The evening world. [volume] (New York, N.Y.) 1887-1931, 1913-09-02
MUTUAL RELATIONS and INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC
ADVERTISE -,

penuent systems unless they are Opot-
ated under agreements which result In
one common control snd one common
interest, In effect making them .
single system.
We believe that rates should be %
adjusted ~ to afford the company
sufficient revenue to pay such wages
ana compensation as will secure the
most efficient service: to maintain the
very highest and most advanced stand,
ards Of plant and apparatus, to carry
on such scientific and experimental re
search and inventions as to apparatus
and methods as to insure the highest
standards, and to carry to reserve and
depreciation such amounts as will en-
able the company at any time. to re-
place old plant and old methods with
new plant and new methods as fast -
they may be developed and found TO
be to the advantage Of the service.
We believe that, in addition, such fair
charges should be paid upon the In
vestment In plant as will enable the
company at any time to obtain money
necessary to provide the plant NJ
quired to meet the continuing demands
OF the public; and in order that waste
and duplication Of effort may be
avoided and uniformity Of purpose
and common control be enforced, that
there should be q centralized general
administration in close communication
with and having general authority
over the whole on matters common to
oil or matters Of general policy.
We believe that any surplus beyond
that necessary to equalize dividends
on . fair basis should be used by the
company for the benefit OF the public
and should be inalienable for any
other purpose, and should be either In.
vested in revenue earning plant until
necessary to substitute plant which
may become inadequate or obsolete,
or should be used to make the service
cheaper or better.
We believe that under proper gov
ernmental control and regulation the
profits from promotion or operation
allowed to be distributed should not
be 80 large as to warrant or tempt
complete duplication Of plant and Or
ganization, with its duplication Of its
capital charges and its organization.
operating, maintenance and deprecia-
ton expenses; and we DO not believe
that utilities giving at fair rates an
efficient and sufficiently comprehensive
universal service should be subject to
limited competition not giving such
service. Competition which ignores the
obligation to furnish q complete and
comprehensive service Is not compe-
tition, Is not for the benefit Of the
public in that it does not reach the
whole public interested.
II, therefore, complete duplication,
with its dual exchange connection and
dual bills for service, is q prerequisite
to complete competition, government
control and regulation cannot 60 hand
In hand with competition.
We believe that the record OF the
Bell System will be accepted by the
public as fully In accord with these
declarations. Consistent adherence TO
this policy has given the public Of the
United States the best, most compre-
hensive and cheapest telephone service
in the world and made the Bell stand
ards the standards Of all nations.
To remove any possible excuse for
misapprehension on account Of the
many misleading statements which
have been circulated as to the alleged
unnecessary and overcapit alization and
excessive charges Of the Bell System,
the following statistics are given.
Except where stated, the figures are
for the Bell System: that b, the
| American Telephone and Telegraph
and its Associated Companies
The entire Bell System on June 30.
1918, had standing in the hands Of
the public obligations q. e.. notes,
open accounts. bonds and shares) to
the par value OF SITE, 000, 900.
The book value OF the total tangible
assets, which il considerably lens than
their replacement value. amounted to
$3.50, 006, 900. Many appraisale OF
property included In theee assets have
Leen made, and most a them under
/ the direction Of public AUTHORITIES. In
no case has the value 40 It stands on
the books failed to be sustained. and
! In most cases 1t has been very largely
The total dividends and interest
paid during the year 1912 amounted
to only $40 on the average Of it,
outstanding obligations. and to less
than so on the average value OF its
The actual cash which has been paid
into the treasury OF the American
Telephone and Telegraph Company on
account OF the capital obligations now
outstanding amounts to $4,000. 900
more than the par Of such outstanding
obligations. -.
The Associated Companies collected
from the public and paid back in
taxes over $l0.000.0O0 during the year
The steadily increasing necessities
OF the public not only for additional
but for new telephone service can only
be met by new construction, involv-
ing capital outlay. To meet these
demands during the six and one-half
years from 1907 to June, 1913, inclu-
sive, the increase in telephone plant
was as follows: Toll line wire in
creased from AGO, 900 miles to 2,242,
600 miles; exchange wire increased
from 100000 miles to $4,000, 900:
the number OF exchange stations in.
creased from 2,730.0OO to 5000, 900;
the number OF stations Of independent
companies connected with the Bell
System increased from $4,000 Ia
1920, 900. The number of independent
companies connected with the Bell
System is about $4,000. The number
! y to- tka noll