Bisbee daily review., 1913-08-27
MUTUAL RELATIONS AND INTERESTS
 OF THE BELL SYSTEM AND THE PUBLIC


 1 ctlities for intercommuncation, not only between individuals but between fcenters of population; that no isolated
 section can be considered independent. < ly of any other section or of the whole;
 that rates must be so adjusted as to make it possible to obtain the maxi
 mum development by making it possi. ble for every one to be connected
 who will add to the value of the sys- | tenn, thus giving the greatest value to
 the greatest number; that the inter
 dependence of the telephone service
 and the value of complete and univer-
 sal intercommunication justify and re- quire some services partly at the ex-
 pense of the whole for the benefit of the whole.
 l We believe that this highest com. 1 mercial value can only be attained by i, one system under one comman control
 and that it cannot be given by inde- | pendent systems unless they are oper- : ated under agreement 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 i most efficient service; to maintain the l very highest and most advanced stand i ards of plant and apparatus, to carry on such scientific and experimental re- | search and inventions as to apparatus 1 and methods as to insure the highest | standards, and to carry to reserve and .A Iarr1nfaffAV9 yavflI ap- | able the company at any time to re- ! place old plant and old methods with 4 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 T charges should be raid upon the in vestment in plant as viii enable the
 company at any time to obtain money
 necessary to provide the plant re-
 guired to meet the continuing demands
 of the public. and in order that waste r17 duplication of effort may be avoided and uniformity of purpose and common cor.rCl be eIS1rced, that
 there should be a centralized general 1 administration in close communication i. with and having general authority over the whole on matters common to all
 or matters of general policy.
 l We believe that any surplus beyond that necessary to equahZe dividends ] on fair basis should be used by the i com my for the benefit of the public srS -E-.lj be inalienable for any other purpose. and should be either invested in reveuue-earning plant until neces-
 sary to substitute plant which may be | come inadequate or obsolete, or should be used to make service cheaper or 1, better
 We believe that under proper govern |, mental control and regulation the ? profits from promotion of operation allowed to be distributed should not be so large as to warrant or tempt
 complete duplication Of plant and or ganizatiCn. with it's 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 1 efficient and sufficiently comprehen- sive universal service should be sub 1; feet to limited competition, not giving 1 such service. Competition which ig- nores the obligation to furnish com , plete and comprehensive service is not ccmpetition. is rot for the benefit or the public in that it does not reach the whole public interested.
 If. therefore, complete duplication,
 with it's dual exchange connection and , dual bills for service. is a prerequisite 10 complete competition, government . control and regulation cannot go mana ? in hand with competition.
 l. We believe that the record Of the ] Rel. System will be accepted by the
 public as fully in accord with these D declarations. Consistent adherence 10 this policy has given the public or the Tinted States the best, most compre bansive and cheapest telephone ser si vice in the world and made the Bell , standards the standards of all nations To remove any possible excuse TOT 1,;sanprehensiCn on account or thS - many misleading statements Whscn ) have been circulated as to the aiiesed ? ln,nacessarv and over capitailz2tlo'l , and excessive charges of the Bell Sys- - fem the following statistics are gwen
 Fvcept where stated. the figures are ! for tbe Bell S-stem; that is the 5 American Telephone and ieiesTapl .l and it's Associated Companies.
 The entire Bell System on June 80 5 l91S. had OUlStdEuiu5 taA hAA~ 'A- b inc public obligations ti. e., notes t oDer accounts, bonds and shares) to [ tbe par value of s776,00o,OOo. ' The book value of the total tangiDly r. assets. which is considerably less thaI al their replacement value, amounted t1 F. eqsO GOO coo. Many appraisals of prop tt erty included in these assets nav, s been made, and most ot them uhuel 7 fine direction of public authorities. IT r no case has the value as it staEds oI r. inc hooks failed to be sustained, anS S in most cases it has been very larger! B. exceeded.
 c The total dividends and interes e paid during the year 1912 amounted hl to only sI e on the average or lt |, outstanding obligations, ana 10 les' ! than e on the average value ol u IT assets.
 nl The actual cash which has been Dai' n fpfr, The fraasury of the AmerIcal