48-02 O - Southwestern Bell Telephone Rates (2U-
AN ORDINANCE
REGULATING THE RATES OF THE SOUTHWESTERN BELL
TELEPHONE COMPANY ITS TILE CITY OF PROSPER, TEAS
WHEREAS, the schedule of rates for telephone service
now charged in the City of Prosper has not been increased during
the past twenty-eight years, and
WHEREAS, during the same period of time the costs of
labor and materials have increased to the point where the revenue
produced from the current schedule of rates is no longer sufficient
to cover the increased cost of furnishing telephone service in Pros-
per, and
WHEREAS, the Telephone Company has applied to the City
Commission for relief from this condition by an adjustment of its
rates for s'rvice, and
WHEREAS, under the conditions, said proposed schedule of
rates appears to the City Commission x reasonable and just, and
necessary to insure continued expansion and improvement of telephone
service to the citizens of Prosper, and
'JHEREAS, the City Comiission recognizes the right of the
Telephone Company to earn a fair return on the fair value of its
property devoted to the rendition of telephone :ervice within the
City of Prosper,
NOW, TTIET3EFORE, BE IT ORDAINED BY THE CITY COMMISSION
OF THE CITY OF PROSPER:
Section 1: That the Southwestern Bell Telephone Company
is hereby authorized to place into effect on its first billing date
after the final passage of this ordinance, the following schedule
of rates:
Class of Service Monthly Rate
One Party Business Service $ 4.25
Business Extension Station 1.25
One Party Residence Service 2.50
Two Party Residence Service 2.25
Residence Extension Station •7
Commercial PBX Trunks 6.38
Commercial PBX Stations 1.25
Semi-Public Service(Guarantee) .12 per day
Authority to charge for miscellaneous services and equip-
ment the rates set out in the Schedule of Miscellaneous
Rates and Charges attached hereto and made a part hereof
is also granted,
b
4
-t — 2 -
r
Section 2: That nothing in this ordinance contained
shall be construed as in any manner, now or hereafter, limiting
or modifying the right and power of the City Commission under
the law to regulate the rates charged by the Southwestern Bell
Telephone Company for its service within the City of Prosper.
Passed and approved this the / Y- day of
1948.
i
/ 5
Mayor, City Commisssion
City of Prosper, Texas
ATTEST:
0 ty ecr ary
SOUTHWESTERN BELL TELEPHONE COMPANY
TEXAS AREA
SCHEDULE OF MISCELLANEOUS RATES
AND CHARGES
HRH BELL 4-1 Ay
BELL
SYSTEM C
ISSUED BY
W. L. PREHN, GENERAL MANAGER.
SOUTHWESTERN BELL TELEPHONE COMPANY
DALLAS. TEXAS
I
Original Sheet 1
SOUTHWESTERN BELL TELEPHONE COMPANY
TEXAS AREA
SCHEDULE OF MISCELLANEOUS RATES
AND CHARGES
Installation or
Rate per Month Move Charge
I. Key Telephone Systems.
1. No. 1-A Key Telephone Systems.
a. Pick up:—per station, per line $ .25
b. Holding:
(1) Per line equipped .40
(2) Per telephone equipped .25
c. Intercommunication:
(1) On premises:
(a) Per intercommunicating line 1.00
(b) Automatic signaling, one or two way .40
(2) Off-premises:
(a) Per central office line equipped 5.00
(b) Per off-premises extension telephone equipped,
including 3 way key .75
d. Cutoff:
(1) Manual, per telephone equipped .20
(a) Key and bell to be cut off located at telephone
involved, with no other feature at that location,
non-recurring charge $1.50
(2) Exclusion (Manual) per telephone equipped .20
(3) Exclusion (Automatic) per telephone equipped 1.00
e. Signaling:
(1) Control Units, per line:
(a) For non-continuous visual or audible line signals 1.00
(b) For continuous visual or audible line signals 1.25
(c) For busy lamps .75
(d) For combined line and busy lamp signals:
Common equipment, each .50
Per line equipped 1.25
(2) Local Signaling:
(a) Combined code and selective signaling unit .50
(b) Buzzers, each .15
(c) Push buttons, each .15
f. Telephones having access to intercommunicating line only:
Regular extension telephone rate and S.C.0
2. No.2-A Telephone Systems:
a. Loud Speaker set and amplifier unit 3.50 5.00
I
5
Original Sheet 2
Installation or
Rate per Month Move Charge
II. Mileage:
1. Excess Mileage:
a. Per station, per quarter mile or fraction
thereof, airline measurement:
(1) Individual line stations, PBX trunks,
ringing circuits, etc. $ .50
(2) Two party line stations .35
(3) Other party line stations .25
2. Extension and Tie Line Mileage:
a. Extension Lines: Regular Service
(1) Between points in the same building No Charge Connection Charge
(2) Between points in different buildings
on the same premises:
Per one-tenth mile or fraction Regular Service
thereof, airline measurement $ .40* Connection Charge
(3) Between points not in the same build- Schedule
ing, nor on the same premises, per
quarter airline measurement: A B C Regular Service
First one-quarter mile $1.00 $1.50 $2.00 Connection Charge
Each additional one-quarter mile .75 .75 1.00
*In connection with residence service,no
mileage applies for extension stations serv-
ing the same domestic establishment where
the building in which the extension is in-
stalled is within 150 feet (airline measure-
ment) of the building in which the main
station is located.
