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Show THE PAYSON CHRONICLE, PAYSON. U Telephone Company Files for Schedule of Rates Hew States central office equipment; MihinUiin and Telegraph Company building additions. The 1948 totaled 34,071,000. fiUd with the Utah Pub-- e 31 ; j.lV Commission at Salt lie new schedules of Lake City, increase its would which rates u s in Utah approximately oou a month as applied to the i $:2 present increase m net income after taxes a amount to $43,000 would j month. The application stated that the Company had expended lei gross construction in once the end of the war. $12,410,-00- 0 Utah This construction has increased the 43 per Conirrmys investment It provided cent m the state. 55 3;;ti additional telephones, an increase of 50 per cent, and 8,550 add.tional miles of long distance circuits, an increase of 39 per cent. Expansion of facilities in the state has resulted in an inExcrease of 730 .employees. construction for gross penditures J Day are equivalent to since more than half the total investment the Company had in Utah on January 1, 1946 which had built up over a period of 60 V-- years. Due to continuing demands for additional and improved service the Company stated that further substantial construction programs will be required. The 1949 program calls for $4,339,000. Some of the jobs are under way and, in the program for meiUu ed 1949 are 20.000 miles of wire in cable; 1600 miles of exchange circuits; 5700 terminals of dial ecuipment; 1445 lines of manual wire; 4,328 miles of long distance switchboard positions and 2 AMAZING j The application stated that the Company's expenses have in- creased much faster than reve-- ' nues. For example, labor costs which take about 56 cents of each dollar of revenue are now 268 per cent greater than in 1941 due to higher wage levels and more employees, while revenues have increased only 138 per cent. The last general wage increase which became effective in December, 1948 increased the Companys intrastate wage costs in Utah by $415,000 a year and this item alone absorbs more than two thirds of the revenue increase granted by the Commission last August. The cost of practically every- thing used for providing tele-- l phone service has increased sub-- J stantially. Some of the increases over 1939 prices mentioned by the company were poles, 73 per cent; copper wire, 107 per cent; cable 116 per cent; cross arms, 172 per cent; buildings over 100 per cent; and installers trucks 100 per cent. The Company stated that the investment per telephone will in- crease substantially in 1949 over 1948 because of the continuing increase in the cost of providing service. The depreciation ex-- I pense which is based on plant costs is therefore increasing rapidly. Earnings on 1948 intrastate operations in Utah were only 3 Vi per cent on the original cost of the property, according to the Company. Even if the rate in- - DISCOVERY few SCIENTIFIC GffllLS and flAUES RAID AT HOMS IN MINUTES WITHOUT crease granted by the Commission last August were applied to the full years operations in 1948 and wage costs effective in December, 1948 were applied to the entire year, the return would have been only 3.6 per cent. This figure is a reasonable indication of the present going rate of return. To continue its expansion and service improvement program, large amounts of new capital will be needed. Money received by the Company from its customers in payment for monthly telephone service is used to meet day to day expenses such as wages, taxes and other operating costs. Money for service to those whose orders are unfilled must come from new capital secured from the sale of company stock end securities. The Company states that the present low level of earnings will not attract investors to invest the additional capital needed. The Company pointed out the serious situation in which it is placed through the use of a past test period in determing future earnings when there is a delay in making the rates effective. It pointed out in the appliction that the Commissions order, in connection with the Companys request for rates early in November 1947, was not fully effective until September 1948, and since the finding was based on 1947 operations only, the result was that for the 20 months period, January 1, 1947 to August 31, 1948, the Company failed to realize by $621,000 the earnings requirements though reasonable by the Commission. The increases sought by the Company will vary for iadividual customers depending on the type of service they have and the exchange in which they are located. The Company pointed out in its application that telephone rate increases have been very moderate compared with increases since 1939 of 72 per cent in the cost of living; 88 per cent for new automobiles; 99 per cent for wearing apparel; 52 per cent for rail freight rates; 115 per cent for food costs, along with other examples cited. The Company feels that it is faced with an emergency and has requested early consideration of the application for increased revenues. FOREST SERVICE FILMS LIVESTOCK RESCUES All phases of the emergency livestock rescue operations in the west are being filmed for a "Report to the President." Richard forest sendee photoMosher, grapher is now working over southern Utah. 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We're serving twice aa many t telephones now as we were nine years ago. That means more jobs your tele- phone can do for you more people you can reach. The Mountain States Telephone & Telegraph Co. TERMS Easy-to-b- uy term to suit yowr budget during our promior Wait 'til you see this handsome sofa. Upholstered In contrasting covers and smartly tailored. Comfortable by day and night. Opens into a large bed. Exclusively at showing of nowost Simmons stylos. |