New-York tribune., 1913-07-16
POSTAL CO. REVIEWS
PHONE SERVICE FIGHT
Asserts Bell Concerns Cu'
Rates Are of Little Bene-
fit to Public.
DISCRIMINATION CHARGED
Telegraph Business Said TO BE
Thrown to the Western
Misunderstanding Meth
ods Criticised.

The Postal Telegraph Gable Company
has reopened its attack on the American
Telephone and Telegraph Company
which il began last fall with complaints
that were submitted to the Department,
of Justice. These complaints were re-
newed I'm a circular which James D. NC
Dermott. manager of the main Office OF
the Postal. sent out yesterday. BOYS
were sent out with bundles OF tho circu-
lars. which were distributed I'm offices III
the business sections Of the city. They
were mailed also TO customers OF tne
company with the monthly bills
Mr.. McDermott explained last night
that the Postal was sufferer from what
he called "extortionate charges ike
other telephone subscribers in New York
and more especially IN that the American
Telephone and Telegraph Company as
criminate against the Postal in favor ot
the Western Union.
The Bell monopoly Is making a big
noise In the newspapers" says the cir
culars sent out. about some reductions
i'm New York THE total IS $4,000 year.
As this figure is given out by the COM
pany. It may safely be assumed that u
is very liberal. so as TO favor the monop-
oly. But taking the figure 10 he correct
what does II amount to? The New YORK
public paws the monopoly the small sum
Of 100000 a year. and only when the
Governor OF the State. Senator Larrimer
and the Public Service Commission get
after the monopoly IL magnanimousy
agrees to let the public have back F'7o".
Even attached to this much heraldeu
reduction there is string. because II
applies only 10 calls outside OF the Ne"
York business city itself. In New YORK
CITY below 10th street. in which proo-
ably ~ per cent OF the telephone cai's
originate and terminate. there Is no re-
ductlon. The reduction affects only a
minute mart OF the service. IL does not
benefit the service which deserves and
needs the reduction most. namely, the big
business service within the zones lald
out by the monopoly. This rate stili re-
mains unchanged and runs as high as
from { 10 cents a call. In view ot the
rich pickings the monopoly has. the rate
should be cut to cents all around.
Bear in mind that the plan and pur-
pose OF the parent monopoly IS 10 disguise
high rates by allowing its local companies
10 show only normal or even low prohts.
This is accomplished I'm several ways
namely, reducing the gross receipts By
passlng part to the parent monopoly un-
der contract. increasing expenses by
heavy royalties to the parent monopoly.
and also by what may be called Inter
financing
Bear in mind that the parent company
is continually changing the geographical
boundaries Of its local companies. only
lately the New York Telephone Company
was made to purchase telephone property
In Pennsylvania The parent Bell monop-
olv. owning as II does both companies.
could have compelled the New York COM
panv to pay more than the property Was
worth And furthermore. as the New
York company issued a big block OF bonds
for the purchase. the interest might be-
come a burden on the New York profits
on which the New York rates are based.
and II the Pennsylvania property should
prove Improbable the New York puolic
would be doubly burdcned.
Bear IN mind that the parent monopoly
compels the local companies TO pay TO II
~ per cent royalty Of their gross re-
celpts. and IN tho case Of the New York
company this amounted 10 nearly 100000
In 1872 thereby cutting down to that eN-
tent the New York companys profits, on
which the New York rates are based.
Bear in mind that the parent monopoly.
controlling the New York company, could
compel the latter to give up the greater
part OF the long distance earnings.
Bear in mind that the public have
hcapcd fayors on the Bell Telephone by
allowing II To have a monopoly Of the
richest part Of the country. and yet. with
ali the company's advantages-no division
OF receipts and no costly competitive eN.
pense-it charges double. treble and even
quadruple rates"