Evening star., 1926-09-20
RATE HEARING HIT
BY PHONE COMPANY
Holds Action by Utilities
Board to Modify Injunction
Would Delay Case.

Attacking the motion OF the Public
Utilities Commission seeking modi-
f1cation Of the injunction against ii
in the Chesapeake and Potomac Tel
ephone Co. rate case, the latter com
pany today filed it's answer in the
District Supreme Court and asserted
that the latest move would be preju-
d1cial to it's case and would further
complicate and delay determination
on the merits of the original case.
which was to prevent the Public
Utilities Commission from putting
into effect an order directing a re-
duction in rates To telephone users.
The telephone company, in its an
swer today, said that the granting OF
the motion Of the commission will
not expedite. but. on the contrary.
will delay the determination of the
cause. In the event the court should
modify the order Of June 10, 1928.
the injunction order. so as 10 permit
the Public Utilities Commission TO
conduct hearings with a view of max.
ing a further reduction in the rates
to be charged by the telephone com
pany, ii will be necessary to have
extensive hearings before the commits
sion as to the present fair value of
the property of the plaintiff, is well
as the reaSonableneSS of the rates to
be charged.
Cites Act of 1918.
Under the provisions of the act OF
March 4. 1918. the company says IN
its answer. it will be necessary that
the evidence and proceedings before
the commission, and any orders made
by 1t, viii have to be certified 10 tho
court and made part OF the record
in the case, and thus would COM
plcate and delay the determination
of the case on its merits.
The telephone company further con-
tends that no meritorious purpose can
he served by granting the Public Utili-
ties Commissions motion, and that the
interests of the public do not require
that such action be taken. but. "ou
the contrary. the granting of such mo
ton will be highly prejudicial to tho
rights of the plaintiff to have the said
cause of action determined at an early
date, and the valuation of its prop
erty, as we'll as the reasonableness OF
it's rates, adjudicated by this court.
Denies Public Is Loser.
The telephone company denies that
the public may lose as much as $40
900, or any sum whatever, for each
week Of delay. Until the valuation IL
determined by the court. the company
proper to permit the commission I"
order a reduction of the rates. based
upon the erroneous valuation hereto
/ fore made by the commission.
| The telephone company says that It's
earnings on the value of it's property
on December 81, 1925. was so per
cent and on the cost 731 per cent; It's
earnings for the IL months ended June
| 80 1926. was 5.S6 per cent on the
value of the property and 1888 per
cent on the cost of 1t. while its earn
ings at rates named in the commits
sion's order 551 would be sos per cent
upon the value and 6.99 per cent on
the cost, which latter earnings. 1t fur
| ther contends, would he unjust, un-
reasonable and cOnfiscatory.
| The purpose of the modification
order which the Public Utilities Com
sion seeks. and which the telephone
company today attacks. Is to give the
commission authority TO proceed with
another hearing for the purpose of de
| termining upon a reduction in rates.