Evening star., 1934-11-21
Conference Called Tomor-
row on Settlement of 1920
Reduction Order.
NEW SCHEDULE GIVEN
UTILITIES COMMISSION
Regulatory Body Refuses to Com
promise Court Victory in Fixing
of Future Charges.

The outcome of the 10 per cent
reduction in telephone bills ordered
by the Public Utilities Commission
two years ago probably will be set
tied at a conference between the
commission and officials of the Ches-
apeake e. Potomac Telephone Co. to-
morrow morning.
The commission announced today
it had completed it's study of the
offer made by the telephone company
of a new set of rates designed to
absorb a 10 per cent reduction in
bills in the future. The rates offered
by the company, however, were not
made public.
Meanwhile, the commission and
Peoples Counsel William A. Roberts
both made public statements indi-
eating the stand they would take in
their negotiations.
Commission Is Firm.
The commissions position Is that
1t does not propose to compromise in
any way the victory it won in Dis
trict Supreme Court when the court
sustained its 10 per cent reduction
order. The new rates, If they are to
be acceptable, must lie within the
bounds of reason of the 10 per cent"
Roberts position is that the COM
pany must dismiss its appeal from
the lower court now pending in the
United States Court of Appeals for
the District before he will agree to
any set of rates for the future. He
also insists the rates must accomplish
q horizontal 10 per cent reduction.
If settlement is reached tomorrow,
it will mean that before Christmas
81 900, 900 in cash or credit will be on
its way back to present and past
telephone subscribers in the way of
reductions dating back to October,
1882, and also reductions of 10 per
cent either as discounts or by the
substitution of a new set of rates for
the future.
The statement of the commission,
made public today, is in the form of
a memorandum to the peoples counsel
dated october % last, at the time
when the telephone company first
made overtures to the commission
about Withdrawing their appeal
Roberts statement was dated October
% and was the reply to the commits
sion's statement.
Commissions Reaction.
The commissions memorandum,
signed by its chairman, Riley E. Elgen,
said:
Last Tuesday asked you (Roberts)
to come down to my Office to discuss
the status of the Chesapeake g. Poto-
mac Telephone Co. case now pending
in :he Court of Appeals. You were
informed that, in our judgment. the
officials of the telephone company
were in the mood to drop this suit.
You were also informed that they
came to us to discuss the terms on
which this suit might be dropped and
that the company had been told that
in view of the fact that we were
forced into a court action by them,
and the further fact that the court
had sustained our order in all it's
particulars. SO far as the commission
was concerned, it did not propose to
compromise in any way, shape or
form the victory which had been
won through the sustaining of it's
order ., and that the only
terms which We would consider would
be the refunding of the money due to
the people which had been impounded
pending the conclusion of this case
and the reduction Of rates in accord
ance with our order. which had been
sustained by the court.
They stated that they would like
to file system of rates which would
effectuate the desired results of our
order We informed them that such
rate schedule might be submitted,
but that it must lie within the bounds
of reason of the 10 per cent with re-
spect to any particular rates"
Roberts Statement.
The text of Roberts statement fol-
lows:
In response to your communica-
ton of this date in which you suggest
that the Chesapeake g. Potomac Tele-
phone Co. contemplates dismissing its
appeal, it would appear to me that the
only basis for such dismissal would be
an unqualified abandonment of the
appeal and the compliance with the
decree of the Supreme Court of the
District of Columbia.
Paragraph of that decree affirms
Order No. 1912 as amended The
amendment in Order No. LOTT was
merely as to date.
Order No. 1912, as amended, pro-
vided:
THAT on all bills rendered for
telephone exchange service to be fur
nished after the 10th day of October.
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