The daily banner. (Cambridge, Md.) 1897-2008, 1913-08-27
MUTUAL RELATIONS AND INTERESTS
or the BELL SYSTEM ANO THE PUBLIC


communication, not only between
individuals, but between centers of
population; that no isolated section
can be considered independently of
any other section or of the whole; |
that rates must be SO adjusted as
to make it possible to obtain the
maximum development by making |
it possible for every one to be |
ue of the system, thus giving the
greatest value to the greatest num-
Der; that the inter-dependence of
the telephone service and the value |
of complete and universal inter-
communication justify and require
some services partly at the ex-
pense of the whole for the benefit
of the whole.
We believe that this highest COM
mercial value can only be attained
by one system under one common
by Independent systems unless they
are operated under agreements
which result in one common con-
troll and one common interest, in
effect making them a single sys-
tenn.
We believe that rates should be
so adjusted as to afford the COM
; pany sufficient revenue to pay
such wages and compensation as
will secure the most efficient ser
vice; to maintain the very highest
and most advanced standards of
plant and apparatus, to carry on
such scientific and experimental re
search and inventions as to appara-
tus and methods as to insure the
highest standards, and to carry to
| reserve and depreciation such
amounts as will enable the COM
pany at any time to replace 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 SER
vice. 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 the plant required to meet
the continuing demands of the
public; and in order that waste and
duplication of effort may be avoid
ed and uniformity of purpose and
common control be enforced, that
there should be centralized gen
eral administration in c.cse COM
munication with and having general
authority over the whole on mat
| tiers common to all or matters of
general policy.
We believe that any surplus be-
yond that necessary to equalize
dividends on fair basis should be
used bv the company for tie bene-
fit of the public and should be in
alienable for any other purpose land
should be either invested N reye-
nue-earn1ng plant until necessary
to substitute plant which may be-
come inadequate or obsolete. or
should be used to make the service
cheaper or better.
We believe that under proper
governmental control and regulation
the profits from promotion or opera
ton allowed to be distributed should
not be so large as to warrant or
tempt complete duplication of plant
and organization, with it's dupi:ca-
ton of it's capital charges and its
| organization, operating, maintenance
and depreciation expenses; and we
do not believe that utilities giving
at fair rates an efficient and suffi-
GENTLY comprehensive universal ser
vice should be subject to limited
competition, not giving such SER
vice. Competition which ignores
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 inter-
| ested.
If, therefore, complete duplica-
ton, with its dual exchange connec-
ton and dual bills for service, is
a prerequisite to complete compe-
tition, government control and regu-
lation 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 adj
herence 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 stand
ards 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 over
capitalization and excessive charges
of the Bell System, the following
statistics are given. Except where
stated, the figures are for the Bell
System; that is, the American Tele-
phone and Telegraph. and it's 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 $776,-
100000.
The book value OF the total tan
gible assets, which is considerably
less than their replacement value,
amounted to $96O.000.0O0. Many |
appraisals of property included in |
these assets have been made. and |