South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-08-21
MUTUAL RELATIONS AND INTERESTS
Of THE BELL SYSTEM AND THE PUBLIC

mercial value can only be attained
by one system under one common con-
troll and that II 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 10 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 10
carry on such scientific and expert
mental research and inventions as 10
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
developed and found 10 be TO the ad-
vantage 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 continuing demands of the public;
and in order that waste and duplica-
ton of effort may be avoided and
uniformity of purpose and common
control be enforced. that there should
be centralized general administra-
ton 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-
yond 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 inalienable
for any other purpose, and should be
either invested in revenue-earning
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 so large as TO warrant or tempt
complete duplication of plant and or
ganization, with it's duplication of it's
capital charges and it's organization,
operating, maintenance and deprecia-
ton expenses; and we do not believe
that utilities giving at fair rates an
efficient and sufficiently comprehensive
universal service should be subject to
limited competition, not giving such
| service. Competition which ignores the
obligation To furnish a complete and
comprehensive service is not compe-
titiOn, is not for the benefit of the
public in that ii does not reach the
whole public interested.
If, therefore, complete duplication,
with it dual exchange connection and
dual bills for service, is a prerequisite
to complete competition, government
control and regulation cannot go 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 to
this policy has given the public OF the
| United States the best, most cOmpre-
hensive and cheapest telephone serv-
| ice in the world and made the Bell
| standards the standards of all ma
| tons.
To remove any possible excuse for
misrepresentation 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-
| tenn, the following statistics are Civ
en-. 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,
| 1913, had outstanding in the hands of
the public obligations g. e., notes,
| open accounts, bonds and shares) to
| the par value Of S776. 600, 900.
The book value Of the total tangible
assets. which is considerably less than
| their replacement value, amounted to
| $3.50. 100000. 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 sustained. and
| in most cases 1t has been very largely
| exceeded.
The total dividends and interest
| paid during the year 1912 amounted
outstanding obligations, and TO less
( than sc on the average value of it's
| assets.
The actual cash which has been paid
| into the treasury OF the American
| Telephone and Telegraph Company on
| account OF the capital obligations now
| outstanding amounts TO $4,000 600
| more than the par Of such outstand-
/ ing obligations.
The Associated Companies collected
! from the public and paid back in
| taxes over $40, 600. 600 during the year
The steadily increasing necessities
/ of the public not only for additional
/ but for new telephone service can only
/ be met by new construction, involv-
/ ing capital outlay. To meet these de-
mands during the six and e-half
years from 1907 10 June. 1913, inclu-
/ sive, the increase in telephone plant
was as follows; Toll line wire in
! creased from AGO. 600 miles TO 2.242.-
/ 600 miles; exchange wire increased
/ from 100000 miles TO $4,000. 600:
/ the number OF exchange stations in
| creased from 2,73O. 600 10 100000:
/ the number OF stations of independent