Rate per Month Per Terml-Schedule:f
b. Tie Lines: A B C
(1) Between points in the same building $1.00 $2.50 $3.50 ' $5.00
(2) Between points in different buildings
on the same premises:
Per one-tenth mile or fraction
thereof,airline measurement .40 2.50 3.50 5.00
Minimum monthly recurring charge 1.00
(3) Between points not in the same build- Schedule:f
ing nor on the same premises, per A B C
quarter airline measurement:
First one-quarter mile $1.00 $1.50 $2.00 2.50 3.50 5.00
Each additional one-quarter .75 .75 1.00
3. Foreign Central Office and Foreign Zone
Mileage: Rate per Month
a. Foreign Central Office:
First 1/1 mile or faction thereof, airline Regular Service
measurement $2.00 Connection Charge
Each additional 1/4 mile, airline 1.00
b. Foreign Zone:
First 1/4 mile or faction thereof, airline Regular Service
measurement 2.00 Connection Charge
Each additional 14 mile, airline 1.00
tSchedules apply as follows:
A. Exchanges under 10,000 company owned stations.
B. Exchanges with 10,000 to 50,000 company owned stations.
C. Exchanges with more than 50,000 company owned stations.
Original Sheet 3
Installation or
Rate per Month Move Charge
Per Terml-Schedule:t
4. Private Line Mileage. A B C
a. Between two points in the same building $1.00 $2.50 $3.50 $5.00
b. Between two points in different buildings
on the same premises:
Per one-tenth mile or fraction thereof,
air-line measurement .40 2.50 3.50 5.00
Minimum charge, per month 1.00
c. Between two points not in the same build- Schedule r
ing or on the same premises, per one- A B C
quarter airline measurement:
First one-quarter mile $1.00 $1.50 $2.00 2.50 3.50 5.00
Each additional one-quarter mile .75 .75 1.00
d. Additional points of termination in a Rate per Month
building in connection with a, b, or c
above $ .50* 2.50 3.50 5.00
*Per terminal,in addition to the regular$ .50
private line station rate.
e. Special low frequency signaling service
channels (0-15 cycles) :
(1) Between two points in the same
building .60 2.50 3.50 5.00
(2) Between two points in different
buildings on the same premises:
Each one-tenth mile or fraction
thereof, airline measurement .25 2.50 3.50 5.00
Minimum charge, per month .60
• (3) Between two points not in the same Schedule:t
building or on the same premises,per
one-quarter airline measurement: A B C
First one-quarter mile $1.00 $1.50 $1.50 2.50 3.50 5.00
Each additional one-quarter mile .50 .50 .50
(4) Additional points of termination in a Rate per Month
building in connection with (1), (2)
or (3) above $ .30 2.50 3.50 5.00
;Schedules apply as follows:
A. Exchanges under 10,000 company owned stations.
B. Exchanges with 10,000 to 50,000 company owned stations.
C. Exchanges with more than 50,000 company owned stations.
7
Original Sheet 4
Installation or
Rate per Month Move Charge
III. Miscellaneous Equipment:
1. Booths:
a. Standard type, each $1.50
b. Special types, each, rate based on Cost
2. Chest Sets:
a. Chest sets, complete with cord and plug, each .50
b. Chest transmitter, cord and plug only, each .35
3. Conference Equipment:
a. Manual type:
(1) Four jack equipment 3.50
(2) Five jack equipment 4.00
(3) Additional multiple appearances, each jack group .50
b. Dial type:
(1) Five station equipment 3.00
(2) Ten station equipment 5.00
4. Extension Bells and Gongs:
a. Extension Bell .30 $1.00
b. Extension Gong .40 1.00
5. Loud Speakers (Portable Equipment) :
a. No. 100 type speaker, 2 pos. key* 3.25 5.00
b. No. 100 type speaker, 3 pos. key** 4.50 7.00
c. Large type speaker (D-95507) 2 pos. keyf 7.50 15.00
d. Large type speaker (D-95507) 3 pos. key$ 9.50 17.50
*Minimum total charge for connections $12.00.
**Minimum total charge for connections $16.00
tRental for one week or less $5.00; minimum total charge for
connections, one week or less, $20.00; over one week$21.00.
$Rental for one week or less, $6.00; minimum total charge for
connections, one week or less, $23.50; over one week$25.00.
