New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-03
TELEPHONE ) CENTS
TO NEARER BROOKLYN
Ten Cents. Instead of IS, to
Jamaica. Richmond Hill and
Flushing Ordered.
OLD RATE TO C0NEY ISLAND
Commission Says Loss of ST.
100000 a Year for the Com.
pany Will Be Met by
New Business.
OLD RATE TO C0NEY ISLAND

communication between the district be-
low 10th street in Manhattan and vari-
Gus points in Brooklyn and Queens Dor
oughs was ordered by the Public Ser
vice Commission of the I'd District in
Albany yesterday. The order is the
most drastic one issued by il since the
telephone companies were placed within
its jurisdiction on September I, 1910. 1t
will go into effect on August l.
Telephone calls between any part of
Manhattan below 10th street and
Brooklyn will he charged for hereafter
at the rate Of five cents for five minutes.
This ruling does not include the districts
known as the Bath Beach and Coney
Island sections. where the present rate
Of 10 cents will remain in force. Calls
TO and from Manhattan and the central
station districts at Newtown and AS
toria will also he reduced to FIVE cents.
Communication between the section Of
Manhattan designated above and the
central stations AT Richmond Hill, ia
maica and Flushing will be cut from ID
to 10 cents
The order for a reduction Of rates was
made after the commission had carefully
gone over the subject Of telephone
charges and held several hearings which
were open to the public. Numerous
complaints which were sent TO the COM
mission were gone into thoroughly. and
that BODY decided 10 institute proceed
ings on It's own motion.
Reasons Drawn from Report.
Representatives ~ many organizations
and private corporations gave testimony
al the hearings, and the commission ia
sued the following opinion:
:. That the rate Of 10 cents 'hetween
what is known a Zone ]. which includes
ell that portion of Manhattan below 1lptn
street 70 the Borough of Brooklyn. except
that portion Of said borough embraced by
the central station districts known as Bath
Reach and Coney Island
. That the rate Of 10 cents charged
for telephone service between Zone J and
central station districts Astoria ana Ne"-
town. on Long Island
g. That the rate Of * cents pet"esn
Zo,, and central station districts t!ush-
ng. Richmond Hill and Jamaica. on Long
Island. unjust ana Unre9son7pie siii
uniustly discrin1inatorv. and changes 20 hve
and 0 cent rates respectively are ordered.
In an opinion written hv Chairman
Stevens the commission makes known us
reasons for ordering the cheaper rates
between the points designated. He calls
attention 10 the financial statement fur
nished bv the company. showing that ITS
total investment in the city Of New YORK
Is s11O.5S S97 and that the net earnings
from the property are S1O,15I.Nn. giving
o. nor cent Of net earnings for divi-
dends.
Another item shows that the value or
special franchises is estimated to be
$50. .OOO. .OOO and is carried in the list or
the companys intangibles. The company
also gave I'm its list Of intangibles under
the head of Going Concern value at
least S1O.OOO000.
At one Of the hearings Union y.
Bethel. president Of the company pro-
tested that a 1O-cent rate would GER
,oirlv bo ,nrea sonable If the traffic was
between Water street, in Manhattan. and
Furman street. in Brooklyn, but he
pointed out that person might talK
with another from Spuyten Duyvl to
Conev Island for the same rate. and
that the two struck an average distance
for the company.
Traffic Now Worth $1,600,512.
commissioner Stevens said that the
traffic between Brooklyn and Manhattan.
with a haul not to exceed five miles,
amounted T. 81 ,6O0,J while the traffic
between spuyten Duyvil. on the north
and Coney Island on the SOUTH
amounted to S11 1.O11. and that It was not
proper TO urge that the larger number OF
messages should be taxed the lo-cent
rate for short haul to enable few
nersons to talk between Spuyten Duyvil
and Coney Island for the same rate.
The commission says that. judging from
reduction of rates in previous cases.
the increased use Of the telephone would
soon bring the earnings of the company
IN 10 normal and make up for the ST.
90 600 loss to il which ii is estimated
the reduction will cause. Among the
general considerations which the COM
mission thinks must have weight in the
case are.
l. Within the city Of New York the com
psny has an absolute monopoly. Being
such monopoly, upon II rests the obligation
of furnishing telephone communication be
tween all points within the city.
2 IIe rates charged by 1t should be
such. 1f consistent with making a due re
turn TO the company. as 10 afford all
service as may be legitimately required.
Telcphonic communication is great con-
venience in modern. social and business de
veopment IT Is more than "A convenience-
II l. "A nocesslty-dnd when "A monopoly mas
the control or furnishing a necessity IL
ehould be possible for every person TO oh
tain such necessity at the lowest possible
2 We know by general complaint and
Crom sources OF Information open To any
one that there Is "A demand for toll service
Nm the city of New York which is not salts
ned because the cost now exceeds the
value. In other words. there Is "A large de-
mand for service for which the consumer
can afford 10 pay . cents, but for Wuich
he cannot afford 20 pay 10 cents.
4 It is the duty OF the company Ia meet
this unsatished demand for telephone
service. If the same can he done with due
regard To financial results The company
has recognized this principle. according To-
It's evidence, continually I'm the city OF New
York. and has thereby developed "A busi-
ness of enormous proportions, as well as
enormous proht. II Is gratifying To know
mat this principle OF duty H. identical
with the principles Of good business policy.
Union y. Bethel. president Of the tele-
phone company. when informed of the
action Of the Public Service Commission
AT his home last night. said.
The order is "A sweeping one. and I
would rather not discuss II until | have
had time 10 read the commissions order
thoroughly. | do not know what its