New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-20
GREAT TEL. & TEL. YEAR
Staggering Array of Millions in
Annual Report.

The American Telephone and Tele-
graph Company which issued its report
for the year ended December 81 1872 yes
terday. showed a surplus Of go ,94J be
fore the payment of dividends. This was
equal TO 957 per cent on tho company's
1894 s0G.315 capital stock; s.ei per cent was
earned on 500 $50 700 outstanding at the
close of 1911 The company's total earn
mgs aggregated Si27l7993. and the bal
ance, after a dividend of S per cent was
maid equalled S6Oi7.3j7
Gross revenues of the Bell Telephone
system was sIsa.l72.15l. or a gain OF ap-
proxinately 100000 Operating expenses
consumed sos 2i6 l56 taxes Sl0,533. 3i9. or III
rent maintenance. s3l. 1872 $50 and provision
<or depreciation S}i9l2 SOP making total
increase I'm expenses of sl4S937s3. Interest
charges of Slf2o5.36j left A surplus for
stock Of si2.5Sl325. an increase of Si705 ses
over 1911. with a surplus Of sl3, 90. 10 ar
ter dividends the company's surplus and
reserves on December 81 totallcd Slsi 49,
SCI
An appraisal conducted by the engi-
reers Of the physical property of the Bell
system as Of August I. 1872. showed that
while the book cost was $736o0oO0O the
cost of reproduction at that. date would
have been $500 900.
During the fv, year period between 1874
D.
have increased S3ll.0C00Ja. while the CAPT
tai obligations and payables outstanding
have increased little over 100000
The company surplus and reserves have
increased from S6l30oC00 10 Sl5i. 10000, or
nearly S03.00o0,0. after setting aside S..
$1,000 for the benefit fund recently ere
ated for the employees.
The report states that there are now
1900 towns. cities and hamlets from
which telephone messages may be sent
This is 5000 more than the number OF
postoffices in the United States, 1000,
more than the number Of railroad stations
and nearly three times the number of reg
ulsr telegraph offices There are alto
gether 1904 telephone stations in the
Bell system or an increase Of so ii9 sta
tions.
Including the traffic over the long dis
lance lines. but not including the con-
Meeting companies. the daily average Of
toll connections in 1912 was about 5000
and Of exchange connections about 25.574.
G00 This compares with $500 and 23isL-
Ooo in 1911 Spealgnc broadly this means
that the daily average Of telephone con-
versations last year reached 263lo.eoo or
at the rate Of about S.i72, $4,000 for the
year. a. AGAINST 2i.l29Ooo in 1911. when the
rate was 100000 = year
\ majority Of the shares of the Ameri-
can Telephone and Telegraph Company
are held ny women. and less than : per
cent is held in the name Of brokerage
houses. The average number Of shares
held by each stakeholder at the close Of
1912 was shown TO be So
The report tells Of the new plan An
nounced on January for employees pen
sions. disability benefits and insurance
For the purpose Of inaugurating these
benefits tho American Telephone and
Telegraph Company made an initial .ap-
preparation Of 100000 There are about
200. 900 employees who will be directly or
indirectly affected UN liil- plONlrt'u- 10
report also contains a letter from Attor-
new General Wickersham to the chair
man Of the Interstate Commerce Com
mission at Washington regarding the
activities of the company.
In conclusion. President Theodore y.
Vail said: AS 10 the future OF the com
pany, IL was never brighter. Business i'm
dications are normal and our relations
with the public authorities are on mu-
tually satisfactory basis.
The organization on the lines set forth
in previous reports is about complete, and
the division OF the work is 50 clearly
drawn and so closely correlated between
the local administration Of the associated
companies and the central general admin
istration of the American Telephone ana
Telegraph Company that there is no du-
plication Of effort or conflict in admins
fratiOu'