Ottawa County news. (Port Clinton, Ohio) 1931-1956, 1948-07-09
N. 0. Telephone Company
Plans Biggest Expansion
In Its History

Subscribers of the Northern
Ohio Telephone company this
week received notices that the
company proposes to file an ap-
plication with the Public Utilities
Commission of Ohio for an in
crease in present local exchange
telephone rates.
William c. Henry, president
and general manager of the
phone company, stated that the
|, !ncreased rates are necessary to
aeet operationai expenses in
/ creased recently by pay raises to
employees and other increases.
In letter to the News, Mr..
Henry stated:
"As a result of new wage con-
tracts made with two unions re-
presenting the Traffic and Plant
department employees of this
company, and comparable in
creases to all other employees
who are not represented by these
unions, the annual wages of this
company will be increased effec-
tive July 8, 194S, in the amount
of STA, ,705.S1.
"Since 1910, the hourly wage
rates paid to employees of this
company hare increased 121 per-
cent, and total operating expens-
es, including materials and sup
plies which we purchase, have
gone up 1913 percent, both in
creases being more than double.
During this same period of
time, we have had a very sub
stantial increase in long distance
or toll revenue, and since the
war a large increase in number
of subscribers. However, this in
crease in revenue has been less
than S2 percent, or about half as
much as the increase in expenses
during the same period. As a
result, the latest increase in wage
rates to employees of this COM
pany makes it necessary for us
to request an adjustment in local
exchange telephone rates.
"The present local exchange
telephone rates for Port Clinton
were established July 1, 1927,
and have remained unchanged
since that date. In the interven-
ing II years the number of tele-
phone subscribers available with
in the Port Clinton Exchange
area for calling has increased by
almost one-third.
This company will request the
| Public Utilities Commission of
Ohio to fix a value upon the prop
erty of this company. The Com
mission will also be requested to
make an investigation of the in
come and expenses of this COM
pany, and to determine the
amount of revenue necessary In
order to maintain our company
in a sound financial position and
to attract the necessary new capi-
tai required for the largest ex-
pansion program in the history
of the company.
"The company then proposes
to file an application with the
Commission for specific rates bas-
ed upon the total amount of
revenue REQUIRED, and the class
and type of service and the size
Of the exchange.
"These rates will be only the
amount necessary to pay our
operating wages and other costs,
and permit us to furnish ade-
quate service to our communities.
Legal notice of the increased tele-
phone rates to be requested by
this company will be filed in
about a month.
"We believe that all subscrib-
ers of this company's service will
recognize the fact that telephone
service is about the only COM
modify or service which has re-
mained unchanged for period of
21 years, and that the Telephone
Company is effected by the same
factors that effect everyone else
in the community.
can adjustment in our ex-
change rates has been deferred as
long as possible. The new wage
rates paid employees beginning
July 8, 194S requires that steps
be taken Immediately to bring
our revenues in line with our
wages and other operating costs"