The Waterbury Democrat., 1943-03-12
Dividend DeclaredB By
 S.N.E. Telephone Co.
Rising Emergency Expenses Reduce Profit Sharing; President Brooks Outlines Achievements of Year

New Haven, March 12.-Operating expenses and taxes, rising faster than revenues, reduced 1942 earn ing of the Southern New England Telephone company to $6.56 per share, against $7.S7 In l941, Presi- dent Allerton F. Brooks reported to stockholders through the com pany's annual report issued there to- day. The annual meeting of the stockholders of the company will be held on April 6.
 Operating revenues were up 13 per cent to $25,94599l, while oper- ating expenses, exclusive of taxes, rose 17 per cent to $l7,626,965. Tax es increased 23.5 per cent to $4,- 411,128. Dividends declared in l942 amounted to $6.50 per share, against $7 in 194l.
 War Adjustments
 MT. Brooks emphasized two facts brought into sharp focus as the company adjusted operations to a year of war"-first, the greatly in- creased demands for telephone serv- ice, and second, the ilnposSibility of meeting fully ordinary civilian re. quirementS in addition to war de" mands. Material limitations, he said, made 1t impossible to expand facilities sufficiently.
 The number of telep'-ones served by the company increased by 33,- 75O during the year to total of 455,SOS. Greater usage brought the total of calls to more than 100000 daily. The quality of ser- vice in general continued at high level despite the addition of in- experienced employees, although some calls to busy war centers were not handled as promptly as formerly during certain hours of the day.
 New construction consisted largely of projects carried over from 194l or started early in l942, Mir. Brooks stated, and no new construction prjects of any size were undertak- en as the year progressed. Gross additions to telephone plant totaled $7,445, TAP of which $l ,350,000 repre- sents the value of reused materials. The net increased intelephone plant was $4,2l8,565.
 Early in the year, the company postponed indefinitely a number of dial central office installations planned to replace manual equip ment, although new buildings had already been completed. Resi- dence customers were urged to take party lines rather than individual service, and to get along without extensions. Business subscribers seeking dial private branch ex- changes to replace manual switch boards were also asked to continue with existing facilities. These prac- tices were made mandatory by the War Production Boards General Conservation Order L-50, issued March 3, 1942, which limited new or additional exchange telephone service to places where line and switchboard facilities were already available. In conformity with these restrictions, MT. Brooks said. while all service necessary for the war effort is being provided, certain non- essential services are necessarily curtailed.
 Familiar Terms
 Salvage and conservation, terms familiar to telephone people even before the war, took on 8 new meaning. Reconditioned upright telephones were put back into use when the government stopped manu- facture of new telephones for civili- ans. Heating units in many tele- phone buildings were converted from oil to coal, saving nearly l. OOO, 900 gallons of fuel oil, or 96 per cent of the amount formerly used in a wear. Gasoline and tires were saved by reducing motor vehicle mileage.
 Military reasons prevent describ- ing special services rendered to the armed forces, the State Defense Council, and other governmental agencies, MT. Brooks stated, but they are numerous, varied and vitally important"
 To protect personnel and plant, and insure continuity of communi- cation in emergencies. the company has its own fully trained Air Raid Precautions organization of l.2OO employees. Over 900 telephone men and women completed first aid training courses. bringing the total qualified to 2,5O0 employees. The company had 348 employees, includ- ing six women in the armed forces and auxiliaries at the end of the year, and those at home were buy ing War Bonds at the rate of 10.5 per cent of the basic payroll as of Decmeber 31.
 At the years end. the company had 5,77T employees, of whom 2,ll8 wire men and 3.659 women. Increas- n, employment of women in war ii N ustries has made difficult the plNlem of o.ctaining potentially qualified telephone operators, and 1t was nsoassary to add and train l.