The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1909-03-26
the AMERICAN TELEpnOnE AND !,
TELEGRAPH c0MPANY'S ANNUAL REPORT

proved perfected plant without wnicl
good service cannot be given
/ This statement of all companies alst
shows that there was divisible sur
Iplus after interest charges of the sys
tenn as whole, of $34 100000 of which
$2l 100000 only was divided anon:
shareholders, leaving undivided $4,000,
Qo0
i 1t wouid seem impossible to main
tain successfully any charge of ex
tortion when the shareholders of d
system of this importance and inagni
tude only divide between themselves
three per cent OH the total valuation
OF the plant. ea
| This represents the conservatism OF
the past in allowing the surplus earn.
ings to 80 into the plant instead of
being divided III the shareholders peck
cts, in this way creating a stability
and certainty which must be most
comforting to the shareholders.
Attention is also drawn to the fact
that notwithstanding the business de-
preston the business of the telephone
company shows an increase, not quite
so great as some years, but still an
increase.
Without any further comment, this
would show the mold that the business
has on the public, and warrants the
| statement contained in the report that
lit has become the nervous system of
| the business and social organization
| of this country'-a graphic simile Of
the relation it holds with the public.
Attention is called to the misleading
statements made by mistaken people
| for various reasons, all to the detri-
mrnt of property rights and public
benefit; and to the fact that the claims
of the Bell people that service could
not be given for some of the prices
or on the terms promised had been
proven by failures, reconstructions and
other troubles of the companies eX-
plotted on these promises. In other
words. the Bell authorities could not
be criticised or called antagonistic for
calling attention to the fact, that what
they claimed would happen, did happen.
Another feature of the business is
the wide dispersion of the interests in
the companies composing the system.
In the American Telephone and Tele-
graph company, with over 26,37O share
holders, holding an aggregate of 1884
7G6 shares, 26,2l3 held an average of
43 each, while there were l53 share
holders with an average holding of
2,l4O and shareholders holding a
total of III 900. '''
In these days of large concentration
of power, this certainly is unique
corporate situation; and whatever the
concentrated power or position of the
company in the field of operation, it is
still an aggregation of individuals self.
controlled.
Taking the associated and connected
companies together with the American
| Telephone and Telegraph company,
there are some 10000 individual own
erships-or nearly as many as there
$4,000 in the United States. If the
Bell of Canada and the Western Elec-
trio company We're included, there must
be l25,00O employees who are depend
ent on and contribute to the welfare
of the Bell system.
So far the Bell system as whole
has been considered. Taking the AM
erican Telephone and Telegraph COM
pany by itself, its showing must be
a satisfactory one to those interested.
Sl6.O00,0OO to over $lS,0OO,O00 while
after paving $l2,459,l56 in dividends,
against $lO,943,644 last year, an in
crease of $l,5l5,5l2 there remained an
increased surplus more than sufficient
as is stated, without any increase in
net revenue during the current year
to take care of any additional burden
which may be imposed by the CONVEX
sion of all outstanding convertible
bonds and still leave handsome sur
plus.
Another feature of the report is
that the company is financed to meet
all of its current obligations up tc
and including 1910, included in which
are $3l 100000 in short term notes OF
the American Telephone and Telegraph
company and of the Western Telephone
and Telegraph company.
In confirmation of the statement il
last years report that the Bell com
panies had nothing to. conceal ant
nothing to apologize for. the report
further calls attention to their eX
|perienccs of the past year with thu
Ipublic and public bodies, stating thai
frankness and candor on the part o
the Bell companies had been met witt
! appreciation and desire to ascertain
the real conditions and to meet then
fairly.
'IPOOR CROP OF LEMONS IN SICILY