Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-08-20
mutual RELATIONS And INTERESTS
Of 1HEbELlS system AND THE PUBLIC

tween CelterS OF pOpulatOn, Una nc
isolated section car be considered In
dependent of any other section Or OF
the whole; that rates must be 50 ad
justed as to make it possible to obtain
the maximum development by making
it possible for every n to e con
Injected who will add to the value OF
the system, thus giving the greatest
value to the greatest number; that
the interdepondencc of the telephone
service and the value Of complete and
universal intercOmnluniCatiOn justify
and require some services partly al
the expense Of the whole for the bene
tit Of the whole.
We believe that this highest com,
mercial value can only be attained by
one system under one common control
and that it cannot be given by indie
pendent systems unless they are Oper-
ated under agreements which result in
n common control and one common
interest, in effect making them q
single system.
We believe that rates should be so
adjusted as to afford the company
sufficient ven 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
old methods with new plant and new
methods as fast as they may be devel-
oEed and found to be to the advantage
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 con.
tinuing demands of the public; and
in order that waste and duplication
of effort may be avoided and unifor-
nifty 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 cOmmo to all or matters of
general policy.
We believe that any surplus be-
:;Ond that necessary to equalize divi-
dends on a fair basis should be used
by the company for the benefit of the
public and should be i%nalienable for
any other purpose, and should be
either invested 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 5G distributed SHOULD not
&C so large as 70 warrant or tempt
complete duplication of plant and or.
2an'zation, with is duplication OF its
caii al charge and it's organization.
OBJ ;a;ire, mhi::ti nance N: deprecia-
ton expenses, rrG We do not believe
that utilities giving at fair rates an
efficient and sufficiently ccmpahen-
E'tt tIlNCi oNl S''FIrc sSuoV'- DC sun
iect to limited en- petition. nat giving
SIGH service. r"mpetit I, which
len'fcs the t%h!i"atiOn to furnish a
CO lnDlete and comprehensive service
is N0i compet'ton on. is not for the bene'
tit q the ph;'c 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 a prerequisite
to complete competition, government
control and regulation cannot 60 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 tic
this policy has given the public of the
United States the best, most compre
h~ensive and cheapest telephone ser
vice in the world and made the Bel
standards the standards of all ma
tions.
To remove any possible excuse fol
misrepresentation on account of the
many misleading statements which
have been circulated as to the alleged
unnecessary and overcapitalizatior
and excessive charges of the Fell Sys
tenn, the following statistics are given
Except where stated, the figures are
for the Bell System; that is. the
American Telephone and Telegraph
and it Associated Companies.
The entire Bell System or June 80
1913, had outstanding obligation ii. e.
notes, open accounts. bonds ant
shares) to the par value of $4,000,
900.
The book value of the total tangible
assets, which is considerably less
than their replacement value, amount
ed to $500, 100000. Many appra;saIs
of property included in these assets
have been made, and most Of then
under the direction of public au!tori
ties. In no case has the value as 4
stands on the books failed to be sus
tanned, and in most cases it has beer
very highly exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 81 per cent on the average
Of it's outstanding obligations, and &c
less 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
on account Of the ce2ital obligations