The daily sentinel., 1913-08-27
MUTUAL RELATIONS AND INTERESTS
Of THE BELL SYSTEM AND THE PUBLIC
- s.,-.&S

States questioning the purchase of
certain telephone properties in the
northwest. as well as the pending
interstate commerce commission tel
ephone investigation, have caused
many inquiries. Without taking up
anything going to the merits of these
proceedings, ii has seemed to us prop
er to state generally what has been
our policy and purpose in the con-
duct OF our business.
We have found, or thought that we
had. that our interests were best
served when the public interests were
best served; and we believe that such
success as We have had has been be-
cause our business has been conduct
ed on these lines.
We believe that our company has
an interest as vital as that OF the pub
lie in the proper administration OF
the problems of electrical intercom-
munication. The success and pros
perlty of our company depend upon
solution OF these problems which
shall be sound from both the stand
point OF the company and the public
which 1t serves.
Following our own best judgment,
supplemented by the best obtainable
advice, We have endeaVored to do
what would best serve the public in
terest; wherever possible our plans
have been disclosed TO the public in
advance, and what has been done in
carrying them out has been along
ordinary business lines, with the i'm
piled, and generally, with the ex-
pressed approval, authorization or
consent OF the municipal and state
authorities directly interested. Our
effort has been not only to obey the
law, but to avoid everything which
might even have the appearance OF
9 an attempt at evasion.
Our business methods and policy,
and practically all OF the details as
to the transaction of our business, are
matters OF common knowledge and
are, and for many years have been.
well known to the government. We
will willingly furnish the govern
ment any additional information
which is in our possession or under
our control, and will cordially CO.
operate with 1t in obtaining such fur
ther information as it may require.
Every possible assistance will be Civ
en- by us to the courts In their effort
TO determine whether our policy is or
has been inimical to the public in
terest. We desire that anything
wrong be corrected; we will volun-
tarily rectify any wrong that may be
pointed out to us; and. SO far as il
may be determined that our policy or
any act under it is against the public
interest, we will promptly conform to
such determination.
We believe that II each of our eX-
changes were made an independent
unit and il each connecting line were
put under separate control, the effect
upon the telephone service of the
country would be condition SO in
tolerable that the public would re-
fuse TO submit to it and would i'm
mediately require such physical con-
nection and common control OF these
various units as would amalgamate
them into a single system. Physical
connection in the case of telephone or
telegraph does not mean transfer OF
messages from one line to the ether;
it means such a connection as will
permit one person to have the actual
possession OF the particular line of
copfgInication from one end of it to
the Jher, and this can only be given
efffc fntly by exchange systems and
CONNECTING lines under common con-
troll; and that is what the Bell sys-
TEN is.
In this connection, and for general
information, we will restate the pol
icy which controlled the building up
of the Bell system, and our belief as
to what telephone system should be,
and what are its relations to the pub
lie.
We believe in and were the first
to advocate state or government con-
troll and regulation of public utili-
finG. fhaf this CONTROL raUtlla inn
should be by permanent quasi-judi-
cial bodies, acting after thorough in
vestigation and governed by the equi-
ties of each case; and that this con-
troll or regulation, beyond requiring
the greatest efficiency and economy,
should not interfere with manage
ment or operation. We believe that
these bodies, If they are to be perma-
nent, effective and of public benefit,
should be thoroughly representative;
they should be of such character and
should so conduct their investigations
and deliberations as to command such
respect from both the public and the
corporations that both will without
question accept their conclusiors.
We believe that the public would
in this way get all the advantages
and avoid all the manifest disadvant-
ages of public ownership.
We believe that centers of bust
ness and population exist for the con-
venience of the public as whole,
and that no such center can prosper
without sufficient and efficient
means OF intercourse with other cell
ters and tributary territories; that
such means can only be afforded by
prosperous utility and service co1n-
panies and that fair rates are essen
tial to prosperous companies. We dc
. not believe that any public either de-
sires or can obtain, nor can any ser
vice or utility furnish, permanent
and efficient service at less than cost
| including capital charges. We be
! Heve that ultimately the public eth
| er directly or indirectly pays the
losses involved in the efforts to fur
! nish such service at less than its fail
cost. either through the loss of the
. capital involved, the losses incident