6. Key Equipment-Mul. Line (No. 100 Type) :
a. 3 line single sided key box 2.25 5.00
b. 3 line double sided key box 2.75 7.50
c. 6 line single sided key box 3.00 10.00
d. 6 line double sided key box 3.50 15.00
e. Line equipment, each, per line 1.50
f. Inter-communicating line, each 1.00
(1) Intercom. line key, each .50
g. Operator's set, each .50
7. Key Equipment-No. 101 Type*
(Full Secretarial or Non-Secretarial)
a. 10 Line Single Sided
(1) Initial Assembly 18.00 15.00
(2) Multiple Assembly 8.00 15.00
b. 10 Line Double Sided
(1) Initial Assembly 26.00 30.00
(2) Multiple Assembly 16.00 30.00
c. 20 Line Single Sided
(1) Initial Assembly 21.50 45.00
(2) Multiple Assembly 11.50 45.00
g
Original Sheet 5
Installation or
Rate ner Month Move Charge
d. 20 Line Double Sided
In. (1) Initial Assembly 33.00 60.00
(2) Multiple Assembly 23.00 60.00
e. 30 Line Single Sided
(1) Initial Assembly 25.00 75.00
(2) Multiple Assembly 15.00 75.00
f. 30 Line Double Sided
(1) Initial Assembly 40.00 90.00
(2) Multiple Assembly 30.00 90.00
g. 40 Line Single Sided
(1) Initial Assembly 28.50 105.00
(2) Multiple Assembly 18.50 105.00
h. 40 Line Double Sided
(1) Initial Assembly 47.00 120.00
(2) Multiple Assembly 37.00 120.00
i. Special Equipment:
(1) Line Equipment
Per Central Office or PBX Station Line 1.25
(2) Private Line Termination
%s► Ringdown, each .75
Automatic, each 1.25
(3) Intercommunication lines, each 1.00
*NOTES:
a. Rates shown include a desk or handset at each position.
Each side of a double sided assembly is considered as a
separate position. Regular charges for operator's chest
sets apply where installed.
8. Long Cords:
a. 9 foot cord 2.00
b. 13 foot cord 3.00
9. Paging Equipment-Code Calling Systems:
a. Code Sending Sets:
(1) Manual 1-A and 1-B Systems
10 Code 3.00 3.00
20 Code 3.25 3.00
40 Code 4.00 3.00
60 Code 4.75 3.00
Night service facilities .75
(2) Dial
100 Code (2-A and 2-B Systems) 6.00 50.00
125 Code (3-A System) 8.00 50.00
Additional talking paths 2.50
Switchboard appearance ,each path 1.25
Slow interval operation of signals .35
• Original Sheet 6
8
Installation or
(3) Signals Rate per Month Move Charge
(a) 1-A and 2-A Systems
4 inch bell,indoor .35 1.00
6 inch bell,indoor .40 1.00
10 inch bell,indoor .75 1.00
Horn, indoor .40 1.00
10 inch bell, outdoor 1.00 1.00
Horn, outdoor .75 1.00
Chimes, indoor
980 cycles .40 1.00
490 cycles 1.65 1.00
245 cycles 1.75 1.00
(b) 1-B, 2-B and 3-A Systems
3 inch bell,indoor .50 1.00
4 inch bell,indoor 1.00 1.00
6 inch bell,indoor 1.00 1.00
10 inch bell,indoor 1.15 1.00
980 cycle chime, indoor 1.10 1.00
490 cycle chime, indoor 1.65 1.00
245 cycle chime 1.75 1.00
Horn, indoor 1.15 1.00
10 inch bell, outdoor 2.00 1.00
Horn, outdoor 2.00 1.00
(c) For use in explosive atmospheres:
8 or 10 inch bell
Indoor 2.00 1.00
Outdoor 2.50 1.00
Relay control equipment 1.75 1.00
(d) Buzzer, indoor .50 1.00
10. Loud Speaker Paging Systems:
a. Transmitters
(1) Regular telephone type 7.50 10.00
(2) High Quality Type 10.00 10.00
b. Loud Speakers
(1) Cabinet Type 1.25 5.00
(2) Horn,trumpet type
(a) Moderate volume 2.50 7.50
(b) High volume 3.75 7.50
(3) Horn, fan type (high vol.) 3.75 7.50
(4) Horn,folded type 5.30 7.50
(5) Inside wiring 250 ft.per
speaker, each
Addn'l 50 ft.
$2.50
Ea.250 ft.
(6) Outside wiring .25
11. Patch Cords .25
12. Plug and Jack Equipment:
a. 4 conductor jack 7.50
b. 4 conductor jack
Conduit and outlet box furnished by customer 5.00
c. 8 conductor type 20.00
13. Push Buttons and Buzzers:
a. Push Buttons .15
b. Buzzers .15
c. Four Button Pad .30
d. An allowance of 300 feet of circuit (route measurement)
will be made for each set, consisting of one push button
and one buzzer or bell. For longer circuits, extension line
mileage, as specified in II-2-a, is applicable.
