Daily capital journal. (Salem, Oregon) 1903-1919, 1906-04-28

amman report of the American Tele
nhone and Telegraph Company jus'
issued shows that there were 2,o2S,
v1s HslI telephone stations in opera
<fo, ~ the close of 1905, an in
~<~>.s Of over half million, or
4 llos,t IS per cent since the close OF
fhe rrcvious year. The total mileage
of wire In use for exchange and toll
serviee was 6,O43,51s miles, of which
over half a million and quarter
miles were added during the year. Dur
hing I he year the Bell companies spent
flor new eonstruction in exchanges and
toll lines 6,603,516 and for land and
buildines $4,177 1870, a total Of over
$50, ,000, 900, as against $31,6l9,10o in
1904 During the year the Bell com
panies handled total daily average
|of 1871, 900 connections, or at the
rate Of about ,479,5OO,0 900 a year, be-
ing "a telephone calls for each man.
woman and child in the United States.
The report states this is the 30th
year since the invention of the tele-
phone and the growth Of the business
has been greater than ever before, the
rate Of growth being accelerated by
the larger number of telephones in use
and the improvement of the service.
The Bell companies are not only stand
ardizing apparatus, but adopting uni
form methods of engineering, opera
tion and accounting which enable them
ito deal more efficiently with an infinite
humber of small units of service. The
combined experience of nearly 40
operating companies is being utilized
in meeting the needs of various com.
munities and in he solution of the
greatest of all problems, that of rates.
The average investment per station
has been reduced by means of sound
Engineering and construction methods
and the Introduction of new classes of
service Of less than average cost. There
has also been a reduction in the aver
age cost of operation per station and
because of these reductions the Bell
companies have been enabled to make
a marked reduction in their average
rates. AL the new money which comes
into the business is invested dollar for
dollars in the plant. At the present
time there is in use in the system not
less THAN 32O,OO0,0OO pounds of cop.
per wire, 100000 poles and $4,000, 900
feet of underground conduit. About so
|pcr cent of the exchange wire is in
cables and "a per cent of the exchange
wire is underground. The number of
officers and employees has increased to
|s7, ,212.
The American Bell system of the
United States now exceeds in number
of .subseribers mileage of wires and
the extent of traffic the telephone sys.
tens of Great Britain and continental
Europe combined. All the money re-
ceived by the American Telephone and
Telegraph company through the sale
of securities, with the exception of
that expended upon its own telephones
aud long distance lines passes into
the treasuries of the associated COM
|panies, in exchange for their securities.
In view of this the entire capitaliza-
tIon Including funded and floating debt
of All the companies, including the
American Telephone and Telegraph
company, is 1894, ,524,5 ,5s3, and the aver.
<se capitalization per station including
the total cost of toll lines is sl49, and
sxcluddng toll lines $l05. Against this
" is stated that the Independent com
panies are capitalized from $500 TO up
wards of $3.50 per station. In order
10 make a showing under their very
high capitalization these independent
companies purport to operate at not
over 90 per cent of gross revenue, while
the average cost of operation. of the
Bel companies is about 73 per cent,
Nhen their gross revenue of $780,.
t40 ,264 and their total expenses of
NJ. JIG, 795 there have been eliminated
kit items of revenue and expense ex.
sept those relating directly TO the tele-
phone business. The report says that
he competition of the two telephone
companies operating in the same field
: becoming more fully recognized as