St. Paul recorder. [volume] (St. Paul, Minn.) 1934-2000, 1946-12-13
Phone Company
Explains Need
For Higher Rate

~
For Higher Rate
According TO H. C. Nichols, dis
trict manager for the company, this
would be the first increase in local
service rates in 25 years. In 1889,
however, rates were substantially
reduced. Mr.. Nichols points out
that since 1921 the number Of St.
Paul telephones has more than
doubled, the area served at local
rates has been enlarged and the
service has been greatly improved
in speed and overall quality.
The company states that while
it has handled record volumes of
business and has had a IS per cent
increase in revenues compared with
1910, expenses Of providing serv-
ice have risen SO per cent over this
period.
Since 1910, the company's payroll
in Minnesota has gone up 1913 per
cent due to higher wages and to
an increase Of 60 per cent in the
number Of people employed. Pay
rolls for tho o6O Nortbwos,orn
Rail worL.rs in tho st.to or,ornt
to about twO-thirds Of the cost Of
prov;dino talanbops ssrvice En-
nIovea. ~ the cornonv in Minro
apoIis row npmber . ono
Co..s - ,,.torioI. ,o.o, J..
rrov;Jo .o,,i.o boyo ala i,,ro...J
greatIy TvpicoI ~ tboso hi,bor
costs are teIenboro noIos which
h.ys oons nm az D.r .or. ,oDoor
wire "a nor cent and .u;tcbhoards
az rsr cont
The comrarv ,ss.rts tho, its
earnings have baen iradsou.ta for
MANY ve.rs Ever With tbo tro-
nsrdons amount ~ brsiros. dur
inc the war eorriros drornod
steadily and waro Iower tbor Gov
any nreviops nsriod Sinco tho uor
sorriros boyo dooI;rod s,uI Frr,hor
and are rov ~ tho Iovost IovoI i,
the comp,rv,s bistorv-Ios. thor
two cents anpuaIIv on zach dollar
NJ nIart investment in Minnesota
The district m,rooor ovrIoirs
that everything possible ia heinz
dome IN expard facilities so tbat
the ssrvice naeds ~ all cr.tomors
cap he fpIIv mot This obiactive
includes additions N both anuin
mani and taIapbore coblos so tbat
installation reouosts con ho ,ot
,roun,lv Thee iroraosod toofi
tios aIso ara rssdod On ,or,,,;, Dro
visions of privote line service for
many psers now nm partv lines pbo
dasire a hatter grade ~ servico
Shortages Of raw materials needed
for telephone equipment manufac-
ture have limited the speed with
which IL has been possible to make
additions. About 20 positions of
switchboard were recently added
TO Twin City long distance facili-
ties, and the number Of long dis
lance circuits radiatinR to all parts
Of the country have been increased.
$50, OOO, 900 Improvement Program
Since 1910, the company's pay
roll in Minnesota has gone up 1913
per cent due to higher wages and
to an increase Of 50 per cent in
the number Of people employed.
r"yroI's LOT the '''oO Northwest
erh bell workers IN the state
amount to about two-thirds OF the
cost OF providing telephone serV'
ice. Employees of the company in
81 raul now number l'5Oo'
According to the statement is
sued by the company the pro-
posed new telephone rates are the
minimum necessary to meet in
creased costs Of furnishing service
and provide earnings sufficient to
enable the company to obtain at
reasonable terms the large amounts
Of money required to improve serv-
ice and meet telephone needs in
the communities it serves.
Proposed Rates
Following are the present and
proposed rates for principal classes
Of business and residential service
in the Twin Cities:
Residence ,prtva,s present proposed
line) ... ..... $500 $500.
Residence " party