The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1913-09-17

4
We believe that the highest COM
mercfal value of the telephone SER
vice depends on its completeness
on the extent and compreh ensive-
ness of the facilities for intercom-
munication.. not only between indi-.
ulation: that no isolated section
can be considered independently OF
| any other section or of the whole;
| that rates must be so adjusted as
| to make 1t possible to obtain the
maximum development by making
| nected who will add to the value of
the system, thus giving the great
est value to the greatest numbers;
| that the inter-dependence of the
telephone service and the value of
complete and universal intercom-
services partly at the expense Of the
whole for the benefit of the whole.
We believe that this highest
commercial value can only be at
tanned by one system under one
common control and that 1t cannot
be given by independent systems
unless they are operated under
agreements which result in one
common control and one common
| interest, in effect making them a
single system.
We believe that rates should be
so adjusted as to afford the COM
pany sufficient revenue to pay
| such wages and compensation as
will secure the NOSE efficient SER
vice; to maintain the very highest
and most advanced standards of
plant and apparatus, to carry on
such scientific and experimental
research and inventions as to APP
paratus and methods as to insure
the highest standards, and to carry
to reserve and depreciation such
pany at any time to replace Old
plant and old methods with new
plant and new methods as fast as
they may be developed and found
to be to the advantage of the SER
vice. 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 necessary to
provide the plant required to meet
lie; and in order that waste and
duplication of effort may be avoid
ed and uniformity of purpose and
common control be enforced, that
| there should be a centralized gem
eral administration in close COM
munication with and having gen.
eral authority over the whole on
matters common to all or matters
of general policy.
We believe that any surplus be-
yond that necessary to equalize
dividends on a fair basis should be
used by the company for the bene-
fit OF the public and should be in
alienable for any other purpose,
and should be either invested in
revenue earning plant until neces-
sary 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 oper-
| should not be SO large as to warrant
or tempt complete duplication of
plant and organization, with it's
duplication of its capital charges
and its organization. operating,
maintenance and depreciation ex-
penses; and we do not believe that
utilities giving at fair rates an eff
| hcfent and sufficiently comprehen-
sive universal service should be SUBJ
ject to limited competition. not Civ
ignores the obligation to furnish a
complete and comprehensive service
is not competition, is not for the
benefit Of the public In that 1t does
not reach the whole public inter-
If. therefore. complete duplica-
ton. with its duel exchange con-
| nection and dual bills of service, is
prerequisite to complete competf-
ton, government control and regu-
lation cannot go hand in hand with
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
| comprehensive and cheapest tele-
phone service in the world and made
the Bell standards the standards of
all nations.
TO remove any possible excuse for
misapprehension on account of the
Iiany misleading statements which
have been circulated as to the al
| legged unnecessary and overcapitali-
zation and excessive charges Of the
Bell System. the following statistics
are given. Except where stated, the
| figures are for the Bell System; that
Is, the American Telephone and
Telegraph, and its Associated Com
The entire Bell System on June
80, 1918, had outstanding in the
hands of the public obligations q.
e., notes, open accounts, bonds and
100000.
The book value of the total tan
| gfble assets, which is considerably
less than their replacement value,
amounted to $960,000, 900. Many ap-
praisals of property included in
| these assets have been made, and
| most of them under the direction
of public authorities. In no case
has the value as 1t stands ON the
| books failed to be sustained. and
| in most cases 1t 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 outstanding obligations, and
to less than per cent on the aver
| age value OF its assets.
| The actual cash which has been
| paid into the treasury OF the Ameri-
can Telephone and TELEGRAPH Com
pany on account Of the capital obli-
cations now outstanding amounts to
4 $22, 100000 more than the par of
such outstanding obligations.
TheAssociated Companies collect
ed from the public and paid back
year 1912.
The steadily Increasing neces-
stiles of the public not only for
additional but for new telephone
service can only be met by new
construction. involving capital OUT
lay. To meet these demands DUR
| ing the six and one-half years from
1907 to June, 1913, inclusive, the
increase in telephone plant was as
| follows: Toll line wire increased
from 100000 miles to 2,242,00O
miles: exchange wire increased
from 100000 miles to $4,000, 900:
the number of exchange stations