The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-07
SOME PHONE RATES
CUT 10 PER CENT.
Company Grants Reduction in
All Measured and Private
Exchange Service.
BOROUGH TOLLS TO STAND
No Change in Pay Station or
Flat Rate Pending valua-
ton Of Property.

The New York Telephone Company an
nounosd yesterday q temporary reduction
OF 10 per cent in message contract and
private branch exchange rates to sub
scribers in New York city pending an In
ventory and appraisal Of the companys
property In the city by the upstate Pub
lie Service Commission. which has been
holding hearings on rate reduction. The
reduction will he in the form OF q discount
from the amount now charged and will
take effect on February 1.
II will not apply 10 Hat rates. pay sta
ton rates and toll charges between Dor
oughs.
John L. Swayze, counsel for the COM
pany. who made the announcement at
Yesterdays hearing in the Metropolitan
Tower, said that Union n. Bethel. presi-
dent OF the New York Telephone Com
pany, estimated that tie temporary re-
duct!on will mean saving OF s22oo,oOO
per annum to subscribers.
The Public Service Commission reached
an agreement with the company at con-
ference on Monday. Chairman Martin 8.
Decker decided that an inventory and APP
praisai Of the company's property. income
and expenses were necessary for proper
determination OF rates in the city and the
officers Of the company voluntarily offered
a concession pending the completion Of
such valuation.
II Is estimated that the appraisal will
take from four to six months. The com
pany will prepare in short time a schcd-
ule Of its property for the accountants and
engineers to work on as soon as funds are
forthcoming to defray the expenses In
volved. Senator Foley OF the legislative
telephone committee announced that he
would ask for an appropriation when the
Legislature meets to-day All the civic
bodies who have backed up NJ. II. W!nkler
in his petition for rate reduction will urge
their representatives, to act on the appro-
prlat.on at once. The cost Is estimated at
about 100000.
Company Wanted smaller Cut.
At the private conference on Monday
the telephone company first proposed 3
per cent. reduction. This was not deemed
sufficient and the percentage was raised 70
~. II was then proposed 10 the COM
pany that July 1. 1914. be fxed as the
effective date for any final order In case
the appraisal should show that a greater
reduction than IN was advisable. but the
company was unwilling to consent to any
date in advance. In lieu OF this II was
agreed at a meeting OF the directors OF
the company yesterday morning to In
crease the reduction In the measured rate
service to 10 per cent.
The conditions imposed by the company
In granting the concession were:
These discounts shall continue In
effect until an appraisal OF the property
has been completed and permanent rates
based on the appraisal have been hxed.
These discounts shall DO discontinued In
the event of any change In the rates
made by any authority having jurisdic-
tion. Tho rates subject to these discounts
shall be As follows:
"All subscribers message rates for To-
cal exchange service under standard con-
tracts. The discounts will not apply tt
pay station rates. toll rates. obsolete
rates or nat rates"
Chairman Decker Pleased.
Chairman Decker said he was pleased
with the voluntary action OF the company
and commended Mr.. Swayze and the OH
GERS. The conference. he said, resulted In
immediate relief to subscribers. which was
sufficient until proper determination OF
lust charges could be made.
Mr. SwayIe promises the cooperation OF
the company and said that the schedule of
property will be ready as soon as possible.
After the hearing Chairman Decker gave
out a statement IN which he said:
This 10 per cent. reduces for imme-
diate application the S4s annual charge
for 500 calls TO 1890. Tho private branch
exchange minimum annual charge OF 1904
IL thereby reduced to Sls360. The 10 per
cent. cut applies to all OF the regular SER
vice regardless OF amount OF bills. and to
all excess calls. as well a. TO the COM
panys published minimum number OF calls.
| 1t applies to extension set service. as we'll
as to the Subscribers main direct line
telephone"
NJ II. winkier. whose original petition
70 the Public Service Commission started
the rate Investigation four months ago.
said that he agreed to accept the offer OF
the telephone company pending u final
determination OF proper rates.
Tho commission received a petition yes
terday from the Merchants Association
Joining the demand for an appraisal OF
the telephone property. The agreement
reached Is In line with the wants ex-
pressed by the Merchants Association.