The Detroit times., 1911-03-24
PHONE RECEIPTS
SHOW BIC JUMP
Increase in Bell Systems Revenue
for 1910 Nearly $4,000, 600
Annual Report Out.

The gross revenue collected from
the public In 1910. for telephone SER
vice by the Bell Telephone system.
which includes the American Tele-
phone and Telegraph Co. and its as
sociated companies, was $l65,6OO.O 600,
an increase OF nearly $16,0OO,000 over
last year. or this. operation consum'
ed $64,00O,000; taxes, $4,000 cur
rent maintenance. $25.700,000 and
provision for depreciation. see. 200. 0oo
The surplus available for charges,
etc. was SOL 100000, or which Sill
$500 was paid In interest and s25.'
O00,0 900 was paid In dividends TO the
public.
The total capitalization, including
inter-company items and Implications
OF the companies OF the Bell system
is $1,114,31O,979. or this $500, 306,9lO
is owned In the treasury OF the com
panies of the Bell System. The CAPT
tai stock, bonds and notes payable
outstanding In the hands OF the pup
lie at the close OF the year were S6l2,
0OO. 900. II 10 this be added the cur
rent accounts payable SCI 100000. the
total obligations of every kind were
S638. roc, 900. as against which theirs
were liquid assets. cash and current
accounts receivable. OF $53,6OO,O0o
leaving $3.50, 100. 900 as the net per
manent capital obligations or the
whole system outstanding In the
hands OF the public.
Against these obligations, the com
panies had property 1896, 7OO.ooo, an
excess OF $116. 100000. or 20 per cent
The total number OF subscriber sta
tions connected with the Bell Ieie
phone System In the United States
was 5,SS2,719, an increase OF 74O,ozl
over last year. The daily average Oh
long distance connections was o0z,
500 and OF exchange connections 2l,'
81. 800. The total number connec'
tons for the year was 7,175,44s,OOO.
The directors report Of the bust
ness of the year which has just peel
issued Is very comprehensive anu
takes up many subjects OF importance
to the stockholders. Perhaps the most
significant paragraphs relate &c the
policy of the company with regard tc
independent companies. Some ex
tracts follow:
Our policy in respect to the op
position and independent telephone
systems has been consistently follow
ed through the year. Wherever II
could be legally done, and done with
the acquiescence OF the public. op
position companies have been acquir
ed and merged into the Bell system.
Most OF the opposition exchanges
have been built up In a selected ter
ritory with capital obtained by the
promise OF, or in anticipation OF large
profits; as rule capitalized far In
excess of the plant value or construc
ton cost Subscribers have been OBJ
tanned by promises OF improved ser
vice at low rates. Many OF such ex
changes owe what success they have
where there is any success, to per
sonal local influence or interest. Many
il not all, have been a disappointment
The day of local telephone exchange.
or limited telephone systems has
gone. This is recognized and fully ap
preciated by those who have exploit
ed or are operating them.
! The entire disregard or under
estimating of depreciation and future
replacement, il the cause of nearly al
the financial disasters that have oc
Cured in the telephone business, anc
has been the common failing OF new
corners in the telephone field from tn,
beginning to the present time.
| Current repairs on new plant, ever
of the old-time temporary character
were small no surplus or reserv,
was provided; profits were apparent
ly large, as were dividends.
"A false atmosphere OF prosperity
surrounded the business, which was
not dispelled until requirements o
plant through decay or obsolescenct
became imperative. The inevitable
was In some cases postponed by ex
cessive charges to construction &C
count, but came in time, as IL i:
bound to come under such conditions
There Is no question but that the
public Is tired of dual telephone ex
change systems, and that so fast az
confidence in protection against the
real or imaginary evils OF monopoly
increases, opposition against merger:
will decrease"
Another section that Is interesting
deals with the attitude of the com
pany toward public control The re
| port says:
Public control or regulation o.
public service corporations by per
manent commissions, has come anC
come to stay. Control or regulation
exercised through such q body has
many advantages over that exercised
through regular legislative bodies OF
committees. The permanent commits
sion will be quasi-judicial body. Il
should be made up OF members whose
duty II will be, and who will have
the desire, the time and the oppor
tunIty. to familiarize themselves will
the questions coming before them. Il