The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1921-06-29
LOCAL TELEPHONE COMPANY
GRANTED INCREASE TN RATES

Increase not rs Large as Company Re.
4ucstcd In Its Petition to the RniJ.
road Commission. Rate Goes Into
Eject July 1st.
By an order issued by the state rail
road commission June 3rd ana dcliv-
cred to the local company last wool,
'he haurcns Telephone Company is
granted an increase in rates of on
ProHlmafely 20 per cent Tho com
mission did not grant the full incroo.e
asked Dy the company, which amount
ea 10 about 40 per cent. giving n. ite
orihion that the company could oper-
ate with a reasonable profit under tho
schedule granted.
me full order Of the commission
which gives all details of the matter
is as follows:
Order No. 23i
June 3rd, 1921.
laurens Telephone Company,
Laurens, S. G..
On October 1lth, 1920, the Laurens
Telephone Company, through Mr.. w.
f. Richey, President, filed petition
with the Railroad Commission of South
Sarollna asking for an increase of
rates In the absence Of petition
signed by a majority OF the subscrib.
ers OF said telephone company the
commission ordered hearing to be
held In the city Of Laurcns, S. c., on
November 23rd, 1920, notice Of this
hearing being duly advertised accord
Ing to the law which requires publica-
ton Of svecial notice for four con
secutive weeks. The hearing was held
3t the time and place specified. The
HLaurens Telephone Company was rep
resented by Mr.. Richcy. while a good
~ number Of subscribers Of said COM
pany were present at this meeting.
The increase wac opposed at that
time by said subscribers, their contcn-
tion being based mainly upon the pro-
position that first Of all your financial
statement did not show at the time
OF the hearing an actual loss between
revenue obtained from service and ac-
tual operating expenses, but presumed
that loss would exist inside OF the
next six months. Another contention
advanced by some Of the subscribers
present was that this was not an op-
perfume time TO increase rates, and
especially such an increase as was re-
quested In petition Of said telephone
company, which meant forty per
cent. increase over the rates then and
now in existence.
The Commission has gong into this
matter thoroughly for almost eight
months, and has weighed the question
from every angle. 1t has required
additional information from the Lau-
rens Telephone Company, which has
amount paid for actual operating eX-
penses exceeds the revenue received
by said company from tn actual opera
ton Of the exchange. This has de-
velopcd within the past three or four
months and at present an actual deficit
between the two amOuntS-that Is to
say a deficit exists between the amonnt
paid ont and the amount received
and today the exchange is being opcr-
ated at an actual loss.
Where the records show that util-
ity Is undertaking to operate with a
greater amount paid out to maintain
the service than the amount received
for such service, it IAN be readily real
lied that the service, under these con-
ditions, cannot long continue. and
where such n state OF affairs exists II
does OF become necessary to take into
consideration the amount Of invest
mcnt, or what Is often referred to as
"watercd stock or other similar con
sideratiOn. The mere fact that there
Is not sufficient revenue beng taken
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