The Columbus dispatch. (Columbus, Miss.) 19??-1922, 1920-11-03

This expense, both Federal, State, County and
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 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 alter
atoms and repairs, which constantly 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 materials may be reduced will this total cost be
reduced
The only way we can furnish adequate facilities
for your use from year to year is by constructing
the buildings in which to house the central office
apparatus in the larger centers; we'll charging
existing buildings to serve the increased 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 ma
terialy reduced cannot reduce the COSTS of
furnishing telephone service.
We have carefully studied and analysed the
upon articles of which make but little if any,
use Applied to the telephone business all known
reductions in prices would not reduce the cost of
furnishing telephone service one-twenteth 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 practically
equailed by our operating expenses II the present
let down in general business continues for any
appTeclable time we will lose material part Of the
gross revenue now received, which will make
still higher rate necessary # deficit is avoided
We are 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 adj
dtonal telephones to our system, during the past
ore, two and five years
This fact should be considered when comparing
the increase in rates we ask with the increase in the
charges of railroad, express and other public
utilities for the same quantity of service
We hope, as every one does that in the relatively
near future prices and the costs Of operation except
labor, will be lower, but we see no immediate pros
poets OF this result as far the Telephone Company
is concerned
The increased rates we now asking are based
III measure, upon this hope. If the present level
OF costs of operation go higher, through causes
beyond our control, the proposed rates will not
yield fair profit
1t is important to remember that no rate for
a public utility is permanent If conditions and
prices change in the future as to make the rates
we are now asking yield too high a return and if
the voluntarily, the Public Service Commission
would
Conditions as they 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 demand
for telephones and service, and in this way be pre-
pared to render at all times an adequate service
No community can expand and grow without ade-
quate telephone service, which in turn means ade-
quate plant facilities.
With inadequate returns upon the bare cost Of
the physical property already in servce-the Com
panys credit has disappeared.
With credit the Company cannot secure the
millions of dollars required to provide the additions
and extensions of its plant, which must be provided
il the public demand for telephones is supplied
Respectfully yours,
]. EPps BROWN. President.