The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-09-03

pany at n time to- replace old plants
and old methods with new plantsdand
new methods as fast as they may be de-
xeloped-and found to be to the adyan-
g The service. We believe. that In
audition, such fair charges should s4bes
Epaada p Investment. in plant as
will enable the company at any time to
OBTAIN money I necessary to provide the
plant required, to meet the continuing
demands Of the public; and in order that
waste and duplication Of effort may be
aNeadea rand unifornity rof, purpose and
common control be enforced, that there
tshouldifha Observation-Disclosures admin
llstration In close, communication with
andshavthg general authority over the
whole on matters common to all or mat.
ters OF general policy.
EgaWat believessthat any surplus beyond
that necessary to equalize dividends on
9 fair basis should be used by the COM
q Tor b benefit ;!of, the public and
should be ~inalienable for any other spur-,
pose n should be either invested In
tFeVenue-earning plant until necessary
70 substitute plant which may become
Iinadeauate or obsolete, or5 should sbes
used TO make the service cheaper or
better. Ga
We believe that nde proper gov
ornamental control and regulation the
pronts from promotion or operation al
lowed to be distributed should not be SO
la~rge5asato warrant or tempt complete.
duplication of plant and organization,
with it's duplication Of it's capital
Icharges&an its organization, operating
maintenance and, depreciation expenses;
and we do not believe that utilities Civ
ing at fair rates1ani efficient and sufic-J
lently comprehensive. universal service
Mould be subject to limited competition,
not giving such service. III 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.
If, therefore, complete duplication,
with its dual exchange connection and
dual bills for service, is prerequisite to
complete competition, government con-
troll and regulation cannot go hand in
hand with competition. r.
We believe that the record Of the Bell
System will be accepted by the public
as fully in accord with these declarra-
tons. Consistent adherence to this pol
Icy has given the public of the United
States the best, most comprehensive and
cheapest telephone service in the world
and made the Bell standards the stand-
ards of all nations. !
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 System, the follow
ing statistics are given. Except where
stated, the figures are for the Bell Sys-
tenn; that is, the American Telephone
and Telegraph, and it's Associated Com
panies. .- "~- -
The entire Bell System on June 80,
1913. had outstanding, in the hands of
the public obligations ii. e., notes, open
accounts, bond and shares) to the par
value Of $776,0 00, 900.
The book value of the total tangible
assets, which is considerably less thai
their replacement value, amounted to
$4,000 900. Many appraisals Of prop
1erty included in-theSe assets have been
made, and most of them under the direc-
ton Of public authorities. In no case
has the value as 1t stands On the books
failed to be sustained, and in X most
cases it has been very largely exceeded.
The total dividends and interest paid
during. the year 1912 amounted to only
E6.1 per cent on the average Of it's out
standing obligations, and to less than s
per cent on the average value of it's
assets.
The actual cash which has been paid
into the treasury Of the American Tele-
phone and Telegraph Company on &C.
count of the capital obligations now out
~standing amounts to $4,000, 900 more
than the par, of such outstanding obli-
cations. ru
; The Associated Companies collected
from the public and paid back, in taxes
over SO, 600, 900 during the year 1912.
The steadily increasing necessities OF
the public mot, only for additional but
for new telephone service can only be
met by new construction, involving
~lcapital outlay. To meet these, demands
during the six and one-half years from
1907 to June, 1913, inclusive, the in
crease in telephone plant was as fol-
lows: Toll line wire increased, from L.
460, 900 miles to 2,242,00o miles; ex-
change wire increased from 6,000,0 900
miles to113;o0o,0oo; = the number Of ex-
'changeI stations increased from t2,730;
600 Itoo5 200, 900; the number of stations
Of independent companies connected
with the Bell System increased from!
343;800 to 100000. The number of in-
dependent companies connected with
Ethes Bell, System is about rs, 900. The
humber of employees in the Bell Sys-
tenn, not including the employees Of con-
nected~coTnpanies, sonSDecember 81 1912,
wasi141,0O0.4 d 80. 45;$
d During this same period the number
LOT shareholders Of the American Tele-
phone N Telegraph company, not in
cluding4-either the associated or ON
Injected companies, increased, from 1900,
Ito about, $4,000. About Al, 900 -share-
holders hold less than 100 shares. each;
$500 shareholders hold from 100 to
1,800 shares each; 347 shareholders
hold from l,o001to 5000 shares, each,e
while there are only 16 shareholders, Of
5000 shares or over in their own right.
"A majority of the shareholders are
women.
EAmsrican 9slephonsA ana Telegraph Co..
THEO. M VAIL, President.
+-@E@
NOTICE.
Notico IL horohv given that there