The Donaldsonville chief., 1920-10-23
Atlanta, Ca, October 16, 1920.

New Orleans, La.
Dear SIR
Your letter of October 18th asks very nat
ural question, and one which demands a full and
frank reply, which am glad to make.
While the prices of great many things have,
apparently, been reduced, these reductions in
prices do not apply to articles used by the tele-
phone company affect the expenditures
sary in the construction, maintenance and opera
ton of the telephone plant.
The following classes of expenses constitute
more than nnety-five per cent of the cost of
furnishing telephone service:
LABOR
More than ffty-fve per cent Of the total ex-
penditures of the Company in rendering service
for wages and salaries; less than one-tenth Of
one per cent of this being for executive and
general salaries
The wages paid to employees cannot, and
should not, be reduced. On the contrary they
must be increased, in many cases, to bring
wage scale level with wages paid by un-
regulated businesses, so that we may retain our
skilled employees necessary to give you efficient
service.
MATERIAL AND APPARATUS
Many items Of material and apparatus are
involved in the current maintenance of the prop
erty, entirely apart from the enormous quanti
ties involved in the construction of new prop
erty, and this represents large item OF eX-
pense. There has been reduction nor any
indication of reduction, in the price OF these
essential articles, in practically all of which the
laor freight and hauling cost is by far the
largest proportion of the total cost.
We know that the manufacturers of telephone
equipment and material have orders booked for
two years in advance, with a constantly ncreas-
ing demand, and which in turn makes reduction
in price in the near future most improbable.
FREIGHT AND PASSENGER COSTS
Our annual expense for the transportation of
freight and passengers is more than mil
lion dollars. No expects the Railroads to
reduce their charges under the level Of costs in
rendering their service.
Except in the larger centers central offices
and stocks Of material are housed in rented
buildings, and even in the larger centers we rent
varying amounts Of properties.
Like every one else, our rents have been great
ly increased with no prospect OF any reduction.
Even in pre-war days all leases for property oc
cupied by us were renewed only at higher charges
than for the previous rental period.
HOTELS
The board and lodging bill for our men, who
must travel in connection with the operation and
maintenance of the property, costs many thousands
of dollars every year, and we can see no prospect
of the hotels lowering their charges Until they
do must pay the present high charges.
ELECTRIC POWER AND LIGHT
STREET CAR FARE
We spend many thousands of dollars every
year for these services rendered to employees en-
gagged in the maintenance of the property. Prac-
tically every year the rates charged by these
companies have been substantially increased, and
there is thought Of any reduction. The iele-
phone Company, like all others, must pay these
increased rates. .- ..
PAPER, PRINTING AND STATIONERY
We consume tons of paper for bookkeeping,
correspondence and directory purposes, and pay
many thousands of dollars for printing annually
This item of expense has increased in percentage
more than the others, and one has suggested
that any reduction in these costs is probable.
COAL BILL
The Telephone Company purchases coal IN
large quantities to heat the buildings occupied
by its employees in rendering the service.
We, of course, must pay whatever price Is
necessary to secure the coal for this purpose.
INSURANCE
Even where the actual rate per one thousand
dollars has not been increased, we are compelled
to carry larger amount of insurance than in
pre-war days in order to protect ourselves in
the reproduction of any of the property which
may be destroyed by fire, and this is reflected in
very large increase in the total insurance bill.