Evening star., 1952-10-31
Phone Company
Petitions PUG
For RARE Boost
10-Cent Pay Station
Calls, 10 Pct. Rise in
Home Charges Asked
By John w. Stepp


for telephone pay station calls and
a down-the-line 10 per cent in.
crease in rates to District residen-
tial users was sought today by the
Chesapeake & Potomac Tele-
phone Co.
In its petition to the Public
Utilities Commission, the company
pointed out its rates have re-
the same since 1850
despite steady rise in opera
tional costs.
Labor and materials costs as
we'll as higher taxes are now "seri-
ously affecting" the company's
operations, the petition declared.
For that reason, the company said
it has no alternative" but to ap-
ply for rates which recognize
changed conditions.
Would Net SIS Million.
The proposed rate boosts would
result in an estimated increase
In net earnings after taxes of SIS
million. This amount, the COM
pany said represents the minimum
amount necessary to maintain its
credit and to attract sufficient
capital to continue to furnish ade-
quate and sufficient phone service.
Raising the pay-station charge
to 10 cents per call would bring
the company about one-third of
the proposed total increase in net
income. company officials said. It
was pointed out that the nickel
charge has prevailed since 1918
when the phone pay station was
initiated. The 10-cent rate is
IN effect now in 81 States and
Canada, the company said.
The increase in residential tele-
phone charges would range from
rs cents to SO cents under the pro-
posed rates. Unlimited individual
line service would go up from
$5.25 to $5.75. The other resi-
dental services-two-party line
fiat rate, 50-message individual
line service and 40-message two
party line Service-would increase
from $3.50 to $4.75, $4.25 to $3.50
and SITS to SO, respectively.
The principal types of business
telephone service would increase
so cents, according to the proposed
schedule.
Area Rates Mentioned.
The company pointed out that
the minimum charge for pay sta
ton calls in nearby Virginia and
Maryland is now 10 cents per
call. A recent court decision in
Maryland invalidated the 10-cent
rate, but it remains in effect
pending a ruling on the question
by the Maryland State Court Of
Appeals.
H. Holmes Vogel, vice president
of c. & P, described the proposed
pay station and other service in
creaSes as extremely modest"
Mr.. Vogel pointed out, moreover,
that the higher charge to resi-
dental consumers would cost the
consumer only about / cent more
per telephone per day.
Company officials told the com.
mission that the company has
tried to offset increased operating
costs through operating econo-
mics. In spite of these efforts.
however" the petition stated, "the
earnings level of the company has
not been maintained"
Hearing to Be Held.
James H. Flanagan, chairman
OF the PUG, said a hearing of the
new rate request will be held the
latter part of November on a date
to be announced later.
The most recent telephone rate
increase in the District went into
effect in March, 1850, after lengthy
hearings by the Public Utilities
Commission.
Under that schedule of in
creases, the average telephone bill
in Washington went up 81 per
cent. The increase on residence
service was 1873 per cent, for
commercial users, rs per cent, and
for the Government, 1876 per cent.
In addition, the number of calls
allowed for two-party line limited
service was reduced from IS to
40. Increases for private branch
exchange systems and equipment
ranged up to $35 a month, de.
pending on the type of service.
S3.2 Million Asked.
The 1850 rate increases we're
designed to bring the company
revenues Of about ST.
$50. 1000, close to an amount rec
commended by the Public Utilities
Commission to bring fair return
to the firm. The telephone COM
pany had asked for additional
revenue totaling $3,249,O0O.
At that time. the company said
costs had increased tremendously,
particularly in wage raises. The
company also said that expansion
of facilities had increased its CD.
Grating costs.
In 1947, the telephone company
was granted an increase of ap-
proximately 10 per cent in rates
here. This was the first rate in
crease in 81 years.