The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1913-09-17

NC cHLuICeut IhdL kuSIS oHOulu NC q
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 be-
You'd that necessary to cqualize divi-
dends on 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 invested in revenue-earning
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 OPERA
ton allowed to be distributed should
not be SO large as to warrant or
tempt complete duplication of plant
and organization, with its duplica-
ton of its capital charges and its
organization, operating, mainten>
ance and depreciation expenses; and
we do not believe that utilities CIV
ing at fair rates an efficient and
sufficiently comprehensive univer-
sal service should be subject to linz
tied competition, not giving such
service. Competition which ignores
the obligation to.fnrnish "a complete
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 duplica-
ton, with its dual exchange connec'
ton and dual bills for service, is a
prerequisite to. complete competition.
government control and, regulation
cannot go hand jim, hand with compe-
! tition. aa% ..
We believe that the record of the
Bell System will. be accepted by the
public as fully in accord with these
declarations. Consistent adherence
OF this policy has given the public
Of the United States the best most
comprehensive and cheapest tele-
phone service in tho 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 wheer stated, the
figures are for the Bell System; that
Is, the American Telephone and Tel
cgraph, and it's Associated Compan-
les.
The entire Bell System on June
80, 1919, na1 outstanding in the
hands of the public obligations Il. G.,
notes, open accounts, bonds and
i shares) to the par value of $77G,-
100000.
The book value of the total tangi-
Bile assets, which is considerably less
than their replacement value,
! amounted to 96O,OOO,OO0. Many
appraisals of property included in
the these assets have been made, and
most of them under the direction of
public authorities. In no case has
the value as 1t stands on the books
failed to be sustained, and in most
cases it has been very largely ex-
ceeded.
The total dividends and interest
paid during, the year 1912 amounted
to only 6.1% on the average of it9
outstanding obligations, and to less
than SO on the average value Of
its assets. 49,
The actual cash which has been
paid into the treasury Of the Amer
lean Telephone and Telegraph Com
pany on account of the Capital obli-
] cations now outstanding amounts IL
$22,OO0,O0 more than the par OF
such outstanding obligations.
The Associated Companies collect
ed from the public and paid back in
taxes over $1O,OOO,OOO during the
year 1912.
The steadily increasing necessi-
ties of the public not only for addi-
tional but for new telephone service
can only be met by new construC-
tion, involving capital outlay. To
meet these demands during the six
and one-half years from 1907 to
June, 1918, inclupsive, the increase
in telephone plant was as follows:
Toll line wire increased from 1862
600 miles to 2,242,OO0g miles; en-
change wire increased from 6,O00,.
600 miles to 100000; the num-
Der of exchange stations increased
from 2,7SO,0OO to 100000; the
number Of stations Of Independent
companies connected with the Bell
System, Increased from $4,000 to
IL, 100000. The number of indc.
pendent companies connected with
the Dell System is about $4,000. The