Carolina Telephone Rate Increase
Expected To Take Effect In April
A rate increase of $13.9 million
that will increase Carolina
Telephone and Telegraph Com
pany's local service revenues by
about 9.7??o annually was authoriz
ed by the North Carolina Utilities
Commission March 30.
Last August Carolina Telephone
applied for increases totaling S37.7
million, later reducing the request
to $34 million due to economic
changes which occurred after the
initial filing in August.
In February, a state Supreme
Court decision in a Southern Bell
appeal had the practical effect of
reducing the amount of Carolina
Telephone's requested increase to
S24.7 million.
The ruling, as applied to
Carolina Telephone, made it ap
propriate for the Commission to
include Yellow Page advertising
profits in determining the amount
of increased revenues needed by
the company.
The Commission's order did not
specify what the increase would be
for basic phone service but re
quired the company to submit
specific rates within the next 10
days under guidelines established
by the Commission.
Rates are expected to change
early in April, according to T.P.
Williamson, vice president - ad
ministration for the Tarboro-based
utility.
The Commission's order
authorized a 16.25 return on
common equity, that part of
Carolina Telephone's property and
investment that is represented by
stockholder investment.
The company had argued that a
higher profit level was needed to
attract money from investors to
meet its construction re
quirements.
The Commission partially sided
with the Public Staff's arguments
on how the company's capital
structure was calculated as well as
several other Public Staff recom
mendations on accounting for
revenues and expenses.
Williamson said, "Utility
ratemaking is very complex. As
Federal mandates and competition
continually change our industry, it
is becoming more complex every
day.
"I'm sure the Utilities Commis
sion in this rate tried to consider
the fast pace of change as well as
current economic conditions and
the interests of all concerned. Ac
cordingly, while we feel ( hat our
entire revenue request was
justified, we will continue to pro
vide good service and make every
effort to achieve reasonable earn
ings under the rates approved in
this case."
The Commission found the
quality of service provided by
Carolina Telephone to be ade
quate. The company's plans call
for spending approximately S88
million during 1983 for construc
tion due to growth, changes in
technology and the need to replace
depleted equipment and cable
facilities.
Carolina Telephone, the second
largest of the state's telephone
companies, serves about 583. (XX)
customers in 50 counties primarily
in the eastern half of the state.
The Tarboro-based company is
a subsidiary of United Telecom
munications, Inc. (UTI) of Kansas
City, Mo. UTI's United Telephone
System, of which Carolina
Telephone is a member, is the third
largest in the United States and
comprises 22 operating companies
serving 3,(XX) communities in 20
states.
So. National Stock Split Announced
The Board of Directors of
Southern National Corporation
recently announced a five-for-four
stock split payable June 30 to
stockholders of record on June 10
of this year.
The stock split will be the first
one since 1973. It is accomplished
by the transfer of some $2.2
million from capital surplus into
common stock.
Currently, there exists 1,719.907
shares of stocks in the Southern
National Corporation with 36,000
shares maintained in the corporals
treasury.
The split in 1973 was also a t'i\e
for-four. Prior to that split.
Southern National had paid a
stock dividend in 1972.
The split in June of 1983 will in
volve more than 4(M).(KX) shares.
Art Diehl Named Account Executive At Smith & Assoc.
Smith Advertising Associates
recently announced the appoint
ment of Mr. Art Diehl to the posi
tion of Account Executive at the
agency.
A 1982 graduate of East
Carolina University, Diehl receiv
ed a Bachelor of Science in
Marketing.
Prior ta his employment at
Smith Advertising, Diehl was
employed by WEED Radio in
Rocky Mount where he functioned
as an Account Executive.
Art Dichl is the son oi Mr
Philip A. Dichl of Ruelord. N.C .
and Sirs. Mary Ann lioucn of
Hope Mills, N. C\
Smith Advertising is a lull ser
vice agency specializing in resort,
financial, consumer and industrial
advertising.
Blue Cross Payments
Near $1 Million Here
Blue Cross and Blue Shield of
North Carolina paid benefits total
ing 597 1 ,704 to hospitals, doctors,
skilled nursing facilities, and home
health agencies in Hoke County in
1982, the not - for - profit health
service Plan announced today.
The amounts paid to doctors
and institutions in other counties
in the area were: Cumberland
$18.2 million, Robeson S9.9
million, Moore $17.3 million and
Scotland S4 million.
