New Iberia enterprise and independent observer. (New Iberia, La.) 1902-1944, 1920-10-23


been in business; the increase this year be-
ing unusually high There is no probability
of this expense being reduced
We do not pay and excess profit tax be-
cause we have never earned enough to be
subject to that tax.
BUILDINGS.
1t is common knowledge that the cost of
erecting any kind of building now, as well as
making alterations and repairs, which con
stantly confront the Telephone Company and
which involve material labor, freight, and
hauling, is on an enormously higher plane
than ever before. Insofar as the cost of ma
terlals may be reduced will this total cost be
reduced.
The only way we can furnish adequate ia
cllltles for your use from year to year is by
constructing the buildings in which to house
the central office apparatus in the large CEN
ters; as well as charging existing buildings
to serve the increased needs, and this work
must be carried on from year to year with
out delay. This involves hundreds of thou
sands OF dollars in expense to the Company
There are, of course, many other items of
expense, all of which are now at the highest
level in prices, and none of which show any
sign of reduction for fundamental reasons
Until these necessary costs of operation
are materially reduced we cannot reduce the
COSTS of furnishing telephone service.
We have carefully studied and analysed
the advertised reduction in prices and find
that they are upon articles of which we
make but little, if any, use. Applied to the
telephone business all known reductions in
prices would not reduce the cost of furnish
Ing telephone service one-twentieth of one
per cent
This is many times offset by the increase
IN wages which, in many places, we must
make during the current year.
Our present operating revenues are prac-
tlcally equalled by our operating expenses.
Ii the present let down IN general business
continues for any appreciable time we will
lose material part of the gross revenue
now received, which will make still higher
rate necessary if deficit is avoided.
We are not taking higher rates for the
SAME SERVICE we furnished one, two or
i've yeare ago; but for much GREATER
SERVICE which we now furnish, consisting
of facilities to add many additional tele-
phones to our system during the past one,
two and five years
This fact should be considered when com
parlng the increase in rates we ask with the
increase in the charges of railroad, express
and other public utilities for the same guam
tity of service aa... .sa aa...4
We hope, as every one does, that in the
relatively near future prices and the costs
cooperation, except labor, will be lower. but
we see no immediate prospects of this result
as lar as the Telephone Company is con-
cerneds
The increased rates we are now asking are
based, III a measure, upon this hope. If the
present level of costs Of operation 90 high
er, through causes beyond our control the
proposed rates will not yield fair profit.
1t Is important to remember that no rate
for public utility is permanent. If condj
tons and prices so change in the future as
to make the rates we are now asking Weld
too high return, and if the Telephone Com
pany should not reduce. the rates voluntar-
lily, the Public Service Commission would.
Conditions as they are must be met. not
as they may or should be.
The highest and best interest of the pub
lie is conserved in having the Telephone
Company IN position to supply facilities ade-
quate to the demand for telephones and
service, and In this way be prepared to rem
der at all times an adequate service. No
community can 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 in 3
serylce-the Company's credit has disap-
peared. a7
With no credit the. Company cannot Sc
cure the millions Of dollars required to pro
vide the additions and. extensions 70 of its
plant, (which must be provided if the public
demand for telephones is supplied.
Respectfully yours,