The aegis & intelligencer. [volume] (Bel Air, Md.) 1864-1923, 1907-05-03
Bell Tetephones.

President Frederick P. Fish in the an
nual report of the American Telephone
and Telegraph Company, which has just
been issued, shows that the Bell Tele-
phone Companies had a total of 3,O6S,-
1913 telephone stations in the United
States at the end of the year 1906, as
against 2,52S,715 stations at the close
of 1905. There were in use, for exchange
and toll service, 7,46S, 9O5 miles of wire,
of which 1858 937 miles were added
during the year, these figures not includ-
ing the mileage of wire operated by sub
license companies. In 1906 the Bell Com
panies handled daily average of &c.
100000 connections, or at the rate of
about 5,455, 100000 per year, being Ga
telephone calls for each man, woman
and child In the United States. There
was expended by the Bell Companies in
the United States for new construction,
including exchanges, toll lines, land and
buildings, $40, 366. $40, as against $780,
79O,9O6 in 1905.
The grand total of expenditures upon
the properties during the seven years be-
ginning with 1900 has been $29S, 914,-
255.
During the year the Bell Companies in
the United States offset the depreciation
which would otherwise have taken place
in the value of the lines and equipment
by expanding 1854, SOS for mainten-
ance and renewal of plant. This expen-
diture was independent of that for new
construction. 1t was made from the
earnings of the properties and was
charged to expenses. The report states
that as result of this expenditure the
plant is in a better condition than ever
before and could not now be reproduced
for less than $70,000,O 900 in excess gifts
cost. Year by year the plant is becoming
of more permanent character, and near
ly all of it now is of a type which need
not be replaced until it is worn out.
Throughout the country the business of
the Bell Companies is supported by
satisfactory plant, good organization
and good service.
President Fish devotes portion of the
report to a statement of the way In
which the growth of the system is being
provided for. He says that in the earlier
stages of the systems development 1t
seemed consistent with sound policy to
assume rate of growth not greatly in
excess of that then prevailing, but if, un-
der present conditions, buildings were
erected and central office equipment In
stalled sufficient only for the business In
sight at the time, it would not be long
before they became inadequate. In many
cases they could be enlarged only at an
expense altogether out of proportion to
the increased facilities gained. The same
Is true even to greater extent of the
line construction which connects the e1-
change with the subscribers stations.
For these reasons the Bell Companies,
particularly in the last year, have built
for the future as far as was consistent
with sound economy. They have pro-
vided for growth that Is sure to come
and have not limited their construction
to the business actually in sight. In line
with this policy Is the increased use of
cables upon pole lines, made possible by
improvements In the cables and securing
increased capacity, lessened interruption
of service and decreased maintenance ex-
pense. The extent to which the Compa-
MES have thus built for the future is
shown by the fact that $25, 100000 are
now invested in circuits in cable that are
not yet in use but all of which will soon
be In service. The report points out that
adequate provision for the future Is
made possible by systematic engineering
and that engineering of the kind now
characterizing the work is of great assist
ance to the Companies in meeting prompt
ly and satisfactorily the demand for
good service.
In reference to competing independent
telephone companies it is stated that, as
far as can be learned, they are, with few
exceptions, making no relative gain that
comparatively few competitive plants
have been established within the past few
years, and that investors are apparently
less inclined than formerly to place their
money i'll these undertakings.
In recounting the financial operations
of the year, the report says that the
GROSS revenue of all the Pel1 ComDanies
in the United States, taken as whole,
and excluding Implications, was over
$114, 100000. These figures do not in
clude the revenues of the Bell Company
of Canada or the Western Electric Com.
pany. Inspite of the abnormal financial
conditions, which involved unusualinter-
est charges, the very great investment in
construction, much of which did not be-
come revenue producing during the year,
and the high cost of labor and material,
the net returns from the business as a
whole were not reduced, although there
was not the increase which would have
been made if the conditions had been
more nearly normal. All things consid-
cred, the financial results were satisfac.
factory, and it is believed they will be
substantially better in 1907 than ia
1906.