Evening times-Republican., 1913-08-20
MUTUAL RELATIONS AND Interests
OF THE BELL SYSTEM and THE public

States questioning the purchase of GER
tain telephone properties In the north
west, as we'll as the pending Interstate
Commerce Commission telephone in
yestisation, have caused many inquir-
les. Without taking up anything go
ing to the merits Of these proceedings,
it ha, seemed to us proper to state
generally what has been our policy
and purpose in the conduct OF our
business.
We have found. or thought that we
had, that our interests were best
served when the public interests were
best served; and we believe that such
success as we have had has been be-
cause our business has been conducted
on these lines.
We believe that our company has an
interest as vital as that Of the public
in the proper administration OF the
problems of electrical inter-communl-
cation. The success and prosperity OF
our company depend upon solution
of these problems which shall be sound
from both the standpoint of the COM
pany and the public which 1t serves.
Following our own best judgment,
advice, we have endeavored to do what
would best serve the public interest;
wherever possible our plans have been
disclosed to the public in advance, and
what has been done IN carrying them
out has been along ordinary business
lines, with the implied. and generally,
with the expressed approval, authori-
zation or consent of the municipal and
state authorities directly interested.
Our effort has been noc only to obey
the law. but to avoid everything which
might even have the appearance of ca
attempt at evasion.
Our business methods and policy,
and practically all Of the details as to
the transaction of our business, are
matters of common knowledge and
are, and for many years have been,
well known to the government. We
will willingly furnish the government
any additional information which is in
our possession or under our control
and will cordially cooperate with it in
obtaining such further information as
1t may require. Every possible assist
ance will be given by US to the courts
ia their effort to determine whether
our policy is or has been inimical to
the public interest We desire that
anything wrong be corrected; we will
voluntarily rectify any wrong that
may be pointed out to US; and. so far
as it may be determined that our pol
Icy or any act under 1t is against the
public interest, we will promptly con-
xorm to such determination.
We believe that If each Of our ex-
changes were made and independent
unit and II each connecting line were
put under a separate control, the ef-
feet upon the telephone service Of the
country would be a condition so intol-
erable that the public would refuse to
submit to it and would Immediately
require such physical connection and
common control of these various units
as would amalgamate them into a
single system. Physical connection in
the case of telephone or telegraph does
not mean transfer of messages from
one line to the other. It means such
a connection as will permit one person
to have the actual possession of the
particular line of communication from
one end of it to the other and this can
systems and connecting lines under a
common control; and that is what the
Bell System is.
information. We will restate the policy
which controlled the building up of
the Bell System, and our belief as to
what a telephone system should be, and
what are its relations to the public.
We believe in and were the first to
advocate state or government control
and regulation of public utilities: that
this control or regulation should be by
permanent quasi judicial bodies, act
ing after thorough investigation and
governed by the equities of each case:
and that this control or regulation be-
yond requiring the greatest efficiency
and economy, should not interfere
with management or operation. We
believe that these bodies, If they are
to be permanent. effective and of pub
lie benefit, should be thoroughly rep
fesentative; they should be of such
character and should SO conduct their
investigations and deliberations as tc
command such respect from both the
public and the corporal tons that both
will without question accept their con-
clusions.
We believe that the public would
In this way get all the advantages
and avoid all the manifest disadvan-
tages Of public ownership.
We believe that centers of business
and population exist for the convent
ence OF the public as a whole, and that
no such center can prosper without
sufficient and efficient means of inter
course with other centers and tribu-
tary territories: that such means car
only be afforded by prosperous util-
ity and service companies and tha,
fair rates are essential to prosperous
companies. We do not believe that any
public either desires or can obtain, mol
can any service or utility furnish, per.
manent and efficient service at less
than cost. including capital charges
We believe that ultimately the public
either directly or indirectly pays the
losses involved in the efforts to furnish
such service at less than its fair cost
either through the loss of the capita
involved, the losses incident to poo,
service or the necessary increase In
charges required to pay for duplica.
ton OF capital
We believe that the highest CONNER.
cial value OF the telephone service de.
Dends on its complete1ess-on the ex.
tent and comprehensivenesso of the ia.
ciitties for intercommunication, no
only between individuals but between
centers OF population: that no isolated
section can be considered independ
entity OF any other secs;on or Of tn,
whole: that rates must pe SO adjustes
~ 70 make 1t possible to obtain tn,
maximum development by making i
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