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INCREASED TAXES, WAGES AND COSTS
FORCE THE TELEPHONE COMPANY TO
REQUEST AN INCREASE IN RATES 4^5 * .if i * ■ ,v!v ' “■'I-; S- r:B: BsjK, an Application
with the State Corporation Commission fdr a generel itt-^
crease in exchange telephone-fates. This step has received deep
and serious consideration and we would like to give the public our reasons for this request. • ‘ • r • *' ;;
Present Rates Inadequate for Present Operating Co'sts • Vv; ' Vf Costs of operation have continued to increase. Because of .increased volufja V . of business and continuous unprecedented demand for .service,- the supply of .. materials and. equipment which go into telephone systems, has not yet caught *„ up .with the present requirements. This is in addition to a new demand tot' ‘ basic metals brought on by the Korean War and defense preparations. -As a >'• result, costs of materials and supplies have not leveled, off, but conUnu«|o rise. if... K'x>s..(;
Wages and Taxes are Substantial Items In Increased Costs “ *, - Wages represent our largest item of expense. In addition to,increased «ost* . resulting from negotiations with those representing Company employees, - cause of the large number of people employed by the Company, the new Minimum Wage and Hour Law has had a marked fupward).feffect on costs. . Effective January 1, 194P Income Taxes have increased from 88% .to 42% with._1__ provision for a further increase to 45%. effective January 1, 1951. Social Security taxes have increased 50 %. *4 | :¥:hi* :. .
50.5%