New-York tribune., 1921-06-25
Y Phone Rates
Drop 2 p. G.
Again July 1
State Commission Rescinds
Previous 8 Per Cent Re-
duction and Orders a
Cut of 10 Per Cent
Bond Assures Rebate
Service Board Finds Conn
pany Made $l, ,0O6, ,009
i'm April, Due to Raise

Inc PuDl1c Service commission yes
terday ordered 10 per cent reduction
in rates of the New York Telephone
Company, The commission made the
reduction by cutting in half the 20 per
cent increase allowed by an order of
the old commission on March IL, 1921.
At the same time, the new commission
rescinded previous order of the old
commission, dated September 16, 1919,
which compelled an per cent reduction
in rates at that time, so that the net
reduction resulting from yesterdays
order will be only 2 per cent.
In explaining the elimination of the
old 8 per cent reduction order the COM
mission said that "a temporary change
in the rate charged by said New York
Telephone Company order of the COM
mission dated September 16, 1919, is
necessary for the purpose of providing
adequate service and for the preserva-
tlon OF the property"
referring to yesterdays order,
chairman William A. Prendergast said: !:
The commission has taken this &C.
tion as result of it's consideration of
the matter from the time it assumed
office, and this action is based on what
1t believes to be a desirable course in
the public interest"
Required to Give Bond
The order is made pending the com
pletion of the present telephone rate
investigation and the final fixing of
rates by the commission. The tele-
phone company is required to give a
bond to assure the rebate Of any
charges in excess of the ordered re-
duction after June 80.
1T appeared from statements sub
mitted by the New York Telephone
Company" the order set forth, athat
the income for the month of February,
1921, was in excess of expenses in an
amount OF $30,821; that the income for
the month of March, 1921, was in ex-
cess of expenses in an amount of $128,-
2O8; that the income for the month of
April, 1921, was in excess of expenses
IN an amount of $1,006,009; said in
crease OF income over expenses in April
rejecting the increases granted in said
order of March II, 1921.
And it further appearing from the
evidence taken in said hearings that
the trend of operating and other ex-
penses is gradually downward; and it
appearing therefrom that said tempo
rary rates established under the order
of March II, 1921, will result in an in
crease of net operating income, equiva-
lent to an amount regarded by this
commission as more than fair and
| adequate return upon the capital in
vestment claimed by the. company; so
that, under all the circumstances of
this case, this commission is satisfied
that the public interest requires re-
duction in said telephone rates charged
by said New York Telephone Company,
under authority of said order of March
II, 1921; and that temporary change
in the rate charged by said New York
Telephone Company under the order Of
the commission dated September 16,
1919, is necessary for the purpose of
providing adequate service and for the
preservation of the property, now,
| therefore, upon the terms, conditions
and safeguards hereinafter stated in
this order, it is
Modification Ordered
"Ordered: that the aforesaid order
made and filed by the Public Service
Commission, Second District, on March
~, 1921, be modified, and that, pending
the further continuation of this pro-
ceedlng and without affecting the final
determination thereof, this commits
sion does hereby consent and author
ICES that, from and after July /, 1921,
and until its further order in the
premises, the rates of the said New
York Telephone Company for exchange
telephone service in the City of New
York shall be temporarily determine d
by the elimination of the per cent
deduction specified in the aforesaid
order, dated September 16, 1919, and
by the addition, after such elimination,
OF 10 per cent, only, instead of 90 per
cent, as heretofore ordered on March
| II, 1921"