Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1913-08-28

accommodation justify and require
some services partly at the expense or
| the whole for the benefit of the whole.
| We believe that this highest CONNER
cial value can only be attained by one
| system under one common control and
| that it cannot be given by independent
| systems unless they are operated under
/ agreements which result i'm one common
| control and one common interest, in ef-
| feet making them a single system.
! We believe that rates should be so adj
| iusted as to afford the company sufficient
| revenue to pay such wages and compen-
| sation as will secure the most efficient
J service: TO maintain the very highest
and most advanced standards OF plant
| and apparatus, to carry on such seiehti-
fc and experimental research and inVen-
| tions as to apparatus and methods as to
insure the highest standards, and 10
| carry to reserve and depreciation such
| amounts as will enable the company at
any time to replace old plant and old
methods with new plant ana new meth
| DDS as fast as they may be developed
and found to he to the advantage Of the
service We believe that in addition such
fair charges should be paid upon the in
NSSlfltHl III pittill dS VIII tiltblF ttt &'.t'-
pany at any time to obtain money nee
essary To provide the plant required to
meet the continuing demands of the pub
| lie; and in order that waste and duplt-
| cation of effort may be avoided and uni-
| formitp of purpose and common control be
| enforced. that there should be central
| lied general administration in close com
munication with and having general au-
! thority over the whole on matters com
mon 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 COM
pany for the benefit of the public and
| should be inaienable for any other pur-
| pose and should be either invested in
revenue-earning plant until necessary to
| substitute plant which may become ill.,
/ adequate or obsolete, or should be used
to make the service cheaper or better.
| We believe that under proper govern
mental 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 organization with its du-
plication of its capital charges and its
organization. operating. maintenance
and depreciation expenses: and We do
not believe that utilities giving at fair
rates an efficient and sufficiently compre-
hensive universal service should be sub
ject to limited competition. not giving
such service. Competition which ignores
the obligation to furnish a complete and
comprehensive service is not COMPETE
tition. is not for the benefit of the pub
10 in 10 whole
public interested.
If, therefore, complete duplication,
with its dual exchange connection and
dual bills for service. is prerequisite to
complete competition government control
and regulation cannot so 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 comprehensive and cheapest
telephone service in the world and made
the Bell standards the standards of all
nations.
To remove any possible excuse for mis-
apprehension on account of the many
circulated as to the alleged unnecessary
and overcapitalization and excessive
charges of the Bell System the following
statistics are given.A Except where stat
| ed the figures are for the Bell system
| that is, the American Telephone and
! Telegraph. and its Associated Companies.
The entire Bell System on June 30. 1913.
had outstanding in the hands of the pub
lfs.g ttss,.. ~
| bonds and shares to the par value OF
| SIG, 000, 900.
| The book value of the total tangible
| assets. which is considerably less than
| their replacement value amounted TO
$780, 1000. 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 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
| 6.1Po on the average of its outstanding
obligations. and to less than SO on the
average value of its asests.
The actual cash which has been paid
: phone and Telegraph Company on ac-
!, count of the capital obligations now out
standing amounts to s22,00J.000 more than
the par of such outstanding obligations.
The Associated Companies collected
from the public and paid back in taxes
: over 100000 during the year 1912.
The steadily increasing necessities of
the public not only for additional but for
Il new telephone service can only be met
by new construction, involving capital
outlay. To meet these demands during
the six and one-half years from 1907 to
June, 1913, inclusive, the increase in tele-
phone plant was as follows Toll line
wire increased from 10000 miles to
2.242, 900 miles; exchange wire increased
from 100000 miles to 100000; the num-
Der of exchange stations Increased from
2, 100 900 to 100000; the number of stations
of independent companies connected with
the Bell System increased from 3i3 O0l To
L 100000 The number of independent
~