The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1913-09-10

possible for every one to be connected
who will add to the value of the sys-
tenn, thus giving the greatest value to
dependence of the telephone service
and the value of complete and uni
versal 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
mercfal value can only be attained by
one system under the common control
and that it cannot be given by indie
pendent systems unless they are oper-
ated 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 on such scientific and expert
mental research and inventions as to
apparatus and methods as to insure the
highest standards, and to carry to re-
serve and depreciation such amounts
as will enable the company at any
time to replace old plant and old
methods as fast as they may be devel-
oped n found to be to the advan-
tage 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 h plant required to meet the
continuing. demands of the public;
and in order that waste and duplica-
ton Of effort may be avoided and uni
formity of purpose and common con-
troll be. enforced, that there should be
a centralized general administration
in close communication with and hav-
ing 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
company for the benefit of the public
and should be i~nalienable for any 9TH
err purpose, Inc should be either in
vested 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. > . ~ ~ E..s
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
Eganization, with its 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 comprehen-
sive universal service should be sub
ject. to limited competition, not giving
such service. Competition which ig-
nores the obligation to furnish a com
plete and comprehensive service is not
competition. 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
4 n1IhliR c g = fI1l1xy p fn@n 11n~l ~ 49,.
declarations. Consistent adherence ia
this policy has given the public of the
United States the best, most compre
hensiye and cheapest telephone serv-
lice in the world and made the Bell
standards he 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 n .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 & Telegraph, and
It's associated companies.
The entire Bell system on June 80
1913, had outstanding in the hands oil
the public obligations q. e., notes
open accounts, bonds and shares) tc
the par value of $776, 900, 600.
The book value of the total tangible
assets, which Is considerably less thar
their replacement value, amounted tc
$3.50, DOC, 900. Many %appraisals of prop
erty included in these assets have
Ibeen made, n 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 it has been very largely
exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 6.1% on the average of it's
outstanding obligations, and to less
than SO On the average value of its
assets.
The actual cash which has been paid
into the treasury of the American
Telephone n Telegraph Company on
account of the capital obligations now
outstanding amounts to $22,0 100000
more than the a of such outstand.
ing obligations.
The associated companies collected
from n public and paid back in
1912.
The steadily increasing necessities
of the public not only for additiona.
but for new telephone service can only
be met by new construction, involyine
capitaI outlay. To meet these de.
mands during the six and one-hal1
years from 1907 to June, 1918, inclus.
i've, the increase in telephone plant was
as follows: Toll line wire Increased
lfrom 100000 miles to 2,242,OO0 miles;
~exchange wire increased from 100000
miles to 100000; the number Of e
cflange stations increased from 2.730,.
1000 to {, 100000; the number OF sta.
tons of independent companies con.
nected with the Bell system increased