The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-26
FUNDS TO IMPROVE
PHONES AVAILABLE
$1O3, 100000 in Hand, 1t is
Asserted at Hearing Of
by P. s. Board.
OFFICIALS STATE SIDE
Increased Demands Held to
Justify Application for
Higher Rates.

The present poor service, which the
New York Telephone Company admits
is being rendered. is not due to any lack
of funds with which to make improve
ments, so NJ NJ. Fertig, Assistant Cor
poration Counsel, charged yesterday
when the Public Service Commission for
the Second District continued its hear
ing in the Hall of Records on the COM
pany's application to increase its rates
35 per cent, thus adding approximately
SIG, 100000 a year to it's income here.
July and August last are the only
two months in which the company has
shown a deficit" Mr.. Fertig said. land
1t has s103,000,000 available cash in its
surplus and depreciation fund. The
company, moreover, spent s450,000 last
year for publicity. which was not aimed
to increase the number of its sub
scribers, as it already has 100000 I'M
fulfilled applications for the installation
of telephones"
T. P. Sylvan. vice president in charge
OF personnel. corrected this estimate,
placing the number Of applications pend
ing at $4,000. The company was unable
to install instruments, he said, because
Of lack of plant and equipment.
The Company's Arguments.
Most of yesterdays session was taken
up with testimony offered by Mr.. Sylvan
to show the increase in service demands
made upon the company and what Is
being done to take care of Increased
traffic. Increased rates are necessary.
it is maintained by the company, II
plans for expansion are to be put into
effecN The proceedings Were inter-
rupted frequently by self-appointed In
quisitors who crowded into the room to
voice their objection to granting any
Increase over present charges.
The average number of telephone calls
! in New York city each day has increased,
| according to Mr.. Sylvan's testimony,
from 2,204.73S in 1914 to 4.334,23s at
present He said the number of new
lines amounted to 1884 In 1917, 1857
in 1918 and 57,607 last year He thought
the first requirement to remedy present
conditions was the installation of adGi-
| tional equipment and said the company
planned for 10000 new lines between
now and January, 1923. The additions
to the company's plant In the city during
1921 would cost sS3.Ooo,Ooo. he said.
! 1t was explained by Mr.. Sylvan that
| the company eventually intended to sup
plant all of the present switchboards,
which require operators, with automatic
switchboards The Pennsylvania ex-
change will begin functioning auto
matically next May, he said.
Plenty of Operators.
| Although the company has enough
| operators to fill all Of its switchboard
positions at present, 1t will need 16 per
cent more next year. Mr.. Sylvan said
| 1t was necessary to recruit and train
new ones constantly. 1t would be neces-
sary to have 1876 new switchboard posi-
lions at which girls could work before
the service could be improved mate
rally" Mr.. Sylvan testified.
| 1t requires two years for young
woman to have sufficient experience as
an operator TO be rated at 100 per cent,
Mr.. Sylvan said. So great has the need
| of experienced operators been here that
| 263 have been brought into the metro
politan area from upstate and other
localities. Tine company, in an endeavor
to make conditions here as pleasant as
possible for Them has taken two floors
at the Hotel Pennsylvania. according to
Mr.. Sylvan. The cost of rooms for these
operators Is $4,000 monthly at present
but a dormitory is being erected. and az
soon as 1t Is completed the young women
will be moved there at a monthly saving
to the company of $4,000 month.
II. A. Trax, the company's chief &C
countant, testified that the plant anc
| equipment in New York city was worth
Sl16.0O0,0O0 He said salaries and
wages had increased from S1.47S,S1S In
August. 1919. to s2.341,74s in August
| this year.