The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-05
Company Makes Conces-
sions, Thus Ending the
Hearing Abruptly.
TO BE EFFECTIVE OCT. 1
Flat Charge of Nickel Will
Apply to Interborough
Calls.
SAVING is $2,500,000
Reduction Means Big Victory
for HousehOlders; Hotels
Unaffected.
SAVING is $4,000, 1000

Telephone service will cost New York
city subscribers s per cent. less BEGIN
ming October 1, and the toll charge for
all calls by subscribers between any
two points in the greater city will be
q fiat cents from that date forth.
The New York Telephone Company
offered these concessions yesterday
through John l.. Swazey, its counsel.
and as every one was satisfied the
hearing into telephone rates which has
been going on before the Public Ser
vice Commission for the Second dis
trict ended abruptly. The formal or
der will be entered at once.
Charles B. Hill, chairman of the
commission, while unable to speak for
the remaining members of the COM
mission, all of whom were absent save
Joseph A. Kellogg. told the conferees
th. full commission would have to rat
itv the concessions formally, but that
this would all be accomplished readily
eLough at Albany to-day.
During the noon fnterfnission the
telephone company officials "sharpened
their pencils" as Chairman Hill euphe-
mized their action, and the result was
the new and better offer. n considerable
Improvement on the 8 per cent. recuc-
ton which the company put forth
week ago.
Many Claim Credit.
''The commission is inclined TO look
with favor upon this new proposal" SAID
Chairman Hill, and thereupon ensued
general all around agreement OF con-
testants and at the same time the stak-
ing out Of claims for first honors for
winning the cent rate for all New
York Mark Goldberg. Assembiyman
from the Fourteenth district, pointed out
that 1t was Assemblyman Mark Gold
berg who introduced the bill in 1916 FOR
the cent rate. which passed but was
later recalled.
NJ. II. winkler, lawyer, similarly
showed that it was he who had taken up
the cause of the cent rate. and pro-
duced printed pamphlet, dated March
81, 1915, wherein was speech delivered
by him on this very matter.
Mr.. Swazey's explanation OF the COM
pany's ultimate and satisfactory offer
was accompanied by statement that
the company was straining several
points to adjust the difficulties. I'VE
hope for some settlement of the present
economic and labor conditions" he said
''The morale of our working force is not
very satisfactory and an investigation
OF this kind causes all sorts of trouble.
"The arguments for the cent rate
In the outlying districts have Impressed
US. 1t will cost up to 100000 to grant
that, but we offer 1t and viii make an
effort to put II into effect for October
ha eta ramAintnR
same elsewhere"
Make an effort?" inquired Chairman
Hill, a trife suspciously.
We'll, it's an awful job with 100000
bills" Mr.. Swazey replied. But III
promise that too"
Senator Foley Accepts.
Senator James w. Foley, who had ex-
pressed the opinion that the company
should grant a Is per cent. reduction.
followed Mr.. SwaZey and acceded to the
offer 1T means an per cent. reduc-
ton to subscribers" he summarized,
"and about $2.400,000 reduction in reve-
nue. for the company"
William P. Burr, Corporation Counsel,
who with his assistant, Robert L. Stan
ton, appeared for the city, likewise ex-
pressed approval of the new conces-
Maltbie. also a witness at the hearings,
followed suit. "In round numbers II
amounts to a S2.500.000 reduction at
least per annum beginning October l."
Mr.. Maltbie figured.
After Senator Foley had requested
some segregation of the areas af-
fected by the cent rate and had been
instructed by Chairman Hill to write a
letter about 1t, the commission ad-
Journed the hearing with the announce
ment that formal order would be en-
tered In due and proper legal course as
soon as the other members have sane
TONED the amended rates
The morning session yesterday began
with the commissions verdict rejecting
the initial offer OF the company to make
per cent. cut In bills, net cut Of
sl,5o0000 in the earnings. The investi-
'+ii"n originated With the contention
that the companys revenue, following
Postmaster Burleson's stewardship, far
exceeded normal per cent. dividend re-
ouirements.
This decision of the commission was
expected. for although the original pro-
Tosal was considered in the weeks in
terim between hearings. II found little
favor when put forward. Failing some
more satisfactory offer from the COM
pany, the commission would proceed
y. oont!@Med on Second Page.