New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-04
TELEPHONE CO. REPLIES SCHE|B NOT HER HUSBAND
Vice. President Issues Statement
Regarding P. S. C. Order.
INCREASED TRAFFIC CERTAIN
Added Facilities Necessary, and
Cost and Fixed Charges
Must Be Considered.

Union n. Bethel. president OF the Ne"
York Telephone Company. after morn
ing on the golf links at Montclair yes'er-
DAY, said he could not tell what action the
company would take regarding the order OF
the Public Service Commission calling FOR
a reduction of telephone rates in the inter-
borough service of his company
Il haven't read the official order YET
said Mr.. Bethel. and until the whole mat
ter has been carefully considered cannot
say what will be done with II. The order
is most importa and l would rather not
discuss II at present AS / understand IL
from reading the newspapers the fuoi'
Service Commission has given the company
until June % TO consider"
Mr.. Bethel declined 10 admit reason
able possibility that the order VIII De
obeyed. HIS brother Frank II. Betheh'
vice-president Of the company. issued the
following statement yesterday sfterhooh
If the company complies with the order
of the commission II must at the same ,Iine
voluntarily reduce rates 70 staten islaiiu
and 10 points in New Jersey. Reduction III
rates for interborough business ana ior
suburban business generally Will add ire
mendously TO the traffic. which, III TURN,
Questions Which tho company must con-
slider are: The amount that must ne m
vested In new plant necessary 10 haiuIe ,ne
increase in traffic and whether Us revenues
will warrant the reductions called for ana
the Increase IN fixed charges and expense
incidenta! 10 the increase In trafhc
To reduce the rates. as ordered by me
commission without making adequate
preparations for the proper handling OF the
increased traffic would bring a degree OF
chaos and confusion into the service that
would practically destroy It, ,.,. -,
The company likes 10 comply With all
orders affecting II issued by the Public Ser
vice Commission. This particular order,
however, is OF such importance that II must
be carefully considered before the sctoh
which the company might take can be de-
termined.
Early yesterday morning Mr. Bethel said:
ut IS easy 10 say that the volume OF
business would be increased by reduction
Of the rates. but the profit might be wiped
out even II twice as much business were
done. on account Of extra cost OF operation.
The reduction we are asked to make would
mean a loss Of at least 81 90 no annually
in our revenues
Mr.. Bethel went on to say that the tele-
phone company had no Intangible" assets
taxed by the state on the basis OF $50. 900.
which is the value OF its special franchise.
this was not listed as an asset under any
by tho company He said the
traffic IN New York City made up for
deficit In other parts Of New York State.
II seemed 10 be the general opinion yes
terday among persons familiar with the
situation that the result Of the company's
would be compliance with
the order
Theodore n. Vail. president OF the Amer
lean Telegraph and Telephone Company. OF
which the New York Telephone Company
is subsidiary, had this TO say on the re-
suits Of control OF the Public service COM
mission over tho company:
such control and regulation can and
should stop all abuses Of capitalization, OF
extortion or OF overcharges and OF unrea-
soma BILE division of profits