East Oregonian : E.O. (Pendleton, OR) 1888-current, 1913-10-08

service and the value OF complete and
universal intercommunicatlon justify
and require some services partly at
eft OF the whole.
We believe that this highest COM
mercial value can only be attained by
one system under one common con-
trol and that II cannot be given by in
dependent systems unless they are
operated under agreements which re-
suit in one common control and one
common interest in effect making
them single system.
We believe that rates should be so
adjusted. as to afford the company
sufficient revenue to pay such wages
and compensation as VIII secure the
most efficient service; to maintain the
very highest and most advanced
standards OF plant and apparatus, to
carry on such scientific and expert.
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 old plant and old
| methods with new plant and neY
methods as fast as they may be de-
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 necessary
! to provide the plant required to meet
the continuing demands of the pub
! lie; and in order that waste and du-
| plication Of effort may be avoided
and uniformity of purpose and com
mon control be enforced. that there
should be centralized general ad.
ministration in close communication
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 equalize dividends
on a 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
invested in revenue earning plant un-
I'll necessary to substitute plant
which may become inadequate or OBJ
solete, 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 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-
tion expenses; and we do not believe
that utilities giving at fair rates an
efficient and sufficient comprehensive
universal service should be subject to
limited competition, not giving such
service. Competition which ignores
the obligation to furnish a complete
and comprehensive service is not COM
petition, Is not for the benefit OF the
public in that 1t does not reach the
whole public interested.
1 II. therefore, complete duplication
with its dual exchange connection and
dual bills for service. is prerequisite
TO complete competition. government
control and regulation cannot so 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 SER
vice in the world and made the Bell
standards 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 overcapitalization
and excessive charges of the Bell Sys-
tem the following statistics are given
Except where stated, the figures are
for the Bell System; that is the AM
erican Telephone and Telegraph, and
its Associated Companies.
The entire Bell system on June 80
1913. had outstanding in the hands OF
the public obligations q. e., notes
, open accounts. bonds and shares) 10
the par value of S776,000,000.
, The book value of the total tangible
assets, which is considerably less than
their replacement value, amounted to
$3.50, 100000. Many appraisals 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 it stands or
, the books failed to be sustained and
in most cases II has been very largely
exceeded.
! The total dividends and interes,
paid during the year 1912 amounted
to only 6,1 per cent on the average OF
: its outstanding obligations and to les,
: than per cent on the average value
of its assets.
) The actual cash which has been paid
; into the treasury of the American
/ Telephone and Telegraph Company or
; account of the capital obligations now
. outstanding amounts to S22,000,00(
more than the par of such outstand'
, ing obligations.
The Associated Companies collected
| from the public and paid back II
' taxes over $10,00O,00O during the yea
/, 1912.
= The steadily increasing necessities
8 of the public not only for additiona
( but for new telephone service can onl.
= be met by new construction, involv
ing capital outlay. To meet these de
0 mands during the six and one-hal
years from 1907 to June, 1913, inclu
: sive, the increase in telephone plan
g was as follows. Toll line wire in