The Madison journal. (Tallulah, Madison Parish, La.) 1888-current, 1920-10-23

City, has increased every year we have been i,
Business; the Increase this year bein glr.usLaiiy
hisn. lnere Is no probability OF this expense
beng reduced.
We 90 not pay any excess profit tax because
We nave never earned enough 20 be subject to
that tax.
Buildings
II is common knowledge Ihat The cost OF erert
ing any KIND or building now as well as MAKING
alterations and repairs, which constantly cor
front the !etaphone Company and which lnvo.ya
material, LABOR, freight ami hauline, is On an
enormously higher plane than ever before In
solar as the cost CT materials may be reduced will
this total cost be reduced.
The only way we furnish adequate facili-
Ties Tor your Use from year to year Is by con-
stiuctgn the buildings in which to house the CEN
tial ONCE apparatus IN the larger centers: as
Well as eniargIng existing buildings to serve the
increased needs, and this work must be carried
on 10 Eaye2r to year without decay. This in
wolves hunTaeds OF thousands Of Gouars In ex-
pense to the Company.
There are, or course, many other items of ex-
pense, al OF which at the highest level
Iii Prices, and none of which show any sign of
REDUCTION for fundamental reasons.
UntlI these necessary costs OF operation are
materially reduced We cannot reduce the COSTS
CT furnishing telephone service.
We have carefully studied and analysed the
ADVERTISED reduc Jon IN piecs and lind that they
ere upon articles OF which make bus little,
= 81 use. Applied to the telephone basriess
al known reductions in prices would net reduce
sne Cost u IG--.!saiaE te-aEaoGs service one
twentieth Of enc per cent.
ihss s may t:neS offset By the increase in
wages which, in many plcses, We must make d.
l4,s ;.e CafrCnt year.
CGrp resels Operating revenues are practically
eqra!ieq by cGf opera. ing expenses. If the pres
ent let down nge..eral business continues Tor
any appreciate tiEe we viii lose a materia! art
OF the gross revenue nCW received, which VII
MAKE still higher rate necessary II deficit is
AVOIDED.
We are act as'tfs hgher rate for the SAME
oAf.f ICE We t1rn'ihet CEe, two or five years
asp; but f3r a much GREATER SERVICE
which we new furnish, consisting OF facilities TO
odd maay additional TELEPHONES 10 our system
dtrilS the past Ore, two and five years.
his fact should be considered when compar-
lEg the increase IN rates ask with the increase
in the charges of railroad, express AID ether
public utilities FOR the same quantity Of service
We hope, IS everyone dces that IN the rala-
lively near future prices and costs foperation,
except labor, viii be lower, but we in
me1late prospects of this result as far IS the
Telephone Company is concerned.
The increased rates we are now asking are
based, in measure, upon this hope. II the
through causes beyond our control, the proposed
rates will not yield fair profit,
It is important TO remember that no rate for
public utility is permanent. If conditions and
prices so change IN the future as to make the
-ates we are now asking yield too high return,
Ind if the Telephone Company should not reduce
he rates Voluntarily, the Public Service Com
mission would.
Conditions as they are must be met, not as
hey may should be.
The highest ard best interest of the public is
conserved In having the Telephone Company in
'ositicn to supply facilities adequate to the de-
nand for telephones and service, and in this way
Re prepared to render at all times an adequate
ervice. No community can expand and grow
without adequate telephone service, which in
urn means adequate plant facilities
With inadequate returns upon the bare cost
Il physical property already din se-yiee-the
credit hsa disappeared.
with credit the COmDanY cannot secure the
lillions Of dollars required to provide the addi-
ions and extensions of it splant, which must be
rcvdied If the public demand for telephones is
uppied.
Respectfully yours,
j. EPPS BROWN President.