The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1908-03-19
"A Report Of HalefeSt, Com
tanning Figures and Facts
is President Wallis.
ra
Policy Regarding Rates Dis.
CuSSed.
Features of Long Distance
Traffic Mentioned.

laltHi iUHUlOiI ANs Will HANNn n0lii
Interesting figures and discusses at
length several features of the tele.
lphone BUSINESS.
The business has shown constant
gain during the year. and at the close
there were 1888 900 stStlons connect
led to the system, with total of S,6l0.-
500 miles of wire The total number
OF exchange and toll calls for the year
was about 5,997 .O00,0O0 During the
year $52. 1921 400 was added to construc.
tit,n and in the past eight gears S35l,
S35,655 has been so added
At the present time there are out.
standing ,525,2S0 shares of stock of
the company 1,3t2,502 of which are
held by %. .453 stockholders. an average
OF less than Sc shares each, the bal
ance 2l277S shares bcigs held by rs
share holders. each with 5000 shares
J or over
AT the close OF the year a valuation
based on the replacement cost of the
existing plant. without any allowance
for franchises or for un armed incre.
ment, showed $iSS, S,2960O0. Against
this there were outstanding obligations
of the American Telephone and Tele-
graph company and its associated com
panies, including capital stock at par
i'm the hands Of the public of 1854 939,.
600 These companies also had cash
on hand quick assets and investments
of S101 .074000 so that the obligations
against the plant were only $453 $685.
GOO, or $34, ,43t 900 less than its ap-
praised value The book vaiue Of the
Exchange construction is STA per ex-
! 81, sd a. l, vol 1,t. f,f
all the property including the long DIS.
tance lines, is $i62 per station.
For the first time a statement of the
operating companies (that ~ those
companies which directly furnish the
telephone serviceD is given, with gross
earnings for the whole country Of
Si20,7 200, operating and general ex-
lpense OF S53,242,300 and maintenance
of plant s34, ,665,700 The balance
available for dividends was S25,Sl9,-
700. out Of which dividends amounting
to Sl9,206.l00 We're declared which
seems reasonabla when the value of
the plant Is considered.
President Vail calls attention TO the
exaggerated stories of the profits made
by early investors, and shows how
these stories. coupled with the general
business activity OF the last few years,
| have made It possible for promoters
to launch telephone companies pledged
to low rates for exchange service and
! high dividends to investors. Many OF
these companies are asking relief nom
the conditions they readily accepted
/ and for increased rates, and reorgani-
cations are now i'm progress. These
companies found that repairs and re-
construction, which with a new plant
are at a minimum, steadily increase,
and that many times while the plant
is growing rapidly these charges are
lost in construction Sooner OF later
these charges must be provided for out
of current revenue, aud If dividends
have been paid without first making
adequate provision for maint nance
there can only be an end in disaster
| Under these conditions il would seem
as II any gain to the public by compe-
titiou based on low rat IS has not made
mp for the loss OF capital invested.
The problem of rates and rate regu.
lation Is discussed az length, and It is
shown that the policy of the Bell com
panies in any controversy as to rates
is to make a complete showing OF the
cost aud value of plant and service
and that there is nothing TO CONCEAL
Fair rates are all that Is asked for
and the belief Is expressed that Will
fun knowledge of All the circumstances
the public will readily acquiesce IN
such rates Fair rates are defined as
those which maintain the plant ia a
Estate of high efficiency provide fair
wages for employees, give lair return
Ion money invested, and promise a iail
return on new money needed
Any revenue beyond these require
ments could. after allowing for propel
reserve, be Used for the benefit OF the
public but the company should be al
lowed TO retain part sufficient e
lstimulate the most efficient and eco
nomical management
AS regards public control in the alb
sence of competition the report SAYS
"a is not believed tnat there Is ans
serious objection 10 such control pro
vided il Is independent int slligent
considerate. thorough and just, rec0e
lnizing as does the Interstate Com
merce commission in It's report recent
ly issued that capital is entitled to Ii
fair return and good management o
enterprise 10 it's reward,
The value OF telephone service 10 thl
subscriber Is analyzed aud il is show
that while "A connection with the ex
change may be termed q convenience
for that subscriber il is a necessIt
for an other subscribers. II rs th
ability to communicate with other
which makes the exchange valuable
II IS the use Of other circuits than you
own. The value OF any exchange de
) penis on the area covered and thu
lmanmnm number Of desired individ
uals who can be reached and the meas
dre of the value depends upon the us
. az the exchange system as a whole
Rates must be 50 adjusted that no rat
shall bear unlustly on particular ~
divlduals or elassys. and that az som
rate connection with the exchange J
within reach Of anyone who can add q
} 1.-THE value 10 others OF the service. AM
lfhaf. as d whole. be- revenue shall b
enuuen 10 opsfHte aud maintain th
iplanf efficiently and give a suiilcicn
lfeiufn on the capital
ia diecatslns long distance aerylc
ireporf calls attention 70 the fact lha