The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1913-08-20

c~enters of population; that no isolated
section can be considered independent
ly Of any other section or Of the
whole; that rates mnst be so adjusted
as to make 1t possible to obtain the
maximum development by making it
possible for every one to be connected
who will add to the value of the sys-
tenn. thus giving the greatest value
TO the greatest number; that the in
terdependence OF the telephone SER
vice and the value Of complete aud
universal intercommunication 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 al only be attained by
one system under one common control
and that it cannot be given by indie
pendent SYSTEMS unless they are operat
ed under agreements which result 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 no such scientific and expert
mental research and inventions rs TO
apparatus and methods Ms to insure
the highest standards, and to carry to
r, serve and depreciation such mounts
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 de-
veloped 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 as will enable the company ut
amy tire to obtain money necessary to
provide the plant required TO meet
the continuing demands tf the public;
and in order that waste and duplica-
ton of effort may be avoided and uni
f .rmity of purpose and common con
trol If enforced, that there should be-
a centralized general admins ration
ia 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 beyond
that necessary to equalize dividends on
a fair basis should be used by the CONS
pany for the bent fit OF the public and
should be i~nalienable for any other
purpose, and should bs either invest
cd in revenue- earning plant until
niece ssary to substitute plant which
may become iuadt quate or obsolete, or
should he used to make the service
cheaper or better.
We believe that under proper gov
ernmental control and regulation the
profits from promotion OF operation al
lowed to be distributed should not be
so large as to warrant or tempt COM
plete duplication of plant and organi-
zatiop with it's duplication Of its
capital charges and it's organization,
optr iting, maintenance and deprecia-
ion expenses; and we do not believe
that utilities giving at fair rates an
effici mt and sufficiently comprehensive
universal service should be suhject to
limited competiti r, rot giving such
service. Competition which ignores
the obligation to furnish a complete
and comprehensive service is not COM
petition, is not for the benefit of the
public in that il does not reach the
whole public interested.
IL. therefore, complete duplication,
with its dual exchange connection
aud dn ! bills for service. is IA pre-
requisite TO complete competition,
government control and regulation
Z M I 20 hand ia hand with competi.
tion.
We believe that the record of the
Bell System viii Le accs pied by the
public as fully in accord with these
declarations. Consistent adherence to
this policy has given the public OF
the United Stat 8 the beet. most COM
prehensiye and cheapest telephone ser
vice ia the world and ma 10 the Bell
standards the standards of all nations.
To remove any possible ken for
misrepresentation on account Of the
many misleading statements which
have oeen circulated las to the alleged
unnecessary and DISQUALIFICATION
and excessive charges of the Bell
System, the following statistics are
given. Except where stated. the fig
ures are for the Bell System; that ia,
the American Telephone and Tele-
graph. and its Associated Companies.
The entire Bell System on June 80.
1918 had outstanding in the hands of
the public obligations q. 9. notes,
open accounts, bonds aud shares) to
the par value Of $778. 900. 900.
The hook value Of the total tangible
assets. which is considerably less than
their replacement value, amounted to
$3.50, 900, 900. Many %appraisals Of
property included In these assets have
been made. and moet OF them under the
directi n Of public authorities. In NO
case has the value as it stands on the
books failed to be sustained, and in
most cases 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 8 Der cent on the averaps yalue of