The daily sentinel., 1913-08-27

merclal value can only be attained by
one system under one common con-
troll and that il cannot be given "
independent systems unless they are
operated under agreements which re-
suit in one common control and cne
common interest, in effect making
them single system.
We believe that rates should ne so
adjusted as to afford the company
sutticient revenue to pay such wages
and compensation as will secure The
/ most efficient service; to maintain
the very highest and most advanced
standards of plant and apparatus; to
carry on such scientific and expert
mental research and inventions as to
apparatus and methods as to insure
the highest standards. and to carry
to reserve and depreciation such
amounts as will enable the company
at any time to replace old plant and
old methods with new plant and new
methods as fast as they may be de-
Veloped and found to be to the ad-
vantage of the service. We believe
that. in addition, such fair chal gos
should be paid upon the investment
in plant as will enable the company
at any time to obtain money neces-
sary to provide the plant required %
meet the continuing demands of the
public, and in order that waste and
duplication of effort may be avoided
and uniformity of purpose and COM
mon control be enforced; that there
should be centralized general ad-
ministratiOn 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 be-
yond that necessary to equalize div
idends on fair basis should be used
by the company for the benefit of the
public and should be inalienable for
any other purpose. and shoulG be
either invested in revenue-earitipg
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
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 depreci-
alton expenses; and we do not be-
lieve that utilities giving at fair rates
an efficient and sufficiently compre-
hensive universal service should be
subject to limited competition. not
giving such service. Competition
which ignores the obligation to fur
nish complete and comprehensive
service is not competition, Is not for
the benefit of the public in that it
does not reach the whole public in
| terested
II, therefore, complete duplication,
with its dual exchange connection
and dual bills for service, is a pre-
requisite to complete competition
government control and regulation
cannot go hand in hand with Compe-
tition.
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
! comprehensive and cheapest tele-
phone service in the world and made
the Bell standards 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 tho alleged
unnecessary and overca pitalization of
the Bell system, the following statis-
tics are given. Except where stated,
the figures are for the Bell system;
that is the American Telephone &
Telegraph and its associated ccInpan-
| les.
The entire Bell system on June 80,
| 1913, had outstanding in the hands
] nf ha 10 l,1 4
/ open accounts, bonds and shares) to
the par value of s776,000,0OC.
| The book value of the total tangi-
BILE assets, which is considerably less
than their replacement value,
amounted to 100000, 900. 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 it has been very largely eY-
ceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 6.1 per cent on the average
of its outstanding obligations, and to
less than per cent on the average
value of its assets.
The actual cash which has been
paid into the treasury of the Amer
lean Telephone & Telegraph Com
pany on account of the capital obli-
cations now outstanding amounts to
$22, 100000 more than the par of
such outstanding obligations
The associated companies collected
from the public and paid back in tax
es over $10,000,O00 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, in
volving capital outlay. To meet these
; demands during the six and one half
years from 1907 to June, 1913. in
elusive, the increase in telephone
plant was as follows: Toll line wire
increased from / 400. 900 miles TO o.
$4,000 miles; exchange wire in
creased from 100000 miles to 49,
600 600. the uumbpr of EXCHANGE sta.