The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1913-09-10
MUTUAL RELATIONS ANDINTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

J.
and the value of complete and uni
versal REORGANIZATION Justify and
some services partly at the eX-
pense OF the whole for the benefit of
the whole.
We believe that this highest COM
merciaI value can only be attained by
one system under one common control
and that it cannot be given by indie
pendent systems unless they are oper-
ated under agreements which result in
one common control and one common
interest, in effect making them
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, 10 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 Is
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 a 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 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 in
vested in revenue-earning plant which
may become Inadequate or obsolete,
or should be used to make the service
cheaper or better.
We believe that under proper goN-
ornamental control and regulations 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 its
capital charges and it's organization,
operating, maintenance and deprecia-
!tion expenses; and We do not believe
that utilities giving at fair rates an
deficient and sufficiently comprehensive
universal service should be subject to
limited competition, not giving such
iservice. Competition which ignores the
iogl cation 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.
If, therefore. complete duplication
with it's dual exchange connection and
dual bills for service, is ae prerequisite
ito 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 tC
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 all nations.
| To remove any possible excuse fol
misrepresentation on account of the
many misleading statements which
| have been circulated as to, hte alleged
unnecessary and overca pita atior
! tenn, the following statistics are given
Except where te,,e stated, the figures are are
| American Telephone and Telegraph
| and it's Associated Companies. ~
The entire Bell System on June 80
1913, has outstanding in the hands OF
lopen accounts, bonds and shares) tc
! the par value of $776,000,000.
/ The book value of the total tangible
assets, which is considerable less thar
! their replacement value, amounted &c
$3.50, 100000. Many appraisals o,
property included in these assets have
! been made, and most of them under
! the direction of public authorities. IL
no case has the value as it stands or
the books failed to be sustained. anC
in most cases it has bnee largely
Exceeded.
The total dividends and interest PAID
Idurin2 the year 1912 amounted TO only
! 81 per cent on the average of its out.
! standing obligations, and to less thar
assets.
The actual cash which has been pait
into the treasury of the American
! Telephone and Telegraph Company or
Outstanding amounts to $4,000 .OOt
! more than the par value of such out.
standing obligations.
The Associated Companies collected
from the public and paid back in take:
over $10.000,000 during the year 1912
The steadily increasing necessitie.
lof the public not only for additions
but new telephone service can only
be met by new construction. invoIv.
ing capital outlay To meet these de
mands during the six and one-hal
years from 1907 TO June, 1918. inclu,
isive- the increase in telephone plan
was as follows: Toll line wire in
creased from 100000 miles to 2242.
200 miles; exchange wire increased
from 100000 miles TO 1900. 900: tht
number of exchange stations increas
led from 2,130.000 10 100000: the mum.
iber of stations of independent com.
panieS connected with the Bell System
Increased from $4,000 TO 2.62O 600 Tn,
number of Independent companies con.
nected with the Bell System is abou
5000. The number of employees il
the Bell system. not including the en-.
iployees of connected companies, on De.
lcember 81, 1912, was 141 900
During this same period the number
lOf shareholders OF the American TeIe
iyNkaF ~