The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-03-23
PHONE RECEIPTS
SHOW BIG JUMP
Increase in Bell Systems Revenue
for 1910 Nearly $is,ooo,ooo--
Annual Report Out.

The gross revenue collected from
the public In 1910, for telephone ser
vice nv the Bell Telephone system
which includes the American
phone and Telegraph Co. ana It's as as
ISOLATED companies, was 800, ooo,ooo.
an increase OF nearly Sl6.OOO,OOO over
last year. OF this, operation cohsuIh
ed $4,000, 900; taxes, sS,OOO'ooo' cur,
rent maintenance, $25,7OO,Ooo anu
provision for depreciation, S2o.-oo'VoV
The surplus available for charges.
etc. was ISL, 900, 900, Of which SILL
10000 was paid in interest and $2S.'
0O0.O was paid in dividends TO the
public.
The total capitalization, including
inter-company items and Implications,
) ~ the companies OF the Bell system
a. s1114.3lO.979. OF this $500, SO6,Slo
AZ owned in the treasury OF the com
NAMES of the Bell System. The capi-
TAI stock. bonds and notes payable
outstanding In the hands or the pup
lie at the close OF the year were $olZ.'
ooO 600. II to this be added the cur
rent accounts payable $21 100000. the
total obligations of every kind were
sg33. 700 900, as against which there
were liquid assets, cash and cnrren'
accounts receivable, OF $53,oOo,ooo'
leaving $3.50, 100, 900 as the net per
manent capital obligations OF me
whole system outstanding In the
hands of the public.
Against these obligations, the com.
NAMES had property $696,70o.OOo, an
excess of SIZE, SOC, 900, or 20 per cent
The total number Of subscriber sta
lions connected with the Bell Teie'
phone System in the united sta oes
was 5.sS2,719, an increase OF I4V'0- !,
: over last year. The daily average o.
long distance connections was oo.'
500 and OF exchange connections "a
6s1,5O0. The total number eonnec-
tons for the year was I,lio,44e'oVV'
The directors report OF the ousl-
ness of the year which has just been
issued is very comprehensive and
takes nm many subjects OF importance
4 TO the stockholders. Perhaps the most
eignificant paragraphs relate TO the
policy of the company with regard 10
independent companies. Some eh-
Z tracts follow:
Our policy in respect TO the OPP
position and Independent telepnons
systems has been consistently follow
I'd through the year. Wherever IL
could be legally done, and done with
the acquiescence Of the public, OPP
position companies have been acqulr-
ed and merged into the Bell system.
Most OF the opposition exchanges
have been built up in selected ter
ritory with capital obtained by the
promise OF, or in anticipation OF large
profits: as a 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 nave
where there Is any success, TO per
sonal local influence or interest. Many
II not all, have been a disappointment
The day OF local telephone exchanges
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, is the cause of nearly all
the financial disasters that have oc-
CURED In the telephone business, and
( has been the common falling OF new
corners in the telephone field from the
y beginning to the present time.
"Current repairs on new plant, even
OF the old-time temporary character,
\ were small; no surplus or reserve
was provided: profits were. apparent
" large, as were dividends.
"A false atmosphere Of prosperity
surrounded the business, which was
not dispelled until requirements OF
plant through decay or obsolesceDce
became imperative. The inevitable
4 was in some cases postponed by ex.
cessive charges to construction &C.
count, but came In time, as II Is
bound to come under such conditions
There is no question but that the
public IL tired Of dual telephone ex-
change systems, and that so fast as
confidence in protection against the
real or imaginary evils OF monopoly
increases, opposition against mergers
will decrease"
Another section that is interesting
deals with the attitude Of the com
spany toward public control. The re-
port says:
Public control or regulation OF
public service corporations by per-
manent commissions. has come and
come to stay. Control OF regulation
exercised through such q body has
many advantages over that exercised
Through regular legislative bodies or
X committees. The permanent commits.
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