The New York herald., 1921-11-14
S5O,OOO,OOO NEEDED
IN PHONE EXPANSION
Company Explains Request for
Permission to Issue New
81 Securities.
GROWTH IN CITY HEAVY
Capital Investment of at Least
$30.000,000 to Be Made
by October, 1928.

!. The request of the New York Tele-
phone Company to issue $50. 900. 900 in
new securities made to the Public Ser
vice Commission in Albany was predl-
Gated on a need of the company to in.
crease is equipment approximately 20
per cent to meet the demand for 275,00O
new telephones throughout the State
during the next two years. These facts
are brought out in a stateme mt prepared
by the company especially lor The NEW
YORK HERALD in answer TO an inquiry
as to how It proposed using the new
capital.
II. c. Carpenter, chief engineer OF the
company, states in the petition to the
Public service Commission, lnat the teIe-
phone company plans 10 make at least
$S0,000O00 capital investments in its
New York State territory between now
and october. 1928. OF that amount, Mr..
Carpenter said, S55, 100000 will be spent
in New York city and the remainder to
expand the upstate telephone system.
j. 5. McCulloh, commercial vice-pres-
dent OF the company, said that great as
this sum appears to be il is not greatly
in excess of the amount expended yearly
to meet the demand for extension of
service.
Construction work never ceases" he
said. 1T is a continuous process. This
year we see the completion of work be-
gun last year, and next year we will
see the completion of work begun this
year. and so it is that we must have
large sums of money continuously not
only to bring the plants previously
started into effective operation but also
to lay the groundwork for plants to be
finished in the future to meet new de-
mands for service
During 1920 total of SIS, 500, 900 was
expended, Mr. McCulloh said. to i'm rove
the service in this city. "The expendi-
ture Of 1921 will eclipse that figure by
several Millions" he added, 80 that a
budget of s55.0o0,0oo for the coming
two years is about equal to what was
invested in 1920 and 1921"
OF the 275.000 new telephones to be
installed during the next two years at
least 100000 will be in this city, the
company statement said, and the re-
mainder up State. The company esti-
mates it will have to connect 900
new telephones to achieve the net
growth. There are at present a total
of 100000 telephones in use in this city,
so the increase planned for the next two
years is approximately 20 per cent.
Thirty thousand workers have been
under pressure for the last year to catch
up with the demands for service. In
that period 2S4.7S7 miles of outside wire
was added to the local system, bringing
the total up to approximately 3,3s9,0
miles. There were 5000 new tele-
phones connected up to November /, ar
increase over 1919, and there still wer,
about $500 applications for service or
file
About s42.o00.000 will be spent fol
central office equipment. This will pro.
vide 219 additions to existing switch
boards and so additions to central Of
fices, 25 OF which will be in the city
The other expenditures to be made were
outlined in the statement as follows:
''The next largest item on the pro-
gramme is the expenditure for outside
plant. which calls for SIS. 5000. 900 to be
invested in pole lines. erial wires and
cable, subway conduit and underground
cable. The latter item represents the
bulk of the sum. with a total of s12,-
5000 to be spent during the two years
What is known as station equipment
will require investing S12,600,000 more.
This item is based on the anticipated
net increase of 275,000 telephone sta
tions. The money will be used for tele-
phone Instruments. interior wires, pri-
vate branch exchange equipment, public
telephone booths and the like.