/0
•
Original Sheet 7
•
Installation or
Rate per Month Move Charge
14. Receivers:
a. Watch case type
Nor For use with desk sets .20
For use with hand sets .35
• b. Single type .30
c. Double type .50
15. Station Auxiliary Signals:
• a. Relay Control Equipment
(1) Non-Continuous Type 1.00
(2) Continuous Type 1.25
(3) Busy lamp control equipment .75
b. Signals
• ( 1 ) Buzzer .30 1.00
( 2 ) 3" and 4" bell .30 1.00
( 3 ) 6" bell .40 1.00
( 4 ) 10"bell, indoor .75 1.00
( 5 ) 10"bell,outdoor 1.00 1.00
( 6 ) Horn, indoor .40 1.00
( 7 ) Horn, outdoor .75 1.00
( 8 ) 10" bell and relay, indoor 1.15 1.00
( 9 ) 10" bell and relay, outdoor 2.00 1.00
(10) Horn and relay, indoor 1.15 1.00
(11) Horn and relay, outdoor 2.00 1.00
(12) 980 cycle chime and relay 1.10 1.00
(13) 490 cycle chime and relay 1.65 1.00
(14) 245 cycle chime and relay 1.75 1.00
`r (15) 14 type lamp indicator .40 1.00
(16) 15 type lamp indicator .30 1.00
(17) 16 type and 17 type lamp indicator .50 1.00
(18) 18 type and 20 type lamp indicator .75 1.00
(19) 21 type lamp indicator .30 1.00
c. Signals for Explosive Atmospheres
(1) Control Equipment 1.75 1.00
(2) 8" or 10" bell, indoor type 2.00 1.00
(3) 8" or 10" bell, outdoor type 2.50 1.00
16. Switchboard Buzzer Cutout:
a. Foot operated, each .30
17. Switches-Magneto Exchanges:
a. Switch to cut in on two lines .25
b. Switch to cut out main or extension .15
c. Switch to cut out extension bell .10
18. Telephone Sets-Special Types:
a. Amplifier sets, each 1.25
b. Amplifier sets modified for direct conversation:
With desk stand transmitter, each 2.25
With microphone, each 2.50
c. Bone Conduction receivers for use with amplifier equip-
ment (charges in addition to charges for amplifiers) :
m► Without key .25
With key .40
d. Busy Test Cabinets, each .75
e. Elevator sets, each, charge based on Cost
19. Combined Type Handset with Ringer:
a. Cut-off switch in base* 1.50
*(Charge applied in addition to regular change or service connec-
tion charge.)
/1
• Original Sheet 8
Installation or
Rate per Month Move Charge
20. Outdoor Sets: Regular Service
a. Regular wall type $1.00 Connection Charge
Regular Service
b. Wall type, with hand receiver and transmitter 1.50 Connection Charge
c. Portable moisture proof set, equipped with: Regular Service
(1) Hand set 3.00 Connection Charge
Regular Service
(2) Chest set-single head rec. 4.25 Connection Charge
Regular Service
(3) Chest set-double head rec 4.50 Connection Charge
(4) Flexible cord-charge based on Cost
Regular Service
d. Special protected sets for use in explosive atmospheres 4.00 Connection Charge
21. Transmitter Cutout Switches:
a. Foot operated, each .25
b. Push-to-listen, or Push-to-talk sets, each .25
IV. Order Turret Equipment:
1. No. 1 Order Turret 2.50 $15.00
2. No. 2 Order Turret 20.00 100.00
Extra multiple jack, per additional line, per turret .25
3. No. 4 Order Turret, per attendant's key box 3.50 25.00
V. Private Branch Exchange Equipment:
1. Commercial PBX Systems:
a. Manual Servise
(1) Switchboards
(a) Cordless type
3x 7, per position 5.00
5x12, per position 7.50
(b) Non-multiple type
40 line, per position 12.00
80 line, per position 15.00
320 line, per position 20.00
(c) Multiple type*
Per position 35.00
b. Dial Service-Switchboard Systems*
(1) Switchboards
(a) Cordless, business type, per position 7.50 •
(b) Cordless,business or residence type, per position 10.00
(c) Non-multiple type, per position 25.00
(d) Multiple type, per position 45.00
(2) Selectors or Connectors,each 3.00
(3) Line equipment, each .50
(4) Power plant:
For 2 digit systems 25.00
For 3 and 4 digit systems 50.00
Regular Service
(5) Restricted stations, each .75 Connection Charge
c. Dial Service-Key Station Systemst
(1) Switching Equipment 20.00
(2) Key stations, in addition to regular extension station Regular Service
Cape rate .50 Connection Charge
(3) Relay equipment for lamp signals on key station or
keyless station lines, per relay .75
(4) Line pickup equipment .50
(5) Control key 1.50
(6) Dial station line terminal 1.00
*Minimum Contract Term-5 years.
;Minimum Contract Term-1 year.
