St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1909-04-07
Annual Report.
President Vail Gives the Facts and Fig
ureS of the American Telephone and
Telegraph COMPANY.

J A year ago when Theodore N. Vail pr
J. scented the annual report of the gre
corporation OF which he is at the head
was favorably received and widely cor
y nlented upon by the press of the countr
Such conservative paper as The Gu
/ look SAID it signihed new attitude
e corporations towards the public whe
the president of the company courte
publicity and explained so fully the bus
ness Of the corporation.
The annual report for 1908 is just il
sued ard in many respects is a notabl
document. During the year there ha
been an increase of 525, 629 stations i
the Bell system which now has 1864
629 stations. The daily average of to-
connections was about 463, 900, and c
exchange connections about 18,500
900. The toll lines between New Yorl
and Philadelphia, and between Chicago
and Milwaukee are laid in underground
conduits, and before long Boston and
New York will have the same connection
The earnings of the year show decid-
| ed improvement over 1907 as we'll as
over every previous year.
OF the relation of the parent company
company to associated companies the
president says: "The relations of the
American Telephone and Telegraph
Company and the associated companies
are not generally understood. The
American Telephone and Telegraph
Company is primarily holding COM
pany, holding stocks of the associated
operating and manufacturing companies.
AS an operating company it owns and
operates the long-distance lines, the lines
that connect all the systems of the asso-
ciated operating companies with each
other.
In the telephone business development
is continuous. AS conditions enlarge
and change. new methods develop. The
whole business suggests changes and
stimulates inventions, and opportunities
for Improvements are frequent.
eff each separate exchange or group
Of exchanges had not been assisted and
directed in the development and intro
duction of these new ideas, methods and
inventions, there would now be as MANY
systems, as many methods of operating
as there are separate companies. This
would have made impossible the organi-
zation which now gives the Bell system
that universally and preponderance on
nF ,ol1
other systems may exist, every one of
any commercial or social Importance
must have connection with the Bell
system"
OF the relation to independent compan.
les Mr.. Vail says: I'VE have been criti-
,ised to some extent for our policy of pub.
lefty so far as it concerns the so.called
independents There has not been suf
icent distinction between the Tndepend-
,nts' and the Opposition in the minds
Of the public. We have no quarrel with
either. With many of the Independents
we are working in complete harmony
and for all practical purposes our system
S part of theirs and their system part of |
ours. In fact it is expected and believed |
hat a large part of the development in
The semi-urban and rural territory can |
be done much more effectively and salts
actorily through independent local COM
1anies operating with US through or
1nder connecting contracts or sub
licenses.
eve can be called antagonistic only
because we try in the protection of our
property to expose and correct the mis-
eading statements and impossible prom
SEES put out by would-be franchise ven
Tors or mistaken company organizers, or
associations for public pro-
ection, or when we call attention to the
act that what we claimed would hap
zen, has happened
In view OF our preponderating inter
SITS in the telephone business of the
country, we think it is due to ourselves
% at least call attention to misleading
to promises in prospectuses
impossible OF fulhlment, and to adver-
lsements Offering to the public securities
1T large discounts, promising large pros
oective dividends, issued to build ex-
hanges in which service is to be givenat
rates.
1T all who are interested in honest
orporate securities would take the
rouble to educate the public and exhibit
outrage enough to denounce, all such
Misleading efforts, there would be much
1ore healthy condition
I'm all controversies as to rates,
-anchises etc, in all hearings before
ubllc bodies, our representatives have
een confronted with such promises
tatements as to what interests other
han the Bell were doing-assertion
hat II it were not for watered stock or
'ther methods of milking the public.
ates could be reduced, or the business
onducted at profit on much more
adorable terms to the public All that
experience has taught was as nothing
'etore the promises of franchise vendors
md manufacturers agents. Established
business and property were put in
jeopardy with the result that there are
many instances where the public has on
is hands partially duplicate exchange
With partially duplicate subscription
osts and no one has benefited except the
of the schemes.
There is now decided tendency on
ne part OF the public to favor consolida.
ION wherever there are two exchanges.
great difficulty in the way is that, as
rule, much of the duplication of plant
annot be utilized for many years, if
yer.
"Gradually the public is becoming
onvlnced that-quoted from last years
eport-
" Two exchange systems in the same
each serving the same men,
erS' cannot be conceived of as a per- ::