The Morgan City daily review. (Morgan City, La.) 1916-1920, 1919-04-29
Telephone Rates Revised
by Burleson to Meet
Federal District
in Operation
New Schedule, Effective May L
Filed with the Railroad
Commission Saturday by
Order P. M. General

Salient points Of new ruling:
schedule Ordered Into Effect Made
Up By Experts of Telephone Com
panies-Explanatio of Situation by
President Brown is that Mare than
50 cents of Every Dallor Now Goes
to Material and Equipment
Highly Increased-Either Revised
Rates or Direct Taxes the Only
Remedy-Increase in Rates to Ave-
rage 20 per cent.
There was filed with the State
Railroad Commission today, by di-
rectfon of the United States Tele-
phone and Telegraph Administration,
new schedules of telephone exchange
rates, to become effective May lst,
the purpose of which is to meet. as
nearly as possible under commercial
conditions, heavy deficit which is
being accumulated during the period
of operation of the telephone prop
critics by the United States Govern
ment, and which can be met in no
other manner than through revision
Of rates, except by direct payment
from the United States Treasury
In the letter of transmission with
which the Southern Bell and Cunber-
land Companies file these new sched-
ules of rates in this and other States
in which they operate, the several
State Commissions are invited to
cali upon the Companies for any fl
nancial or statistical data showing
cost of operation and income, all Of
which the Companies offer to sub
NIT in support of the new rate sched-
ules. Attached to the schedules is
copy of the Order of the Postmaster
General to the Operating Board of
the United States Telephone and
Telegraph Administration approving
these rates and directing that they
be put into effect at the earliest
practicable moment; and copy of
letter from the Operating Board to
the Companies, directing that these
new rates be put into effect May LIST
cor at the earliest date thereafter
consistent with the ability of your
organization to handle the details"
The schedules of rates proposed
are not wholly an increase of ex-
change rates, but rather a re-adjust-
ment of the rate structure, based up
on commercial conditions of today,
with a view to bringing nearer to
balance the cost of operation and
the income derived from the service;
the need for which is made at once
apparent when it is considered that
almost without exception the sched-
ule of rates for exchange service
heretofore in effect was made up in
= time when 12-cent bacon, q shoes,
SIS clothes and g. and l0-cent cotton
were satisfactory prices for these
commodities. In the main the new
schedule filed increases rates for
local telephone service and yet under
certain local community conditions
it has either the effect of slightly af-
fecting existing or leaving many Of
,, the rates substantially as they have
been.
The Postmaster Generals Order,
directing the putting into effect of
the new rates, which is attached to
the information filed with the sew
eral State Commissions, says:
I'm this connection l desire to call
your particular attention to the fact
that, owing to the prevailing high
costs Of labor and material, the de-
ficit from operating is growing dali
ly, and to meet this condition every