The Washington herald., 1909-04-11
MILLIONS OF HOMES
HAVE A TELEPHONE
COmpany'S Report Shows Big
Extension of Service.
NECESSITY OF MODERN LIFE
Bell system Has 4.36f.G29 Stations.
of which 525.e20 Were Added Last
with Exchanges Measures Millions
Of MiIes-Dany Calls, 1895, coo.

s7me signihcsn; facts are embodied n
the recent annual report OF the Ameri-
can Telephone and Telegraph Company.
which snow 20 what extent the teiephone
has become a part OF modern life. The
report has 70 do largely with q financial
statement OF tne company's affairs. but
accidentally reference Is made 10 the ex-
tent OF the service and its efficiency as a
means OF communication among the peo-
PIE. The following extracts are reprinted
from the report
There was total Of 4Ssfs29 telephone
/ stations connected 20 the Bell system. a.
4 against 3.s390o0 ~ the close OF the pre-
+ vious year. an increase Of $3.50 stations
( "A single instrument with its equipment.
+ is termed a stauonl OF the total there
were I.1C21a exchange and toll stations
/ connected 10 the Bell syStem by toll or
( long dlstan-e lines. b1t operated by some
I 100 local. cooperative. and rural inde-
I pendent companies or associations hav-
/ ing sublicense or connection contracts
Millions Of MILES OF Wire.
The total wire mileage OF the Bel
Z companies for toll and exchange service
( was 9S50.71s. over a million miles being
ADDED during the year The daily aver
/ age OF calls handled by the Bell com
panes was IS.sSoo0. or al the rate Of
! about six billions a year The plant add
tions were Sl5 S2AO00 for exchanges. sS.He.-
90 for toll lines. and s300a 80 for land and
buildings. making a total or S25.s51e09
During the last nine years 4 grand total
81 S57S. 1880 has been expended IN eliarg-
ing the Bel properties.
~OT the total value o. the telephone
plants owned By the American Telephone
and Telegraph Company and associated
companies. real estate constitutes Q per
cent. underground conduits and cables %
per cent. copper wires and aerial cables
on poles Is pcr cent. pole lines. not in
.cludinE wires. . per cents o0o.0o0 - this
represents ownership OF rights OF way
( over private prOQeTty-ir01 wires 8 per
cent. and central ONCE equipment . per
cent
The associated operating companies
show reductions in floating Indebtedness
and increases in cash on hand. ret in
P provement Of S5.0o4O0a. The Western Elec-
4 tric Company shows an equal improve
meet. SO thar the current and floating IN
2 debtedness Of the associated companies
Is well within the Inirs Of current opera
tiOns-
Earnings show Increase
The Rel business as whole exclud-
ing Implications and treating II as 4
. operated by single company. showed a
: substantial Improvement. The total earn
= ings showed an increase over the pre-
vious year Of S7N19.51a. the total expenses
an increase OF S31al1oo. The balance OF
net earnings vas $s5.s74ooo and. after
r-r---at-- e. ras 20 Co. -,.-E - go
d 1Ca Tor dividends. there was left SIS 81 49,
% IN undivided profits The combined bal
4 auce sheet shows totaI assets Of $50
= o44 go with a surplus o. S31-159.6g0. and
;. depreciation and other reserves OF $4A-
4Sc.So1
2 There is shown a considerable in
:, crease in the number OF shareholders.
.T there being ar the end of the year 96.37i
,r shareholders. with an average holding oi
sr sixty each BY means % the issue 81
the balance or the authorized S150000.a0
convertible bonds the financing Of the
u compary. and its associated companies IS
IL completed for 1909 and 1910. including the
~ payment Of Sc. 90 coo notes maturing dur
h ing those years.
So Relation Among Companies.
be The American Telephone and TELEGRAPH
7r Company's relations TO the associated
le companies are explained n considerable
he detail Primarily a holding company, 2
also owns and operates the long distanc'
>h lines which connect the systems or th'
oe associated companies n addition 20 thes'
ve two functions. il assumes what NIGH
'n be termed the centralized administrative
" functions OF all the associated com
- uanies. The Eel system IS one system
Is teIepbonicauy interco0nected inJ-rcom
al municating. and inte7dependent- It VA
or built I'D on the policy that any one o
0f over 4ol0co0 subscribers can talk Wit
s. anv other one within the carrying pOwe
no o. the voice over the wires. New idess
tn inventions and methods are examined
all perfected. and made universally avaii
he able.
10 The report SAYS There has not bee
or sufficient distinction between the Inde
pendents- and the opposition IN th
minds cf the public We have no qua-re
with either. With many of the inde
pendents We are working IN complete haT
% mOuy and for all practical purposes on
It's system is part OF theirs. and thei
be system is part Of OUTS" On the Othe
W. hand. President Vail says that there Is
gs decided tendency on tire part of the pUt
Tio ~ favor -nrS0li1af ion