.rz
•
Original Sheet 9
Installation or
Rate ner Month Move Charge
2. Hotel PBX Systems:
a. Manual Service
(1) Switchboards
(a) Cordless type
3x 7, per position $5.00
5x12, per position 7.50
(b) Non multiple type
40 line, per position 12.00
80 line, per position 15.00
320 line, per position 20.00
(c) Multiple type*
Per position 35.00
(2) Stations,each Regular Service
(a) In exchanges of 100,000 stations and over .75 Connection Charge
Regular Service
(b) In exchanges under 100,000 stations .60 Connection Charge
(3) Trunks
(a) The hotel guarantees that for each trunk\rr con-
nected,the total message revenue accruing to the
telephone company each month shall equal the
monthly rate for one-party line business flat Regular Service
rate service Connection Charge
(4) Local messages, each
(a) In exchanges of 25,000 stations and over .04
(b) In exchanges under 25,000 stations .035
(5) Toll Messages
Established toll rates less 15%, except for messages
made by the hotel management or its employees, for
which established toll rates are applicable -
*Minimum Contract Term-5 years.
3. Tie Line Terminal Charges:
a. Between two dial systems or between a dial and a manual
system:
(1) Arranged both to select and to be selected, each 3.00
(2) Arranged or to be selected, each 2.00
(3) Incoming selectors for selection, each 3.00
b. Between two manual switchboards, each terminal No Charge
/3
Original Sheet 10
V
Installation or
Rate per Month Move Charge
VI. Wiring Plans:
1. Plan No. 100, per key .15
2. Plan No. 101, per key .15
3. Plan No. 102
a. Master station, each 1.50
b. Controlled station,each .25
4. Plan No. 107
a. Without holding feature, initial master station 2.50
b. With holding feature, initial master station 3.00
c. Additional master stations with holding feature .50
d. Additional cut-off circuits, each .50
5. Plan No. 108
a. Initial master station 3.50
b. Additional master stations, each .50
c. Additional cut-off circuits, each .50
6. Plan No. 110
a. Initial master station 1.25
b. Additional master stations, each .25
7. Plan No. 111
a. Initial master station 1.50
L b. Additional master stations, each .50
c. Controlled stations, each .25
8. Plan No. 150, per key .15
9. Plan No. 200
a. Initial master station 1.25
b. Additional master station, each .75
10. Plan No. 201
a. Master station 2.00
b. Controlled stations, each .50
11. Plan No. 202
a. Initial master station 2.00
b. Additional master stations, each .75
c. Controlled stations, each .50
12. Plan No. 203
a. Master stations, each .50
13. Plan No. 204
a. Master stations, each .50
14. Plan No. 205 •
a. Initial master station .75
b. Additional master stations, each .75
15. Plan No. 206
a. Initial master station .75
b. Additional master stations, each .75
16. Plan No. 207
a. Initial master station 1.25
b. Additional master stations, each .50
c. Controlled stations, each .50
/+f�
• r •
Original Sheet 11
Installation or
Rate per Month Move Charge
17. Plan No. 208
a. Initial master station 1.50
b. Additional master stations, each .50
c. Controlled stations, each .50
18. Plan No. 209
a.'Initial master station 1.50
b. Additional master stations, each .75
c. Controlled stations, each .50
19. Plan No. 210
a. Initial master station 2.25
b. Additional master stations, each .75
c. Controlled stations, each .50
20. Plan No. 211
a. Initial master station 1.75
b. Additional master stations, each .75
c. Controlled stations, each .50
21. Plan No. 300 1.25
22. Plan No. 400 .60 1.50
23. Plan No. 401 and 401-A .20 1.00
24. Plan No.4-A
a. Without holding feature .60 1.50
b. With holding feature .75 1.50
25. Plan No. 15-A
a. Switching equipment 7.00
b. Terminal equipment,per key station .50
c. Key stations, in addition to regular desk set rate, each .50
d. Busy lamp indicators, each .40
e. Buzzer key (4 button), each .30
f. Cable in excess of 150 feet in same building-rate based on Cost
g. Commercial power to be furnished by the customer
26. Plan No. 23-A
a. Switching equipment 9.00
b. Terminal equipment, per key station .50
c. Key stations, in addition to regular desk set rate,each .50
d. Busy lamp indicators, each .40
e. Buzzer key (4 button), each .30
f. Cable in excess of 150 feet in same building-rate based
on Cost
g. Commercial power to be furnished by the customer
�r► 27. Push Button and Buzzer Circuits:
a. Push button and buzzer equipment, including battery sup-
ply, is furnished installed and maintained by the Tele-
phone Company at the charges shown in III-13 above,
except in the case of Plan Nos. 15-A and 23-A, in which
case the key station charge includes buzzer equipment
b. In lieu of the above, the customer may provide and main-
tain his own buzzer equipment
R 4 '
Original Sheet 12
•
WI. Service Connections, Move and Change
Charges. Sch. Sch. Sch. Sch. Sch.
