New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-19
INITIAL RELATIONS AND INTERESTS
Of THE BELL SYSTEM and THE PUBLIC

make IL possible 10 OBTAIN the maxi.
mum develor ment by making it poss.
BILE for every one TO be connected vh,
will add to the value OF the system
thus giving the greatest value to n.
greatest number; that the interds.
pendence Of the telephone service AMI
the value Of complete and universal,
REORGANIZATION justify and REQUIRE
some services partly at the expense ~
the whole for the benefit Of the whole
We believe that this highest com.
mercial value can only be attained bv
one system under one common control
and that it cannot be given by .nde.
pendent systems unless they are ope,.
ated under agreements which result IN
one common control and one common
interest in effect making them a sinsls
system.
We believe that rates should he e.
adjusted as to afford the company SUI
ficient revenue 10 pay such wages and
compensation as will secure the mos,
efficient service; to maintain the very
highest and most advanced standards
Of plant and apparatus. to carry on
such scientific and experimental re.
search and inventions as to apparatu,
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 10 re.
place old plat and old methods with
new plant and new methods as fast az
they may be developed and found 70
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.
quired 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
should be centralized general admin
istration 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
a fair basis should be used by the COM
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 neces-
sary 10 substitute plant which may be-
come 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 al
lowed TO be distributed should not be
so large as TO warrant or tempt CON-
plete duplication OF plant and organi-
cation. with its duplication Of its CAPT.
tai charges and its organization, oper-
ating, maintenance and depreciation
expenses; and we do not believe that
utilities giving at fair rates an efficient
and sufficiently comprehensive univer-
sal service should be subject 10 limited
competition, not giving such service.
Competition which ignores the obligA-
ton 10 furnish complete and compre-
hensive service is not competition. Is
not for the benefit OF the public in that
IL does not reach the whole public in
terested
II. therefore. complete duplication,
with its dual exchange connection and
dual bills for service. is a prerequisite
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 70
this policy has given the public OF the
United States the best. most compre-
hensive 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 10 the alleged
unnecessary and overcapitalization AMI
excessive charges Of the Bell system
the following statistics are given. Ex'
cept where stated. the figures are fof
the Bell System; that is, she Aserlcan
Telephone and Telegraph. and It's Asso-
ciated Companies.
The entire Bell System on June 80.
1913, had outstanding in the HANDS OF
the public obligations q. e., notes. opsn
accounts, bonds and shares 10 the par
value OF f776 100000.
The book value OF the total tangible
assets. which is considerably less than
their replacement value, amounted 10
5000. 100000 Many appraisals Of prop
erty included In these assets have bees
made. and most OF them under the IL
rection OF public authorities. In no
case has the value as IL stands on the
books failed 10 he sustained. and IN
most cases II has been very largely
exceeded.
The total dividends and interest paid
during the year 1912 amounted 10 only
6.1eo on the average OF its OUTSTANDING
obligations. and TO less than 50 on the
average value OF its assets. II
The actual cash which has been pald
into the treasury Of the American Tele-
phone and Telegraph Company on &C.
count of the capital obligations nov
outstanding amounts 10 S22OTWp
more man the par OF such OUTSTANDING
obligations.
The Associated Companies colecleu
from the public and paid back n
taxes over $l0,0OO00O during the year
1917
The steadily increasing necessities 0.
the public not only for additional ous
for new telephone service can only %
met by new construction. inVoNm..
capital outlay. To meet these demsha,
during the six and one-half years iro"
1907 To June, 1913. inclusive. the ~,
crease In telephone plant was as io.