Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-09-03

one system under one common con
troll and that it cannot be given by
independent systems unless they are
operated under agreements which re-
suit in one common control and c@e
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
standards of plant and apparatus, TO
carry on such scientific and expert
mental research and inventions as to
apparatus and methods as to insure
the highest standards, and to carry
to reserve and depreciation such
amounts as will enable the company
at any time to replace old plant and
old methods with new plant and
pew 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 investment
in plant as will enable the company
at any time to obtain money neces-
sary to provide the plant required 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 COM
mon control be enforced, that there
should be a centralized general ad-
nifnistration 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
invested in revenue earning plant un--
I'll 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
aiioWed TO be distributed should not
De SO large as to warrant or tempt
complete duplication of plant and or
ganizatfon 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 comprehen-
siye universal service should be sub
Ject to limited competition, not Civ
ing such service. Competition which
ignores the obligation to furnish 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.
III. therefore. complete duplication.
with it's dual exchange connection
and dual bills for service, is a pre-
requisite to complete competition.
government control and regulation
cannot go hand in hand with COM
petition.
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 81
the United States the best, most COM
prehensiVe and cheapest telephone
service In the world and made the
Bell standards the standards of all
nations.
10 remove any possible excuse for
Misrepresentation on account of the
many misleading statements which
| have been circulated as to the alleged
unnecessary and overcapitalization
and excessive charges of the Bell Sys-
tenn. the following statistics are given.
Except where stated, the figures are
for the Bell System; that is, the
American Telephone and Telegraph,
and it's Associated Companies.
The entire Bell System on June 30
1913. had outstanding in the hands Of
the public obligations ii. e., notes
open accounts, bonds and shares) to
the par value of 776,000,0O0
The book value of the total tangible
assets, which is considerably less than
their replacement value, amounted to
$96o.0 900. Many appraisals of prop
| erty 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 81 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 to s22OoO,Ooo
more than the par of such outstand-
ing obligations.
| The Associated Companies collected
! from the public and paid back in
taxes over 100000 during the year
| 1912.
| The steadily increasing necessities
of the public not only for additional
but for new telephone service can
only be met by new construction, in
volving capital outlay. To meet
| these demands during the six and
one-half years from 1907 to June, 1913
| inclusive, the increase in telephone
plant was as follows: Toll line wire
| increased from 1.460 miles to 2,242.000
miles; exchange wire increased from
100000 miles to 100000: the num-
| Der of exchange stations increased
from 2,730.000 to 100000; the number
of stations of independent companies
| connected with the Bell System in
| crea sed from 343. 900 TO 1880 600 The