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Show Telephone Firm Seeks Earnings Review Continued Increases in the cost of doing business emphasized by recent labor contract adjustments will result In the Mountain States Telephone Company asking the Public Service Commission to review re-view the company's earnings' situation sit-uation in Utah, Eric C. Asberg, general manager, stated today. Such a request is now being prepared. "The Telephone Company Com-pany is subject to the same economic eco-nomic laws as any other business," busi-ness," Asberg explained, "and earnings must be sufficient to keep the business finalcially sound. Utah's telephone require-ments require-ments continue to grow and it is important to the state that scr-vice scr-vice can be expanded to meat demands. To finance the increasingly increas-ingly large construction program, earnings must be at a level that will induce investors to place their savings in the business," he added. Expenses High The current expenditure for additions ad-ditions to the company's plant throughout the state is running about $30,000 a day at a total of 11 million dollars for this year with the 1936 requirements already al-ready in excess of this year's total. Costs of doing business have been pushed upward by increased prices for copper, steel, automobiles, automo-biles, buu'ding construction and materials used in daily operation for adding new facilities and replacing re-placing worn out plants. The earnings also ire adversley affected af-fected by now labor contracts just sicned after two months of col lective bargaining. Wages Equalized Asberg pointed out that the wage increases will continue to keep wages in line with those of other industries in communities where this company operates. Yearly wage contract negotiations negotia-tions in 1951 and 1933 both since the last rate adjustment was made in. Utah two years ago, have added about $900,000 to the wage bi,M in the state. About half of each dollar of telephone revenue is needed to meet payroll pay-roll requirements. These items are increasing the company's investment in Utah. Each telephone wlded today represents rep-resents an investment of $386, an increase of more than 76'r over the average investment of $219 from those now in service, Asberg said. |