I II III IV V
1. Service connection charges (Non-recur-
ring) apply as follows:
Company owned stations in exchange or (From: 1 2000 10,000 40,000 Over
zone area: (To: 2000 10,000 40,000 100,000 100,000
a. Instrumentalities not in place:
(1) Business Main Stations and PBX
Trunks, each $2.50 $3.00 $3.50 $4.25 $5.00
(2) Residence Main Stations and PBX
Trunks, each 1.50 2.00 2.50 3.00 3.50
(3) Business PBX and Extension Sta-
tions, each 1.25 1.50 1.75 2.00 2.25
(4) Residence PBX and Extension
Stations, each 1.00 1.00 1.25 1.25 1.50
b. Instrumentalities in Place:
(1) At one location, regardless of the
amount of equipment involved,per
customer 1.00 1.00 1.25 1.25 1.50
2. Move Charges (Inside Moves) apply as
follows:
�,. (1) Stations moved, each 1.00 1.00 1.25 1.25 1.50
(2) Moves of other equipment and
wiring Cost Cost Cost Cost Cost
3. Change Charges apply as follows:
(1) Change in style or type of telephone
instrument, each 1.00 1.00 1.25 1.25 1.50
(2) Changes in other equipment and
wiring Cost Cost Cost Cost Cost
FORM S-9001-A /V
{ - i
SOUTHWESTERN BELL TELEPHONE COMPANY
J.N.WAS FIA50N 5 0 0 WEST CHESTNUT STREET TELEPHONE
DISTRICT MANAGER 683
DENISON, TEXAS
October 6, 1948
Hon. Mayor and Members of the City Commission
Prosper, Texas
Gentlemen:
The Telephone Company has been operating the Prosper exchange
for the past 28 years with rates that were established in 1920. When the
present rates were established in 1920, Prosper had 135 telephones in serv-
ice. Today, the telephone system has 110 telephones.
In recent years the Telephone Company, like all other businesses,
has been and is now confronted with the problem of rising costs for everything
required to furnish telephone service. Wages, materials, supplies, and equip-
ment of all kinds used in furnishing telephone service to the citizens of
Prosper and needed to modernize the service here have increased from 80 % to
200% over pre war costs.
,ter
This sharp up-turn in expenses and the increased investment in
the telephone plant here have resulted in the Company operating the Prosper
exchange at a loss over a considerable period of time. A statement of our
operating results for the last six. months of 1947 is attached, which shows
the results were as follows:
Revenues $1,140.00
Expenses 1,306.00
Operating Loss 166.00
Operating Loss on an Annual Basis 332.00
Investment as of 12-31-47 9,069.00
Per Cent Loss to Investment 3.66
We feel that this Commission must agree that no business can
operate for any long period of time at a loss and meet its service responsi-
bilities. Therefore, the Company is asking the City Commission for approval
of an increase in telephone rates. The monthly rates requested are set forth
in the attached suggested ordinance but for the principal classes of service
they are as follows:
•
r..F Business Telephone $4.25
Business Extension 1.25
One Party Residence Service 2.50
Two Party Residence Service 2.25
Residence Extension .75
f 4
-2-
In submitting this request for the approval of the
City Commission, the Company wishes to briefly review some of the
regulatory considerations involved.
The Legislature of the State of Texas has delegated to
the governing bodies of the cities in the State the power to regulate
the rates charged for telephone service rendered within the corporate
limits of said cities, that is, the local exchange operations.
The statement of operating results attached hereto covers
the Company's local exchange operations for the Prosper exchange
and is in accord with the principles of jurisdiction as granted to
the Commission by the Legislature.
The Company' s books are maintained in accordance with
the Uniform System of Accounts as Prescribed by the Federal Communi-
cations Commission since 1936, and by the Interstate Commerce Comm-
ission prior to that time. Heavy penalties are imposed for any
falsification of records.
No long distance property, revenues, or expenses are
included in the statement filed with the City Commission. The
separation between local and long distance operations has been made
4110 in accordance with the standard procedure for separating telephone
property, revenues, and expenses, as set forth in the Separations
Manual developed by the National Association of Railroad and Utilities
Commissioners and the Federal Communications Commission Special Co-
operative Committee on Telephone Regulatory Problems, issued October,
1947.
The Telephone Company has faith in Prosper and its
future. The modernization and expansion program proposed here would
bring dial telephone service to Prosper and extend the service to
about 120 families and firms in the rural area surrounding Prosper.
The program involves an expenditure of over $74,500 of new invest-
ment money in Prosper.
The money to do this comes, for the most part, from
people with savings who are willing to invest their funds in the
business. Investors will put their money to work in a, business
only when they have reason to believe it will be safe and earn a
reasonable and regular return. It is important, therefore, from the
telephone users standpoint, as well as that of the Company, that
the business take in enough money to cover expenses and have enough
left over to pay a reasonable return on the money employed in the
business. Without such assurance, the Company would not be justified
in proceeding with a program involving the expenditure of additional
large amounts of money, nor would the investor be justified or will-
ing to provide the funds needea to carry out a program of this magni-
tude.
