The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-05-13

1.-THE stockholders rather than a cost
| of furnishing service.
The statement furnished by the
Southern Bell to the railroad COM
mission contained only three items Of
revenue and nine items of expense.
These lump figures were not ex-
planned or analyzed and no attempt
was made to show how these gross
figures were arrived at
The new rates were requested on a !
plant investment figure as of Decem-
ber 31st, of $5,36S,000. Telephone
company witnesses testified that the
actual value of the property was
probably Lightweight per cent more,
making a total present value of ap-
proximately ten million dollars. Yet
the Company submitted sworn state
ments to the South Carolina tax COM
mission that the value of their prop
! erty in this state was only $685.
! 900 and were assessed by the COM
mission approximately forty-two per
cent of that figure or $1,353, 100000.
In other words it is apparent that
they have used one set of figures IN
assessing the public for revenue and
another set for tax assessment by the
state. And it should be remembered
that telephone companies are requlr-
ed to report one hundred per cent
values and that the tax commission
assesses only forty-two per cent OF
I such values. AS one illustration OF
the inconsistencies of their state
ments, it has been discovered that
the telephone company pays tax on a
certain lot in this state on the basis
of $4,000, whereas, the actual value
of the lot is between $4,000 and
$4,000.
One of the most serious changes
made by the telephoen company is the
discontinuance of direct inter-com-
munity service formerly furnished at
nominal cost and the placing of this
service on a long distance toll basis.
The whole economic and social life
of South Carolina is affected by his
change. Communities that were for
! merly in constant touch with each
other are now practically cut Dit by
slow and expensive service. The
whole fabric of the business life OF
some communities will be changed.
Instead of quick and easy commun.-
cation and the richest development OF
inter-community life, the whole pro-
cess will be reversed. The telephone
company estimates that this change
will produce small revenue to them
of 10000 and we estimate that
it will cost the people of South Car
olina in their progress and develop
ment hundreds of thou@nds Of dol
lars year. Will the people Of South
Carolina submit to an act of any cc:-
poration. however powerful it may be,
that will retard' the progress and de-
velopment of the state and our peo-
pie?
The rate increase asked by the tel
ephone company was not based on
experience of the past but was bas-
ed on their estimate of increased ex-
lpenses in the future. All of know
that, commodity prices have declined
tremendously within the last few
months. We know that labor costs
have seriously come down and must
decline further. We also know that
the operations of any company forI
the past year or two is no indication
of the ability of a company to earn
fair dividends over long period OF
time. We know further that in the
midst of a financial depression it is
ino time to increase the load of ex-
pense. Our people, who have suffer-
ed severe losses within the past year.
not only of income but of capital, are
unwilling to guarantee to any man or
set of men an unfailing dividend
through bad times as well as good.
The telephone company has not
been fair with the people South
Carolina. They carried out eXpen-
isive and costly propaganda through
the press and by paid agents to allay
popular feeling and explained in ad-
vance that the increases sought would
be negligible. They stated that they
were asking for less than five per
cent return on the investment. And
|vet we find that u. people of South
iCarolina will be forced to carry an
additional financial burden that Will