The Birmingham age-herald., 1913-08-21

ing the greatest value to the greatest
number; that the interdependence of the
telephone service and the value of COM
riete and universal intercommunication
justify and require some services partly
at the expense of the whole for the bene-
fit of the whole
We believe that this highest commercial
value can only be attained by one system
under one common control and that it
carnot be given by Independent systems
unless they are operated under agree
ments which result in one common con-
troll and one common interest, in effect
making them a single system
We believe that rates should be. so ad-
justed as to afford the company sufficient
revenue to pay such wages and compensa-
ton as will secure the most efficient sery-
ice to maintain the very highest and most
advanced standards of plant and appa-
iatus' to carry on such scientific and ex-
rerlmental 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 re-
place old plant and old methods with
new plant and new methods as fast as
they may be developed and found to be
to the advantage of the service We be-
sieve 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 duplication of effort may be
| avoided and uniformity of purpose and
common control be enforced, that there
should be a centralized general adminis-
tration 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 beyond
that necessary to equalize 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 in
vested in revenue earning plart 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 operatlo al
lowed to be distributed should not be
so large as to warrant or tempt COM
plete duplication of plant and organi-
zation with its duplication of its capi-
tai charges and its organization,
ODerafinR maintenance apd danreo;o
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 it does not reach the
whole public interested.
If, therefore, complete duplication,
With it's 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 eompre-
hensMe and cheapest telephone service
in the world and made the Bell stand
tards the standards of all nations
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 given
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 80.
1913, had outstanding in the hands of
the public obligations G, e. notes, open
accounts bonds and shares) to the
par value of s776.0O0. 900.
The book value of the total tangible
assets, which is considerably less than
their replacement value. amounted to
$960,000,000. 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 1t stands or
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 out |
standing obligations. and to less than 5
per cent on the average value of its as
sets.
The actual cash which has been paid
into the treasury of the American
Telephone and Telegraph company on
account of the capital obligations now
more than the par of such outstand-
ing obligations.
The associated companies collected
from the public and paid back iii taxes
over $10,O00,000 during the year 1912. |
The steadily increasing necessities of !
the public not only for additional, bur
for new telephone service can only be |
met by new construction. involving |
capital outlay. To meet these demands
during the 61a years from 1907 10 June.
1918, inclusive. the increase IN tele- |
phone plant was as follows: Toll line |
Wire increased from 1,460, 600 miles to |
2,242oOO miles; exchange wire increased i
from 100000 miles TO 10000, 900; the |
number of exchange stations Increased |
fra. Aon