The evening world., 1915-02-22


"Mr. GiiIette,s estimate of value Of |
Telephone property II 9s.92S.9N or
S34. .925.934 In excess Of Prof. Bemls' |
estimate Of $65.000.000. Prof. Bemis |
has made no appraisal Of the prop |
srty but ha: arrived at bis conclusion
from q partial study of the company's
books, basing his estimate on Q bal
ance sheet with 5000. 900 added for
omissions, increase In value of
Itemized figures Of the company's
statement give the value Of the physi-
cal property In service a. 373. ,6o7;
working capital. 13.000.000: overhead
charges, e1%,7s6.000: sailing service,
ea.1s4's4Is and various other smaller
tsm; %sIns Zoo " Soo sSs S total OF AD-
An per cent. return On this In
vestfnent would give es.0o0,ooo per
year a. the totaa revenue allowed
to be charged New Yorkers.
The company admits having made
. net profit In the metropolis last
, year ok 39,3s1,000. -.'
EVENING WoRLD'S FioHT
FORCED RGDueTioN.
The Evening Worlds fght has won
for the public . reduction Of tsle-
phone rates. The specific terms are
yet to be settled by the upstate Pub
lie Service Commission. the Legisla-
| tive Committee and the telephone
company. The remaining points at
Issue are a. follows:
The precise appraised value OF the
| company's plant In New York City.
which will be somewhere bstween
e66. .000. 900 and 90 900. 900.
The rate OF return to BE- allowed on
L xhA l1 vvhlOh rrtn "A olthar
IL per cent or q per cent.
Gross amount Of reduction to be
made in charges which viii b some
where between el.60o. 900 PER year ~
conceded by the company and $780, :
900 a. demanded by the Foley Lsgis-
lativs Committee.
A revised schedule Of rates appor-
tioning the amount determined upon
over the different classes Of service.
OF which the principal kinds are sub
soribers' rates, hotel and apartment
house charges and extra tolls between
boroughs.
Tho variation In figures Of sp.
praisal 10 due to difference In allow
ances made by opposins experts for
various elements. such ~ rsproouc'
tion costs (neW). depreciation reserve
working capital and other items
which are subject to discretionary
determination.
In submitting its statement TO-
day the telephone company advances
by more than q year the time It pre-
vously declared would be necessary
TO make an appraisal II Also nas
such as franchise value and eoinG
concern value.
The Foley committee will hold an
other session to morrow to figure ou1
schedule Of rates based upon it,
valuation OF the property. The up
State Public Service Commission vii
come to New York Saturday to sub.
NIT Ats valuation ngures.
New York Telephone Company ON
| cials said they would hght the FoleJ
COMMITTEES reduction ~ too extreme
and 70 to court II necessary. 70 bea
II. They look TO the Public Ssrvic'
ment on q compromise basis.
DGMiS ATTAcke coMPANv't
FloUREe 40 HIoh.
Prof. Hemis made vigorous attacl
upon the telephone company's hgure
OF valuation as entirely too high an,
imposing undue charge on the public
He said:
: This report 10 based upon ths cos
OF reconstruction OF the company
{ plant to-day at the rates Of wase
and cost of materials ~ they now are
my estimate of valustion is base,
upon the book values showing the &C
. tual cost to the company. ~ thsr
y has been no allegation OF imprope
: bookkssping. that book cost must b
accepted.
"The company win never be calls
= upon TO reconstruct Its system In Ne,
IA A. 81 a 49, A.
J. valuation be nxsd at what the plan
actually cost"