The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-03-20
Comparison With European Figures
Show That Foreigners Have But
Two-Fifths of U. S. Traffic.
MESSAGES FROM 10000 TOWNS
Can Be Sent From 5000 More Places
Than Letters-Total Stations
Number 7,456,074.

The announcement that the North
western Telephone company, which
is one of the companies Of the Bell
system, will put a central battery
plant in Bemidji is today followed by
the annual report of the Bell COM
panies. The report, which comes
from President Vail, is as follows
The report just issued by the
American Telephone and Telegraph
company for the year ending Deem
Der 81, 1912, shows that the tele-
phone has become in the United
States, to greater extent than any
where else in the world, a household
necessity There are now 10000
towns, cities and hamlets from which
telephone messages may be sent.
This is 5000 more than the number
of post offices in the United States;
10000 more than the number of rail-
road stations and nearly three times
the number of regular telegraph
offices. There are altogether 1885,
OLA telephone stations in the Bell
system. which is an increase over last
year of S23.449 stations. This COM
pares with an increase during the
previous year Of 749.906 stations.
Including the traffic over the long
distance lines, but not including the
connecting companies. the daily av-
erage of toll connections in 1912 was
about $4,000 and of exchange con-
nections about 25,572,00O. This
compares with $4,000 and 1884,
900 in 1911. Speaking broadly this
means that the daily average of tele-
phone conversations last year reach
ed 26,310, 900, or at the rate Of about
S,472, 100000 for the year, as gainst
"a, 10000 in 1911 when the rate
was 7.770.0OO, 900 year.
Theodore N. Vail, president OF the
company, gives some highly interest
ing statistics comparing the tele-
phone traffic in the United States and
Europe with the operations of the
mail and telegraph services.
The figures show that while Eur
ope has three and a half times the
telegraph traffic of the United States
and nearly twice the first class mail
traffic, it has only two-fifths OF the
telephone traffic, owing to the great
err efficiency and distribution of the
telephone in this country.
The Bell system showed a gross
revenue---not including that of the
connected independent lnes-of
100000. This was gain of
100000 over the previous year.
A careful appraisal conducted by the
engineers of the physical property of
the Bell system as Of August | last,
1886, 100000, the cost of reproduce
ton at that date would have been
$797,O00,0O0 In other words. the
company was carrying the property
on it's books at Sc 1000, 900 below its
actual physical value at the time of
it's appraisal In this appraisal there
were included no intangible assets
whatever, such as good will, patents,
franchises, cost of developing the
business, etc. For the year there was
an increase in assets of $92,300,000,
of which $75.6OO.000 represented
current additions to the plant, in
Guiding the necessary real estate.
During the five year period between
1907 and 1912 the assets of the Bell
companies have increased SO 1,0O0,-
900 while the capital obligations and
payable outstanding have Increased
only little over $199,000,0 900. The
surplus and reserves have Increased
from $61,SOO,O0O to $164,200,O0O or
nearly $1O3, 100000, even after set
ting aside $S,S54,00O for the Benefit
Fund recently created for the en-
ployes. -
The American Telephone and
Telegraph company itself shows to-
tai. earnings Of $42,717,992.75, and
a balance of $6,O47,357.64 after pay
ment of interest and the regular
dividends of eight per cent per an
mum. At the close of the year its
outstanding capital stock was -$334,-
sos, 700, and bonds $105, 002, 900. For
the capital stock outstanding there
- on{ln116- on Ioa} nG1Hl -. -.