The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-09-18
MUTUAL RELATIONS AND INTERESTS N
OF THE BELL SYSTEM and The PUBLIC

sectloA can be considered Independently
OF any other section or of the wholess
that rates must be so adjusted as to
make it possible to obtain tho MAXI
mum development by making 1t posi-.
bile for every ono to be connected who
VIII add to the value OF the system,
thus giving the greatest value to the
greatest number; that tho interde-'
pendence of the telephone service and
tho value OF complete and universal
ntercommunication justify and require
some services partly at the expense
Of the whole for the benefit OF the
whole
We believe that this highest com
'nercial value can only be attained by
| one system under one common control.
and that 1T cannot be given by indie
pendent systems unless they are" one
rated under agreements which result
In one common control and one COM
mon interest. in effect making them
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 stand
ards of plant and apparatus to carry
on such scientific and experimental re-
search and inventions as to apparatus
anu methods as to insure the highest
STANDARDS and to carry to reserve and
depreciation such amounts as will en-
able the company at any time TO re-
place old plant and old methods with
new plant and new methods az fast as
they may be developed and found to
De 10 the advantage of the service.
| We believe that in addition such fair
charges should be paid upon the in
Vestinent in plant as will enable the
company at any time to obtain money
necessary to provide the plant re-
CURED 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 centralized general admin
istration in close communication with
ana having general authority over the
Wnole 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 inalienable for any
other purpose, and should be either
invested III 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.
| We believe that under proper gov
ernmental control and regulation the
/ prohts from promotion or operation
allowed to be distributed should not
! DC SO large rs to warrant or tempt
complete duplication of plant and or
ganization, with its duplication OF its
capital charges and its organization.
| operating, maintenance and deprecia-
ton expenses; and we do not believe
mat utilities giving at fair rates an
! efficient and sufficiently commemorative
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 tho
public in that it does not reach the
whole public interested.
I III, therefore, complete duplication
! with its dual exchange connection and
dual bills for service. is n 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
|
hensivc and cheapest telephone service
In the world and made the Bell stand
ards the standards OF all nations.
To remove any possible excuse for
misapprehension on account of the
many misleading statements which
have been circulated as to the alleged
unnecessary and overcapitalization and
excessive charges of the Bell System,
the following statistics arc given. Ex-
cept where stated. the figures are for
D ttNA QA1l
Telephone and Telegraph, and its AS
sociated Companies.
The entire Bell System on June 80.
1918, had outstanding in the hands of
the public obligations q. e., notes,
open accounts. bonds and shares) to
the par value of S776.o00.O00.
The book value of the total tangible
assets. which is considerably less than
their replacement value, amounted to
$3.50, 100000. Many appraisals OF prop
erty included In these assets have been
made. and most of them under the di-
rection of public authorities In no
case has the value as il 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
Gle on the average OF it's outstand-
Ing 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 Tel
ephonc and Telegraph Company on ac-
count of the capital obligations now
outstanding amounts to S22.000,O00
more than the par OF such outstand-
ing obligations.
The Associated Companies collected
from the public and paid back in
taxes over Slo.o00,000 during the year
1912
The steadily increasing necessities
OF the public not only for additional,
! but for new telephone service. can only
be met by new construction. involv-
ing capital outlay To meet these de-
mands during the six and one-half
years from 1907 to June, 1913. inclu-
sive. the increase in telephone plant
was as follows: Toll line wire in
creased from 100000 miles TO $4,000
miles: exchange wire increased from
100000 miles to 100000; the num-
her OF exchange stations increased
from 100000 to 100000: the number
OF stations OF Independent companies
connected with the Sell system in