The Donaldsonville chief., 1920-10-23

TAXES
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 probability of This expense
being reduced.
We do not pay any excess profit tax because we
have earned enough to be subject to that tax
BUILDINGS
1t is common knowledge that the cost of erect
ing any kind of building now as we'll as making
alterations and repairs, which constantly con-
front the Telephone Company and which involve
material, labor, freight, and hauling, is on an
enormously higher plane than ever before In
sofar the cost of materials may be reduced
will this total cost be reduced
The only way we furnish adequate facili-
ties for your use from year to year is by con-
structng the buildings in which to house the CEN
tral office apparatus in the larger seenters; as
well as enargng existing buildings to serve the
increased needs, and this work must be carried
from year to year without delay: This IN
wolves hundreds of thousands OF dollars IN eH-
pense to the Company.
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 are
materially reduced cannot reduce the COSTS
of furnishings telephone service.
We have carefully studied and anayzed the
advertised reduction in prices and find that they
are 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
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
eouaed by our operating expenses. lit the pres
ent let down in general business continues for
any appreciable time will lose material part
of the gross revenue now received, which viii
make a still higher rate necessary If a deficit is
avoided
We are not asking higher rates forthe SAME
SERVICE we furnished one, two or FIVE years
ago: but for much GREATER SERVICE
which we now furnish consisting Of facilities to
: 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 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 cost of opera
tion, 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. It the
present level Of costs of operation go higher
through causes beyond control, the proposed
rates will not yield a fair profit
It is important to remember that rate for
prices so change in the future to make the
rates we are now asking yield too high return,
and if the Telephon&C Company should not reduce
the rates voluntarily the Public Service Com.
mission would.
Conditions as they must be met, not as
they may 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
he q
service No community expand and grow
without adequate telephone SERVICE which in turn
means adequate plant facilities.
With inadequate returns upon the bare cost of
the physical property already in service--the
Company's credit has disappeared
With credit the Company cannot secure the
millions of dollars required to provide the addi-
tons and extensions of it's plant, which must be
provided if the public demand for telephones is
supplied
Respectfully yours,
]. EPPS BROWN, President.