The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1911-03-30
BELL CON ny S
ANNUAL REPORT
Given in Summary Shows
Growth and Improved
Service.

w tHe american Telephone and Tel
sgraph Company Cthe Bell to tho
tockholders Just made puolic IS
made with the purpose OF taking
away any excuse for further repcti-
tlonsof duplication of those mis-
statements, distorted facts and erro.
neous conclusions which, for various
reasons. are circulated from time to
fine.
The total outstanding obligations
3q& the Bell System In the United
States, not.;inciudlng the manufac.
Jtiirlns company, amount to $780,
YHg, GU0a 81
THE book value of property repre-.
senting these outstanding obligaa
ttons Is se66,70o,OOO, $4,000, 900
IN excess OF the outstanding oblisa,
lions.
: There'is no water in the capital or
The American Telephone and Tele-
graph Company; the excess OF cash
paid into the. treasury over the out
standing obligations al the close OF
the year aHiSunted to nearly s17,-
100000.
The cost pf construction, including
toll lines, per exchange station has
steadily decreased from $4,000 IN
1900 to $142,OOO in 1910.
There has been a continual de-
crease OF the average annual charge
for exchange service from an aver
age Of s4ds6S to sS1,2S in 1910.
The taxes paid in the year 1910 by
the Bell system amounted to over
per cent OF its gross earnings, 1911
pr gent OF It's net earnings, and IL
per cent of the value OF It's telephone
plant.
The control Of the company is not
vested in any one interest nor has
Sit heen used for the benefit OF any
individual group of individuals.
the American Telephone and Tee
graph Company is not in the accepted
sense trust nor has it been built up
by absorbing competing companies.
While the Bell System is made up OIL
separate corporations, these corpo-I
rations ere not, never have been. and
never could Ne in competition. I'm
der any system d osG alzation orr
spnder .one ownership, separate CONF
2Sani6s n'e necessary for the pu'-
pose Of state jurisdiction.
a universal and comprehensive
telephone system cannot have any
operating limits, hut must give UNI
broken, continuous. connecting cir
cults under one control. from every
suDsorfber's station in every dlrec-
ticii to the limits of telephone speak
ing possibility.
. Bona iide competition between To-
eaifexchanges cannot exist, owing to
,fhe peculiarities OF the service rem
ttsef6d W these exchanges.
Physical connection does not and
cannot bring about any economical
or beneficial result and Increases in
stead Of decreases the evil OF dual
construction and subscription.
Physical connection would give
to subscribers OF an opposition ex-
change the service and use OF prop
. erty provided for the use of others,
and for which others pay.
The Bell System maintains large
experimental and engineering de-
part-Rcnt, not for the purpose of
I Expressing new inventions and I'M
: proved methods, but for the purpose
developing the value and efficiency
1 OF anything that is new.
The construction, equipment and
separating methods of the Bell system
are the standard the world over.
The equipment of the exchanges of
tine whole is either the same as, or
is modelled upon that Of the Bell
System. No construction. equipment
,SspF operating methods rejected or
3fsuppressed" by the engineering eX
,perts Of the Bell System have ever
yet come into prominent use.
u The profits on Western Electric
ssles to the operating companies Of
5he Bell System are less than on
Wales 10 the independent companies.
\ 1t is also shown that the telephone
service und the telegraph service are
complementary, not competitive;
ihat joint use and joint occupancy
of wires will reduce operating cost,
maintenance charges and cohstruc-
tion investm That utilizing the
unutilized la:.itlss of both viii
make possible new, additional ana
useFal services OF both telephone and
telegraph, for the benefit of
both corporations and the public.
AUDIT COMPLETED.