Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1946-12-26
Telephone Company
Asks 1917 Increase
In II a { e s
Continued from Page ~

only a modern increase" point
ed out that the proposed adjust
ment would not produce all the
added revenue current costs indi.
cate is needed, but that it will
provide immediate relief in the
present critical situation.
The company reported that sine :
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,-
100000 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 fer %
cal and long distance service in
the last 81 years have resulted in
present annual savings to Mary
land subscribers of nearly 1914
million dollars.
1t was also brought out that
while telephone rates generally
have remained the same or gone
down, the value of the service has
steadily increased. Maryland sub
scribers today can reach on an
average nearly three times as
many telephones as they could 81
years ago, with approximately the
same or generally lower monthly
rates in effect.
Mr.. Haneke emphasized that
the company's earnings have de-
clined steadily until today less
than 21a per cent is being realized
on the C. & Prs investment. "This
is the lowest rate of return in the
entire history of our company" he
said.
The c. & P. has been working on
survey for the past few years
and in addition to the request for
additional rates, some of the out
lying districts of Baltimore and
Washington will be included In
the metropolitan areas. Additional
services will also be offered, which
iii some instances may be benefit
cal to individuals or business. Ma
turally, the first question of any
individual is, show does this new
rate and service affect me?"
In Rockville, where the number
Of subscribers have increased 452
in 1925 to over 5000 at present,
several changes'have been made in
addition to the increase in rates.
Free service will be offered be-
TWEEN the Rockville and Gathers
burg subscribers. The rates of
private business phones will go
from $3.75 to $500; two party
business lines will be 4.25 instead
of $500. On residence phones,
rates on a private line will go
from $2.75 to $3.50; two party,
from 1925 to $2.75; four party,
from $1.75 to $2.25. Rural phones,
on business lines, will increase
from $3.50 to $3.50 and residence
phones from $1.75 to $2.25. Bust
ness extension stations will go
from 70 cents to SIPS and resi-
dence extensions from so cents to
rs cents. An optional private line
business service will be offered at
$3.50 per month, giving 70 mes
sage units, which may be used
anywhere inside the Washington
metropolitan area. An optional re-
sidence phone service will also
be offered at $4.75 for a private
line and $500 for a two party line,
giving combined flat and mes
sage rate service. This will give
unlimited calls to Rockville, Gath
ersburg, Kensington, Chevy Chase,
Bethesda and surrounding areas
and rs message units that may be
used to call Washington or any
suburb outside of the unlimited
area.