The herald., 1920-10-21
BUILDINGS


1t is common knowledge that the cost of erect
ing any kind of building now, we'll making
alterations and repairs which constantly
front the Telephone Company and which involve
material, labor, freight and hauling, is on an
enormously higher plane than ever before. In
sofar as the cost of materials may be reduced
will this total cost be reduced
The only way we can furnish adequate facili-
ties for your from year to year is by con-
structing the buildings in which to house the
trail office apparatus in the larger centers; as
we'll as charging existing buildings to serve the
increased needs, and this work must be carried
on from year 70 year without delay This in
wolves hundreGs of thousands of dollars in ex-
pense to the Company q
There are, of course many other items of ex-
pense, all of which are now at the highest level
in prices, and 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
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 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 practically
equalled by our operating expenses If the pres
ent let down in general business continues for
any appreciabe time will lose a material part
OF the gross revenue received which will
make still higher rate necessary if deficit is
avoided.
We are not asking higher rates for the SAME
SERVICE we furnished one two or five wears
ago; but for much GREATER SERVICE
which we now furnish consisting of facilities 70
add many additional telephones to our system
during the past one, two and five years.
This fact should be considered when compar-
ing the increase in 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 rela-
lively near future prices and the costs of opera
ton, 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 49,.
based, IN measure, upon this hope II the
present level of costs of operation 90 higher
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 conditions and
prices SO change in the future as to make the
rates we are now asking yield too high return
and II the Telephone Company should not reduce
the rates voluntarily, the Public Service Com
mission would
Conditions as they are must be met not as
they may should be-
The highest and best interest of the public il
conserved IN having the Telephone Company in
position to supply facilities adequate to the de-
mand tor telephones and service and in this wav
De prepared to render at all times an adeouate
service No community can expand and gov
without adequate telephone service which in
turn means adequate plant facilities
win IN dequate returns upon the bare cost of
the physical property already in serv;ce ~.
Companys credit has disappeared
With no credit the Company cannot secp-. ,b.
millions OF dollars required to provide the add
tions and extensions Of its plant, which must h.
supplied. !"
Respectfully yours
J. EPPS BROWN, President.