New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-03
City Asks New
p. s. Board to
Cut Phone Rate
Corporation Counsel Says
N. Y. Does Not, However,
Waive Its Fight ON Va
lidity of the Commission
Calls Raise Excessive One
Wants Temporary Increase
Of Sill, GOO, OO0Revoked;
Pu bile Not Protected

New York City yesterday asked the
new Public Service Commission to re-
woke the order Of the old-up-statc body
which last March granted permission
to tho New York Telephone Company
to increase its rates temporarily. The
order permitted the company to add
s1l 100000 to it's charges, an increase
of approximately 20 per cent, pending
final decision on the company's APP
plication for higher rates. The com
mission decided to hear argument Oh
the motion at 10:30 u. M Monday.
M. Maldwin Fertig, Assistant Corpo-
ration Counsel who presented the mo-
tion to vacate the order, characterized
sive and inordinate" and said that the
decision was made without opportunity
for the city to present it's case.
Hint Speedy Decision
Yesterdays hearing, at 40 Lafayette
Street, was the first public meeting OF
the newly-appointed Public Service
Commission and four Of the FIVE COM
missoners we're present. William A..
Prendergast presided and the others
were Charles Van Vcorhis, of Roches-
ter; Oliver C. Semple, Of New York
and Charles G. Blakeslee, of Bing-
hampton. Terrence Farley, counsel
for the old commission, was present as
special counsel for the new commits
sion in the telephone rate cases and
John L. Swayze and Franklin Briggs
represented the New York Telephone
Company.
The commission first met in exccu-
tive session to determine the course
Ia swyN1 q ~
Prendergast announced that it had do
cided to 20 ahead Immediately, al
though the commission had only re-
Gently qualified for Office. The case
was very important and incomplete,
he said and the commission was of the
opinion that tho issues involved should
be decided as soon as possible. The
commission had not yet had time in
which even to scan the great mass of
evidence, the chairman said and he
asked the counsel to outline their
cases briefly for the benefit of the
members Of the commission.
Questions Boards Authority
Assistant Corporation Counsel For
tig gave formal notice to the commits
sion that the City Of New York did
not in any way waive it's objection to
the constitutionality Of the act under
Wnlcn the commission WAS AppOAutcu.
He outlined the city's objections and
declared that he would be glad to sub
nit brief on the question.
The Assistant Corporation Counsel
announced that he, too, was not ready
to outline his case because it involved
tremendous amount of research and
was stupendous task for any city.
He then told of the progress of the
case and of che decision, by q close
vote of three to two, raising the rates
$11 100000 on the theory that labor
had gone up that much. No proper
provision had been made for immediate
refunds to consumers if the rates
should be found excessive. There
would be long-drawn-out court actions,
possibly extending over years, and
many consumers would never get any
Of their money back. he said.
"In all fairness to the public the
commission ought very seriously to
consider the ACCESSIBILITY and necessity
Of making an immediate reduction in
the so-called temporary ORDER" he
continued. II ma at loss to under
stand why there should have been a
80 per cent increase when things are
dropping and people are losing jobs"