Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1920-10-21
Atlanta, Ca, October 16, 1920.

NIL '''''''''''' '''''''''
New Orleans, La.
Dear SIR
Your letter of October 18th asks very
natural question, and one which demands a
full and frank reply, which l am glad to
make
While the prices of great many things
have apparently, been reduced, these reduc-
lions in prices do not apply to articles used by
the telephone company or affect the expend
lures necessary in the construction, main
tenance and operation of the telephone plant.
The following classes of expenses constl-
tute more than ninety-fve per cent of the
cost of furnishing telephone service.
LABOR.
More than fifty-fve per cent of the total
expenditures of the Company is rendering
service are for wages and salaries; less than
one-tenth of one per cent of this being Tor
executive and general salaries.
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 unreguated businesses, so that we may
retain our skilled employees necessary to give
you efficient service.
MATERIAL AND APPARATUS
MANY items of material and apparatus are
involved in the current maintennce Of the prop
erty entirely part from the enormous ouanti-
ties involved in the construction of new prop
ertv. and this represents a LARGE item of ex-
pense There has been reduction nor any
Indication of reduction. in the rrice of these
essetial 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
continent and material have orders booked for
two wears in advance. with constantly in
creasing demand and which in turn makes a
reduction in price in the near future most i'm
probable.
FREIGHT AND PASSENGER COSTS
Our annual expense for the transportation
of freight and passengers is more than one
million dollars. No one expects the Rail
roads to reduce their charges under the level
of costs in rendering their service
RENT
ExceDt in the lager centers our central offices
and stocks of material are housed in rented
buildings and even in the larger centers we
rent varying amounts OF properties.
Like every one else. rents have been
greatly increased, with no prospect of any re-
ducton. Even in pre-war days all leases for
property occupied by were renewed only at
higher charges than for the previous rental
period,
The board and lodging bill for our men,
who must travel in connection with the opera
ton 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
wear 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 in
creased, and there is no thought of any reduc-
ton. The Telephone 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
nav MANY thousands of dollars for printing
annually This item of expense has increased
in percentage more than the others, and no one
has suggested that any reduction in these costs
is probable.
COAL BILL.
The telephone Company purchases coal IN
largo quantities to heat the buildings occupied
bv it's 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 thou
sand dollars has not been increased we are
compelled to carry larger amount OF lnsur
ance than in pre-war days in order to protect
ourselves in the reproduction of any OF the
property which may be destroyed by fire, and
this is reflected in a very large increase in the
total insurance bill.