The Bennington evening banner. (Bennington, Vt.) 19??-1961, 1913-03-22
BIG TELEPHONE YEAR
Bell Company Increased Earnings
BY $19,694, 1856.

New York. March 20. With the
Bell telephone system making thu
best showing in its history, Theodore
N. Vail in his annual report as presi-
dent of the American Telephone &
Telegraph company declares the out
look for the company was never bet
ter
Gross earnings of the Bell tele
phone system in the United States
last year totalled $199,172, 154 an in
crease of $19,694,156. After allowing
for expenses and other charges, in
Guiding dividends, there were sur
plus earnings of $13,221, ITO, ar in
crease of $1.212,549.
The American Telephone and Tele-
graph company, which is the holding
company for the Bell system, reports
net earnings OF $37 1907 ,644, a gain of
| S4,060,39S. After allowing for charg-
es and dividends, there was bal
ance of S6,047,357, of which $4,000, 900
was carried TO reserve and $3,247 1851
to surplus.
President Vail in discussing the rul
ings made by the different utility
commissions concerning the tele-
phone business states that most of
them have been favorable, and none,
it is believed, will have the effect of
permanently retarding the develop
ment of business along lines adopted
by the company.
| Relative to the interstate com
MERGE commissions investigation OF
the telephone and telegraph business
Mr.. Vail says:
1T is impossible, and would be i'm
proper to attempt to forecast the &C
ton of the interstate commerce com
mission, but judging by the past rec
ord of that body we can but expect
| that it will be constructive rather
than destructive"
In 1912 careful appraisals of the
physical property of all the compan-
| les of the allied system were made,
and it was found that whereas the
| book cost of the property on August
/, 1912, was about $736,000,000 the
cost of reproduction would exceed
| $797, 000, 900. This is without includ-
| ing any amount whatever for intang-
IDLE assets, such as good will, pat
ents, franchise, etc.
1t is estimated by the American
Telephone and Telegraph company
that $62 100000 will be required in
1913 for addition to plant OF this
SS0,000,000 will be provided by pres
ent resources.
Last year the sum of s66,705, 900
was applied out of revenues for main
tenance and reconstruction. OF this,
however, more than SIS, 100000 was
unexpended. In the last 10 years a
total of s409, 100000 has been pro-
vided for this account Additions to
plant and real estate in the IL
months amounted to 75,626,929.
A table is given in the report
which shows that although Europe
has about three and half times the
telegraph traffic of the United States
and nearly twice the first class mail
traffic, it only has about two.ffths of
the telephone traffic of the United
States.
There were 14,40O,OOO,OOO tele-
phone conversations in the United
States in 1911. The Bell system has
toll lines to 10000 places in this
country compared with $4,000 post
offices and 10000 railway stations.
There was an increase in telephone
stations last year of SAC.
The American Telephone and Tele-
graph company has 50.297 stockhold-
ers, an increase for the year of p
1856. The majority are women. The
average holding is &C shares.
The company states that it feels
the high cost of living: but despite
the increased wages. larger expendi-
lures for welfare, greater cost of la
Dor and raw materials, the trend of
telephone rates has been downward.