The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-29
COmpany's Tender Is Taken
Under Consideration by
Service Board.
MALTBIE URGES 10 P. C.
COunsels Say New Equipment
Will Cost S2O,OOO,OOO in
Next Year.

per cent. reduction in telephone charges
as a temporary concession to endure
for year when the Public Service Com
mission for. the Second District began
its investigation Of the company's rates
and condition yesterday.
Neither Charles b. Hill, chairman,
nor Milo r. Maltble. former Commits
sioner. who appeared as witness, was
satisfied with this proposition. and sug-
gested that 10 per cent. would be more
in accordance with their ideas. After
several hours, mostly occupied with Mr..
Swazey's outline of the situation, the
commission decided to adjourn for
week to think over the per cent. offer.
After pronouncing the service of the
company distinctly bad. Mr.. Maltbie as
serted that the company would be earn
ing considerably more than the gener-
ally accepted s per cent. even if the
per cent. concession were allowed TO
hold. The company had made no sac
rifices during the war. he contended. and
he argued that repdration should be
made retroactive to 1915.
Not Looking for Profits.
When NJ II. winkler OF SO Wall
street suggested that Mr.. Swazey's pro-
posal IL accepted. should be applied first
TO giving a straight cent telephone
y,
coming rates altogether discarded, and
said that this would mean much more
business and profits for the company,
Mr., Swazey retorted by saying: Profits
are not what we are looking for, but
how we shall be able TO handle the busi-
ness"
Mr. Swazey was the first spokesman
when the hearing, ordered by the com
mission now that Postmaster Burleson
has relinquished control and price fixing.
was opened at 10 o'clock in Room 403
Hall of Records. All the members OF
the commission were present including
| Chairman Hill of Buffalo. Frank Irvine
Of Ithaca. John A. Barhite of Roches-
| ter, Thomas +. Fennell of Elmira and
Joseph A. Kellogg of Glen Falls. 7
While not obJecting to the inquiry,
| Mr.. SwaZey said he wanted to explain
the conditions confronting the company
and that any decrease in rates would
mean an increase in business, which
| the company could not handle. 1t would
| endanger the present service, moreover.
| he argued.
I'VE have not to-day the facilities
| to handle AN increased business" he con-
| tinued. our desire is that there be no
increase until our construction is such
that we can take care of II. l do not
| believe any advantage will come TO the
state by consideration OF a segre gated
district, especially when that district Is
| most profitable. The money is being
earned In New York city, not in the
suburbs. l think any investigation
| should DC made on a State basis. taking
| into consideration the Adirondacks and
the seashore. Unless this is done. the
| New York Telephone Company will be
| destroyed"
II WAS NJ. SwaZey's opinion that the
| company could not well afford amy de-
| grease IN rates at tue present time, re-
| gardless OF what the books Of the COM
pany showed. BY January /. he thought
the time would be more suitable and
reparation could then be made. lie re-
| Piled to question OF Chairman Hill
| by saying that the reduction would b'
| retroactive to August /.
When questioned further by Chair
man Hill the cumpauy's counsel denied
that he was attempting 10 force a post
pOncment Of the investigation. lie did
want the commission TO defer any
definite action. however, he added.
10000 stations In New York.
Mr.. Swazey said there are 80. OOt
stations in New York city. 5;N.OOl
in Manhattan and The Bronx. laS, 00t
in Brooklyn and Queens. and l,0il in
Richmond The Richmond station
are not earnings Il far return, h.
declared, and the company feels 1t woulC
be Justified in asking for increased rate!
there. In the State the company ha!
soc exchanges.
Earnings for the first six months %
this year he gave as 6.5l per cent. az
compared to ell per cent. for the sam'
period OF 1918.
The war was partly responsible fo
the poor service rendered by the com
pany, Mr.. Winkler said, and the com
pany had not been able to make an!
extensions. which accounted for IN
Sl7 900 900 surplus In its treasury. II
case of change in rates, he urged tina
hotel proprietors he protected.
According to MIR Maltbie the com
psny two years ago offered the sam
plea OF lack OF facilities when an in
vest gation was made. He asserted tina
there would be less objection to the com
pany keeping its $1,000. 900 surplus I
the service we're satisfactory. Will
admitting that the cost of material ha,
advanced greatly. he said the higl
prices the company had received for sal
wage material should not be ignored.
short adjournment was taken b
the commission to debate the matte
of postponement. but when the mem
bers returned to the hearing room Mr.
Hin remarked: There never will be
convenient time for "A corporation I
have it's rates considered. We have de
/ ternined TO have the investigation pro
coed"
II was then that Mr.. Swazey offere
the per cent. decrease by the compan
, as IA temporary concession. Certai
, parts of the system could not stand d re
duction, including coin boxes and publ
, telephones. he contended, but he though
most of the business for which bills ar
presented could be benefited by the lowe
charge. September bills already ha
been sent out. so that the reductio
, could not be effected before October
, he said.
, Mr.. Swazey promised to submit to tn
, commission in Albany before Thursda
, next a schedule showing where and no,
, the proposed per cent. reduction woul
/ apply Although the commission too
no action on the offer. Chairman Hi
said he regarded IL as rather modera lie
and suggested that MIR. Swazey Conside
. whether or not he could make 1t n /
per cent. reduction. or at least rs pc
q cent.
Business Boom Causes Overload
Another aspect of the situation white
Mr.. SwaZey said was handicappng IN
company is a present business boom
. New York causing increased use of II
service and overlooking, of the compan
The war took away many of the en-
| nIoNaes and in the traffic denartmet