Phone Company Hints Rate Boost: May Charge Dime for Local Calls

An increase in the call rates of coin operated phones from five to ten cents was requested yesterday by the New England Telephone Company in a public hearing of the Massachusetts Utilities Commission.

At the same time that the company sought the five cent coin-phone rate increase, spokesmen requested a temporary two and one half cent general rate increase to offset any losses incurred in the eight-month period necessary to make the coin-box changeover.

Company vice-president Frederick A. Cosgrove testified that the company was forced to ask for the rate increases by "substantial" pay raises granted to unionized employees, and a rise in federal, state, and local taxes.

The proposed rate hikes were opposed by Senator Sumner G. Whittler on the grounds that residential customers would be forced to pay for the installation of coin machines in phones which they would never use.