The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-27
MUTUAL RELATIONS AND INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

We believe that ultimately the public
either directly or indirectly pays the
losses involved in the efforts to fur
nish such service at less than its fair
cost, either through the loss OF the
capital involved, the losses incident TO
poor service or the necessary increase
in charges required 10 pay for duplica-
IiOn of capital
We believe that the highest CONNER
cial value of the telephone service de-
ponds on its pleteness-On the ex-
tent and comprehensiveness of the IA
cilities for intercommunication. not
only between individuals but between
centers OF population; that no isolated
section can be considered independ-
entity of any other section or of the
whole; that rates must be so adjusted
as TO make il possible TO obtain the
maximum development by making II
possible for every one TO be connected
who will add 10 the value of the sys-
TEN. thus giving the greatest value TO
the greatest number; that the inter
dependence of the telephone service
and the value of complete and uni
versal intercommunication justify and
require some services partly at the
expense 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 control
and that it cannot be given by indie
pendent systems unless they are oper-
ated under agreements which result in
one common control and one common
interest. in effect making them sim
gle 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
/ 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 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 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 to equalize dividends
on 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 in revenue-earning plant I'M
| til 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
ornamental 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 it's duplication of its
capital charges and its organization,
operating, maintenance and deprecia-
ton expenses; and we do not believe
I
! ficient and sufficiently comprehensive
| universal service should be subject to
/ limited competition, not giving such
service. Competition which ignores the
obligation to furnish a complete AM
comprehensive service is not compe-
tition, is not for the benefit of the
public in that it does not reach the
whole public interested.
! If. therefore. pOmDletp publication.
with it's dual exchange connection and
dual bills for service, is 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 best, most compre
hensfve and cheapest telephone service
! in the world and made the Bell stand
ards 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 overcapitaliZation
and excessive charges of the Bell Sys-
TEN, the following statistics are given.
Except where stated, the figures are
for the Bell System; that is, the
American Telephone and Telegraph,
and it's Associated Companies.
! The entire Bell System on June 80,
1913, had outstanding in the hands of
the public obligations ii. e., notes,
open accounts, bonds and shares) to
the par value of $4,000, 900.
/ The book value of the total tangible