The Bridgeport evening farmer., 1913-08-19

who will add to the value of the sys- tenn, thus giving the greatest value to the greatest number; that the inter dependence of the telephone service and the value of complete and uni versal intercommunicatfon justify and require some services partly at the expense of the whole for the benefit of the whole.
 We believe that this highest com merciaI value can only be attained by one system under one common control and that it cannot be given by inde- pendent systems unless they are oper- ated under agreen ents which result in one common control and one com mon interest, in effect making them a single system.
 We believe that rates should be so adjusted as to afford the company sufficient revenue to pay such wages and compensation as will secure tho most efficient service; to maintain the very highest and most advanced standards of plant and apparatus, to carry on such scientific and experi~ mental research and inventions as to apparatus and methods as to insure the highest standards, and to carry to reserve and depreciation such amounts as will enable the company at any time to replace the old plant and old methods with new plant and new methods as fast as they may be developed and found to be to the ad- vantage of the service. We believe that in addition, such fair charges should be paid upon the investment in plant as will enable the company at any time to. obtain money neces- sary to provide the plant required t. meet the continuing demands of the public; and in order that waste and duplication of effort may be avoided and uniformity of purpose and conn should be a centralized general ad- min1SUadon+ in close communications with and having general authority over the whole on matters common to all or matters of general policy,
 We believe that any surplus beyond that. necessary to equaIize dividends on a fair basis should be used by the company for the benefit of the public and should be inalienabIe for any other purpose, and should be either invested in revenue earning plant un- til 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
 ern1nentaI control and regulation the profits from promotion or operation allowed to be distributed should not
 be so large as to warrant or tempt complete duplication of plant and or
 
 capital charges and it's organization. operating, maintenance and deprecia,- ton expenses; and we do not believe that utilities giving at fair rates aal efficient and sufficiently comprehen- stve universal service sh ouId be sub 1 ject to limited competition. not giv- ing such service. Competition which ignores the obligation to furnish a complete and comprehensive service is not compettion, is not for the pen eft of the public in that it does not oh ,Iearv hi If, therefore, complete duplication,
 with it's dual exchange connection ana dual bills for service, is a prer equisite to complete competition government
 control and regulation cannot go hand I in hand with competition. We believe that the record of the l Bell System will be accepted by the public as fully in accord with these declarations Consistent adherence to l this policy has given the public of the 1 United States the best, most conpre- 1 hensive and cheapest telephone ser vice in the world and made the Bell i standards the standards of all nations. l To remove any possible excuse for 1 n11sapprehens1on on account of the have been circulated as to the alleged unnecessary and vercapitalization l and excessive charges of the Bell Sys- i tenn, the following statistics are giy- l en- Except where stated, the figures l are for the Bell System; that is. the 1 American Telephone and Telegraph, 1 and it's Associated Companies. The entire Bell System on June 30, l 1913, had outstanding in the hands of l the public obligations G. e., notes, open accounts, bonds and shares) to l the par value of $776, 900, 900.
 1 The book value of the total stangi- l bIe assets, which is considerably less than their replacement value, amount l ed to $960, 900, 900. Many appraisaIs 1 of. property included in these assets 1 have been made, and most of them l under the direction of public author 1 ties In no case has the value as it l stands on the books failed to be sus- 1 tained and in most cases 1t has been | very largely exceeded.
 The total dividends and interest paid l during the year 1912 amounted to only 6.19o on the average of its out | standing obligations, and to less tha an | 5To on the average value of it's assets. | The actual cash which has been l paid into the treasury of the American
 Telephene and Telegraph Company on account of the capital obligations now
 outstanding amounts to $22, 900, 1000
 more than the par of such outstand-
 ing obligations.
 The Associated Companies collected from the public and paid back in
 1912.
 The steadily increasing necessities of the public not only for additional
 but for new telephone service can only be met by new construction, invo1v- ing capital outlay To meet these de | manOS Our1ngi the SIX and One-hal1
 years from 1907 to June, 1918, fneIu-
 sive, the increase in telephone pIant
 was as follows: Toll line wire in creased from 1,46o,O 900 miles to 2,242,- < 900 miles; exchange wire increased
 from 6,0O0,oO0 miles to 1S,0OO. 900; the number of exchange stations in creased from 2,73O,Oo0 to 5,2oo,o ,ooo;
 the number of stations of fndependent
 companies connected with the Bel
 System increased from 343, 900 to D. 62o, ,000. The number of independent companies connected with the Bel system is about 5000. The number
 of employees in the Bell System, no1 companies, on December 31. 1912, was 141,000.
 During this same period the number , of shareholders of the Anerican Tele-
 phone and Telegraph Company no including either the associated oI connected companies, increased from 1 E... .I.<.. c.an oc-