Evening star., 1937-03-30
COLLINS DIRECTS
PHONE RATEPROBE
Utilities Commission Will Act
on Request of House
Official.

Investigation OF the reaSOna bleneSS
of telephone rates in Washington will
be made by the Public Utilities Com
mission at the direction of Chairman
Collins of the House subcommittee in
charge of the District supply bill, it
was revealed today.
Suggestions that telephone rates
here are too high, that street car fares
might profitably be reduced and that
street car service is not what 1t should
be was made by Collins at recent secret
hearings on the bill, publication of the
hearings today showed.
At the direction OF Collins, Chair
man Riley E. Elgen of the commission
furnished a proviso for insertion in
the 1888 budget act directing an in
vestigation of telephone rates.
The discussion was opened by Col
lins with call for statement Of
what the commission had been able
to do for the public and to the
public"
Cites Reduction In Charges.
Starting with last August, Elgen
said gas charges had been reduced by
about $5O,O00, that about = month
later telephone charges were cut some
$251 900, and that in January, 1887.
electric power charges were reduced
by s504000.
II happen to have been out OF Con-
gress for two years and during that
time had law once here. and natu-
rally I had a telephone" said Collins.
Il found my telephone bill was, as I
thought, enormous"
Elgen replied that he thought tele-
phone rates here were below the
average for comparable cities, but
Collins retorted: II do not see how
that can be-" Elgen insisted, however.
and by request furnished comparable
statement on rates in various cities.
He held that business telephone rates
here to be exceptionally low
AS Collins insisted o. the point,
Elgen said q broad investigation (of
value and rates. would be necessary
for determination.
Richmond B. Keech. a lawyer, who
is vice chairman Of the commission,
interposed the point that actions OF the
commission are guided by congress
sional authority, as interpreted by the
courts.
A. r. T. Collections Allowed.
THAT does not mean anything 50
far as the court is concerned" an
swered Collins, because they allow
the American Telephone & Telegraph
Co. to collect certain fees for certain
purposes, for the securing of loans and
a lot Of services that may or may not
exist
Elgen: For the service you are
talking about the A. T. q T. collects
III per cent OF the gross. That
has been passed upon by the Supreme
Court in the Illinois Telephone case"
Collins: you have not changed
that
Elgen: I'VE cannot change the ar
rangement. We disallowed everything
we could to try to have the court go
along with U.s. But it is futile to take
such actions when the decision Of the
court is against U.s."
Elgen said a real investigation Of
the telephone company would cost
roughly 100000, that q valuation case
would require 18 months to two years.
He said the whole cost should be paid
by the telephone company.
In the discussion OF street car fares
and service Collins declared: "You
will increase the earnings Of the street
car company If you reduce the fare
to S cents. The railroads increased
their earnings when they reduced
their fare"
THAT is a question" replied Elgen.
IT have some very definite views
along that line myself. believe in
mass production and that by mass
production you produce better results.
But when you get to the courts you
cannot carry that story in there"
Court Fixed Trolley Rate.
Collins: The railroads took their
case into court after they saw that
their earnings were increasing"
Elgen: "They (the street car COM
pany) took us into court and the
court fixed the rate which exists IN
the District today"
Collins also questioned both Elgen
and Keech on filling the vacancy IN
the position of peoples counsel, which
was resigned some months ago by
William A. Roberts.
Both said they believed the money
($7,500 a year, could be used to better
advantage, though they explained the
appointment was not one under their
control, but one made by the Presi-
dent, with the consent Of the Senate.