Wheeling majority. [volume] (Wheeling, W. Va.) 1907-192?, 1912-03-28
Bell Does Not
Fear Govern
nent Ownership

%
The growth of the Ben system is
shown in the annual report Of the
American Telephone and Telegraph
Company for 1911 by the financial
statement and other comparative sta
tistics.
The growth of the system is indi-
Gated By an ii crease Of 749,9O6 in
the number Of stations. making a
total at the end Of the year Of $685.
SIS, Of which 2,15S,454 are operated
by connecting companies.
The Bell toll lines now reach 10
900 places, which is 5000 more than
the number of post offices and To-
900 more than the number Of rail
/ road stations in the United States.
The total wire mileage has been in;
creased to nearly 13,oOO,OOO miles. Of
which over half is underground, and
the new 45O-mile subway between
Boston and Washington has been
completed except for the drawing in
Of some of the cable.
The traffic over the Bell lines
shows daily average Of 24,12S,0OO,
or at the rate of /. ITO, 100000 connec-
lions year
Comparison with the total tele-
phone, telegraph and first-class mail
traffic Of the United States and Eu-
rope, shows that telephone CONVEX
sations are So per cent. Of the whole
| in the United States and only % pei
cent in Europe.
There was spent in plant additions
s55, $50, 1888, as against $53.582,S00 the
year before. Estimates for the cur
rent year are s56,OoOOOO. There was
/ applied to maintenance and recon
struction during the year $58,S4O, 900
making total provision for the last
nine years of $S42,SO0,OOO.
/ The report states that the rela
lions with permanent bodies of con
troll and regulation during the pas
4 year have been very satisfactory, ant
draws comparison in favor of per
manent commissions as against tenn
porary committees.
Government Ownership
/ AS to government ownership The
report says:
The discussion of the government
ownership of the wire companies i
than academic, at least for the pres
ent.
Gwen if the final conclusion shoult
wire plants, there would be no unfa
vorable consequences to the share
holders of the wire companies othel
than the obligatory liquidation. An!
possible award for the property
/: which the security holders would b
obliged to accept would give then
! better than current prices for thei
! securities"
Financial Statement.
The report goes very thorough!
linto the financial condition Of thu
sIBen System, giving more figures
than ever before and explaining care
] fully the methods of accounting upol
which the figures are based.
The gross revenue collected from
the public in 1911 for telephone ser
vice by the Bell System-not inelud
| ing the connected independent com
/ panies-was $179.5O0.000; an increast
Of nearly $14,OOO.OOO over last year
/ OF this, operation consumed $4,000,
900; taxes, $9,00O,OO0 or IL per CEN
on the outstanding. capital; currenl
maintenance, $S0,200,000; and provis
ion for depreciation, $28, 1000.
| The surplus available for charges
etc, was $51,60O,O0O, Of which $1S,
i $780, 900 was paid in interest and near
LIZ SIG, 900, 900 was paid in dividends
The total capitalization, including
Iinter-company items and Implications
8 fthe companies Of the Bell System
lis $1,186,sSS ,OS6. OF this 1874, 679, 951
is owned and In the treasury Of the
companies of the Bell System. The
capital stock, bonds and notes pay.
able outstanding in the hands Of the
public at the close Of the year were
| 1922, O0O, 900. If to this be added the
current accounts payable, $23,40O. 900,
the total outstanding obligations Of
every kind were s685,4O0. 600. as
against which there were liquid as
! sets, cash and current accounts re-
ceivable, OF 81, 100000, leaving $780,
| 500, 900, as the net permanent CAPT
tai obligations Of the whole system
outstanding in the hands Of the pub
lie.