The Washington times., 1925-05-07
ADDITIONAL
CALLS FOR
OLD..FEE,
PLAN
Slash of SIPS, 600 Forecast.
Company to Fight for 8
Per Cent Income

The Public Utilities Commls-
sion today viii decide the rate
cases of the Chesapeake and Poto-
mac Telephone Company, six
months after initiating an in
quiry designed to lower rates.
Indications are that an order
win be issued slashing rates ap-
proximately $125.00O q year. This
would reduce the company's an
nual earnings to z per cent Of
ifs valuation. The company wants
8 per cent.
The reduction, it is said, win
be based on figures showing that
during 1924 the company earned
about 8 per cent and that during
1928 it win earn approximately
the same. The commission has
indicated in previous cases that it
considers . Z per cent return
fair.
may GAAB 2NOW AACaA4E&tA6s
There is, Of course, a possibility
that the commission may yield to
the demands of the telephone com.
pany for an per cent return, but
this is considered unlikely. Allow
ance Of such a yield would undoubt-
eddy result in demands by other
public utilities corporations for the
Same allowance.
Draw Up New Rates.
Tentative new rate schedules,
based, on a reduction Of approx
mately $125,000, have been pre-
pared and probably will be pre-.
sented to the commission today by
Major William E. r. Covell, As
sistant Engineer Commissioner.
The decision reached by the COM
mission today viii be withheld un-
til early next week, Major Covell
says.
IF the commission decides to
lower rates. it will take several
days to get a revised schedule in
shape and draw up an order" he
said. Likewise, it will take the
same amount of time to prepare an
order II the commission decides to
continue present rates"
To Allow More Calls.
There has been some suggestion
that the reduction, If ordered by
the commission, will be made along
different lines than previous
changes in rate schedules. In
making changes in the past. the
commission has usually altered the
monthly charges for various serv.
ices. In one tentative schedule now
prepared, it is said that rate reduc.
lions are brought about by increas-
ing the number Of monthly calls
allowed under various services.
A reduction of $125 900 will
change telephone rates approx.
mately as follows:
Unlimited Service-Cut from S.
20 S4.75.
Business Service-fffty calls
monthly are now allowed for 81.
Probably fifty-ffve, possibly sixty.
calls will be allowed with 81
charge unchanged.
Limited Service - Thirty five
calls monthly now allowed for
$3.50; change to forty calls for
$3.50.
In deciding the phone case today
the Commission is expected to look
over the decision Of Judge Rose. OF
lhe maryland courts, In recent
telephone case. Judge Rose de
clared in this case that a six per
cent return was not unfair.
Will Seek Injunction.
Reduction Of rates will result, II
f. said, i'm the telephone company
asking the District Supreme Court
for an injunction to restrain the
Commission from revising charges
basing its request on errors made
by the Commission In fixing thu
telephone company valuation as an
nOunced recently.
Early last. November, after a pre-
urinary investigation. the Public
Utilities Commission announced
public hearing TO consider lowe
rates.
This hearing was held Novenlbe
10 Telephone officials objected t
the hearing. declaring that befor
rate changes should be considers
the company should have a ney
valuation. The commission agreed
and rate revisions were postponed.
One month ago the Commissio
CONTINUED on Page 2. Column A.
Puzzle, Page 7.