The Republican. [volume] (Oakland, Md.) 1877-current, 1946-12-26
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Telephone Company
Asks for Increase
In Service Rates
Files Application With Public
Service Commission in Face
OF Rising Costs

For the first time in over twenty
years, the Chesapeake and Potomac
Telephone Company of Baltimore
City has filed an application with the
Public Service Commission of Mary
land for a general increase in tele-
phone rates, in the face of rising
costs and the lowest earnings in the
company's history.
Announcing the action. A. B. Han
exc, vice president and general man
ager of the company, stated: "Our
earnings have declined to a level
where, in order for us to discharge
our public obligations, we are COM
PEELED to ask the Public Service Com
mission to grant us emergency relief
pending a determination of the per-
manent rates which we should be per-
mitted to charge. Such determination
will presumably neceSsitate hearings
extending over period of several
weeks"
Mr.. Haneke pointed out that the
company's costs are the highest in its
history resulting in a critically low
return on its investment. Asserting
that the company would like to keep
rates down in line with its long-estab-
lished policy, Mr.. Haneke said
Rates have remained generally the
same and in a number if instances
have been reduced over a 21-year
period since 1925. 1t is only as a last
resort that we are asking for relief
now more nearly to balance some of
the tremendous increases in telephone
expenses"
The telephone executive, empha-
sizing that he believed the requested
raise in rates constituted only a
moderate increase" pointed out that
the proposed adjustment would not
produce all the added revenue current
costs indicate is needed, but that it
will provide immediate relief in the
present critical situation.
The company reported that since
1889 its costs have increased much
faster than its revenues, with the
payroll alone amounting to over
three times as much as in 1889. The
higher wage bill" it was said, has
added more than $13,O00,0OO an
nually to company costs and COM
prises 70 per cent of operating ex-
penses.
Discussing rate adjustments since
1924, Mr.. Haneke pointed out that re-
auctions in charges for local and long
distance service in the last 81 years
have resulted in present annual saw
ings to Maryland subscribers of
nearly $912 million dollars.
1t was also brought out that while
telephone rates generally have re-
manned the same or gone down, the
value of the service has steadily in
creased. Maryland subscribers today
can reach on an average nearly three
times as many telephones as they
could Il years ago, with approximate
ly the same or generally lower month
ly rates in effect.
Mr.. Haneke emphasized that the
company's earnings have declined
steadily until today less than 2R per
cent is being realized on the C. and
P.'s investment. This is the lowest
rate of return in the entire history of
our company" he said.
Declaring Eve have faith in the fu-
turc of Maryland" the telephone
executive stated that the company
plans % spend upwards of ST. ,OOO,-
1000 for a new plant in the next several
years to vastly improve and expand
its system throughout the Slate.
How it applies locally in Oakland
and vicinity should relief be granted
is shown in the following information
released by Howard NJ Smith Cum
berland c. and P. manager.
For businesses:
Individual line, from $3.75 to S4.75;
two-party, from So to $4; rural bust
ness service, from $3.50 to $3.25.
! Residential;
Individual, from $2.75 to $3,25;
two-party line, from $2.25 to $3.50;
four-party line, from $1.75 to 81;
rural residents $1.75 to 81.
I Rural resident lines at Accident
and Friendsville raise from SIPS to
$3.50; with the four-party line SER
vice there from $3.50 to SITS