Evening star., 1927-05-13
Low Prices, Ordered by Pub
lie Utilities Board, viii Con-
tinue for Two Years From
1st of Next Month.
DISPUTE ON VALUATION
WCM D BE DISMISSED
Company Official Sees Plan as Cut
ting Earnings, But Dispensing
With Long, Expensive Suit,
Subscribers to Get About $500
Each Under Decision.

1uVA OuuC1 OECI0AUus
A compromise agreement on tele-
phone rates in the District was un-
expectedly reached today between the
Chesapeake &s Potomac Telephons
Co. and the Public Utilities Commits
sion and brought to close the rate
case which has been pending in the
District Supreme Court for the past
two years.
AS a result, telephone rates are re.
duced as of June 10, 1925, when the
commissions order for lower rate
was to have become effective. and 81
fund ranging between $4,000 and
$150.000 impounded by the company
since that time will be returned 10
the telephone subscribers. The lower
rates also will be continued in effect
for a period of two years from June
1 and thereafter until modified by
order OF the commission.
The rates which were ordered by the
commission two years ago and Whlch
will now be in effect for at least an
other two years are S4.75 a month
for unlimited service, a reduction OF
25 cents, and $3.50 a month. the pres
ent rate, for a two-party line, Dut
40 local messages will be allowed in
stead of IS.
Would Drop Valuation Case.
The terms of the settlement follow:
The company accepted the rate re.
duction ordered by the commission two
years ago.
The company and the commission
agreed to join in an application TO the
court for an appropriate order to dis
pense with the pending cases in court
without any valuation OF the com.
pany's property being fixed.
The present case will be entered as
discontinued.
An appropriate order will be made
by the commission continuing the re-
duced rates for period of two years
from Juno ]. 1927, and thereafter
until modified by order of the commits
sion.
The refund to subscribers will be
handled by an appropriate order or
the commission.
The commission regards the COM
promise as great victory in its
favor on the grounds that the COM
pany after two years or lighting
finally has conceded that the commits
sion's principles of valuation are corr
rect.
The refund to telephone subscribers
using unlimited service will amount
to about $500 each. The amount 10
be returned to party line subscribers
will vary, however.
Ends Expensive Fight.
After the conference, which viii go
down in the history of the new Public
Utilities Commission, A. T.. Berry.
president of the company issued
statement in which he said that the
settlement was proposed to the conf
mission sin line with the general pol.
icy of the company"
"It may mean," he said, that the
earnings of the company will be some-
what less than the company is en-.
titled to earn, but the settlement viii
dispose of controversy that might
be expensive and long drawn out. It
will give a clean slate with the COM
mission.
ITO be brief, the settlement is just
good business so far as the company is
concerned and 1 hope the company's
patrons will be pleased"
Those who attended the conference
in addition to Mr.. Berry, were w. 3.
Clarkson, general commercial man.
ager; Dozier A. Devane, general coun-
sci for the company; Ralph B.
Fleharty. peoples counsel before the
commission, John w. Childress. chair
man of the commission; Col. Harrison
Brand, vice chairman; Maj. w. f. r.
Covell, senior assistant engineer COM
missioner who represented Engineer
Commissioner J. Franklin Bell, and
Earl V. Fisher. executive secretary
of the commission.
Proposed by Company.
The compromise was proposed by the
company following the closing hear
ing Monday on the valuation case on
which the commission began hearings
in April. 1t was discussed informally
at that time and today conference
between officials of the company and
members of the commission was ar
ranged hastily and the plan accepted
substantially as proposed by the COM
pany.
The rate case, which was settled
through the compromise, was initiated
by the commission early in 1925. an
order being issued finding the fair
value of the telephone company for
rate-making purposes in April, 1928.
This was followed by an order dated
May 13. 1925, reducing the individual
line residence rate from S. to $4.75 a
month and increasing the number of
local messages allowed two-party-line
subscribers from 35 to 40 per cent.
The case was later argued in the
District Supreme Court, but no deci-
cision has as yet been handed down.
In the meantime the company gave
bond, under direction of the court, to
make refunds to both classes of sub
scribers of the reduction ordered by
the commission in case the courts de-
cision was upheld by the commission.
and the difference in rates has been
by the company since that
time.