Evening star., 1946-12-21
Phone RATE Rise
Askedinvirginia
And Maryland
c. & P. Office Says
No Similar Request
Is Pending in D. c.

Is Pending in D. c.
The Chesapeake g. Potomac Tele-
phone Cos. in Maryland and Vir-
yinia today had on file applica-
ions for higher rates in those two
States. The company's Office IL
said no similar re-
quest is pending for the District
If Columbia.
The G. & P. Telephone Co. o.
Baltimore City filed its petition with
he Maryland Public Service Com
mission and indicated the new
charges are designed to provide an
additional $3,5oo,000 gross revenue
annually. That company serves
nearby Montgomery and Prince
Georges Counties as well as the
rest of the State.
The C.. g. P. Telephone Co. of
Virginia filed its application with
the State Corporation Commission
In Richmond and asked that new
schedules be made effective jan
uary 81. 1t serves Arlington, Alex
andria and Fairfax as well as other
sections Of the State.
Details Not Disclosed.
Details of the Virginia petition
were not disclosed but in Maryland
the utility company asked that If
more than 80 days are required for
the PSC to act, an emergency raise
be allowed pending final decision.
The company said the $780,
300 gross revenue required would
provide an additional $2,100,0 900 in
net operating income.
A new method of zones is pro-
vided and new schedule of rates
On toll charges is sought. The ap-
olication places patrons of the
Bradley. Capitol Heights, HyattS-
1ille, Locust and Silver Spring ex-
changes within the same rate zone
Monthly increases within these
areas would be as follows: For busi-
ness individual line, message rate,
raised from 81 to $3.50; residence
Individual line, unlimited. $4.75 to
s525; residence two-party line, un-
limited, 81 to $3.50; residence indi-
vidual line, message rate, 81 to s4.25,
and residence two-party line. mes
sage rate, $3.50 to $275.
A telephone company spokesman
said these same rates would apply to
the Temple, Overlee, Chestnut and
Glebe exchanges in Virginia except
for the business individual line mes
sage rate, where the change sought
is from 81 to S4.25.
The proposed increases in all types
of service in Maryland would range
from 25 cents to S1.50 per month
in Baltimore In the counties, boosts
would be based on increased num-
bers of telephones within individual
exchanges in each locality.
Rates Reduced in 1886.
Since 1886, when its rates were re-
duced by order of the PSC, the COM
pany's charge remained the same
while operating costs have risen
sharply, the concern stated.
It proceeded under statute epi-
covering the PSCa to grant tenn
oorary rates where. utility is
earning less than a reasonable re-
turn upon the value of its property
in instances where the commission
expects its hearings and investiga
ton to take more than 80 days.
If such emergency rates were
granted, the company would file
bond in case the commission should
find against the increase after full
investigation. The extra income
derived from the emergency rates
would then have to be refunded.
In the petition, accompanied by
elaborate exhibits, the telephone
company set forth that:
Since 1886, despite the fact that
telephones in Maryland have more
than doubled, annual gross operat-
ing revenues have increased ap-
proximately $19,000,000, while the
firms investment increased approx
mately $40,o00,000.
In the same period, its annual
net operating income has been re-
duced by more than 81 1,000, 900, with
the result that its net operating
income in relation to its net in
vestment on instrastate business is
the lowest in its history.
This decline in operating income
has been brought about by Sub
stantial increase in the company's
operating expenses during the past
several years"
Points To Payroll Boost.
The company said its payroll rep
resented 70 per cent of its operat-
ing expenses and was 288 per cent
above the 1896 payroll.
With untitled orders for more
than 44,000 telephones, the COM
pany expects to spend about Sat-
OGO 900 during 1947-8 to meet re-
quests for service and make i'm
orovements and additions to plant
and property.
A hearing on the petition will be
held shortly after January 2, PSC
officials said.
The announcement from the
Virginia firm was substantially the
same as that of its Maryland af-
filiate. Since 1889 the company's
costs have increased much faster
than its revenues with the payroll
amounting to four times as much
now as in 1889, the company said.
Wages alone have added more
than $11,000,000 annually to the
company's costs, the announcement
stated. Reductions in rates and
toll charges during the past 20
years have resulted in annual saw
ings to Virginia subscribers of $8,-
500, 900, the announcement declared.
The sec will hold a hearing JAN
uary 13 on the Virginia petition.
Prisoner Must