The evening world., 1915-02-26
Greater Power Over Rates and
Securities to Be Sought
by Amending Law.
WOULD SET STANDARD.
Want Connections With All
) Lines in State Made
-su Mandatory.

In addition to working out q sched-
uie of reduced telephone rates for
New York City the Foley Legislative
Committee to-day forwarded to the
Legislature q report recommending
changes in the Public Service law. de-
signed to supervise and regulate more
strictly the New York Telephone
Company.
The committee finds that the tele-
phone service is practically a monop-
oily. and as such should be held rigid
ly within bounds Of law.
Dealing with this phase Of the case
the report says:
Tho monopolistic character Of the
New York Telephone Company In the
State prevents the regulation of
charges and maintenance Of service
by competition: therefore, for the
protection Of the public, 1t is necessary
to give the Public Service Commits
sion greater authority than 1t now
possesses over issues OF securities.
regulation Of rates, supervision Of the
physical condition Of property and
conduct Of the business.
Telephone service Is developing
more and more into q monopoly. Uni
versal service is demanded by the pub
lie. If such monopoly is to be per-
mitted. then 1t must be made subject
to rigid supervision and regulation by
the State
The committee recommends giving
the Public Service Commission power
to compel connections between Bell
and other telephone companies, but
only when the standards Of construc-
ton and equipment are such AZ to In
sure good service.
The commission should have
authority to fix standards and re-
quire reconstruction OF lines In ac-
cordance, the committee says.
Control over issue Of telephone
company securities by the Public
Service Commission and various
changes in supervision of upstate
t...e., a.e recommended.
The upstate Public Service Com
mission comes to New York to-mor.
row to endeavor to settle definitely
the reduced rate schedule.
There are three reports and sets OF
figures to be harmonized-the Foley
Committees reductions worked Out
by Prof. Bemis. the telephone COM
pany's valuation report and the re-
suits figured out by the committee's
own experts. which will be announced
tomorrow.
According to advance Information
there will be no serious difficulty IL
all parties compromising on a 6-cent
per call rate and elimination of toll
gates between Manhattan and Brook.
iyn. But the telephone company will
vigorously oppose three factors II
the Bemis report. These are:
/. Use of the original cost rule II
determining the value Of the company
plant. The objection to this Is NOR,
upon the method than upon the re-
suit, as the company does not want ,
precedent In valuation established L
embarrass 1t in future litigation.
2. Reduction in the charge Of So pol
year for extension telephones. Thii
. rate Is the same throughout the coun.
try and II a cut Ia made here II vii
necessitate reductions in every State
3. Too heavy cuts in revenue. which
might embarass the company In 1t.
future financing.
Both telephone company and Fole!
committee to-day expressed willing
ness to try to get together with tn
Public Service Commission as arbite
30 as to devote attention to the mex
big contest over the new regulation
of the monopoly recommended by tn