The chronicle-star. (Pascagoula, Miss.) 1920-1941, 1920-10-22
TAXES

This expense both Federal State. Countv
City has increased every year we have beeo ~
business; the increase this year being uousu,u.
high. There is no probability of this exnanso H..
ing reduced.
We do not pay any excess profit tax bacarso
have never earned enough to be subact -
that tax.
1t common knowledge that the cost Of erect
ing any kind Of building now as well as malin.
alterations and repairs, which constantly oon
front the Telephone Company and which involvo
material. labor, freight, and hauling is nm a.,
enormously higher plane than ever before Inso
far as the cost of materials may be reduced VIII
this total cost be reduced.
The only way we can furnish adequate facli.
ties for your use from year to year is by can.
structng the buildings in which to house the non.
trail office apparatus in the larger centers. a.
we'll as enlarging existing buildings to serve tba
increased needs, and this work must be carriad
on from year to year without delay This in
wolves hundreds of thousands of dollars in OK.
pense to the Company.
There are, of course, many other items If ey
in prices, and none of which show aleveSIIRDHR
pense, all ow hch 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 analyzed the adj
vertsed reduction in prices and find that they are
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 on operating expenses. If the pres.
cnt let down in general business continues for any
appreciate time we will lose a material part Of
the gross revenue now received which will make
still higher rate necessary if a 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
additional telephones to our system during the
past one two and five years.
This fact should be considered when compar-
ing the increase in rates we ask with the increase
IN the charges of railroad, express and other pub.
lie utilities for the same quantity of service
We hope, as every 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 are
based in measure, upon this hope If the pres.
ent 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
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 If the Telephone Company should not reduce
the rates voluntarily, the Public Service Commits
sion would
Conditions as they are 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 de.
mand for telephones and service, and in this way
De prepared to render at all times adequate ser
vice. NO community expand and grow with
out adequate telephone service which in turn
means adequate plant facilities.
with inadequate returns upon the bare cost Of
the physical property already in servce-the Com
panys credit has disappeared
With no credit the Company cannot secure the
millions of dollars required to provide the addf
tons and extensions of it's plant, which must be
supplied
Respectfully yours,
]. EPPS BROWN, President