Daily Kennebec journal., 1925-05-02

meHt, nave Deen nIed with the Pubic
Utilities Commission at Augusta. The
rates affect the SO exchanges in the
State of Maine. In explaining the
new schedule, Manager Thomas
Stone OF the local exchange says;
THE new rates were established
after careful study Of all the ex-
changes In the state, with their vary
Ing classes of service, in order to
provide an average increase for the
State of approximately Is per cent
which Is urgently required. It has
been our endeavor to fairly appor-
tion the burden among subscribers
on the basis OF service value, SO as
to give us sufficient money for pro-
per telephone development. enable
us to furnish good telephone service,
attract new money from investors
with which to extend our business
by paying reasonable interest and
dividends.
.For rate purposes the SO ex-
changes in Maine have been divided
into eight groups and the same rates
for local service have been estab-
lished for all exchanges in q parti-
cular group. The classes of service
in the new schedule will adequately
provide for the varied needs of all
| telephone users.
obviously. business service is
more valuables to telephone users
than residence, and for that reason
the increases are relatively higher.
There are instances in the sched-
ule where subscribers, by taking a
different class of service, may be
served at little or no increased cost.
We shall be glad to talk matters over
with our subscribers, and there will
be ample time to do this. because.
while the new rates are supposed
! to become effective on June i, the
| suspended to give the Public Utili.
ties Commission opportunity to in
vestigate the. reasonableness Of the
new rates.
TT costs much more to give SER
Evice today than 1t did ten years ago,
yet the rate increases since that time
have increased the average revenue
| per telephone only Is per cent. One
dollar even with 10 cents added, will
not buy for us what the dollar of
ten years ago would, hence the need
of some equitable readjustment of
telephone revenue.
Nine years ago there were 2375
telephones In the Augusta exchange.
There are now over 1000. On the
score of the increased value to the
community alone, we would be, en-
titled to ask for an increase. When
the increased costs of giving SER
vice are also taken into account, the
needs OF increased rates are OBJ
vious.
THE new plant we. add to take
care of new subscribers cost twice
as much, on the average, as 1t did
prior to ten years ago. So does the
new plant put in to serve present
subscribers. replacing plant built at
pre-war prices.
"As consequence of all the ad-
ditional costs of providing service
the company has not fully earned it's
dividend during the past year, and
has had to dip into It's surplus for
part OF the dividend expense. This
may be justifable in an emergency.
but, Of course. 1t cannot continue
very long. Investors expect to be
paid for the use of their money,
just AZ employees expect to be paid
for their labor. Both of these pay
ments are proper charges against
the expenses of giving service and
should come out of the rates paid
by the users Of the service.
right. along, In order to provide SER
vice for new subscribers, and also
for present subscribers moving from
one location to another. Our con-
struction estimates for the State of
Maine Is over .$11. .500,O 900 for the
next Ave years. Before we can get
the new money necessary to expand
our service to meet this growing de-
mand. we must assure investors OF
our ability to pay for It.
1T isn't pleasant duty to ask
our subscribers for increased rates,
but We have the satisfaction of
knowing that we would have had to
do this three or four years ago II
all along we had not been able to
work out various economies, by i'm
provements in construction and in
operating methods, that partially
counter balanced the effect Of rising
costs. The time has come. however.
when 1t Is no longer possible to
maintain the necessary balance of
expenses and revenue without help
from subscribers in the form of in
creased rates"