The Waterbury Democrat., 1941-11-04

How the telephone Is playing an increasingly important role in the national defense program, and the possible effect of supply shortages on service in this state were dis cussed by officials of The Southern New England Telephone Company last night at a meeting in Water bury of more than 500 employees and members of their families from the Waterbury, -Torrington areas. H. 0. Knight, who will retire from the presidency of the company next month, was given Q rousing ovation by those present, many of whom have served with him since the turn of the century,
 In addition to MT. Knight, speak CTS included Allerton F. Brooks, vice. president and general manager, who will be the company'S next president, E, L. Simonds, vice-president, L. S. Rowe, assistant to the general audi tor, and M, A. Cattaneo, district commercial manager. Other com pany officials from New Haven also were present, A feature of the pro. gram was the company's new motion picture, "Connecticut AnSwersl," which portrays the big part played by a little state in making America the arsenal of democracy"
 Largely because more defense work is concentrated in Connecticut on a per capita basis than in any other state, except, one, there has been an unprecedented increase in demands for telephone service this year, Mir. Brooks declared in his address. He reported a gain of 5000 telephones this year and an increase of 100000 toll calls and 6S,000,000 local calls over l94o.
 Expenditures Grow
 The company is spending an aver age of $l000,000 Q month for new plant in addition to $l,500,000 Q month for operation and mainten- ance. However, material shortages make 1t increasingly difficult to meet service requirements and may soon force restriction on new service in certain parts of the state.
 Referring to mounting expenses, Mir. Brooks cited the increase in the company's Federal income tax from $i,o40,000 in i940 to an esti- mated $2,600,0o0 for i94l. Out of income this year, the company will pay in taxes of various kinds more than $s,7oo,000.
 In common with most industry, the telephone company is beginning to feel the pinch of the supply situation, MT Brooks pointed out. Defense items have the first call on copper, brass, zinc and many other metals used in making cable, switchinh apparatus and telephones, Despite the use of substitutes de- veloped by the Bell Telephone Lab. oratories, the demands of defense on the nations supply of raw ma terials threaten to result in q short- tage of telephone equipment for civilian use.
 The Western Electric Company, the Bell systems manufacturing unit, is producing nearly 100 million dollars worth Of communications and detector equipment and plotting and firing mechanismS for the army and navy. Orders for four or five times that amount are expected in the next two years, further reason, MT. Brooks explained, why telephone equipment will become Scarcer.
 Confronted by the greatest de. mands for service in the history of the business and the prospect of supply shortage, the company Is seeking by every possible means to avoid the necessity of restricting service, Mir. Brooks declared. Cur rent problems" he said in closing, "offer a challenge more serious than any the company has ever faced before, but am sure the telephone men and women of Connecticut have the courage and resouGcefuiness to meet the stern realities Of that challenge"
 Protect America
 BattleshipS, planes and armaments which for many countries are in. struments of conquest, are being produced by America to protect and develop "our Qod-glven and hard. won rights to liberty and freedom" Mr. Knight told his audience. Tt is that, purpose for which we should Do willing to work and fight to the last necessary degree.
 Except for those in the armed services, we haven't made many sacrifices yet. This situation will not continue, however. Already we are knowing the loss of American lives in sinkings at sea; we shall know more of this and we shall also know the heartacheS of employment dis- locations, the effects of folded bust. ness and the dearth of mary things which we have become accustomed to regard as essential No. we haven't yet had much challenge to sacrl. fice-but, if we are wiling to open our minds and our hearts to yeali. ties, there ls c challenge akin to sacrifices before Us right now. And that chalienke IA to Rnow oIir rAadi.