The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-11-17
TELEPHONE COMPANY
ASKS 70 Per CENT
INCREASE IN RATES

A request Of the Richmond Home
Telephone company for an increase Of
about 90 per cent was the chief feat
ure of the board OF works meeting
Thursday.
Action on the request was deferred
by the board. pending consultation
with the city attorney. The city coun-
Gil will also be given a chance to ex-
press its views.
In case the increase is adopted, the
telephone company will go before the
public utilities commission to get the
approval of that body. ....
Increases in operating expenses and
the failure of prevailing rates to pro-
vide sufficient income to maintain eff
cient telephone service and furnish an
adequate return on the investment, are
the reasons assigned for the increase,
which is asked in the amended con-
tract The increases asked are as
follows:
Residence, four party line, % cents
per month.
Residence, two party line, % cents
per month.
Residence, private line, so cents per
month
Business, four party line, % cents
per month.
Business, two party line, so cents
per month.
Business. private line, 81 per month
The monthly charge for residences
on party line will be $1.75 and for
individual lines $3.50, and for bust
ness places or offices on party lines,
$3.50.
Would Start Jan. 1.
The petition asks that the new rates
be effective Jan. 1, 1922, and as soon
as there are 5000 telephones in use.
the company will be granted the right
TO charge an additional so cents n
month for each business and Office
telephone and 25 cents for each resi-
dence telephone, under the proposed
sliding scale providing for additional
charges as the plant increases in
size
The company proposes that with
each increase in excess of 5000 the
company will have the right to charge
80 cents per month for each business
or office telephone and % cents per
month for each residence telephone,
in addition to the basic rates proposed
which is on the same plan as the old
franchise.
The company has approximately 4,
900 telephones in use.
In 1920 and 1921 the company in
CURED deficit of S25,126,67. based
on figures covering reports for the
first six months of 1921
The increased expenditures, and Of
ficer of the company said, were be
yond its control, and were due to eco
nomic conditions
Say Costs Increased.
Operating costs" said an official
Of the company, have increased in
such proportions that the company
is forced to ask for an increase in
rates. But even with the new rates,
Richmond will be enjoying a cheaper
telephone service than other cities in
Indiana and Ohio, of the same size as
Richmond, and still they are operating
the old manual telephone system"
The company believed it would be
bic to continue without asking for
IN increase in rates, but has been
forced to take the step. Every utility
in Richmond, including the municipal
electric light plant, the water works
company, the gas company and the
were forced long ago to ask for in
creases, which were granted. The
cost of government also has increased
which is shown by the increase in
tax rate
Company officials said they had
practised every economy consistent
with good management in order to
avoid a deficit, but were unable to
keep the company in good condition
and to furnish efficient service to the
users without an increase in rates
Cannot Expect Cut
No substantial reduction in the cost
of materials and labor can be expect
ed, they said. because of an unprece-
dented turn in the telephone industry.
In the last two years, officials said,
the Bell Telephone company, which
hitherto had not used the automatic
system, began adopting the automat-
les This has created a tremendous
demand for automatic telephones and
equipment, which are manufactured by
only one company, the Automatic
Electric company of Chicago. The de.
mand for this equipment exceeds the
supply, and frequent engagements OF
the plant have not been able to meet
the demand.
This condition is also reflected in
The salaries and wages of men trained
in the art of automatic telephoning
which requires from four to five years
10 learn. AS there is a greater de-
mand than a supply of trained men, no
reduction in their wages can be ex-
peCted
Affected by Condition.
The local company, they said. has
been affected by this condition, as
has every automatic company whose
rates have not been increased to &
level where they can meet increased
operating and material costs
During the war period the telephone
company tried 20 keep from advancing
rates, even in the face of increases
n the cost of labor and material. and
maintained the rates set out in the