The weekly Iberian. (New Iberia, La.) 1894-1946, 1920-10-23

This expense, both Federal, state, CounIy ana
City, has increased every year we have been in
business; the increase this year being unusually
high. There is no probability of this expense be-
ing reduced.
We do not pay any excess profit tax because we
have never earned enough to be subject to that
tax.
BUILDINGS
II is common knowledge that the cost of erecting
any kind of building now, well as making alter
ations and repairs, which constantly confront the
Telephone Company and which involve material, la
bor freight, and hauling is on an enormously high
err plane than ever before. Insofar as the cost OF
materials may be reduced will this total cost be re-
duced.
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 as well as enarg-
ing existing buildings to the increased needs,
and this work must be carried 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 ex-
pense, all of which are at the highest level in
prices, and of which show any sign of reduc-
ton for fundamental reasons.
Until these necessary costs of operation are ma
terially reduced cannot reduce the COSTS of
furnishing telephone service.
We have carefully studied and analysed the ad-
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 twentieth of one
per cent.
This is many times offset by the increase in
wages which, in many places, must make during
the current year.
Our present operating revenues are practically
equalled by operating expenses. If the present
let down in general business continues for any APP
preciable time we will lose material part OF the
gross revenue now received, which will make a still
higher rate necessary if deficit is avoided.
We are not asking higher rates for the SAME
SERVICE we furnished one, two or five years ago;s
but for much GREATER SERVICE which
furnish, consisting of facilities to add many addi-
tona telephones to our system during the past one
two and five years.
This fact should be considered when comparing
the increase in rates 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, ex
cept labor, will be lower, but see immediate
prospects Of the result far the Telephone Com
any Is concerned.
The increased rates asking based,
in measure, upon this hope If the present level
of costs of operation go higher, through be-
yond control, the proposed rates will not yields
fair profit.
1t is important to remember that TO rate for
public utility is permanent If conditions and prices
so change in the future to make the rates we are
now asking yield too high return, and if the Tele-
phone Company should not reduce the rates volun-
tarily, the Public Service Commission would.
Conditions as they must be met, net as they
may or should be.
The highest and best interest Of the public IS
conserved in having the Telephone Company in POSI-
ton to supply facilities adequate to the demand for
telephones and service, and in this way be prepared
to render at all times adequate service No COM )
munity can expand and grow without adequate tee-
phone service, which in turn means adequate plant
facilities.
With inadequate returns upon the bare cost OF tne
physical property already in service-the Companys
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
if the public demand for telephones is supplied.
Respectfully yours,
j. EPPS BROWN, President