The weekly Iberian. (New Iberia, La.) 1894-1946, 1920-10-23
Atlanta, Ca, October 16, 1920.

Mr.. Observation-Disclosures.
New Orleans La.
Dear SIR
Your letter of October 18th asks very natural
question, and one which demands full and frank
reply, l 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 telephone COM
pany, effect the expenditures necessary in the
construction, maintenance and operation of the
telephone plant
The following classes of expenses constitute more
than nnety-fve per cent of the cost of furnishing
telephone service:
LABOR
More than ffty-five per cent of the total expendi
lures 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 general sal
aries
The wages paid to our employees cannot and
should not, be reduced. On the contrary they
must be increased, in many cases, to bring our
wage scale on level with wages paid by unregu-
lated businesses, so that 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 property
entirely apart from the quantities invoiv-
ed in the construction of property, and this re-
no reduction nor any indication of reduction, in the
price of these essential articles in practically all OF
which the labor, freight and hauling cost is by far
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 constantly increasing de-
mand, and which in turn makes reduction in price
in the near future most improbable.
FREIGHT AND PASSENGER COSTS.
orr for tho .tranSnOrtatiOn Of
freight and passengers is than million
dollars No one expects the Railroads to reduce
their charges under the level of costs in rendering
their service.
Except in the larger centers central Offices
and stocks of material are housed in rented build
ings and even in the larger centers rent varying
amounts of properties.
Like every one else rents have been greatly
increased, with prospect Of any reduction. Even
in pre-war days all leases for property occupied by
us were renewed only at higher charges than for
the previous rental period.
HOTELS
The board and lodging bill for men, who
must travel in connection with the operation and
maintenance Of the property, costs many thousands
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 engaged in
the maintenance Of the property Practically every
year the rates charged by these companies have
been substantially increased and there is thought
of any reduction. The Telephone Company, like all
others, must pay these increased rates.
PAPER, PRINTING AND STATIONERY
We consume tons of paper for bookkeeping cor
respondence and directory purposes, and pay many
thousands Of dollars for printing annually. These
items of expense has increased in percentage more
than others, and no one has suggested that any re-
ducton 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 neces-
sary to secure the coal for this purpose
INSURANCE
Even where the actualsrate per one thousand dol
lars has not been increased, compelled to
carry larger amount of insurance than in pre-war
days in order to protect ourselves in the reproduc
ton of any Of the property which may be destroy
ed by fire. and this is reflected in very large in
crease in the total insurance bin.