The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-11-07
THE TELEPHONE SITUATION
LET THE PEOPLE DECIDE.

LET The PEOPLE DECIDE.
}. Epps Brown. president % the
southern Bell Telephone and Tolc-
Eraph Company. has issued IN pam
phlet form q statement q the telo-
phone situation An Florida. watch
statement O. very comprehensive in
scope set nhorn OF unnecessary vcr-
hiagc.
one Of the main features ~ COM
paralivo statement showing gross
earnings. expenses and net revenues
~ the company In Florida. for the
years 1915 and 1918 Inclusive. from
which statement II appears that the
net earnings upon actual Investment
were a6g per cent On 1915 and Z ga
per cent ga 1919. Although The gross
receipts rrew each , ~ tho increase
cost Of furnishing telephone service
grew ln much larger proportion. The
Increase IN outg0 resulted mainly
from increa aes Ia costs OF material
and supplies. and IA greater proper
ton. the necessary increase Of pay 20
the workers.
President Brown emphasizes the
statement that the low dividends
shown are based upon costs ~ the
Investment. and not upon its replace
ment value. about double The pgr-
war cost. resulting la net revenue
Zoe 1913 ~ about ! per cent
on account Of the great war and
resultant conditions since the war.
affecting labor. supplies and finances.
the company u about five years be
hind iu tts building program In the
meantime the demand Tor telephone
ses stec haa grown more rapidly than
was normal before the war
rAo present situation appears Is beI
that in order 10 resume Is building
program. 10 provide me telephone
needs ~ the public. arEo sums OF
money arc necessary, which money
must be borrowed. az Ereatly ia
teroal rates
The president claims that the com
pany cannot secure the necessary
capital. not being able 20 show ~ its
operations on present basis. that the
interest viii be paid
The company now proposes 70 ask
the state railroad commission 60 con-
sent go sufficient increase n rates
% produce a fair return on lts iu-
vcstmcnt in justice to the stockhoid-
ers and as necessary requisite for the
~ appears that unless such increase
may ~ granted the ovcrcrowded con
ditioua must continue Indefinitely
and the present applicants for SER
vice. with others to follow. will have
% be denied
District Manager peele stated sew
oral days aEo that the number ~
waiting applicants in Pensacola then
exceeded four hundred
BE further stated that building
program for Pensacola had slready
been prepared. providtnG for oxpendl-
lures here a. follows So 600 % a.
1891. S22A000 90 In 1879. and Tor a five
year period beginning next year
stab.ooooo Including the preceding
items
This proEram includes the purchase
s. az eligible lot. erection o. an up
to-date exchange building recently
perfected type 81 central oflce equip
ment, and sufficient new lines. cables
etc. 90 take care OF the growing De
mand for service during a period %
years
The matter OF telephone service a.
81 80 great importance 20 the public
hat % should not be considered from
preiudtced ar unfair view
DtinJ corporations are bngreua
lions ~ individuals and are entiat a
tc such fairness and Justice as Isl
usually accorded 10 others
They Do not enjoy the freedom 81
action that the individual may oxer-
else. being under control of state and
national boards
The Telephone ComHAny has made
a plain. frank statement. pahlshod O.
IN the newspa pers Tor information %
THE public, believing IN the fairness ~
he public when iu possession % The
facts