The Washington herald., 1913-08-21
MUTUAL RELATIONS AND INTERESTS
OF THE BELL SYSTEM ANDTHE PUBLIC

interdspsndencs Of the telephone ssrvicd
and the value Of eomplsts and univesuul
intsrcommunication Justify and require
some services partly at the expense oa
the whole for the benefit Of the whole.
We believe that this highest CONNER.
|cfd value can only be attained By one
system under one common control and
that II cannot Be given by indspsud>u,
systems unless they are operated undas
agreements which result in one common
control and one common Interest, IN q.
feet making them q single system.
{, We believe that rates should be. u
adjusted n to AFFORD the company suf.
ficient revenue to pay such wages and
compensation a. will secure the mosi
effcient service; to maintain the VEN
highest and most advanced standard
Of plant and apparatus, to carry o.
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 n viii en-.
able the company at any time to re.
place old plant and old methods with
new plant and new methods as fast N
they may be developed and found ID
be to the advantage of the service. We
believe that in addition. such fair charres
should be paid upon the investment in
plant as will enable the company at any
time to obtain money necessary to pro-
vide the plant required to meet the con-
tinuing demands Of the public; and In
order that waste and duplication of ef-
fort may be avoided and uniformity Of
purpose and common control be an.
forced. that there should be a central.
lied general administration In Close com.
munication with and having general au.
thority over the whole on matters com,
mon to all or matters Of general policy.
We believe that any surplus beyond
that necessary to equalize dividends on
q fair basis should be used by the conn
pany for the benefit Of the public and
should be inalienable for any other
purpose. and should be either invested
In revenue-earning plant until necessary
to substitute plant which may becoms
Inadequate or obsolete, or should h
used to make the service cheaper O,
better.
We believe that under proper govern.
mental control and regulation the PROFITS
from promotion or operation allowed e
be distributed should not be 20 Iarre a.
to warrant or tempt complete duplica-
tfon Of plant and organization. Win n,
duplication Of its capital charges ana N,
organization. operating, maintenance.
ana depreciation expenses; and We do
not believe that utilities diving nj fair
rates an efficient and sufucientiv con.
prenensive universal service should be
subject to limited competition, not giving
such service. Competition which 10.
nores the obligation to furnish a conn.
plete and comprehensive service 1. NOT
is not for the benefit Of the
public ir that it does not reach III.
whole public interested.
II. therefore. complete duplication.
with its dual exchange connection and
uuai bills for service. 10 . prerequisite
10 complete competition, government
control and regulation cannot 20 hand
IN hand with competition.
We believe that the record Of IN.
Bell System will be accepted by tbe
public As fully in accord with these
declarations Consistent adherence te
ms policy has given the public Of the
United states the best. most eompre-
,ensive. and cheapest telephone service
n the world and made the Bell stand.
lrds the standards Of all nations.
TO remove any possible excuse for
on account of thu
many misleading statements which
rave been circulated as to the alleged
Unnecessary and overcapitalization and
Excessive charges Of the Bell System.
he following statistics are given. Ex-
'ept where stated. the figures are for
he Bell System: that Is, the American
telephone and Telegraph, and its Asso-
lated Companies.
The entire Bell System on June 20
w. had outstanding in the hand, of
he public obligations q. e.. note.
pen accounts. bonds and shares) 10
he par value Of s77S,oOO 900.
The book value of the total tane;h,.
ssets' which is considerably less than
heir replacement value. amounted to
sso.ooo,ooo. Many appraisals of prom
rty included in these assets have
cen made, and most Of them under
ne direction of public authorities. In
o case has the value as it stands ON
ne books failed to be sustained. and
4 most cases 1t has been very largely
The total dividends and interest paid
uring the year 1912 amounted to only
L per cent on the average of its
obligations. and to les.
ian per cent on the average value
its assets.
The actual cash which has been paid
ito the treasury OF the American Tele-
hone and Telegraph Company on &C.
ount Of the capital obligations now
amounts to $4,000, 900
ore than the par Of such outstanding
bligations.
The Associated Companies collected
ON the public and paid back in taxes
'er SlooOO.oOo during the year 1872.
The steadily increasing necessities of
e public not only for additional but for
w telephone service can only be met
new construction. involving capital
ltlay. To meet these demands during
e six and one-haif years from lsN to
me- 1913 inclusive. the increase In tele.
lone plant was as follows: Toll line
Ire increased from 1.46o.0o0 miles TO
1900 miles; exchange wire increased
ON 100000 miles to 100000: the num-
r Of exchange stations increased from