St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1920-10-23

City, has increased every year we have been in
business; the increase this year being unusually
high. There Is no probability OF this expense
being reduced.
We do notspay any excess profit tax because
we have never earned enough to be subject to
that tax.
Buildings
1t ia common knowledge that the cost of erect
ing any kind of building, as well as making
alterations and repairs which constantly con-
front the Telephone Company and which involve
material, labor, freight, and hauling, is
enormously hihgher plane than ever before. In
solar the cost OF materials may be reduced
will this total cost be reduced.
The only way we can furnish adequate facil-
ties for your use from year to year Is by con-
structing the buildings in which to house the CEN
trail office apparatus in the larger centers; as
well as charging existing buildings to serve the
increased needs, and this work must be carried
On from year to year without delay This in
wolves hundreds of thousands Of dollars In ex-
pense to the Company.
There are, of course many other items of ex-
pense all Of which are now at the highest level
in pr-ces, and none OF which show any Syn of
reduction for fundamental reasons
Until these necessary costs of operation are
materially reduced cannot reduce the COSTS
OF furnishing telephone service.
We have carefully studied and analysed the
advertised reduction in prices and find that they
If any use. Applied to the telephone business
al known deductions in prices would not reduce
the cost OF furnishing telephone service one-~
twentieth Of one per cent -.
This is many times Offset by the increase In .
wages when. in many places, we must make
y8Our present operating revennps are practically
eqHalled by our operating expenses.A II the pres
emit let down In general business continues for
any apprecfabIe time we wifi lose material part
OF the gross revenue now received, which wifi
make still higher rate necessary II deficit Is
avoided ~
We not asking higher rates for the SAME
SERVICE we furnished one, two or five years
ago; but for much GREATER SERVICE
which We now furnish, consisting Of facilities to
add many additional telephones to our system
during the past one. two and Ave years.
This fact should be considered when compar-
Ing the Increase In rates ask with the increase
IN the charges OF the railroad, express and other
public utilities for the same quantity OF service.
We hope. as every one does. that in the rela-
lively near future prices and the costs of opera
ton, except labor, will be lower, but we see no
immediate prospects of this result as sfar as the
Telephone Company is concerned. -"1.s-!.s az
1.-The Increased rates we are now ASKING are
based ina measure. upon shhis hope. Rt II the
present level of costs OF operation go higher
through causes bey0nd our control the proposed
rates VIII not yield q fair profit: n'"st 1aF-
1t is important to remember that no rate for
public utility is permanent II conditions and
prices so change in the future as to make the
rates we are now asking yield too high arreturn
and II the Telephone Company should not reduce
the rates voluntarily, the Public Service COM
mission would.
Conditions as they are must be met, not as
they may or SHOULD be.
The highest and best interest of the public Is
conserved in having the Telephone Company In
position to supply facilities adequate to the de-
mand for telephones and service, and In this way
be prepared to render at all times an ADEQUATE
service No community expand and grow
without adequate telephone service which in
turn means adequate plant facilities
With inadequate returns upon the bare cost of
the physical property already TN seryiee-the
Companys credit has disappeared
With no credit the Company cannot secure the
millions of dollars required to provide the addi-
lions and extensions of Its plant, which must be
supplied. $50 =
Respectfully yours, -
J. EPPS BROWN, President