Arizona republican., 1913-08-28

telephone service and the value ot complete and universal intercOmmun- ication justify and require some ser vices partly at the expense of the whole for the benefit of the whole. We believe that this highest com mcrciaI value can only be attained by one system under one common control and that it cannot be given by independent systems unless they are operated 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 Sccu1e the most efficient service; to maintain the very highest and most advanced 1 standards of plant and apparatus, | tc carry on such scientific and cx- perimental research and inventions l as to apparatus and methods as to | insure the highest standards and to 1 carry to reserve and depreciation 1 such amounts as will enable the com l pany at any time to replace old | plant and old methods with new plant | and new methods as fast as they may 1 be developed and found to he to the |
 
 that in addition. such fair charges | should be paid upon the investment l in plant as will enable the company | at any time to obtain money neccs- l 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 l should be a centralized general ad- l ministration in close communication | with and having general authority | over the whole on matters common l to all or matters of general policy |
 We believe that any surplus be l yOnd that necessary to equalize diVi- l ,lends on a fair basis should be used | by the company for the benefit of the l public and should be inalenab!e for 1 any other purpose. and should be 1 either invested in revenue earning | plant until necessary to substitute 1 rIant which may become inadequate | or obsolete, or should be used to
 make the service cheaper or better |
 We believe that under proper gov | crnmentaI 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 it's duplication of it's | capital charges and it's organization, | operating, maintenance and dCprecia- | ton expenses; and we do not believe l that utilities giving at fair rates an | efficient and sufficiently comprehen- | sive universal service should be sub 1 ject to limited competition, not giving 1 such service. Competition which ig nores the obligation to furnish q l complete and comprehensive service | is not competition. is not for the i benefit of the public in that 1t does l not reach the whole public interested 1
 f. therefore complete duplication, 1 with it's dual exchange connection and | dual bills for service. is a prere- qutsite to complete competition, gov ernment control and regulation can not 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 comprehensive and cheapest telephone service in the world and made the Bell standard the standards of all nations.
 To remove any possible excuse for misapprehension on account of the many misleading statements which have been circulated as to the al- legged unnecessary and oVercapitaliz- ation and excessive charges of the Bell System, 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 Com panies. The entire Bell System on June 90, 1913, had outstanding in the hands of the public obligations G. C., notes, open accounts, bonds and shares) to the par value of $776000,000
 The book value of the total tangible assets, which is considerably less than their replacement value. amounted to $96O, 000,00 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 largeI.- exceeded.
 The total dividend and interest paid during the year 1g12 amounted to only 61 per cent on the average of it's outstanding obligations. and to less than } per cent on the average value of it's assets.
 The actual cash which has been paid into the treasury of the Amer ical Telephone and Telegraph Com pany on account of the capital ob- ligations now outstanding amounts to $22,000,O0 more than the par of such outstanding obligations.
 The Associated Companies collected from the public and paid back in taxes over $1O,OOO, 900 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 | IL. Il nnt