New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-20
PHONE co. WON'T
FIGHT CUT in RATES
Swayze Says Reduction Is
To Be Accepted if 1t
Is Reasonable.
STEP WILL PREVENT
COSTLY LITIGATION
Counsel Also Agrees That Land
in City Shall BE Valued
at S5,0O0,OO0,

During the hr.t hearing OF the up
state Public Service Commissions in
vestigstion OF telephone rates which
has resulted in any agreement between
the telephone company officials and the
attorneys for the commission, Union
y. Bethel. president OF the New YORK
Telephone Company, yesterday al
mitted that business had increased fol-
lowing cut Of rates. He would not
admit, however. that a further rate
cutting would be Of benefit 20 the com
psny or the public.
Several hundred questions put 70
Mr.. Bethel brought out little more IN
formation from him except that ne
regarded the neighborhood rate as hd-
vAntageous 20 the public, and that he
approved, for general reasons, OF sales
and purchases Of other telephone com
panieS' stocks, which seemed unjust
nesslike 70 VI. II. Winkler, who mad9
the original complaint against the
telephone rates, and 20 Martin W.
I5ttleton. counsel for the commission.
The only agreement reached so far
by the contending parties was the &C
ceptance by John l.. Swayze, attorney
FOR the telephone company. Of the
valuation OF 100000 placed upon the
land owned by the company in New
York City. This figure was suggested
lv Mr.. Littlcton as compromise be
tween the valuations on the tax lists
and the company's valuations. This
agreement furnishes s basis for ap-
prsissls and rate fiXings by the COM
mission.
The afternoon hearing was further
Frightened by Mr. Swayze's intimstion
that the company expects cut in rates
and is prepared 10 grant II without op-
position If il is a fair one.
This means that the company will
save itself and the state years Of cost
IN litigation" said one member OF the
commission, who wished his name 20
be withheld
At the close OF the afternoon hear
ing, when Mr. Winkler and Mr. Little
ton had both excused witnesses, the
same commissioner said:
"The commission has now concluded
its prima fscie case regarding the
valuation OF the physical plant OF the
company in New York City, which. &C
cording TO the record. may reach p
maximum OF NtbsNNNsONO W a AI'4ll4 VI i4
Of S66 900 900. The purpose Of the
commission is 10 fix the valuation ten
tatively so that rate OF return on the
company's property can be arrived 81
before the next hearing. That rate
may be anywhere from 70 9 per cent.
"The telephone company will be or
dered 20 enforce a cut OF $4,000
which. added 10 the 10 per cent rcduc-
ton Of last year, is equivalent to a
total reduction Of S5,000,000 year for
the entire city
President Bethel. under questioning
by Mr.. Winkler. said that the sale o.
stock az par Of the New York Tele
phone Company, worth Sl2O share
and paying s per cent. 70 the American
Telephone and Telegraph Company
the parent Bell concern, in order e
purchase stock for $500 a share Of the
Bell Telephone Company Of Pennsyl
vania, worth 500 share and earning
only per cent. was juStifable for the
expansion Of his company. He woulC
not tell why.
Acting Chairman Decker adjourne'
the hearings OF the commission unit
February 27