new value for the
telephone property and reducing the
rates for two classes of residence teIe-
phone service
Whether the legal action will in
ciude request for an injunction TO
prevent enforcement of the new rates
pending the outcome of the litigation
was not revealed in the statement
issued, which follows:
AT the office of the Chesa peake and
Potomac Telephone Co today S. M.
Greer, vice president. stated that the
company. having given the recent or
oers or the commission affecting prop
erty valuation and rates the most
careful consideration, had decided that
1t should ask the Supreme Court of
the District 10 review the commits
sion's orders. The bill to this effect
is now being prepared and will be filed
with the court in a few days"
Commission Grants Delay.
The utilities commission TODAY
granted request of the company, ex-
tending until June 10 the time period
IN which the company is required to
hle a schedule of the reduced rates, the
extension being made to enable the
company to complete preparation Of
its petition to tthe court.
FOLLOWING the announcement of the
new valuation in April, the commits
sion ordered the rate for unlimited
household service cut from S5 TO s475
a month, and directed that users OF
party-llne residence service be allowed
40 calls. instead of So a month. for
$50. These reductions were to appIv
to June bills
III the company applies for an in
junction to restrain enforcement of
the new rates pending settlement of
the valuation, the situation would be
similar to the one in which the COM
| mission and the Potomac Electric
Power Co. We're involved for seven
years, and which was settled by agree
ment between the parties last January.
Nhlle the court proceedings on the
electric light valuation were in prog
fess the company collected the old
lo-cent electric light rate and retained
In separate fund the difference be.
tween that sum and the rate of ap-
proXimately cents allowed by the
commission. This impounded fund
grew to SG,000.O00 and was divided
equally between the public and the
company when the case was settled
IN the telephone case the commits
sion called hearing last Fall TO con
slider a reduction in rates, but the
company took the position its prop
erty should be revalued before the
reaSonableness of the rates was con-
sidered. since rates are fixed to yield
Cut Nearly $7,OO0,O00
The commission agreed to revaIue
the telephone plant, and the compa ny,
after an inventory, asked for a valu-
alton of approximately 5000 900.
Then followed the taking of testl.
mony of engineers and real estate ap-
praisers, after which the commission
fixed the new value at S1S,5TS.956
which was nearly $1,000, 900 less than
the company had asked for and not
far from the valuation adhered to by
the commission prior to the reValua-
ton proceeding.
Taking this new value as a basis,
the commission decided TO allow the
company a rate of return of per cent
and found this could be accomplished
after making the two reductions in
i, rates for service cited above 1t was
bN AhdJ. w L. SONcll,
assistant to the commission, that the
reduction in rates would save tele-
phone users about 500, 900 a year.
Charge Valuation Too Low.
II is understood the company's court
case VIII be aimed principally at the
valuation, which the company regards
as unrea sonably low.
1t is known that the company takes
| issue with the commission on the
amounts allowed in the new valuation
for going concern value, for certain
overheadS and for depreciation. The
company also objects to the disallow-
ance by the commission of the value
of several pieces of land bought by
the company but held by the commits
sion to be not yet in actual use in the
rendering Of telephone service.