New-York tribune., 1908-03-20
TEL. & TEL. PROFITS BIG
IN INCREASE OF So, ,621 ,61S.
Presidents Report Recommends
Public Control.

TIE annual report Of the American Telephone
and Telegraph Company for the year ended De-
,.-,be- 81 1907 made public yesterday, shows
-,e-s for the vear Of 47s.ceo. an increase of
q sci s1s over 1906. CThe income account and
s,s-aI balance sheet of the company were pub
rsbee IN The Tribune Of February 15o The re-
-c-+ shows that more persons Csed the telephone
= 1897 than in any previous year in the company s
history
The number Of telephones in use on January l.
-sas n the American Telephone and Telegraph
s,-s-sr7 was so35.535. increase OF 5os.24A over
70 nrsceding year The wire mileage IN the same
rios increased 1.14l,es7 and the daily average OF
Exchange connections about 1sl3o.ooo. a gain
:, nearly two millions over 1905 This Is at the
s.e ~ nearly SIX billions year and is equal 10
ssventv-fve telephone calls for every man. woman
and child IN the country.
theodore Y Vail. president of the company. IN
his report to the stockholders. makes declaration
~ favor Of public control Of telephone corpora
lions saving in this connection:
r IS ooutended that if there is be no competi-
lion there should be public control ~ Is no no' , De
C,fol provided IT is independent intelligent con-
Sidera;e. thorough and Just a. -oTt
ocefv issued that capital IS entitled TO ITS far
-et.rn and good management or enterprise 10 i's
reward
r, an argument against the duplication o.
-,4.,bora systems by two more companies op-
a~atIng in the same territory the president says
y there are two systems, neither OF mem mem
ss--i,e ALI Important USES must De cohnec'ssd
-,+l, both svster-5. Competitor win oliay ot
q onIv partial value and cannot De SATISFACTORY
he goes OF to say that TWO exchange systems
So ,re same community cannot be conceived OF
= . ,o--,srsnc7- nor the service be fur
- = an, material reduction because OF the
..s.5o- 90 return the investment ana
- ,.,.t-.s-anee are taken into account. and
-zs-- --r,,,rlicarfou Of plant Is waste 70 Ihe
+.o- p.plication of charges is waste 10
the user -. ...
=, aos-.+jonz Of the Bell Telephone COM
-5ae =, the United States, showing gross earn
5,r- of s120755.e0e an increase Of s15.3llsOo
60 -be rreceding year. and net earnings or
- So 7an as against s2T.5 600 in 1906 The
-,-s+s-,- exnenses for the same period increased
S. 855-sae.
IN regard 10 independent telephone companies
The report says:
The exaggerated stores Q, tLe --a+Lo- ~ 1EitI
m original telephone investors 1oSether VII
--+s1safi-C statements Of probable pror1s mace
- POSSIBLE 10 launch raty OF these companies
--AsEad 20 low rates for exchange service anu
--;.6 ~r7lafntenance' and reconstruction eX-
narsee either Intentionally or isnorantly dlSre-
ra-9ed. these companies had for lIle an aP-
9sa-7-~e of p-ospe-ftv The result EaS been IN
@o-r-naJe IN nearly every case; II would sl seeII-
a a whole. that the gain of the pubic through
-o-n-e1f15on based low rates has not com
penseted for the loss OF capital invested IN 'ese
The report calls attention TO the fact that
ne company has ii the last five years EXPENDED
about s. 50 eeo. 600 for maintenance and recon
s---5-tion and says that the plant now has a re-
riacernent value Of sass 100000