Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1917-12-08
Telephone Rates
Must Come Down
Says State Board

New York Telephone Company Pro-
fits Excessive Says the Decision.
Given Sixty Days to Comply With
Ruling. Southern and Western
Portions of State Are Not Part of
Operating Expenses-Bell interests
May Be Merged.
Trenton, Nov 24.-The Board of
Public Utility Commissioners to-day
ordered the New York Telephone Com
pany to file within sixty days re-
port reducing it's telephone rates,
which will bring the revenue of the
company down annually to not less
than $800,000. At the same time
decision was rendered holding that
the rates charged by the Delaware
and Atlantic Telegraph and Telephone
Company as at present constituted
are not producing excessive returns
to the company and, therefore,, can
not be altered. The two companies
are connected with the "Bell System"
the New York concern supplying SER
vice throughout the eastern, central
and northern parts. The decisions of
the Utility Board are the result of its
investigation of the reasonableness of
the rates charged by the two compan-
les.
Engineers and experts in telephone
accounting were employed by the
companies properties and the amount
board to ascertain the values of the
of their revenues and operating ex-
penses. Testimony of the boards ex-
perts, as well as that Of the experts
in the employ of the telephone COM
panies, was submitted at number OF
hearings held by the board. The val
ue Of the properties was taken June
80, 1916.
After Reviewing the testimony, the
board found that the present value OF
the property Of the New York Tele-
phone Company in New Jersey is,
approximately, $30,000,O00. The net
earnings for the year 1916, according
to the company's statement, were
$3,O4O,352. The Board further found
that certain charges which were
voted out of surplus should not be
treated as operating expenses and
that the net earnings should be taken
at 100000 i'm excess of the sum
stated by the company. The board
holds that the company's annual net
revenue may be reduced to 100000
and sufficient sum left to pay per
cent. on the $30,O0OO0O of the COM
pans property. Eight per cent is
held to be q reasonable return and
the company is ordered to file within
the sixty days set tariffs which will
effect annually a reduction of net
revenue to not less than 100000.
In its report of the investigation OF
the Delaware and Atlantic Telegraph
and Telephone Company, the board
property as determined by it in a
former proceeding, report of which
proceeding was filed by the board
January Z, 1918.
Instead of .dismissing the applica-
ton Of the NnXork Telephone Com
pany and the Delaware ard Atlantic
Telegraph and Telephone Company
for approval to merge and consolidate
as one concern, the Board of Public
Utility Commissioners announced
that it would hold the petition with
leave to the companies either to
amend it SO that the consolidation
would create separate New Jersey
unit of the "Bell SYSTEM" of which
each company is part or the APP
plicants might have permission to file
brand new petition, carrying out
the view of the board in this respect.
When either of these two things is
done, the Utility Commissioner an
nounced it will determine the value
Of the property involved for purposes
of capitalization, using the findings as
to value in the proceeds relating to
the rates of the respective companies
on which the board handed down de-
cisions to-day.