Evening star., 1947-12-23
DC.phoneRdfe
Increase TO Go
In Effect Jan. II
Average Subscriber
To Pay 50-55 Cents
More for Service
By Jerry OLeory, Jr.

By Jerry OIeory, Jr.
Telephone service will cost the
average District resident from so
to 55 cents more per month begin
ming January IL.
A schedule of increases was au-
thorized by the Public Utilities Com
mission yesterday The Chesapeake
& 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 the
executive secretary, E. j. Milligan,
was a foregone conclusion.
The new monthly rate for un-
limited home service will be $4.75,
compared with the present $4.20
rate. On a two-party line, the pres
ent rate of $3.50 will be raised to 81.
Other Rate Changes.
Other residence service rate
changes and the old rates are:
The l MR. message rate) goes
from 1925 (for so messages included,
100 at cents, so at 4 cents and
others at 3 cents) to $3.75 (for so
messages included, others at AZ
cents.
The 2 MR. (message rate) goes
from $225 (for As messages included,
others at cents to $2.25 (for As
messages included, others at AZ
cents.
Flat rate auxiliary lines will not
be offered to customers.
Business service rates are changed
as follows:
The l NIB Cmessage business) or
first P. B. X (private branch ex-
change trunk goes from $3.50 for
110 messages included, 40 at S
cents, so at 4 cents and others at
3 cents) to Sc for 100 messages in
cluded, 100 at 5 cents, 100 at 4 cents
and others at 314 cents.
The same category further goes
from $3.50 for so messages in
cluded, 100 at cents, so at 4 cents
and others at cents) to $3.75 (for
so messages included, $50 at 5 cents
and others at cents.
Semipublic Rate.
The 1 SP (semipublic) phone rate
goes from $3.50 for 80 messages
included, others at cents to $6
for 30 messages included, others
at cents).
The NIB Cmessage business)
rate, which will not be offered to
new customers, goes from $2.70 (for
40 messages included, others at S
cents) to $325 for 40 messages in
cluded, others at 5 cents.
Service connection charges where
there are no telephones at present
go from $3.50 to s5 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
$3.50 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 IL
cents each.
Earnings Decline Cited.
The C. & P. request for rate in
creases declared:
Despite sharp rise in the num-
ber of telephones in the District of
Columbia and in the total operat-
ing revenues received by the COM
pany, during the period from 1899
to 1916 inclusive, coupled with a
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 c. & 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 S1,123,000.
The new rates will produce addi-
tional annual gross revenues for
C. g. P. of 100000 or additional
net earnings of $1,123, 900.
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 a fair re-
turn on the value of its 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
MN dic oy-ip,