During the year, the statewide
health service Plan processed
4,616,560 claims for participants
in its regular Blue Cross and Blue
Shield programs, amounting to
more than $580.3 million in total
profits.
In addition, more than $689
million was paid through the
federal government's Medicare
program (Part A), which is ad
ministered by the Plan.
Through its underwritten and
administered government pro
grams combined, Blue Cross and
Blue Shield of North Carolina
serves approximately 1.8 million
North Carolinians.
* -rt CUSTOMER SERVICE
Dundarrach, N.C.
COMPLETE INSECT CONTROL
FROM THE HOME TO THE FARM
?Federal Crop Insurance
Route 1, Box 251-A Shannon, N.C.
Phone 875*8912
Lynn Ellis
Richard McMillan 875-2493 Nights 875-5614
NOTICE OF PUBLIC HEARING
The City Council of the City of Reeford, North Cerolina in
tends to epply to the North Ceroline Deportment of Natural
Resources and Community Development for Fiscal Year 1983
Community Development Block Grent, Community
Revitalization Funds.
The Community Development Block Qrent Program permits
a wide range of community revitelizetion ectivities to occur
within eligible areas. Eligible areas must meet low and
moderate income threshold requirements as specified in
progrem regulations. Eligible activities include: housing
rehebilitation through grants and/or loans; development of
perks; public facilities (weter, sewer, streets, curbs, gutters,
planning, etc.)
The City of Raaford will conduct a Public Hearing, April 11,
1963 at 7:00 p.m. in the City Council Chambers. City Hall,
located in Raaford. The purpose of this Hearing is to obtain
citizen input into the identification of community develop
ment needs and desired community revitelization activities.
This input will be incorporeted into the progrem design of
the Community Development Block Qrent Applicetion.
Ronald L. Matthews. City Menager
Business/Industry
wmmwmm* ? w ? - ? 3.^
Grand Opening
Jack l.anier, his family and employees cut (he ribbon at the Grand Opening of Jack 's Place on Main Street.
Monti with hamburgers and hot dogs Jack's Place serves a " Mexican fiesta" including tacos and burritos.
Interest Tax Repeal Foes
Putting Up 'Smokescreen
A "smokescreen of rhetoric" by
opponents of the movement to
repeal the IO?'o withholding law on
dividend and interest income
"obscures the basic fact that the
new withholding scheme isn't
necessary and won't do its intend
ed job." a savings and loan leader
said recently.
Bert A. Jones pointed out that
more than half of the U.S. Senate
and three-fourths of the House of
Representatives are sponsoring
legislation to repeal the
withholding proposal.
"Yet," Mr. Jones said, "these
majorities in both houses of Con
gress and the millions of
Americans who have sent cards,
letters and petitions, at a rate of
XOO.tXM) per day, calling for repeal,
are being denied the opportunity
for a definitive vote on the issue."
Unless repealed, withholding of
10% of all interest and dividend in
come will begin on July 1.
Jones, North Carolina Savings
and Loan League Chairman and
Chairman of First Federal Savings
and Loan, noted that the Senate
has agreed to debate the
withholding issue on April 15. But
no House hearing or vote has been
scheduled.
Both North Carolina Senators,
Jesse Helms and John East, are
sponsoring repeal legislation.
Each member of the North
Carolina Congressional delegation
has sponsored repeal legislation.
Jones said that more complete
IRS matching of 1099 information
form with tax returns and better
use of the IRS enforcement
measures would "solve the tax
compliance problem without
burdening millions of honest
American taxpayers."
"If the government would use
the tools already at its command,
the Treasury could capture nearly
all of the money it thinks it now is
missing because of tax cheats ?
and the rest of us would not have
to pay.
"It is grossly unfair for honest
taxpayers to be burdened by
withholding," Jones said.
"Congress should listen to the
people -- to the taxpayers -- and
repeal withholding on interest and
dividend income."
TWO NEW RATES ON HIGH-YIELD
INVESTMENT CERTIFICATES
FROM UCBf
2V 2 to VA YEAR INVESTMENT CERTIFICATE
10.50%?
$500 MINIMUM DEPOSIT
V/2 YEAR INVESTMENT CERTIFICATE
1 0.75 %
?
$500 MINIMUM DEPOSIT
APR
UNITED
CAROLINA
BANK
ucbj
We've made it easier than ever to earn high
yields on certificates of deposit. Both of
these certificates offer a guaranteed fixed
rate, with full FDIC insurance. Contact your
United Carolina Banker for details!
Substantial penalty for early withdrawal.
Member FDIC