Bogalusa enterprise and American. (Bogalusa, La.) 1918-19??, 1920-10-21
New Orleans, La.


New Orleans. La.
Dear SIR
Your letter of October 18TH asks very nat
ural question, and one which demands full and
frank reply, which I 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 tee-
phone company, or affect the expenditures nee
essary in the construction, maintenance and OPP
Grafton of the telephone plant.
The following classes of expenses constitute
more than ninety-five per cent of the cost OF
furnishing telephone service:
LABOR
More than fifty-five per cent of the total ex-
penditures of the Company in rendering service
are for wages and salaries; less than one-tenth
of one per cent of this being for executive and
The wages paid to cur employees cannot, and
should not be reduced. On the contrary, they
must be increased, in many cases. to bring our
wage scale on a level with wages paid by un-
regulated business, that we may retain our
skilled employees necessary to give you efficient
service.
MATERIAL AND APPARATUS
Many items of material and apparatus are in
volved in the current maintenance of the prop
erty, entirely apart from the enormous quanti-
ertY, and this represents large item of ex-
pense There has been no reduction, nor any
indication of reduction, in the price of these
essential articles, in practically all of which 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 increas-
ing demand and which in turn makes areduction
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 one million
dollars. No one expects the railroads to reduce
their charges under the level of costs in render
ing their service
Except in the larger centers our central Of
fices and stocks of material are housed in rented
buildings, and even in the larger centers we
rent varying amounts of properties.
Like everyone else, our rents have been greatly
increased, with no prospect of any reduction
Even in pre-war days all leases for property oc-
cupled by US 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 thou
SANDS OF dollars every year, and we can see no
prospect of the hotels lowering their charges.
Until they do we 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-
CicdIiy every year the rates charged by these
companies have been substantially in eased, and
there is no thought Of any reduction. The Tele-
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.
1hls item of expense has increased in percentage
more than the others, and no one has suggested
tnat 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 "a fire, and this is reflected in a
very large increase in the total insurance bill.