The chronicle=news., 1913-09-03
MUTUAL RELATIONS AND INTERESTS OF
THE BELL SYSTEM AND the PUBLIC

tsrs and tributary territories: that
such means can only bs afforded by
prosperous utility aad service con'.
psaies and that fair Tates arc essen.
sial TO prosperous companies We do
moi believe that any public either de-
vice or utility turaish. permanent
and sisicieat service st isss thaa cost
taeludisG capital charges. We b.
iisvc thst ultimately the public eth.
~ directly or Indirectly pays the
loosen Involved In the efforts 10 fusa.
lsh such service st lees than its :air
cost. other through the insa Of the
capital iavoivsd. the loasss iaeidest
to ponr service or the necessary Ii.
crease In charges required u pay for
duplication Of capital.
We hslievo that the highest rom-
mescisl value os the telephone seq
Vice dspeads on It's conpietsness-
on The extsat and comprehensive
aess Of the facilities for iniereom-
musiestioa. not ouly bctweca indl-
vtduals hut between ccsters Of pop
uistioa: that no isolated srctioa eau
b. roasidesed Independently Of any
ether section or Of the whole: that
rates must be 70 adjusted % 10 make
Il possible to obtain the maximum
dsvelop0cst BY making II possible
for every one 10 he ronarct~ts who
will add 10 the value Of the syssem
thus GiviaG the greatest value 10 the
greatest number: that the later
d~pes6race Of the telephone service
and ID value Of complete and uuivsr-
al inierronmunication Justify and
require some services partly Al the
expense Of the whole for the beaesit
Of the whole.
We believe that this highest coa.
nrrcisl value can only BE- attained
BY oae system under oar comnsoa
couirol ssd that II cannot b. given
BY Independent sysiems unless they
are operated under agreements which
result 10 one common control and
one common intrrcst. In effect max
lag them . singie system.
We be,teve that rates should he
70 adjusted ~ to afford tho COM
psny sufficient revenue to pay such
wages aud compensation - will Sc
cure the most efficient service: 10
maintain the very highest and most
advanced standards Of plant aud ap-
pAratus. 10 carry ON such scieatiiic
ventions - to apparatus and methods
~ to insure the hiRhcst standards.
aud to carry to reserve and dcpreeia-
ton such amounts rs will enable tho
plant ana old methods with new
methods ~ fast as they may he de-
vcloped and found to be to the adj
vantage OF the service. We believe
that In addition. such fair charged
should be paid upon the Investment
In plant ~ will enable the company
at any 10 obtain money necessary
to provide the plant required to meet
the continuing demands Of the pub.
lie: and In order that waste and dup
lication Of effort may he avoided and
uniformity Of purpose and common
control hs enforced that there should
be q centralized general adminlstra-
tIon 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 be-
vcnd that necessary to caualize divt.
tlcnis on fair basis should he used
by tho company for the benefit Of
the public and should he inalicna bic
fer any other purpose. and should bo
either invested in rcvenue-earninE
plant until necessary to substitute
plant which may become Inadequate
or obsolete. or should he usc,i to
make the service cheaper or better.
We believe that under proper gov
crnmcntal control and regulation the
profits from promotion or operation
allowed to be distributed should not
he 70 large as to warrant or tempt
complete duplication OF plant and or
9anization. with its duplication Of its
capital charges and its organization.
Operating. maintenance and deDrcci-
alton expenses: and We do not be-
iieve that utilities giving at fair
rates and efficient and sufficiently
comprehensive universal service
service should be subject to limited
competition. not giving such service.
Competition which ignores the obli-
cation to furnish complete and
comprehensive service is not competi-