The Natchitoches enterprise., 1920-10-28
Taxes

Taxes
This expense, both Federal, State, County and
City, has increased every year we have been in
bust business; the increase this year being unusually
being reduced.
We do not pay any excess profit tax because We
have never carr I'd enough to be subject to that
tax.
Hg1';iirS3
Il Is ce,nn.cn h,,.s' a.. A.t the cost VI trr i
INK any kind Of bu;l.:: n.@, - Well As naki'E
alterations and repsirs, which constantly confront
the Telephone Company and which involve ma.
terial, labor. freight, and hauling, is euUr
mously higher plane than ever before. Insofar as
the cost of materials may be reduced will this
total cost be reduced.
The only way we :an furnish adequate facilities
for your use from year to year is hy nstructirR
the buildings III which to house the central office
apparatus in the larger centers: as well as enlar
ing existing buildings to the increased needs
and this work must he carried on from year to
year without delay. This involves hundreds Of
thousands of dollars in expense to the company
There axe. of course, many other items Of ex-
pense, ell 1T which at the highest level in
prices. ard none of which show any sign of reduc-
ton 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 analysed the
IRE upon 81 ticles Of With we make but little. it
any. use. Applied Ia tire telephone business ali
known reductions in prices would not reduce the
cost Of furnishing telephone service one-twcntieth
of one pS cent.
This many times Offset by the increase in
wages xhich. in many places. must make
during :, 2 current year.
Our PRESENT operating revenues are practically
equalled by our operating expenses. If the pres.
ent let down in general business continues for any
appreciable time we will lose . material part Of
the gross revenue now received, which will make
still higher rate necessary II deficit il avoided.
We are not asking higher rates for the SAME
SERVICE we furnished one, two or five years
ago. but for a much GREATER SERVICE which
we now furnish, consisting of facilities to add
many additional telephones to our system during
the past one, Two end FIVE years.
This fact should he considered when comparing
the increase in rates we ask with the increase in
the charges Of railroad. express and other public
utilities for the same quantity Ut service.
We hope. as every one does. that in the re'a-
lively near future prices and the costs of opera
.ion, except labor. will 10 lower. but we see
immediate prospects of this result Is far as the
Telephone Company is concerned.
The increased rates we are now asking are
based, in . measure, upon this hope. II the pres
ent level Of costs Of operation 70 higher. through
causes beyond our control, the proposed rates will
not yield fair profit.
Il is important to remember that no rate for
public utility is permanent. II conditions and
prices SO change in the future - to make the
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 Is 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
BE prepared to render 1t oil times IA adequate
service. No community can expand and grow
without adequate telephone service, which in turn
means adequate plant facilities.
With adequate returns upon the bare cost Of the
physical property already IN service--the Com
pany's credit has disappeared.
With no credit the Company cannot secure the
millions Of dollars required provide the additions
ana extensions Of its plant which must Be provided
II the public demand for telephones b supplied.
Respectfully yours
J. EPPS BROWN. President