The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1920-10-29

ms expense, both Federal, State, County
and CITY, has increased every year we have been
IN business: the increase this year being unusual
~ high. There is no probability of this expense
being reduced.
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, as well as
making alterations and repairs, which constantly
confront the Telephone Company and which in
volve material, labor, freight, and hauling, is on
an enormously higher plane than ever before
Insofar as the cost of materials may be reduced
VIII this total cost be reduced.
The only way we can furnish ADEQUATE IA
cliitles for your use from year to year is by con-
structng the buildings in which to house the CEN
tral office apparatus in the larger centers; as well
as charging existing buildings to serve the in
creased needs, and this work 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
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 araIvzeS the
advertised reduction in prices and find that thew
are upon articles of which we make but little.
II 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 practi-
caiy equalled by our operating expenses. If the
present let down in general business continues
for any appreciate time we will lose a material
part Oh the gross revenues now received, which
"1l make a still higher rate necessary if a de-
felt is avoided.
We are not asking higher rates for the
SAME ERVICE we furnished one, two or five
years ago; but for a much GREATER SERVICE
winch we now furnish, consisting of facilities tn
add many additional telephones 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 in
crease IN the charges of railroads., express and
other public utilities for the same quantity of
service.
We hope, as every one does, that in the re-
iatlVe near future prices and the cost of opera
uon, except labor, will be lower, but we see no
immediate prospects of this result as far as the
Telephone Company is concerned.
The increased rates we are now asking are
based, in a measure, upon this hope. If the pres
eht ievei OF costs of operation go higher. through
causes beyond our control, the proposed rates
VIII not yield a fair profit.
1t is important to remember that no rate for
a pubic utility is permanent. If conditions and
prices so change in the future to make the rates
we are now asking yield too high a return and
IL the Telephone Company should not reduce the
rates voluntarily, the Public Service Commission
would.
Conditions as they are must be met. not 90
they may or should be.
The highest and best interest of the public
is conserved IN having the Telephone Comnanv
IN position to supply facilities adequate to ths
demand OF telephones and service. and in tbi.
way De prepared to render at all times an ado
quate service. No community can expand and
grow without adequate telephone service. which
IN turn means adequate plant facilities.
With inadequate returns upon the bare co.s
OF the PHYSICAL property already in service-th.
Company's credit has disappeared.
With no credit the Company cannot secur. .
the millions of dollars required to provide the
and extentions Of its plant. which mnst
De provided it the public demand for Telephone
is supplied. On1
Respectfully yours,
J. EPPS BROWN, President