The ranch. [volume] (Seattle, Wash.) 1902-1914, 1913-09-15

ernmental control ana re2ulatlOn 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
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 complete and
comprehensive service is not competi-
ton, is not for the benefit of the pub
lie in that it does not reach the whole
public interested.
If, therefore, complete duplication,
with its dual exchange connection and
dual bills for service, is a prerequisite
to complete competition, government con-
troll and regulation cannot 90 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 comprehen-
sive and cheapest telephone service in
the world and made the Bell standards
the standards of all nations.
To remove any possible excuse for
Misrepresentation on account of the
many misleading statements which have
been circulated as to the alleged I'M
necessary and overcapitalization and
excessive charges of the Bell System,
the following statistics are given. Ex-
cept where stated, the figures are for
the Bell System; that is, the American
Telephone and Telegraph, and its Asso-
ciated Companies.
The entire Bell System on June 80,
1918, had outstanding in the hands of
the public obligations ii. e., notes, open
accounts, bonds and shares) to the par
value of $776,OO0,O0O.
The book valne of the total tangible
assets, which is considerably less than
their replacement value, amounted to
$3.50, 100000. Many appraisals of pro-
perty included in these assets have
been made, and most of them under
the direction of public authorities. In
no case has the value as it stands on
the books failed to be sustained, and
in most cases it has been very largely
exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 81 per cent on the average of its
obligations, and to less than
S per cent on the average value of its
assets.
The actual cash which has been paid
into the treasury of the American Tel
ephone and Telegraph Company on &C
count of the capital obligations now out
standing amounts to $22,000,000 more
than the par of such outstanding obliga-
tons.
The Associated Companies collected
from the public and paid back in
taxes over $1O.OOOO0O during the year
1912.
The steadily increasing necessities of
the public not only for additional but
for new telephone service can only be
met by new construction, involving cap
ital outlay To meet these demands
during the six and one-half years from
1907 to June, 1913, inclusive, the in
crease in telephone plant was as fol-
lows: Toll line wire increased from
1,46O,OOO miles to 2,242,00O miles: ex-
change wire increased from 100000
miles to 100000 the number of ex-
change stations increased from 2,730,OO0
to 5,2OOOO0; the number of stations of
independent companies connected with
the Bell System increased from 2,73O,OOO
to 100000; the number of stations of
indenendent comnanieS connected with