Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-09-03
MUTUAL RELATIONS and INTERESTS
OF THE BELL SYSTEM AND The PUBLIC

as TO make It possible to obtain the
maximum development by making it
POSSIBLE for every one to be connected
who will add TO the value of the sys-
TEN, thus giving the greatest value TO
the greatest number; that the inter-
dspendece of the telephone service and
the value of complete and universal
REORGANIZATION justify and re-
qulre some services partly at The ex-
pense CT the whole for the benefit of
the whole.
We believe tlat the highest CONNER
cial value can only be attained by one
system under one common control and
that it cannot be given by independent
systems unless they are operated I'M
der agreements which result in one
common control and one common in
terest, in effect making them a single.
system.
We believe that rates should be so
adjusted as to afford the company SUI
ficient 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 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 as will en-
| able the company at any time to re-
! place old liant and old methods as fast
as they may be. developed and found
m no 10 thp Hrrn, Of 40
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 requir-
ed to meet the continuing demands of
the public; and in order that waste
and duplication of effort may be avoid
cd and uniformity of purpose and COM
mon control be enforced, that there
should be centralized general admin
istration in close communi cation 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 10 equalize dividends on
! 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 TO substitute plant which may be-
: come inadequate or obsolete, or should
be used to make the service cheaper
r CT 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 COM
2 plete duplication of plant and organic
alton, with its duplication of its capital
: charges and its organization, operat-
? ing, maintenance and depreciation ex-
t penses; and we do not believe that
e utilities giving at fair rates an efficient
n and sufficiently comprehensive univer-
i sal service should be subjected to linn
. tied competition, not giving such SER
: vice. Competition which ignores the
! obligation to furnish a complete and
comprehensive service is not competi-
D ton, is not for the benefit OF the pub
n lie in that 1t does not reach the whole
= public interested.
If, therefore, complete duplication.
e with its dual exchange connection and
[ dual bills for service, is prerequisite
. to complete competition. government
Il control and regulation cannot go hand
d in hand with competition.
/ We believe that the record of the
| Pen System viii be accepted by the
s public as fully IN accord with these
- .I.ratIuns. Consistent adherence TO
j this policy has given the public OF the
: United States the best, most compre-
y hensive and cheapest telephone service
e in the world and made. the Bell stand.
+ ards the standards of all nations.
. To remove any possible excuse for
u Misrepresentation on account Of the
many misleading statements which
n have been circulated as TO the alleged
y unnecessary and over, capitalization
d and excessive charges of the Bell Sys
It TEN, the following statistics are given
:, Except where stated. the figures are
for the Bell System; that is, the Amer
& lcan Telephone and Telegraph. and Its
Y associated companies.
. The entire Bal System on June so
= 1913, had outstanding in the hands OF
? the public obligations a. e.. notes, open
Y accounts. bonds and shares) to the
h par value of $4,000, 600.
II The book value of the total tangible
e assets. which is considerably less thar
e their replacement value, amounted Il
!. 100000, 900. Many appraisals of prop
erty included in these assets have beer
4 made, and most OF them under the oil
n rection OF public authorities. In NJ
q books failed to be sustained, aud II
d most cases it has been very largely
d exceeded
- The total dividends and interest paiC
II during the year 1912 amounted to ONLY
G.l per cent on the average OF its out
n standing obligations. and to less thai
= per cent on the average value of ii
% assets.
IS The actual cash which has been phi
into the treasury of the American re
ephone and Telegraph COMPANY on &C
IS count of the capital obligations nov
i outstanding amounts S22 900 900 NOR
:. than the par OF such outstanding obi
II cations.
II The associated companies collecte
r from the pubic and paid back in take
- over Sl0,000,000 during the year 1912.
= The steadily increasing necessities {
~ the public net only for additional bu
Id for new telephone service can only
90 met by new construction, involvin
capital outlay. To meet these demand
s. during the six and one-half years froI
ic 1907 to June, 1913, inclusive. the II
an Crease in telephone plant was as 10
" lows: Toll line wire increased frol
a 100000 miles to 2,242,0 miles: e,
an change wire increased from 6,600, 0C
"a. miles to 100000: the number of e
change stations increased from 2,73C
ct 600 to 5000 900: the number of st