New-York tribune., 1921-03-18
Phone Rate
Raise of 28%
Authorized
Increase Effective April L,
Pending Ruling onP Petition
for 35 PC. Advance, Per-
mitted by State Board
Offsets Higher Pay Scale
Addition of $l1,OOO,OOO to
Company Revenue Ex-
pected to Increase Service
FROM a Staf Correspondent

| ALBANY, March 17.-The New York
Telephone Company was authorized to-
day by the upstate Public Service Com
mission to increase the local telephone
rates in New York City % per cent.
The advance, it is estimated, will give
the company an additional annual reve-
nue. cf about $11,OOo,00o. 1t will go
into effect April /.
The present discount of per cent
allowed on local telephone bills is to
be eliminated and in addition sur
charg" of 20 per cent is to be made.
The commission was divided in it's
decision three to two, Commissioners
Kellogg, Barhite and Van Nance vot~
ing for the increa Sc, and Chairman Hill
and Commissioner Irving against it.
| The increase is temporary and is
allowed pending final determination Of
! the application of the company, made
| in August last, for permission to in
crease rates approximately 35 per cent,
which would have given the company
an additional revenue of more than
| Sl6,0oc,000. The corporation is re-
quiree to file bond with the commits
| sion, the amount to be fixed later, as a
guaranty to refund to subscribers the
difference between the present and the
new rate in the event that the commits
sion finally orders rates lower than
i those allowed in the temporary order.
The commission in it's order points
out that local telephone rates in New
! York City were reduced in 1916 and
again in October, 1919, the 8 per cent
| discount being ordered on the latter
/ date. Since this discount became eff
fective the company, at the suggestion
| of the commission, has increased sal
aries Of employees, resulting in an in
| crease in lis annual payroll of more
| than $11,000,000. The temporary in
crease is allowed to absorb this amount
and put the company on a financial
basis to attract sufficient capital for
the purpose of purchasing necessary
| buildings and materials to relieve the
congested cond ,tion Of the telephone
are $4,000 untitled applications for
! service.
The commission decision reads, in
part:
at is claimed by the company that
by reason of said increase in wages and
certain other changed conditions adding
to the cost Of operation it has for some
time been unable to earn its operating
expenses from the revenues derived
| from the rates and charges fixed by
| said order of September 16, 1919.
ut now appears to the satisfaction
Of this commission from the evidence
before it in this proceeding, and also
from its knowledge and information OF
the general condition of said company
derived from its various efforts filed
with this commission according to law
and pursuant to order of this commits
sion, that the increase in wages of en-
| ployees made effective since the order
of this commission of September 16
penditure of approximately $11 ,000,0 ,0OO
by the company and to that extent de-
creases the income of the company
from the amount anticipated it would
receive from the rates established by
the order of September 16, 1919.
"After due deliberation it is the
opinion Of this commission that it
should at this time, in the exercise OF
it's discretion and in order to prevent
serious damage to the company, con-
sent to an immediate increase of the
rates and charges determined and fixed
by its order of March 80, 1915. as modi-
fed by it's order of September is, 1919
| in such amount as will provide the
company with additional annual rev
enue in an amount approxim ating such
increases Of wages to employees Of ap
proximately $1l,00o,O00 annually, such
increases to be without effec. in any
way to the further conduct of and final
determination of this proceeding anc
upon conditions safeguarding the in.
terests of the subscriber of the com
y,orv IL ShNu1d ho u1fi m ~ al u
! determined that the company is no,
entitled to any increase of rates or not
!! entitled to an increase equal to the
Ell O0n nn0D