Show Te e 4 Ask For 1 He p Meet It Costs Cs The continuing effects of inflation from which neither the businessman nor the housewife has been able to escape have caught up once more with Utah telephone operations F F. D. D Sawyer Utah manager of The 1 Mountain l States Telephone and Telegraph Company has filed an application with the Utah Public Service Commission requesting increased ased telephone rates to offset the continually increased sed costs of doing business Some of the factors which have I affected operating costs are ate a general general general gen gen- eral wage increase for Utah's telephone the increased investment in equipment required to serve each telephone and higher high high- er taxes The present federal and state income taxes take about 54 cents of each additional dollar of revenue leaving 46 cents for the company Although previous requests for rate changes have been made to the Public Service ce Commission during the post war years because of inflationary factors Sa Sawyer in commenting on the application said that despite heavy expense increases increases increases in in- creases the company has still been able to maintain the price of service service ice at levels below the increase in cost of living of wholesale price e indexes He also stated that the company has never been able to realize the level of earnings found necessary and reasonable by the commission as demonstrated by bythe bythe bythe the fact that average earnings by bythe bythe bythe the company in the last seven years when computed on the rate base determined by the commission commission commis commis- sion slop have barely exceeded 5 per perc c cent t. t This is less than the commission commission commission commis commis- sion allowed and is substantially under the requirement the company company company com com- pany believed reasonable Currently Current Current- ly the company s as s earning only about 42 3 The company has spent about 4 million a year in Utah for new construction during the years 1947 through 1950 In 1951 the program was increased to 5 million and andin andin in 1952 it will exceed 6 million mil mil- lion Sawyer stated that an additional additional additional addi addi- expenditure of about 8 8 million is planned in 1953 if sufficient sufficient suf suf- money can be obtained from investors to finance a program program program pro pro- gram of that size He stated that during the past few years the company might have limited these construction program to levels more consistent with its earnings rather than to expand so rapidly as costs rose higher and higher However the company felt it had hada a duty to provide as much service service service ice as possible Basically money for expansion of telephone facilities comes from people who are willing to pur purchase hase the company's stocKs and ana bonds The money paid by telephone subscribers subscribers sub- sub scribers for service is used to pay taxes wages other operating expenses expenses ex ex- expenses and a return to those who have invested money in the busi ness To continue to attract the substantial amounts of new money needed Sawyer stated that present investors must be treated fairly and the earnings of the company v must be sufficient to indicate to new investors that they will receive receive receive re re- re- re a reasonable able return for the Ute use of their money Without new capital cant continue That means longer delay in connecting connecting connecting con con- t telephones and filling applications applications ap ape ap- ap for a change from one type of service to another A new schedule of rates for each cach Utah community served by bythe bythe bythe the Mountain States company accompanied accompanied accompanied ac ac- ac- ac companied th the application If approved approved approved ap ap- ap- ap proved the increase in main mai residence residence residence resi resi- dence telephone rates would not five cents a day lay and the tile increase on main business business business busi busi- ness telephones would be 14 cents In many communities the increase increase increase in in- in- in crease would be less |