The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-09-11
Mutual Relations and Interests
Of the Bell System and the Public

"sS" uHuer 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
suincient 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 plants and apparatus, to carry
on such scientific and experimental re-
search and inventions as to apparatus
and 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 Odd 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 service.
We believe that in addition, such fair
charges should be paid upon the in
vestment 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 a centralized general
administration in close communication
with and having general authority
over the whole on matters common to
all or matters of general policy.
We believe that any surplus beyond
that necessary 10 equalixe dividends
on fair basis should be used by the
company for the benefit of the public
and should be inaiienable for any
other purpose, and should be either
invested in revenue-earning plant until
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
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
ganization, with its duplication of its
capital charges and its organization,
operating. maintenance and deprecla-
ton expenses; and We do not believe
that utilities giving at fair rates an
efficient and sufficiently comprehen-
stve universal service should be subject
to limited competition, not giving such
service. Competition which ignores the
obligation to furnish complete and
comprehensive service la not compc-
tition, is not for the benefit of the
public in that il does not reach the
whole public interested.
II, therefore, complete duplication.
with its dual exchange connection and
dual bills for service, Ia 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
public as fully in accord with these
declarations. Consistent adherence TO
this policy has given the public OF the
United States the beat, most compre-
hensive and cheapest telephone service
in the world and made the Belle
standards the 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 and overcapitaiixation
and excessive charges of the Bell Sys-
tenn, the following statistics are given.
Except where stated. the figures are
for the Bell System; that is. the
American Telephone and Telegraph,
and its Associated Companies
The entire Bell System on June so,
1913, had outstanding in the hands Of
the public obligations II. g.. notes.
open accounts. bonds and shares) to
the par value of s7Ts.000.0o0.
The book value of the total tangible
assets. which Is considerably less than
their replacement value. amounted to
$3.50. COCO 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 1t stands on
the books failed to be sustained, and
in most cases ii has been very largely
exceeded.
The total dividends and interest
paid during the year 1912 amounted
TO only 6,l per cent. on the average of
It's outstanding obligations, and TO less
than per cent. on the average value
of It's assets
The actual cash which has been paid
into the treasury of the American
Telephone and telegraph Company on
account of the capital obligations now
outstanding amounts to $22.000.000
more than the par OF such outstanding
obligations.
The Associated Companies collected
from the public and paid back in =
taxes over $4,000, 600 during the year
1919.
8 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, 1919, inclu-
sive, the increase in telephone plant
was as follows: Toll line wire i'm
creased from 1850. 600 miles to 2,a42,-
GEO miles. exchange wine increased
from 100000 miles to 100000.
the number OF exchange stations In
creased from 2.T3o.0o to $500. 900; +
the number OF stations of independent
connected with the Bell