New-York tribune., 1915-02-25
Company Is Ready to Cut
Rate, but Will Argue
on Valuation.
LEGISLATIVE BODY
ENDS INVESTIGATION
Will Recommend Lowering of
Charges-Slices S3,OOO,OOO
from Profits.

AS cents for FIVE minutes telephone
tariff for greater New York seems Ger
tain. The Foley legislative committee
completed its investigation OF the New
York Telephone Company yesterday
and will recommend the reduced rates
20 the Legislature Friday and 20 the
upstate Public Service Commission Sat
urday.
The recommendations made by Profes-
sor Edward ". Bcmis, the committee 3
eYpert accountant and appraiser, Will re-
duce the present income or the com
pAnv BY 100000 and still, he says.
leave the company per cent on its in
vested capital Summarized, they are:
Ordinary direct line rates 20 be re
duced from the present S4S a year for
500 calls 20 $40 a year for 500 calls.
For business service the rate is TO
he $40 a year for $40 calls.
For wholesale users, such as hotels
and large business houses, the price
message is scaled down TO 2+s cents
call
Extra tolls are 70 he wiped out be
tween Manhattan, Brooklyn and Long
Island City. The fat 5-cent rate Will
prevail.
The extra toll rate 10 the upper
Bronx, outlying Queens and Staten
Island is 20 be continued.
For hotels and apartment houses the
charge for installation OF switchboards.
extensions and other equipment is
greatly reduced For extension ser
vice the rate is clipped from 80 TO 40
cents a month. Rental Of swItchboards
IS reduced from $36 20 $23 a year
Flat Rate Service Rule.
The neighborhood fat rate service IN
Brooklyn, the Bronx ana staten ISIahu
is continued.
John l.. Swayze, counsel for the tele-
phone company, announced that the D
cent rate would be accepted by the
company, although he took exception
10 Professor Bemis's valuation OF
S65 900 600 on the company's property.
"A b-cent rate will come said the
LAWYER. provided this committee and
the Public Service Commission meet
ms half way. We always have been
ready TO get together with the commits
sion so as 20 avoid going 70 court.
The only stumbling block consists OF
the valuation of the company's physl-
cal property We place II at S99,-
q25.934. while Professor Bemis gives
his estimate at S65,0O0,OOO.
"If we are forced 20 20 TO the courts
We shall give them "a hot fight
What are your prlnclpal ooJec-
tons ." Mr.. Swayzc was asked.
I'VE are opposed TO the establish
ment Of precedent in arriving az prop
ertv valuation on the basis used by
Professor Bemis, and We cannot permit
our property TO be underyalued for the
simple reason that the stocks and bonds
OF our company will suffer a severe de-
probation
When Professor Bcmis was called 10
the stand he again attacked the com
pauy's valuation figures. lie then sub
mitted his revised rate schedule. Its
effect. # II is adopted, will be to work a
large saving for the residential sub
scriber.
THE great benefit he said, "will
come TO the small user, who would find
q saving no both money and the number
of messages Every subscriber 10 this
class Of service would gain from pei
cent 10 10 per cent
To the large user the revised tariff
would mean a cut from 80 TO 30 cents Z
month for each extension telephone, {
reduction Of half a cent a call on mes
sages and cheaper swItchboards. A
for the proposed scent tarlt IN hotels
and apartment houses, Professor Bemi'
remarked:
1T would he desirable 20 require the
telephone company, as is done IN som,
cities, 10 furnish telephone equipment
only 20 such hotels. apartment house:
and other public places As would agree
20 charge no more than five cents fol
local messages and standard pay sta
tiou rates for other messages, with thC
possible exception Of 8 small gusrante,
in some apartment houses and some re
ftrictious in a hotel, where desired il
the form Of an extra charge upon tn,