New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-10
W. us BUSINESS GROWING
Increase Of S6,182,646 in Gross
acknowledgements Heavy.

The report Of the Western Union Tele-
graph Company for the fiscal year ended
June 30 last shows large increase in
gross revenue over the figures Of the
preceding year. with an even larger in
crease in expenses, resulting In small
shrinkage I'm net profits. Total earnings
were sf,661. 40, against sSo,47S7S3, a gain
Of s6.1s2,64e; operating expenses and taxes
were 36,OS3,S5s. againyt $S0,053.6Sa, increase
ssy0i0,2o4; and adding 10 the balance OF
s5,5s7, 500 the income from loans and In
vestments, N.326, 567, the net profits were
sS.a23,9d, comparing with S,loS,257. a de-
crease OF slSi.sS
Deducting interest on bonds Of tho COM
pany H,s7O,i1s, and appropriations for re-
serves for repairs and reconstruction, ST.
250.CO0. the balance for dividends was
A,0D3,555. Dividend requirements were
g, e9l. s24, leaving the surplus for the year
sl.0ii,1S1. against s2.3So,es3 for the preced-
ing year, a decrease Of H,Sss, 1872. Salaries
and wages increased by s2,sH.SN. The
balance sheet as OF June 80 shows current
assets OF @,3ss,4s2, current liabilities ~
sos, 1858, profit and loss surplus NO,'Sqes
cIlu tOldl dbSClo anu AldSAitACo ~<Sfsc-Af~N-'
President Vail. In his report to the
stockholders, says that the Continuance OF
the directors policy of building up the
reserves will for some time to come pre-
clude any increase in dividend rate, al
though stockholders should not lose sight
of the fact that It Is only by steadfast
adherence 10 this policy that the property
viii be strengthened and future increase
In dividend assured"
In the last fiscal year there have been
added to the company's plant, exclusive
of the ocean cables leased, 2s,sI2 miles OF
wire. On June 30 there were $3.50 West
err Union Offices. Tho telegraph letter
service is at the rate OF more than boo
900 messages year.
The report explains the reasons for the
acquisition OF certain ocean cables now
operated in actual physical connection
with the Western Union land lines under
a common operating control, and outlines
the advantages derived from that acqui-'
sition. Much space is given to a discus.
sion of the relations between the Western
Union and the American Telephone and
Telegraph Company and the differences
between the properties from telegraph
point OF view. attention being called to the
complementary character of the two SER
vices, and in summing up President Vail
says:
1t is an axiom that the cost of operating
and the cost Of construction and main
tenance OF plant facilities must be borne
by the service. II, then, plant facilities
are only partially utilized, the cost OF
service is greater, and so must be the
charges. If additional use Of facilities
is made, then the cost Of service Is less
md the charges can be reduced.
If the public insist upon a duplication
Of plant for each kind OF service, then
the cost Of these plants must be borne
by the service, and the public must pay
the cost. II you hire two carriages to
carry two loads that one would carry. as
we'll, the two carriages must be paid FOR
Waste OF facilities and waste of duplica-
ton come out OF the public either through
the additional cost OF service which must
be maintained, or through the loss OF
the investment made on the facilities
which were unnecessary.