Evening star. [volume] (Washington, D.C.) 1854-1972, 1898-04-13
Mr.. BRYAN'S REPLY
President Of Telephone Company
Answers House Committee.
SHOWING OF ANNUAL EXPENDITURES
The Cost Of Actual Construction
in the District.
R E ORT IN ALL

The subcommittee Of the House appro-
priations committee, charged with the tele-
phone investigation, has received from
President Bryan of the Chesapeake and
Potomac Telephone Company a further
statement of the financial operations of
that company.
The additional statement covers four
years, ending December 81, 1897 and shows
expenses and earnings, income account,
profit and loss account, earnings and ex-
penses per telephone; actual cost of con-
struction to December 81, 1897; amount ex-
pended for construction from the date CT
purchase, August 1, 1883, to December 81,
1887, in detail; sources from which the
money expended for construction was OBJ
tanned; consideration for which the $780,
GOO Of capital stock was originally issued;
surplus account, in detail, for the years
1891 to 1897, both inclusive: dividends paid
the American Bell Telephone Company
from 1888 to 1897. both years inclusive, on
their stock holdings, and the number of
shares so held: rentals and royalties paid
the American Bell Telephone Company for
the years 1891 to 1897. both inclusive; tele-
phones in use and under contract December
81, 1897, showing rates and classifications,
and rates OF rental, per telephone paid the
feet December 81, 1897.
The AccOuntants' Letter.
The letter Of the expert accountants to
President Bryan, says in part:
The receipts from exchange service, as
shown by exhibit D, have averaged for The
past four years $lsO622.74 per annum, or
SIS. 06 per telephone and the total expenses
of the exchange service have averaged dur
ing the same period $129.015.50 per annum,
or 1904 per telephone. Other income,
such as private line rentals and extra
territorial and miscellaneous revenue, aver
ages for the period G.10154 per annum,
making the total average receipts $780,
124.2S per annum. or an average of S1O6S0
per telephone. The expense of the business
outside of the exchange service, to wit,
private line expenses rentals and royalties,
royalty on eXtra-territorial business mes
sages handled for the Western Union Tele
graph Company, and the proportion of all
other expenses, based on the proper per-
centage referring to this outside business,
average $7,2S9.44 per annum,. making the
Washington plant average for the four
years, $136, "a per annum, or $74 per
telephone.
Earnings and Expenses.
Earnings for the four years ending De-
cember 81, 1897: Rentals from exchange
subscriptions. Sill 4O3.5 receipts from 10
cal pay stations, 81 ,Os7.41; commissions on
long distance business, $1,920.02; commits
sions on messages collected for the West
ern Union Telegraph Company. $199.66; re-
ceipts from toll service 81 231.O5; extrater-
ritorial revenue, $26. 4O2.96; private line
rentals, $23, S56.S3; messenger service, $41.S0;
real estate, 500; commissions on messages
distributed for the Western Union Tele-
graph Company, $35.27; loop rentals. care
and Telegraph Company. $3,159.47; rental Of
attachments on poles and underground con-
dufts, $4O1. 81; moving telephones, 3,240.60;
profit on labor and material sold, $,216.S9;
total gross earnings, $IS6 S97.l3.
Expenses for the year ending December
81, 1897:
Maintenance-Salaries and wages, $11S-
5O5.11; rent, light and heat, 5,54225 ma
terial, $11O, 1854; travelling. $6.77512; con
Quit, pole and roof rental $6765s; insur-
ance, LOLA; damage and compensation,
$Iss.96; incidental. A,272.IO. Total MAIN
te1:ance expenses, $247, 93O.66.
observation-disclosures and wages, $54, 3S2 0S;
rent, light and heat, $S,S96.37; incidental,
4O4.93.
General-Salaries and wages, $4S,271.O3:
rent. light and heat. $3,696.26; real estate,
y, 20SS3; travelling, $5,513.4S: postage print
ing and stationery, $S.39S.7s: legal, $14,-
BOB 10; incidental. s6.6l95s. Total general
Rentals and royalties-Instrument rental.
American Bell Telephone Company, ex-
change, $50. 1925; instrument rental, Amer
lCdu Den Telephone company, private line,
$5.O19. II; royalty on extraterritorial bust
ness, $3,451. 30; royalty on messages han
died for the Western Union Telegraph
Company, $98.51; royalty on switch board
50 61O33. Total rentals and royalties, $685.
431.17. Total expenses, $40, 72S6; taxes
$1,234.71. Total expenses and taxes, $471,-
4O7.57. Net earnings, $315, 489.56. Per cent
OF expenses and taxes to total gross earn
ings, 59.9l
Income account for the four years ended
December 81, 1887:
Receipts-Net earnings, as per exhibit A,
$315. 4895 6
Dfsbursements-Bad accounts charged on
s., 1857 10; miscellaneous interest Washing
ton proportion figured on revenue basis
$6O79.17; fixed charges, interest on first
mortgage bonds, Washington proportion
two-ffths Of total charge. $32.O27 30; sink
Of total charge, $1,000; total, $73, 81. 20;
surplus from operations, c41,G77.36.
ProAt and Loss.
Statement Of profit and loss account for
the four years ending December 81:
Receipts Surplus from operations, as per
exhibit B. s241. s77.3e: toll tickets sold from
1855 to 1892 and not used. Washington pro-
PORTION. $55.74; premium ON bonds sold
100000 at 3 per cent. HO00-Washington
proportion. two-dfths, q. 200. Total $242,-
9S3. TO-
CharsesHCommission paid for selling
$4,000 Of bonds. per cent $3.50. Washing
ton proportion. two-1fths, $40; deprecia-
ton CHARGED Oh. 1850 .28 Total, $s4.2O1.2&
Balance. $16R 7Si.62
Dividends maid en cspitsl stoc,k-Two psr