Evening star., 1954-04-15
{. & P. Asks Raise
In Telephone Rates
For Virginia Users.

For Virginia Users.
The Chesapeake & Potomac
Telephone Co. today asked that
its rates for all subscribers in
Virginia be increased. The pro-
posed rates would raise the basic
residential charge so cents a
month.
Under the petition submitted
to the Virginia State Corpora
ton Commission in Richmond,
the new rates would bring the
company $4 million a year adj
ditional revenue.
Among the areas affected by
the proposal are Arlington and
Fairfax Counties and Alexandria
and Falls Church. The company
also provides telephone service
for most of Virginia.
District Case Pending.
The telephone company also
has rate increase petition for
District subscribers pending be-
fore the District Public Utilities
Commission. This was filed last
October and would add about 70
cents a month to an individual
phone bill. An increase also was
asked last month in Maryland.
The increases asked today for
Virginia subscribers, il approved,
would be the fifth granted to
the telephone company in Vir-
ginia since World War II.
Individual. two-party, four
party and rural service phones
would increase so cents a month
in the basic fiat rate. Business
phones would be raised IS cents
in rural exchanges to SITS in
the larger exchanges.
Message" Rate to Rise.
Charges on phones used on the
message" rate basis would be
increased so cents in the resi-
dental bracket and $1.25 in the
business category. Private branch
exchanges. hotel and extension
telephones would go up Is cents
a month.
j. Rhodes Mitchell, vice presi-
dent of c. & p, said the in
creaSeS average on the whole
less than two cents a day for
each subscriber. Mr.. Mitchell
said the raises would provide the
minimum amount necessary"
t. restore earnings to a reason
able level.
The petition was filed six
months after the company indi-
Gated it would seek a new round
of increases. After granting
weekly wage increases of $1.50
to $3.50 last October, company
officials said subscribers eventu-
ally would have to bear the addi-
tional costs.
The last increase granted
c. & P. was in October, 1852,
when the sec approved new
rates boosting residential charges
about 25 cents and business
charges so cents a month, This.
were designed to bring in an
additional $2,950,000 IN yearly
revenue. 3
The 1852 petition was opposed
by the League of Virginia Coun-
ties and several cities. Opposi-,
tion is likely to form for the new
plea, too. 81.
Would Net S1.S Million.
The company's latest petition
said the increases would actu-
ally provide only $1,820.000 in.
net income after taxes.
C. & P. said it was forced to
ask for the upward revisions
chiefly because its earnings have
been depressed by the addition
of necessary facilities which cost
considerably more than such
plants used to cost.
The petition said telephone
rates have Tagged we'll behind
increased costs with the result
that serious and irreparable
losses have been incurred"
Mr.. Mitchell said C. & P. does
not like Ito ask for higher rates.
We want to keep our rates as
low as we possibly can-con-
sistent with providing good serv-
ice and fair treatment of en-
ployes and owners of the
business"
He said the company had
contributed $50 million to the
economic life of Virginia last
year and that employees had re-
ceived $34 million in wages.