The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-09-03
ADVERTISEMENT
Advtisemen
MUTUAL RELATIONS AND INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

who viii add TO the value of the sys-
tenn, thus giving the greatest value to
the greatest number; that the inter
dependence of the telephone service
and the value of complete and uni
versal INSTRUMENTATION justify and
require some services partly at the ex-
pense of the whole for the benefit OF
the whole.
We believe that this highest COM
merciaI value can only be attained by
one system under one common control
and that 1t cannot be given by inde-
pendent systems unless they are oper-
ated under agreements which result in
one common control and one common
interest, in effect making them a sin
gle system.
We believe that rates should be so
adjusted as to afford the company
sufficient revenue to pay such wages
ana compensation as will secure the
most efficient service: to maintain the
very highest and most advanced stand
ARDS OF plant and apparatus. to carry
on such scientific and experimental re-
search and inventions to apparatus
and methods as to insure the highest
standards. and to carry to reserve and
depreciation such amounts as will en-
able the company at any time to re-
place old plant and old methods with
new plant and new methods as fast
they may be developed and found to
be to the advantage of the service
we believe that in addition, such fair
charges should be paid upon the in
Vestment to plant as will enable the
company at any time to obtain money
necessary 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 a centralized general admin
in clio
and having general authority over the
whole on matters common to all or
matters of general policy.
We believe that any surplus beyond
tnat necessary to equalize dividends
on fair basis should be used by the
company for the benefit of the public
and should be inalienabIe for any other
purpose, and should be either invested
in revenue earning plant until neces-
sary to substitute plant which may be-
come inadequate or obsolete. or should
be used to make the service obeaDar or
better.
We believe that under proner GOV
ernmental control and regulation the
prohts from promotion or operation
allowed to be distributed should not
be so large as to warrant or tempt
complete duplication of plant and or
ganfzaton. 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
efficient and sufficiently comprehen-
sive universal service should be sub
ject to limited competition, not Civ
ing such service. Competition which
ignores the obligation to furnish n
complete and comprehensive service
is not competition. is not for the bene-
fit of the public in that it does not
reach the whole public interested.
If, therefore, complete duplication.
n han
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 ser
vice in the world and made the Bell
standards the standards of all ma
lions.
To remove any possible excuse for
misrepresentation on account OF the
many misleading statements which
have been circulated as to the alleged
unnecessary and overcapttalizat1on
and excessive charges of the Bell Sys-
tenn. the following statistics are
given. Except where stated, the fig
ures are for the Bell System; that is,
the American Telephone and Tele-
graph, and its Associated Com
panies.
1913 had outstanding in the hands of
the public obligations q. e. notes
open accounts, bonds and shares) 70
the par value of 100000.
The book value of the total tangi-
bic assets. which is considerably less
than their replacement value,
amounted to s96O.O0O.OOO. Many ap-
praisals of property included in these
assets have been made, and most of
them under the direction of public au-
thorities. In no case has the value
as it stands on the books failed to
be sustained, and in most cases ii has
been very largely exceeded.
The total dividends and interest
paid during the year 1912 amount
ed to only 81 per cent on the average
of its outstanding obligations, and 70
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 capital obligations now
outstanding amounts to S22,000.000
more than the par of such outstand-
ing obligations.
The Associated companies collected
from the public and paid back in taxes
over ;10,0o0,o0o 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. in
voIving capital outlay To meet these
demands during the six and one-half
years from 1907 to June, 1913, in
elusive, the increase in telephone
plant was as follows: Toll line wire
increased from 100000 miles to
2.242.000 miles: exchange wire in
creased from 100000 miles to 49,
900, 900: the number of exchange sta
tons increased from 2,73o.0OO to
$500, 00o: the number of stations of
independent companies connected
with the Bell System increased from
343. 600 70 2620-O0O. The number Of