Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-04-17
TELEPHONE TALK
MEANS MILLIONS
EVERY % PERSONS HAVE
HELLO BOX
WIRES REACH EVEN TO MOST
REMOTE HAMLETs
Valuable Stock Scattered Among Many
hareholders-Vast Army OF
Men and Women on
Payrolls


"The nervous system of the business
and social organization of this country
is the illuminating definition OF the
telephones relation to the public given
by President Theodore N. Vall OF the
American Telephone and Telegraph
company in his annual report just re-
ceived at the Los Angeles offices OF
the Pacific Telephone and Telegraph
company. That this is far-reachine
enough when applied solely to the Bel
system may be appreciated when IL Is
known that on January l, l9Oo, there
was one Bell telephone to each twenty
two of the total population OF the
United States-everybody, even TO the
most remote lamlets-while at the
close of 1908 the Bell system had q
total of 1854, 629 telephones connected
as against $4,000 on January l, 1908.
The report shows the American Te!e-
phone and Telegraph company ana its
associated companies, of which the
Pacific Telephone and Telegraph COM
pany is one, as one great system, maze
up of the local systems of the asso,
ciated companies, each doing It's par'
in it's particular territory-in providing
the facilities and operating the plant
while the American Telephone and
telegraph company binds them all to-
gether in one united whole, with 1ts
long distance lines and centrailzed
general management furnishing eacn
that assistance and cooperation which
all alike require, while not interfering
with any function particular to each.
In this way the Bell system has de-
veloped as one united whole, each part
supplementing the other, accounting
for the most wonderful of all the de-
velopments of the most wonderful IN
strument of public utility, convenience
comfort and necessity.
Worth Many Millions
The Bell system. that is the Amer
lean Telephone and Telegraph and as
ISOLATED companies in United States
and Canada, is for the first time shown
as a whole The figures are astonish-
ing. The gross valuation of plant,
working capital and working accesso-
ries is given as about $6S0,000, 600
while the outstanding obligations In the
hands of the public are given as about
$500, 900, O00 The public are only re-
auired to pay dividends and interest on
this 5000, 000,0 while they receive the
service of $680,000,000 of plant. This
plant, so far as any definite indepen-
dent appraisements are concerned, has
a replacement value OF considerably
above that amount.
A feature of the report Is the per-
manent nature of the plant as compared
with the temporary nature OF past
years. Iron wires are things OF the
past, amounting to only per cent OF
the value of the PLAINTIFF rest of the
wire being copper. Fifty-seven per
cent of the exchange wires, over 5000,
600 miles, are underground In per-
manent conGuits and 43 per cent on
poles. Four per cent of the total value
of this wonderful system is real estate
20 per cent Is underground condu1ts
and cables, IS per cent is copper wire
open and in lead covered cables on
poles. Office and sub-station equip
ment. or what nigh be called terminal
facilities, constitute % per cent OF the
whole.
1t might be argued that with this per-
manency the maintenance provision Is
excessive 1t is excessive only In thai
II provides against the unknown future
on the basis of the known past, ano
that whatever is excess is not wasted
but exists in an improved perfected
plant without which good service can
not be given.
This statement of all companies also
shows that there was Invisible sur
plus after interest charges of the sys-
TEN, as a whole, of $34,0O0,0OO, OF when
S21 600. 900 only was divided among
shareholders, leaving undivided 3d.
coo, 900.
Misleading Statements
Attention is called to misleading
STATEMENTS made for various reasons to
the detriment of property rights and
public benefit; and to the fact that
claims of the Bell people that service
could not be given for some or the
nrices or on the terms promised had
been proven by the failures, recon
structions and other troubles or the
exploited on those promises
In other words, the Bell authorities
could not be criticised or called an
tagonistic for calling attention to the
fact that what they claimed Woulo
happen did happen.
Another feature of the business is the
wide dispersion of the interests IN the
composing the system In
the American Telephone and Telegraph
company, with over $3.50 shareholders
holding an aggregate of 1,5S4I66 shares
26.213 hold an average of forty-tnree
each, while there were 153 shareholders
with an average holding of 2140 and
four shareholders holding a total OF
121 900. In these days of large con-
centration of power this is regarded as
a novel corporate situation; and what
ever the concentrated power OF positlon
of the company in the field of opera
tion 1t Is still an aggregation OF In
dividuals of self-controlled.
Taking the associated and connected
companies, together with the American
Telephone and Telegraph company
there are 10000 individual ownerships-
or nearly as many as there are tota
employees, which is given at $4,000 In the
United States. If the Bell of Canada
and the Western Electric company Were
who are dependent on and contribute
to the welfare of the Bell system.
Filipino Executed
WATJ,A WALLA, April 16.--Juan