Evening star., 1947-12-23
Phone Rate
Increase 10 Go
In Effect Jan. II
Average Subscriber
To Pay 50-55 Cents
More for Service
BY Jerry O'leory, Jr.

"iSlS H0I SSINISS
By Jerry o'Leory, Jr.
Telephone service will cost the
average District resident from so
10 IS cents more per month begin.
ming January IL.
A schedule of increases was au.
thorized by the Public Utilities Com
yesterday. The Chesapeake
d Potomac Telephone Co. had
sought the rate increases at public
hearings October 20 and earlier this
month, pleading drastic declines In
its earnings and increased operating
expenses.
The PUG order, announced by tho
executive secretary, E. j. Milligan,
was a foregone conclusion.
The new monthly rate for un-
limited home service will be $475,
compared with the present s4.20
rate. On two-party line, the pres
ent rate Of $3.50 will be raised to s..
Other Rate Changes.
Other residence service rate
changes and the old rates are:
The l MR. (message rate) goes
from $3.25 Cfor so messages included,
100 at 8 cents, 50 at cents and
others at 8 cents) to 1918 (for 50
messages included, others at ~
cents.
The 2 MR. message rate) goes
from 1925 (for As messages included,
others at cents) to $225 (for IS
messages included, others at ~
cents.
Flat rate auxiliary lines will not
be offered to customers.
Business service rates are changed
as follows:
The / NIB (message business) or
first P. B. x. (private branch ex-
change) trunk goes from $3.50 for
ITO messages included, 40 at 5
cents, so at cents and others at
3 cents) to $6 for 100 messages In
cluded, 100 at cents, 100 at 4 cents
and others at 3A cents.
The same category further goes
from $3.50 for so messages In
cluded, 100 at cents. so at 4 cents
and others at 3 cents) to 1918 (for
50 messages included, $50 at 5 cents
and others at 4 cents).
Semipublic Rate.
The / SP (semipublic) phone rate
goes from $3.50 (for 80 messages
included, others at cents) to So
for 80 messages included, others
at 5 cents).
The 2 NIB (message business)
rate, which will not be offered to
new customers, goes from $2.7o (for
40 messages included, others at 5
cents) to $3.25 (for 40 messages In
cluded, others at 5 cents).
Service connection charges where
there are no telephones at present
90 from $3.50 to IS at business main
stations, from $3.50 to $3.50 at resi-
dence main stations and from 81 to
$50 at PIX stations.
Where there are instruments, all
service established goes from 81 to
$1.50 and the same for additional
stations connected. Changing in
struments will cost $3.50 instead
Of 81.
Messages over interdepartmental
systems of the United States Gov
ernment go from l cent each to ~
cents each.
Earnings Decline Cited.
The c. & P. request for rate In
creases declared:
Despite sharp rise in the num-
Der Of telephones in the District Of
Columbia and in the total operat-
ing revenues received by the COM
pany. during the period from 1889
to 1946 inclusive. coupled with
substantial increase in the net in
vestment in property. the company
states that the result In recent
months has been that it has earned
less than a reasonable return upon
the value Of its property used
and useful In rendering tele-
phone service.
"The company further states that
the recent drastic decline in its
earnings, despite the sharp rise in
its revenues, has resulted from the
large increase in its operating ex-
penses. This increase is primarily
due to the rise in labor expenses"
The authorized increases will
raise G. & P.'s rate of return from
3.77 per cent to $50 per cent. This
compares with the allowed SIS per
cent rate for the Potomac Electric
Power Co. and the per cent per-
mitted the Washington Gas Light
Co.
Increases Net SLIPS, 900.
The new rates will produce addi-
tional annual gross revenues for
c.. & P. of 100000 or additional
net earnings of SLIPS, 1000.
The conclusion reached by the
PUG, headed by Chairman James H.
Flanagan, declares:
That the rate of return currently
being earned by the company under
existing rates is less than fair re-
turn on the value of It's property
devoted to the rendition Of tele-
phone service in the District OF Co.
lumbia.
That, based upon the current
level Of income. the approval of the
increase in rates requested by the
company will not provide an excess
sive return on the value of the COM
pany's property used in rendering
telephone service.
That the rates proposed by the
company are Just, reasonable and
discriminatory"
Arlington Man Jailed