The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1913-08-20

iCQull SOlllt SClNlCt6 al NV
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 it cannot be given by indie
pendent systems unless they are oper-
ated under agreements which result in
one common control and one common
interest, in effect making them
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 stand
ards 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 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,
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 common control be enforced that
there should be centralized general
administration 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
! company for the benefit of the public
| and should be inalienable for any
other purpose, and should be either in
vested in revenueearning plant until
necessary to substitute plant which
may become 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
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-
| slve universal service should be sub
ject to limited competition not giving
such service. Competition which ig-
nores the obligation to furnish COM
plete and comprehensive service is not
competition. is not for the benefit of
| the public in that it does not reach
the whole public interested.
| If. therefore, complete duplication.
with its dual exchange connection and
dual bills for service, is prerequisite
to complete competition, government
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 to
! 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
. misapprehension on account of the
/ many misleading statements which
/ have been circulated as the alleged
unnecessary and overcapitalization
and excessive charges of the Bell Sys-
TEN. 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 Companies.
The entire Bell System on June go
1913, had outstanding in the hands OF
the public obligations ii, e., notes,
open accounts, bonds and shares to
the par value Of $4,000, 900,
The book value of the total tangible
assets, which is considerably less than
their replacement value, amounted to
1850. 900. 900 Many appraisals Of
property included in these assets have
been made and most of them under
the direction of public authorities. In
no case has the value as 1t stands OF
the books failed to be sustained, ano
in most cases it has been very largely
exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only 61 per cent on the average Of
it's outstanding obligations, and to less
than per cent on the average value
of its assets.
The actual cash which has been paid
into the treasury of the American
Telephone and Telegraph Company or
account of the capital obligations now
outstanding amounts to $22O00,OO
more than the par of such outstand
ing obligations.
The Associated Companies collected
from the public and paid back II
taxes over $10,OO0,0O0 during the veal
1912.
The steady increasing necessities
of the public not only for additions
but for new telephone service can ONLY
be met by new construction, involv
ing capital outlay. To meet these de
mands during the six and onehal
years from 1907 to June, 1913, inclu
sive, the increase in telephone plan
was as follows: Toll line wire in
creased from 100000 miles to 2,242,
900 miles; exchange wire increased
from 6,0O0.000 miles to 100000