The Washington times., 1925-03-12

The Telephone Company's
Valuation Claims
BY BILL PRICE.

By BILL PRICE.
The Public Utilities Commission is shortly to resume It's
hearings Investigations concerning the exaggerated
of the Cheaneae and Potomac Telephone Company which
seeks compel the commission to agree TO vauaons 50 ngn
as to prevent lowering Of telephone rates in the District
bring about higher rates the company can establish
It's valuations extremely high figure
evident the hearings already held however that
the Utilities Commission be and deceived
as to numerous claims that in the future public utilities OF
the District going get only what they are entitled to
valuation upon make the public reasonable net
returns.
Chairman BELL, commission his able and vigorous
young assistant Major C0VELL and the wide-awake
countants of the commission apparently the
trayaQant claims forward and will be able to with
experts employed by the telephone company.
Besides expensive of experts and counsel all paid
by the public when the monthly telephone bills are settled the
company has retained Professor Hosnder OF Johns Hop
kns to put forth his to increased costs and the
necessity revauaon The telephone monopoly will spend
all the desires in fees for counsel and experts and
charge public while the Utilities Commission is
held down Congress small appropriations for the work
of combating claims-many Of which buncombe
The huge claims of the company to real estate values in
th city have been mentioned here and viii not be accepted
by the commission The includes in its real estate
values lot its Twelfth street building used
park automobiles belonging to employees and parcel next
TO its Fourteenth and streets building which rented for
storage Of automobiles
Il might be good thing for the telephone company and
other District public utilities to buy freely Of real estate here
valuations, and the public compelled to pay cent
return upon them There many Of real estate in
this city who would Like to be assured an per cent return
too be allowed to collect from the general public goody
return their properties improved unmproved? There
would be possible chance Of a loss.
We trust the commission will stick large sharp knife
into the cOpanys claims of something like $28OO0OO
going concern, IN successful operation although
eessul wholly telephone have compelled
to furnish the money that make the outfit successful
successful private business concern, with valuable
good will going value happens upon lean years
and meets unexpected because Of extraordinary
dions Encouragement it has public back Of
to bolster it up and it from sinking. But public
utility always in position to make the public come
Il go to get an order making the people
property not regulated by law cannot do this
80 where does public utilities concern gets It's going
to return value built out Of their pockets value
that assured all the time through the propensity Of the
courts TO take the part Of invested wealth. matter what
costs the public?
The depreciation claims of the G. P. well worth
watching. The company insists charging ~ per per
for depreciation and accumulated depreciation
of 2s per cent Yet admits that the actual physical
depreciation Of its property only per during the
years has been collecting this depreciation The pub
@ therefore has been paying the company 2s cent for
depreciation which is admittedly only per cent It's fine
system Of forcing goose-he telephone users
70 lay golden eggs for monopoly.
Maybe the Public Utilities Commission is going adopt
Its rules to depreciation and compel public utilities
to accept them instead Of the public utilities having their
way as to depreciation reserves.
Ender the heading depreciation much trickery
Of the public The depreciabe portions of public
T m as to many No
depreciation Of the thousands devices in telephone
system There are classes of equipment which be judged
rs to depreciation by their general appearance
The telephone monopoly in its muttudnous claims sets
up one OF cent total valuation for omissions and
tngence when the mountainous nature of the claims ind
cate that item has been overvaued make that
the company loses nothing The company theory that
going their properties and making counts they could
not get closer than SO cent accuracy They
in deductions however for possible duplication of claims
etc.
Here again. the old story of the public utility taking
the greatest possible of itself while
must depend the best he get hands
OF Public Utilities Commission unprovided with funds to
thoroughly investigate claim presented by the other
This one OF the reasons why this has been
preparations to the Public Utilities Commission to 60 into
every point in utilities valuation and to get well paid
Peoples Attorney who will give all his time protecting
the interests of the public