New-York tribune., 1912-03-20
AMERICAN TEL. & TEL.
Annual Report Shows Increase
in Gross Earnings Over 1910.

The report Of the American Telephone
and Telegraph Company for the year ended
December q. 1911. shows gross earnings for
the Bel Telephone system In the United
States Sl7q Al 9SS against 1855 el2 Ssi I'm 1910.
an increase Of S3S65.r1, expenses, Sl2I-
Sal.50l. an increase Of &l2.H@.22s. and net
duCting interest Of Sl25l0.sG0. the net profits
for the year were S27.975,43I a decrease Of
81 ~, lpi. and after payment Of S25,9668Ib
dividends the surplus earnings were Sl2-
00S 56l. comparing with Si216,t5S in the pre-
cedlng year. decrease Of 2.2S8,l97. The
items making up the total expenses were:
Operation $50 0S5 425. current maintenance.
GO1s4522, depreciation. S2S.S53,s32 and taxes,
s. 9G5.92..
TotaI earnings Of the American Tele-
phone and Telegraph Company for the year
ended December 81 last were 229,
comparing with 1855 .22S for the preceding
year. and made up as follows Dividends.
SO i4.2@; interest and other revenue from
associated companies, $40, 49,: telephone
traffic net. A.a79232. real estate. s92 s54.
and other sources. S59095s. Expenses were
s.. .5es984. and net earnings S335Jl. 245, an in
crease OF 81 36s, ,O3l. DeductinG interest So
s67 $50 and dividends paid. so lb9 ii9 bal
ance remained of s., ,563 sl6 Of which 81
10000 was carried 90 reserves and 2,1b3sl5
10 surplus
The report calls attention TO the s5.s49s7S
increase In cost Of operation Of the Bell sys-
TEN, remarhng that mp 10 and Including
1910 there had each year been a decrease,
but that the changed condition was chiefly
due 10 increased wages Of operators, ana
that the item would probably increase
steadily. Assets of the system showed 39 an
which SIS. 500 900 represented current add
lions 10 plant, including the necessary
,9be report discusses in detail the ques-
tion of accumulation Of reserves, summing
Up the conclusions Of the management in
these words:
"The only sound conclusion that can he
reached after fun consideration OF all the
yarious nhases and factors of the problem
is that ample reserves should be provided
10 meet not only probable happenings but
possible happenings, ana that such reserves
should be 80 invested that whatever incre-
,,,Art or revenue Is TO be derived from the
amounts unexpended or not used for the
purposes intended will 20 TO the public in
SHCJ,rCtjon NJ charges for or in Improvement
OF service. and that the value Of a public
Vtil;tv plant should be represented by
10 tiyeiv small percentage Of outstanding
securities calling for hXed charges.
,.No exppnditure which does not produce
ircraascd net revenue should be capital
1T'ih The Bell telephone system had on De;
cembar q last 6.G32, ,62j stations IN the United
-, a., Increase Of 1895 over the num-
80 YEAR previously. and its lines now
reach 7O.OOg places, from many OF which
telegraph message can be sent lhe totaI
mileage Of wire in use IN the system was
30 80 900 e,s miles at the close OF 1871, an IN
c-ssSe of 900 403 miles during the year.
rhe most important development was IN
III III iSOC,,,,iatcd This subway will be about
~ i,Ca iong and will contain 2loO miles Of
eingte duct and 1900 miles OF wire IN the
6rsf cable. THE total daily average OF con
NE. t S. iGif was "a 100 900, or at the rate
M about ITO 10000 a year. .u,,,..
Eetimete for new construction require
ments y I9l2 r. the Theb Tf6ebh about bout 5000 600
Svni be provided by the existing ana cur
re,,t. resources Of the companles
a good deal Of space Is gwen IN 'he Ie'