New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-03-12
A. T. & IT'S REPORT
p;o Increase an Telephone and
Telegraph Business.

-srort Of the American Telephone
relecraph Company for the year ended
e"..her 81. 1879 shows gToss revenue COL
- from the public for telephone service
10 Bel system, not including the con-
- independent companies. OF sl59,@s'-
:, Increase OF almost Sle.ooo.ep. The
- available for charges. etc, vas
.ssoeo OF which s2l.oooo0O was paid in
,,,sdsnds The net obligations I'm the hands
,be puliic we're S524e0n-oao. while the
.,,anies' property amounted TO S6l2.6N.-
~ :, excess of sss.s 10000. or Il per cent
y ,-orertv above liabilities. without any
sa,ornt being taken az franchises, con-
s..,-,s. nstents and rights OF way Of great
,slve. which would now he dihicu!t TO oo-
tain at any price.
TIE American Telephone and Telegraph
| Compauy taken by itself had net revenue
% more than sse.Gao.eoo and after the pay
#-,ent 81 interest and dividends the balance
H. a5aIie8. shows an increase. nof"it1-
E.,srd;nr the large increase IN dividends
b Lac N IRE exchange Of convertible bonGs
eor shares. While there is not IN o9h'e'n-
E,ts,-on any large financing. it IS recon-
E,-ended that TIE authorized cspi'ai sn,So,o
Re increased from sSao.oe0ooo 20 sS"'v'cVo |
stated that none Of this increase wiz "e
. ,,eede5 during the current year fof o. "ii'@'S
scsp.tal expenditures.
{ The relation between the Telegraph anu
b 10 ,elerbone End the obligations OF the
company to the public consequent "P'i
.sli-r over a substantial interest In the
k-vestern Union Telegraph Company eN-
81 lsfned IT length in the report, may he
q Summarized as follows:
Telegraph operation requires separate
= stinct ard entirely different operating or
kanzstiou ard equipment from that OF
teisphone company Line construction and
na;u-enencs are common 10 both. and can
r combined O. performed Jointly with
economy. The same wires may be USED
Or both telephone and telegraph circuits
the sErls time But the wires must be
kt-uns differently. and the differentiation
u autiuuet from that point Where there Is
eansltv Of message traffic sufficient 10 Keep
tusy an expert telegraph operator. the teie-
rhore cannot compete with the teieeFsph
IN hsndIin,, message traffic. but where Inc
J sf7c Is comparatively light the telephohe
J III gradually supersede the Telegraph III
Randliug message traffic j1ach VIII nave
= well defined field, the telegraph between
encres Of density and for long distances. |
. Telephone for short distances and for |
kolection and distribution between the Gus |
7ner ana such centres
| 'Besides the large cities in which most |
H. its business originates and ends, the |
western Union Telegraph lines reach over !
lisa smaller cities, towns and villages, |
lvhere for the most part the business is
lts-.orfned under 4 joint arrangement with |
s;ss railroad companies. While these ar
Fragments VIII bc continued. they viii be
frpplenented by connection with the Bell
Iptenl-5 90. 90 stations located in 5000
ties and towns. In this way the electrical
zaszaission Of messages will be extended
ron tie actual point OF origin to the actual
pint ef destination"
= the year there was an increase IN the
lumber Of shareholders OF more than 5000.
Er1e number Of telephone stations in the
lPen system VAS increased TO more than
j noo including !, 500 90 operated by con-
ecting companies. The wire mileage Of
h. Bel companies has increased more than
EasaA9 miles. the traffic has increased 10
y most zoe l10 connections a day, amount
b % $500 600 connections a year: the
h AMI additions we're more than SIS. 90, 900,
e ith almost 81, 10000 applied out OF reve-
EUs 10 maintenance and reconstruction pur-
Ecss. With the result that tie plant has
6'satAy become more permanent.
81 Toial net earnings Of the American Tele-
hone and Telegraph Company were $780, +,
E30-f s. against S25,S95.e13 in 1908. and /
Eotsl surplus after dividends of s17.o36,275 |
Is Ss.h5s.1l2. against s5,s62.551 in the /
Essr before The entire Bell system in |
u s United States showed gross earnings !
Iiss1i,7ee. an increase Of s11.f70, 400: /
. earnings after expenses, taxes, main /
ks1anoe and depreciation, $4s,367,5o0. an /
-Tesss Of s@.5ee9 900. and surplus after |
zteTest ana dividends. s14235,5oo. an in /
7fass If s. ,1el .Oeb.
Tie report says. N regard to the COM |
n,s future financial requirements:
While there are not in contemplation 1
= large financial operations. yet COM
EsHT Of this magnitude should be in 4 pc
fuoH where every situation can he met
2Tonp1ly and effectively. il is recommend
mat the authorized share capital of
- cernpsnT Re tncressed from $500, 0o0.-
b 70 stoooee, oo0. None Of this increase
N ID re needed during the current year for
-dlnsry capital expenditures"