The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-09-17
MUTUAL RELATIONS ANO INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

complete and universal intcrcom.
munication Justify and REQUIRE some
services 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
bS one system, under one common
control. and that IL cannot be given
by independent systems unless they
are operated under agreements which
resnlt IN one common coutrol and
one common interest, in effect max.
ing them a single system.
We believe that rates should be so
adjusted as TO afford the company
sufliclent 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 aud apparatus. to
| carry on such scientific and expert
mental research and inventions as 10
apparatus and methods a. TO insure
| the highest standards. and TO carry
10 reserve and depreciation such
amounts as will enable the company
at any time TO replace old plant and
ola methods with new plant and new
| methods rs fast IS they may be devel-
| oped and found to be TO the advan..
| tage OF the service. We believe that
IN addition, such fair charges should
| be paid upon the investment in plant
as VIII enable the company at any
| time to obtain money necessary TO
provide the plant required to meet the
continuing demands of the public:
and IN order that waste and dupica.
ton of effort may be avoided and
uniformity OF purpose and common
control be enforced. that there should
| he centralized general administra
| lion closo 70, .,I.
| 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 equlaize 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
invested in revenue earning plant
| until 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
probts from promotion or operation
allowed to be distributed should not
ne so large as TO warrant or tempt
| complete duplication of plant and or.
gauization, 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
efhclent and sufficiently comprehen
slNe universal service should be sub
lect to limited competition, not piv-
ing such service. Competition which
ignores the obligation to furnish
complete and comprehensive service is
not competition, is not for the benefit
OF the public in that il does not reach
the whole public interested.
lt, therefore, complete duplication.
with its dual exchange connection
and dual bills for service. is a prere-
quisite to complete competition. gov.
crnment control and regulation can
o, 20 hand in hand with competition.
We believe that the record of the
Sell System viii be accepted by the
public as fully in accord with these
declarations, Consistent adherence TO
this policy has given tbe 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 ma.
tlops.
TO remove any possible excuse for
misappreheusion on account of the
many misleading statements which
unnecessary and overcapitaliZation
and excessive charges of the Bell Svs-
tenn, the following statistics are
given. Except where stated the fig
ares are for the Bell system: that
IS. the American Telephone and Tele-
graph and it's Associated Compa MES.
The entire Bell System on June 80.
1918, had outstanding in the hands OF
the public obligation (. e.. notes,
open accounts, bonds and shares) to
the par value of S776.000,0O0.
The book value of the total tangi-
bic assets, which is considerably less
than their replacement valr, amount
ed to Ss60,000,000. Many appraisals
of property included in these assets
have been made, and most of them
under the direction OF public authori-
ties. In no case has the value as il
stands on the books failed to be sus-
tanned. 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 into the treasury OF the Ameri.
can Telephone and Telegraph Com.
panv on account Of the capital obi.
cations now outstanding amounts to
500 100000 more than the par OF such
outstanding obligations.
The Associated Companies collected
from the public and paid back in
taxes over sl0,000,000 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
volviug capital outlay. To meet these
demands during the six and one. half
years from 1907 to June. 1913. inclu-
sive, the increase in telephone plant
was as follows: Toll line wire in
creased from l.460,0O0 miles to 2,242.
600 miles; exchange wire increased
from 100000 miles to l3,0OO,O00;
the number Of exchange stations in.
creased from e,730,000 to $500. 900;
the number of stations of independent
companies connected with the Bell
system increased from $4,000 to q
620,0G0. The number of independent
companies connected with the Bell
system is about $4,000. The number
OF employees in the Bell System. not
Including the employees Of connected |
companies, on December 81, 1912. was
lt1 900