Daily capital journal. (Salem, Oregon) 1903-1919, 1913-08-29


and that it cannot be given by inde
pendent systems unless they are Oper'
ated 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 company
I sufficient revenue to pay such wages
and compensation as will secure the
very highest and most advanced stand
rds of plant and apparatus, to carry
on such scientific and experimental re.
search and inventions rs 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 as
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 le.
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 a centralized general
administration 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 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. e.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 50 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 AMI leprecia-
tion expenses; and we do not Believe
that utilities giving at fair rates an
efficient and sufficiently comprehcn.
sive 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 compe.
tition, is not for the benefit of the
public 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 prerequisite
to complete competition, government
control and regulation cannot &C hand
in hand with competition
We believe that the record Of the
Bell System will be accepted by tine
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
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.
TEN, 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 companies
The entire Bell System on June 30, !
1918, had outstanding in the hands Of
the public organizations (. O., notes,
open accounts, bonds and shares) to
the par value of $776,OOO,OOO.
The book value of the total tangible
assets, which is considerable less than
their replacement value, amounted to
$96O,OO0000. 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 on
the books failed to be susttined and
In most eases 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 outstanding obligations, and to less
than per cent on the average value of
its assets.
The actual cash which has been paid
hto the treasury of the American
Telephone and Telegraph Company ON
account of the capital obligations now
outstanding amounts to $4,000 200
more than the par of such outstand.
ing obligations,
The Associated Companies collected
from the public anf paid back in
taxes over $l0,0OO,OOO during the year
1912.
The steady increasing necessities of
the public not only for additional
but for new telephone service can only
bc met by new construction, involv.
ing capital outlay To meet these de.
mands during the six aud one-half
years from 1907 to June, 1913, ncm.
sive, the increase in telephone plant
was rs fonows; Toll line wire in
creased from 100000 miles to 2,242, 900
miles; exchange wire increased from
100000 miles to 100000; the mum.
Der Of exchange stations increased
from s,130,O00 to 100000; the number
of stations Of Independent companies
connected with the Bell system in.
creased from 343,OO0 to 100000, The
number Of independent companies con.
nocted with the Bell system is about
$4,000, The number Of employees in
the Bell System, not including the en-.
nloyes Of connected companies on