Show n v inflation brings bequest Request for all rate bate increases jy the continuing effects of inflation neither he bust busi tion from nor the housewife has been dessman able ble to escape ese ape have caught up 1 nee ce more with utah telephone operations erat ions F D sawyer utah comme commercial mountain st states itte ot of the u Mai manager iager I 1 and telegraph company telephone alliss hs filed led an a application with the visit public service commission re 1 increased telephone rates the continually increased ito to offset arsts ats of doing business 14 some gome of the factors which have operating costs e are a gentral lf wage fage increase for 3 telephone Sel V elep ephone bone employed emp loyes the iacre increased ed 4 Savesti sv estment nent in equipment required 10 0 o serve erve each telephone and it elgh agh wr tr taxes I 1 the present federal and hate inco income in e taxes take about 64 51 tents ot of each additional dollar of levanue levi denue nue leaving 16 46 cents for the koin pany although previous requests tor for II 11 hie te changes have been made to ize ie public service commission dur ng 0 g the post war years because of h 8 n inflationary factors sawyer S awyer in com cot n benting en ag 0 on the application sal said bat at despite heavy expense increase 1 the company has still been able 11 jo 0 maintain the price of service at levels below the increase in cost b f living or wholesale price index 0 he also stated that the company hai as never been able to realize the level yet or of earnings found nc essary ll 11 ilind ud reasonable by the commission COmmISsiO 11 ii s demonstrated by the fact that average average earnings by the company a the past seven years when com buted on the rate base determined ty by the commission have barely exceed 5 percent this is less than the commission allowed and Is i substantially under the requirements the company believed reasonable po currently the company Is earning only about 4 the company has spent about 1 4 million billion a year in utah for new con it ruction during the years 1917 1947 albrough 1950 in 1951 the program increased to 5 million and la in 2 it will exceed 6 million ja awyer yer stated that an additional of about wco 8 million Is fe planned in 1953 it if sufficient mon t f c can a n b be 0 obtained from investors 0 fl finance n aric a program of that size it he stated that during the past the company might have haie limited construction construct lwi programs to evelt more consistent with its lags rather than to expand so 60 flolly as costs rose higher and eigher however the company elt it it had a duty duly to provide as bibich uch service as possible basically money for expansion of 0 telephone ePhone cl facilities comes from people eople who are willing to purchase he companas comp anys stocks and bonds HIB 0 money paid by telephone sub bribers tor for service Is used to pay luea as wages other operating ex elsea and a return to those who bo hive avs invested money in the busl ta Us to continue to attract the substantial amounts of new money eded sawyer stated that present vectors tors must be treated fairly lad ad the earnings of the company flint be sufficient to indicate to new investors that thu they will retire a reasonable return for the 1 I me w of their money without new neav pital expansion cant continue anat mt means longer delay in con 1 aming telephones and filling applications for a change from one we ina of service to another stew A new schedule of rates for or each atah ah community served by the fountan Oun nn tan antan states company a acom panted led the application if approved the increase in main rest resl elal telephone rates would not ed 6 cents a day and the maxi anum increase on main business te lephonia Phones lep honea would be 14 cents in I 1 gitany y communities the increase bould W be less |