-3-
The regulatory powers converred upon the City carry
with them a dual responsibility. It is the Commission's duty to
be sure that rates charged for service under its jurisdiction are
just and reasonable. Rates that are either too high or too low,
in the long run, are not in the best interest of telephone users.
Rates that are so low that they will not provide enough revenue
to permit the Company to meet its expenses with enough left over
to pay a reasonable return on the money investors have put to
work in the business can only result in the Company's being unable
to obtain the funds needed to expand and improve the service.
The Company assures the Commission that the rates,
as requested and as set forth in the attached form of ordinance,
are fair and reasonable and earnestly requests the prompt considera-
tion and ap)roval of the attached ordinance.
Res ectfuily submitted,
?1/14^ Y
istrict Manager
w
/8
SOUTHWESTERN BELL TELEPHONE COMPANY
PROSPER, TEXAS
STATEMENT OF EXCHANGE NET INCOME
FOR LAST SIX MONTHS OF YEAR 1947
AND
EXCHANGE PROPERTY
AS OF
DECEMBER 31, 1947
Sheet 1 of 4 Sheets
SOUTHWESTERN BELL TELEPHONE COMPANY
PROSPER., TEjAS_
SUMMARY OF BOOK COST OF EXCHANGE PPOPRTY AS OF
D MEMBER ;14 1947
EXCHANGE NET INCOME FOR
LAST SJX MONTHS YEAR 1947
ORIGINAL CCGT OF TELEPHONE PLANT IN SERVICE $ 8,649
THIS ITEM REFERS TO ITEMS Of PROPERTY SUCH AS LAND AND
BUILDINGS, SWITCHBOARDS, AUTOMATIC SWITCHING EQUIPMENT,
TELEPHONE INSTRUMENTS, POLES, WILE, CABLE, AUTOMOBILES
AND FURNITURE AND OFFICE EQUIPMENT.
MATERIAL SUPPLIES 304
THIS ITEM REFERS TO THE COST OF MATERIAL AND SUPPLIES
WHICH MUST BE KEPT ON HAND IY ORDER TO MEET CURRENT
OPERATING REQUIREMENTS.
CASH WORKING CAPITAL 116
THIS ITEM REFERS TO THE AMOUNT Of CASH REQUIRED TO BE
MAINTAINED TO MEET THE CURRENT DEMANDS Of BUSINESS AND
TO COMPLY WITH BANKING REGULATICMS•
TOTAL BOOK COST OF PROPERTY AS OF DECEMBER 31, 1947 $ 9,069
BALANCE NET INCOME FOR LAST SIX MONTHS YEAR 1947 (166)
BALANCE NET INCOME FOR LAST SIX MONTHS YEAR 1947 (ANNUAL BASIS)$ (332)
PERCENT BALANCE NET INCOME (3.66%)
THIS ITEM INDICATES THE PERCENTAGE RATE O/ RETURN
ON THE COMPANY'S, INVESTMENT AT THIS EXCHANGE.
( ) Indicates negative amount.
Sheet 2 of 4 Sheets
SOUTHWESTERN HELL TELEPHONE COMPANX
PROSPER, TEXA.5
STATEMENT OF EXCHANGE REVENUES AND EXPENSES
FOR
LAST SIX MONTHS Y.FaR 1947
THIS STATEMENT SHOWS THE EXCHANGE REVENUES AND EXPENSES APPLICABLE
TO THIS EXCHANGE AS SHOWN BY THE BOOKS AND RECORDS OF THE COMPANY
THE COMPANY HAS MAINTAINED ITS ACCOUNTS IN ACCORDANCE WITH UNIFORM
SYSTEMS OF ACCOUNTS PRESCRIBED FOR TELEPHONE COMPANIES BY FEDERAL
AUTHORITIES SINCE JANUARY I 1913 ORIGINALLY BY THE INTERSTATE
COMMERCE COMMISSION AND SINCE JULY, 1934 BY THE FEDERAL COMMUNI-
CATIONS COMMISSION.
LOCAL SERVICE REVENUES $ 1,134
TOTAL REVENUES FOR LOCAL EXCHANGE SERVICES.
MISCELLANEOUS REVENUES 8
REVENUES FROM DIRECTORY ADVERTISING, RENTS AND OTHER
MISCELLANEOUS SOURCES.
TOTAL $ 1,142
Less-UNCOLLECTIBLE OPERATING REVENUES 2
THIS IS TOE AMOUNT OF REVENUE BILLED TWAT CANNOT BE COLLECTED.
AS IN ANY OTHER BUSINESS SO IN THE TELEPHONE BUSINESS THERE 1$
ALWAYS SOME PORTION of THE REVENUE THAT PROVES UNCOLUCTIBLE.
