The globe-independent. (Hagerstown, Md.) 1943-19??, 1946-12-26
Phone Company
Asks Rate Increase

Application Filed With Public
Service Commission Would In
crease Cost of Residence And
Business Phones.
For the first time in over 20 years,
the Chesapeake and Potomac Tele-
phone Company of Baltimore City
has fled 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
companys history.
Announcing the action, A. B.
Haneke, vice-president and general
manager of the company, stated:
Our earnings have declined to a
level where, in order for us to dis
charge our public obligations, we
are compelled to ask the Public
Service Commission to grant us
emergency relief pending deter
mination of the permanent rates
which we should be permitted to
charge. Such determination will
presumably necessitate hearings ex-
tending over a 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. AS
serting that the company would like
to keep rates down in line with its
long established policy, Mr.. Heneke
said: "Rates have remained gener-
ally the same and in a number of
instances have been reduced over
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, emphasiz-
ing that he believed the requested
raise in rates constituted only mod
crate increase" pointed out that the
proposed adjustment would not pro-
duce 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
1899 its cost have increased much
faster than its revenues, with the
payroll alone amounting to over
three times as much as in 1899. The
higher wage BILL" it was said, has
added more than $13,000,000 annually
to company costs and comprises 70
per cent of operating expenses.
Discussing rate adjustments since
1925, Mr.. Haneke pointed out that
reductions in charges for local and
long distance service in the last q
years have resulted in present annual
savings to Maryland subscribers of
near 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 81 years ago, with approx
mately the same or generally lower
monthly rates in effect d..
Mr.. Heneke emphasized that the
company's earnings have declined
steadily until today less than 2R
per cent is being realized on the c.
& P.'s investment. ''This is the low
est rate of return in the entire his
tory of our company" he said.
Declaring 1--WE have faith in the
future of Maryland" the telephone
executive stated that the company
plans to spend upwards of $75, 100000
for new plant in the next several
years to vastly improve and expand
its system throughout the State.
1t is understood that if the pro-
posed increases are granted, resi-
dence telephones in this area will be
increased Csc a month and business
phones 81 a month, and that calls
from Hagerstown to Williamsport
will be increased from SC to 10c, for
five minutes. 1t is also understood
that no increases have been request
ed for calls that now cost more than
Csc for three minutes.