New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-26
n. Y. PhoneCo.
Asks 80 r. e..
Rate Increase
Petition to State Board Saws
100000 Is Needed
to Restore the Service
to Pre- War Efficiency
Would Take Effect Oct. |
Company Asserts Unless Re.
quest Is Granted it Will
BE Literally Strangled''

increases amounting to 33 per cent
in the telephone rates for greater New
York are asked in petition filed with
the Public Service Commission YES
terday by the New York Telephone
Company. The company asserts the
sl6o0o,o00 additional revenue which
the increased rates would bring is
needed to restore the telephone service
to pre-war efficiency. 1t asks that the
new rates go into effect October /.
UNLESS the increased rates are
granted, the telephone service will be
literally strangled," said ]. S. McCol-
lob. vice president of the company in
explaining the proposed new rates.
Higher salaries to employees, which
includes an increase of SIS, OOO, 900 in
the pay roll in the last year. greater
cost of materials and the using up of
ITS reserve stock during the war, Mr..
McCoiloh SAID. are the reasons for the
company's petition.
MI. McColloh said the proposed in
crease Of 33 per cent includes d can
collation. of the per cent reduction
( ordered by the Public Service Commits
sion last October ON reality" he
said, the new rates call for an in
crease of only 25 per cent over the
rates in force q year ago"
Booth Rates to Remain Same
Mr.. McColloh said it would be i'm
possible to show, except in lengthy
table, just how the increases would
affect each class Of subscribers. The
five cent rates in the booths viii be
maintained, except as between certain
zones The average user OF home
telephone will have to pay S54 = year
for $40 calls, as against $40 year for
500 calls. Mr.. McColloh said
GLOOMY" was Mr.. McColloh's char
acterization Of the present telephone
situation. But despite the difficult
ties we are coming back" he said.
"On January l, 1919, We had approx
mately $500 operators in New York
City. To-day we have $1,000 The
securing and training of these 6,40O ad-
dltlonal operators in the period named
is in itself a remarkable piece of
work. Seven months ago our working
force in New York City was composed
Of q 800 men and women. To-day we
have $4,000.
Since January /, 1919, we have add
ed over l73 900 miles Of wire to the
system in the City of New York, in
stalled vast amount of new switch
board and other apparatus, erected
number of new central office build
ings. enlarged others and provided
service for over $4,000 new telephones.
We have so enlarged our facilities and
force generally that we have been able
to relieve, in large measure, the
serious congestion of traffic which ex-
listed, and improve the character of the
service.
Outlay to Exceed s26,0CO,O00
"Our outlay of new capital in this
years program for enlarged plants in
New York City will exceed S26 900 900
This is the largest expenditure of new
capital we have ever made in one year
Next year and during each of the fol-
lowing years. until we catch I'D with
the demand for service and restore our
plant reserve, we must secure and ex-
pend even larger sums of fresh CAPT
tai.
the failure of our revenues to keep
pace with our increased expenses is
serious. Net revenue, after raying
operating expenses, has fallen steadily
since the first Of the year Based upon
the results of operation during the first
five months, we would earn a return
for 1920 of less than 2 per cent upon
the approximate fair value of our prop
erty IN the public use in this state.
Summed up, the situation is this:
We have kept faith with New York City
by sparing neither effort nor expense
to give it the telephone service it re-
quires. The telephone is absolutely es-
sential to the business and social life
of this city. We cannot stop giving
service. We must go forward We must
finish the task imposed upon US by
war conditions and new demands FOR
service. To do this We must have addi-
! tional revenue"