The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-09-03
MUTUAL RELATIONS AND INTERESTS OF
The BELL SYSTEM AND THE PUBLIC

adjusted as TO make 1t possible to OBJ
tain the maximum development by
making 1t possible for every one. to
be connected who will add to the
value Of the system, thus giving the
greatest value to the greatest mum.
\ Der; that the interdependence of the
telephone service and the value OF
complete and universal intercommnni
cation justify and require some SER
vices partly at the expense of the
whole for the benefit of the whole.
i We believe that this highest conf
mercial value can only be attained by
one system under one common con-
troll and that it cannot be given by
independent systems unless they are
operated under agreements which re-
suit 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 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 mt
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 all
/ vantage 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 neces;
sary to provide the plano required 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 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 surlus beyond
that necessary TO edualize dividends
IN fair basis should be used by the
company for the benefit of the pub
lie and should be inalienable for any
| ether purpose, and should be either
invested in revenue-earning plant I'M
til necessary TO substitute plant
which may become inadequate or OBJ
solete. 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 deprecia-
ton expenses and we do not believe
that utilities giving at fair rates an
efficient and sufficiently comprehen-
sive universal service should be sub
| ject to limited competition, not 81,
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 IL does
not reach the whole public interest
ed
II, therefore, complete duplication.
with its dual exchange connection and
dual bills for service, is prere-
quite to complete competition, gov
eminent control and regulation can
not go hand in hand with competi-
ton.
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 com
prehensive and cheapest telephone
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 alleg-
! ed unnecessary and overcapitaliza.
ton 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
Telegraph, and its Associated Com
panies.
/ nc tnAii = Dtii Sltii On June DNs
1918, had outstanding in the hands of
the public obligations { /. e., notes,
open accounts. bonds and shares) TO
the par value of s776,00O,O00
The book value of the total tangi-
BILE assets, which is considerably less
than their replacement value, amount
ed TO $3.50. 100000. Many appraisals
of property included i'm these assets
have been made. and most OF them
under the direction OF public authori-
ties. In no case has the value as it
stands on the books failed to be sus-
tanned and in most cases 1t has been
very largely exceeded.
The total dividends and interest
paid during the year 1912 amounted
TO only 6. per cent on the average
of its sustaining obligations, and to
, less than 5 per cent on the average
value of it's assets. rm
The actual cash which has been
paid into the treasury OF the Ameri-
can Telephone and Telegraph Com.
Pany on account of the capital obi
cations now outstanding amounts to
$22.00O.000 more than the par of such
outstanding obligations.
The Associated Companies collect
ed from the public and paid back in
taxes over S10,0OO.OOO during the
year 1912.