Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-10

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 1t cannot be given
by Independent systems unless they
are operated under agreements
which result in one common control
and one common interest, in effect
making them a single 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
standards of plant and apparatus,
to carry on such scientific and ex-
detrimental 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 developed and found to
be to the advantage of the service.
We believe that, In addition, such
fair charges should be paid upon the
investment In plant as will enable
the company at any time to obtain
money necessary to provide the
plant required to meet the continu-
Ing demands of the public; and in
order that waste and duplication of
effort may be avoided and uniform
ity of purpose and common control
be enforced, that there should he
centralized general administration in
close communication with and hav-
ing general authority over the whole
tiers Of general policy.
We believe that any surplus be-
yond that necessary to equalize divi-
dends on a fair basis should be
used by the company for the benefit
of the public and should be inalien-
able for any other purpose, and
should be either invested in revenue
earning plant until necessary to sub
stitute plant which may become in
adequate 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 it's duplication Of its
capital charges and it's organization,
operating. maintenance and deprecia-
ton expenses; and we do not believe
that utilities giving at fair rates an
efficient and sufficiently comprehen-
sive universal service should be SUBJ
ject to limited competition, not Civ
ing such service. Competition which
ignores the obligation to furnish a
complete and comprehensive service
is not competition, is not for the
benefit Of the public in that it does
not reach the whole public inter-
ested.
II. therefore, complete duplication,
with its dual exchange connection
and dual. bills for service is pre-
requisite to complete competition.
government control and regulation
cannot go hand in hand with COM
petition.
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 teie-
phone service in the world and made
the Bell standards 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 al
legged unnecessary and overcapitali-
zatfon and excessive charges of the
Bell System, the following statistics
are given. Except where stated, the
figures are for the Bell System; that
is, the American Telephone and Tele-
graph. and its Associated Companies.
The entire Bell System on June 80,
1913. had outstanding in the hands
of the public obligations q. e., notes,
open accounts, bonds and shares) to
the par value of s776,OOO,OOO.
The book value of the total tan
g1bie assets, which is considerably
less than their replacement value,
amounted to $96O,UOO,OOO. Many ap-
praisals OF property included in these
assets have been made, and most of
authorities. In no case has the
value as it stands on the books failed
to be sustained. and In most cases
1t has been very largely exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only $40 on the average of its
outstanding obligations, and to less
than go on the average value of its
assets.
The actual cash which has been
paid into the treasury of the Amer
lean Telephone and Telegraph Com
pany on account of the capital obli-
cations now outstanding amounts 10
$22,OO,Op more than the par Of
such outstanding obligations.
The Associated Companies collect
ed from the public and paid back in
taxes over s1O,OO0,OO 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 1901 to June.
1913, inclusive, the increase in tele-
phone plant was as follows: Toll
line wire increased from 1,4GO,OOO
miles to 2,242,OOO miles: exchange
wire increased from 5000. 600 miles TO
13,OO0.0OO; the number of exchange
stations increased from 2.73o,OOO TO