The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1913-08-28
MUTUAL RELATIONS AND INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

Der; that the inter-dependence Of the
telephone service and the value OF
complete and universal intercommun-
ication justify and require some SER
vices partly at the expense OF the
whole for the benefit Of the whole
We believe that this highest com
mercial value can only be attained ny
one system under one common con-
troll and that IL cannot be given by
Independent systems unless they are
operated under agreements which re-
suit 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
sufficient revenue to pay such wages
and compensation as will 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
and old methods with new plant and
new methods as fast as they may be
developed and found to be TO the ad-
vantage Of the service. We believe
that in addition. such fair charges
should be paid upon the investment
In plant a. will enable the company
at any time to obtain money neces-
sary to provide the plant required 10
meet the continuing demands Of the
public; and In order that waste and
duplication OF effort may be avoided
and uniformity of purpose and COM
mon control be enforced. that there
should be q centralized general ad-
ministration In close communication
with ~nd 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 faxx bPsis should be used by the
company Tor the benefit Of the public
and should be inalienable for any 9TH
er purpose, and should be either in
vested In revenue-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 20 large as to warrant or tempt
complete duplication OF plant and or
ganisation. 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
ef6ciAAf and sufaciently comprehen-
sive universaf service should be sub
1ect to limited competition, not CIV
ling such service. Competition which
ignores the obligation to furnish a
complete and comprehensive service
Is not competition. Is not for the ben
eflt Of the public In that II does not
reach the whole public interested.
n. therefore. complete dup..cation
with its dual exchange connection
and dual bills for service Is a pre-
government control and regulation
cannot 90 hand In hand with com.
petition.
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 com
prehensive and cheapest telephone
service In the world and made the
Bell standards the standards Of all
nations.
To remove any possible excuse for
Interpretation on account of the
many misleading statements which
have been circulated as to the al
legged unnecessary and overcapitaliza-
ton and excessive charges Of the Bell
System. the following statistics are
given. Except where st>ted, the fig
ures are for the dell System: that H.
the American Telephone and Tele
graph. and its Associated Companies
The entire Bell System on June 80
1913, had outstanding In the hands OF
the public obligations Il. e.. notes
open accounts, bonds and shares) to
the par value Of $776.000.000.
The book value of the total tangi
BILE assets, which Is considerably less
than their replacement value, amount
ed to $3.50. 100000. Many appraisais
of property included In these assets
have been made, and most Of them
under the direction of public authors
ties. In no case has the value as II
stands on the books failed to be sus.
tanned. and In most cases II has been
very largely exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 6.1 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 into the treasury of the Ameri-
can Telephone & Telegraph company
on account of the capital obligations
now outstanding amounts to $22.000,-
900 more than the par Of such out
standing obligations
] The Associated companies collect
ed from the public and paid back
In taxes over $4,000, 900 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, IN
volving capital outlay. To meet these
demands during the six and onehalf
years from 1907 to June. 1913, in
elusive, the increase In telephone