The Brandon news. (Brandon, Miss.) 1892-1961, 1920-11-04

We do not pay any excess profit tax because
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, 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 mate
rails may be reduced will this total cost be
reduced.
The only way we can furnish adequate fa-
cilities for your use from year to year IS by
constructing the buildings in which to house
the central office apparatus in the larger CEN
tiers; as we'll as charging existing buildings
must be carried on from year to year without
delay This involves hundreds of thousands
of dollars in expense to the Company.
There are of course, many other items of ex-
pense, all of which are now at the highest lev
ell 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 anallzed the
advertised reduction in prices and find that
they are upon articles on which we make put
little, if any, use. Applied to the telephone
business all known reductions 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 which, in many places, we must make
during the current year.
Our present operating revenues are practl-
callv eaualled by our operating expenses II
the present let down in general business con-
tinues for any appreciate time we will lose
material part of the gross revenue now recelv-
ed. which will make still higher rate neces-
sary if deficit is ovoided.
We are not asking higher rate for the SAME
SERVICE we furnished one, two or five years
ago: but for much GREATER SERVICE
which we now furnish, consisting of facilities
add many additional telephones to our system
during the past one two and five years.
This fact should be considered when COM
pairing the increase in rates we ask Win the
increase in the charges Of railroad, express
and other public utilities for the same quantl-
ty of service.
We hope, as every one does, that in the rela-
lively near future prices and the costs OF ope-
rating. except labor, will be lower, but we see
no immediate prospects Of this result as Tar as
the Telephone Company is concerned.
The increased rates are now asking are
based, in measure, upon this hope. II the
present level of costs of operation go higher,
through causes beyond our control, the pro-
posed rates will not Yield a fair profit.
: It is important to remember that no rate Tor
a public utility is permanent. II conditions
and prices so change in the future as 10 make
the rates we are now asking yield too nign
return, and if the Telephone Company should
not reduce the rates voluntarily, 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 public
;s conserved in having the Telephone Com
nany in position to supply facilities adequate
t. the demand for telephones and service anu
in this way be prepared to render at all times
an adequate service. No community can eA-
nand and grow without adequate telephone
service which in turn means adequate plant
facilities.
With an inadequate returns upon the bare
cost of the physical property already IN ser
,yice-the Companys credit has disappeared
With no credit the Company cannot secure
the millions of dollars required to provide the
addition and extensions of it's plant, which
must be provided if the public demand for tel
I nphones is supplied.
Respectfully yours,
]. EPPS BROWN, President