The Republican journal. [volume] (Belfast, Me.) 1829-current, 1906-04-05
THE AMERICAN TEL. & TEL. co.
The Business it is Doing and its Methods
of Doing Business.

President Frederick P. Fish, in the
annual report of the American Tele-
phone and Telegraph Company just
issued, shows that there were ?, 52s, rs
Bell telephone stat ons in operation at
the close of 1905, an increase of over
half million, or about 25 per cent,
since the close of the previous year.
The total mileage of wire in use for ex-
change and toll service was 6,O43,51S
miles, of which over million and
quarter miles were added during the
year. During the year the Bell COM
panies spent for new construction in
exchanges and toll lines SAG, Cos, SIC, and
for land and buildings s4,177,390,
total of over fifty million dollars as
against s3l, 619,1O in 1904 During the
year the Bell companies handled a
total daily average of 1921, 900 con-
nections, or at the rate of about 4,47a.-
100000 year, being "a telephone calls
for each man, woman and child in the
United States.
The report states that this is the
thlrtleth year since the invention of the
telephone and the growth of the bust.
ness 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
standardizing apparatus but adopting
uniform methods of engineering, opera
ton and accounting which enables
them to deal more efficiently with an
infinite number of small units of ser
vice. The combined experience of near
y 10 operating companies is being
utilized in meeting the needs of various
greatest of all problems. that OF rates.
The average investment per station has
been reduced by means of sound Ell
gineering and construction methods
and the introduction of new classes of
service of less than average cost. There
has also been a reduction in the average
cost of operation per station. and be-
cause of these reductions the Bell COM
panies have been enabled to make Il
marked reduction i'll their average rates.
All the new money which comes into
the business is invested, dollar for dol
lar, in the plant. At the present time
there is i'll use i'll the system not less
than $40, 900, 900 pounds of copper wire,
5000, 1000 poles and $1,000, 900 feet of I'M
derground conduit. About 50 per cent
of the exchange wire is in cables and > I,
per cent of the exchange wire is under
ground. The number of officers and
employees has increased to S7,212.
The American Bell system of the
United States now exceeds in number
of subscribers mileage of wire and the
extent of traffic. the telephone systems
of Great Britain and continental Europe
combined All the money received by
the American Telephone and Telegraph
Company through the sale of its
securities, with the exception of that
expended upon its own telephones and
long distance lines. passes into the
treasures of the associated companies
in exchange for their securities In
view of this the entire capitalization. IN
Guiding funded and floating debt OF all
the companies. including the American
Telephone and Telegraph Company, is
S:}}::}4, 524, 5S3 and the average capitaliza-
ton per station, including the total cost
of toll lines, is $40, and excluding toll
| lines, Sl05. Against this it is stated
! that the independent companies are
| capitalized from 5000 to upwards of $500
| per station. In order to make show
ing under their very high capitalization
these independent companies purport
to operate at not over 80 per cent of
gross revenue, While the average cost
of operation of the Bell companies is
! about 10 per cent, when from their
gross revenue of 800, 40, 264 and their
! total expense of S74, 10, 795 there have
| been eliminated all items of revenue
and expense except those relating
ulleClly W tHe uSltpuOut DuSllltSo. 4 iC
report says that the competition of two
telephone companies operating in the
same field is becoming more fully
recognized as an economic mistake
from the standpoint of the investor and
the telephone using public.
In presenting all the essential facts
| regarding the company TIC the stock
holders, and through them to the public,
| the report gives not only a list of the
stocks and bonds Of the associated COM
panies owned by the American company
| but a graphic diagram of the growth of
the business, the facts regarding the
sale of 500 0OO,0O0 convertible bonds
and the policy and immediate purposes
of the management.
Mr.. Fish says that it is the duty of
the company to employ the best bust
ness methods, to adhere to their con
sentative capitalization, to continue to
establish and maintain the highest
practicable methods of efficiency and to
give every portion of the public as far
as possible the class of service it re-
| uuirpS at tha lowest rates cnnSjStpnt