Bogalusa enterprise and American. (Bogalusa, La.) 1918-19??, 1920-10-28
BUILDINGS

It is common knowledge that the cost Of erect
ing any kind Of building now, as well as making
alterations and REPAIRS which constantly con-
front the Telephone Company, and which in
volve material, labor, freight and hauling, is on
enormously higher plane than ever before In
solar as the cost of materials may be reduced
will this total cost be reduced.
The only way we can furnish adequate facili-
ties for your use from year to year is by con-
structing the buildings in which to house the cen
trail office apparatus in the larger centers; as
well as enlarging existing buildings to serve the
increased needs, and this work must be carried
on from year to year without delay. This in
wolves hundreds of thousands of dollars in ex-
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 none of which show any signs of
reduction 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 analyzed the
advertised reduction in prices and find that they
are upon articles of which we make but little,
if any, 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 dur
ing the current year.
equalled by our operating expenses. If the pres
ent let down in general business continues for
any appreciate time, we will lose material
part of the gross revenue received which
will make a still higher rate necessary if a de-
ficit is 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 and five years.
This fact should be considered when compar-
ing the increase in rates we ask with the in
crease in the charges of railroad express and
other public utilities for the same quality of
service.
We hope, as everyone does, that in the rela-
lively near future prices and the costs of opera
tion accept 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 a measure, upon this hope. If the
present level Of costs of operation go higher,
through causes beyond our control the proposed
rates will not yie.d fair profit.
1t is important to remember that no rate for
a public utility is permanent. If conditions and
prices so changed in the future as to make the
rates we are now asking yield too high a return,
and if the Telephone Compay should not reduce
the rates voluntarily, the Public Service Com
mission would.
Conditions as they are must be met not as
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 at all times an ade-
ouate service No community can expand and
grow without adequate telephone service, which
in turn means adequate plant facilities
With inadeccate returns upon the bare cost of
the physical property already in service-the
Comrary'5 credit has disappeared.
WIN no credit the Company cannot secure the
millions of dollars required to provide the add-
tions and extensions of its plant, which must be
provided If the public demand for telephones is
supplied.
Respectfully yours,
J. EPPS BROWN, President.