Evening times-Republican., 1913-08-20

one system On0er one COIIlILoi CoilIi VI
| and that it cannot be given by inde-
| pendent systems unless they are oper-
ated under agreements 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
| 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.
! We believe that in addition, such fair
| 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 equalze dividends
on fair basis should be used by the
! company for the benefit Of the public
! and should BE iIa!;enahle for any
| other purpose and should be either in
I vested 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
ernnental 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 it's organization.
| operating. maintenance and deprecia-
ton expenses: and we do not believe
| that utilities giving at fair rates an
efficient and sufficiently comprehensive
universal service should be subject to
limited competition. not giving such
service. Competition which ignores the
| obligation to furnish a complete and
| comprehensive service Is not compe-
tition, is not for the benefit of the
| public in that it does not reach the
whole public interested.
II, therefore, complete duplication,
! with its dual exchange connection and
| dual bills for service is a 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 al! nations.
To remove any possible excuse for
| nisa apprehension on account of the
| many misleading statements which
have been circulated as 20 the alleged
unnecessary and overcapitalization
and excessive charges OF the Bell Sys-
TEN, the following statistics are given.
ILACcpl where SCdttu ,lNc. ttS OECS are
for the Bell System; -aat is. the
American Telephone ana Telegraph,
and its Associated Companies.
The entire Bell System on June 80,
1913, had outstanding in the hands of
the public obligations ii. e., notes.
open accounts, bonds and shares) to
the par value of s77s.Oooo 900.
The book value of the total tangible
assets. which is considerably less than
their replacement value. amounted to
$3.50. 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 it stands on
the books failed to be sustained, and
in most cases it has been very largely
exceeded.
The total dividends and interest
paid during the year 1912 amounted
to only g. per cent on the average OF
its 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 on
account Of the capital obligations now
outstanding amounts 20 s22,000.0 .00C
more than the par of such outstand-
ing obligations.
The Associated Companies collected
from the public and paid back in
taxes over $10,0000O0 during the year
1912.
The steadily increasing necessities
of the public not only 1or additional
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 one-hali
years from 1907 to June, 1913, inclu-
sive the increase in telephone plant
was as follows: Toll line wire in.
creased from 1,460,O05 miles to 2,242,.
900 miles; exchange wire increased
from 100000 miles to $4,000. 600:
the number of exchange stations ;1-
creased from 2.73o,o0O to 5000, 600;
the number of stations of independen,
companies connected with the Bel
System increased from $4,000 to g..
$4,000. The number OF Independent
companies connected with the Bel
System is about $4,000. The numbe,
of employees in the Bell System, no
. including the employees of Sconnectet
companies. on December 81, 1912, wa.
141 900.
During this same period the nunlbe
OF shareholders of the American Tele
/ phone and Telegraph Company. not in
: Guiding either the associated or con
t nected companies, increased from IT..
4 A