TOTAL OPERATING REVENUES $ 1,140
MAINTENANCE EXPENSES 165
COST Of INSPECTION REPAIRS AND REARRANGEMENTS REQUIRED
DURING THE ►ER100 TO KEEP THE TELEPHONE PLANT IN GOOD
OPERATING CONDITION; CONSISTS PRINCIPALLY OF WAGES AND MATERIAL*
DEPRECIATION EXPENSE 189
PROVISION FEB THE ULTIMATE RETIREMENT OF DEPRECIABLE PROPERTY
AFTER IT HAS SERVED ITS USEFUL LIFE, BASED ON RATES FOR THE
DIFFERENT CLASSES OF DEPRECIABLE PROPERTY DETERMINED BY THE
EXPERIENCE Of THE COMPANY.
TRAFFIC EXPENSES 531
COSTS INCURRED IN THE HANDLING AND SNITCHING Of CUfTOMERS9
TELEPHONE CALLS; CONSISTS PRINCIPALLY OF OPERATORS NMES.
Z/
Sheet 3 of 4 Sheets
,5QUT#1YESTERN BELL TELEPHONE COMPAIJ
PROSPER. TEXAS
STATEMENT OF EXCHANGE REVENUES AND EXPENSES
LAST SIX MONTHS YEAS ;947
CCMMERCIAL EXPENSES 115
COSTS INCURRED It BUSINESS RELATIONS WITH CUSTOMERS,
INCLUDING COLLECTION OF REVENUES; ALSO PAY STATION
COMMISSIONS, COST OF DIRECTORIES, SALES ACTIVITIES AND
ADVERTISING.
GENERAL OFFICE SALARIES AND EXPENSES 59
EXECUTIVE, LAW ACCOUNTING TREASURY AND OTHER GENERAL
EXPENSES. ALSO INCLUDES COST or ACCOUNTING FOR AND MAILING •
CUSTOMERS' BILLS.
OTHER OPERATING EXPENSES 169
THESE EXPENSES INCLUDE TOE COST OF INSURANCE, ACCIDENTS
AND DAMAGES EXPENSE, OPERATING RENTS, RELIEF AND PENSIONS,
COST OF SERVICES RECEIVED UNDER THE LICENSE CONTRACT AND
OTHER MISCELLANEOUS EXPENSES.
•
OPERATING TAXES (Except Income Taxes) 78
TAXIS APPLICABLE TO THE PERIOD WHICH HAVE ALREADY BEEN
PAID OR WHICM WILL BE PAID WHEN DUE.
TOTAL EXPENSES (Except Income Taxes) $ 1,306
BALANCE BEFORE INCOME TAXES $ (166)
INCOME TAXES
OPERATIONS RESULTED IN DEFICIT - NO INCOME TAXES ASSIGNED.
BALANCE EXCHANGE NET INCOME $ (166)
( ) Indicates negative amount.
zz
Sheet 4 of 4 Sheets
The Company's accounts are maintained in strict accordance
with the Uniform System of Accounts for Telephone Companies as
prescribed by the Federal Communications Commission.
The foregoing figures have been compiled from the books
and records of the Company and necessarily include some apportion-
ments of common or general items in order to arrive at the Exchange
Net Income and Exchange Investment at Prosper, Texas.
Apportionments of common or general revenues earned,
expenses incurred and telephone plant used, for which methods have
• not been prescribed by the Federal Communications Commission, have
been made by the use of practical accounting methods considered by
the Company as giving equitable distribution of such items.
Auditor General Manager
Accounting Department
Dallas, Texas
September 2, 1948
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SOUTHWESTERN BELL TELEPHONE COMPANY
FEMUR. TEXAS
ADDITIONAL REVENUE NEEDED TO EARN A 6% RETURN ON INVESTMENT
Exchange Investment - December 31, 1947 $ 9,069
6% Return on Above Investment $ 544
LNet Income for Six Months Ended December 31, 1947 •
(Annual Basis) (332)
Additional Net Income Required to Earn a 6% Return After
Payment of Federal Income Taxes $ 876
Federal Income Taxes 287
Additional Gross Income Required for Federal Income
Taxes and a Net Return of 6% on Investment. $ 1,163
4111.,
( ) Indicates negative amount.
2•�
OUTHW`rSTERN BELk TELEPHONE CC&PANZ
PROSPER, TEXAS
,SUMMARY OF EXCHANGE PROPERTY AND NET ,INGAL
£PPLICATION OF PROPOSED RATES
Exchange Net Income for Last Six Months of Year 1947 - Annual Basis $ (332)
Increase in Revenues Frcm Proposed Rates 726
Total 394
Less Federal Income Taxes Applicable to the Above 121
Net Increase in Exchange Net Income After Income Taxes $ 273
Exchange Property as of December 31, 1947 $ 9,069
Percent Exchange Net Income
5.01%
( ) Indicates negative amount.