The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1913-09-04
MUTUAL RELATIONS AND INTERESTS
OF THE BELL SYSTEM AND THE PUBLIC

Tire maximum ueVeiOpmeut DX ma king
1t possible for every one to- be con-
nected who will add to the value of
the system. thus giving fhe greatest
value to the greatest number: that
the fnterdependence OF the telephone
service and the value of complete and
universal Observation-Disclosures Justify
and require some services partly at
the expense of the whole for the BEN
eft of the whole.
We believe that this highest COM
mercial value can only be attained by
one system under one common control
and that 1t 'oan not be given by inde-
pendent syst ems unless they are oper-
ated under agreements which result
In one common control and one com
mon 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
standard 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 new
methods as fast as they may be de-
yeioped and found to be to the advan-
tage of the service. We believe that.
In addition. such fair charges should be
paid upon the investment in plant as
VIII enable the company at any time to
obtain money necessary to provide the
plant required to meet the continuing
demands of the public: and in order
tnat waste and duplication of effort
may be avoided and uniformity OF
purpose and common control be en-
forced. that there should be. CEN
tralized 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
tnat necessary to equalize dividends
on 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-earnfng plant
until necessary to substitute plant
which may become inadequate or OBJ
solete, or should be used to make the
service cheaper or better.
We believe that under proper gov
ernmentai control and regulation the
profits from promotion or operation
allowed to be distributed should not
De so large as to warrant or tempt
complete duplication of plant and or
ganization, with its duplication Of its
capital charges and its organization.
operating. maintenance and deprecia-
ton expenses; and we do not believe
that utilities giving at fair rates an
efhcfent and sufficiently comprehensive
universal service should be subject to
limited competition. not giving such
service. Competition which ignores
the obligation to furnish complete
and comprehensive service is not COM
petition, Is not for the benefit OF the
public in that 1t does not reach the
whole public interested.
II. therefore. complete duplication.
dual bills for service. is a prerequisite
to complete competition, government
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 COM
oh fa1o
service in the world and made the
Bell standards the standards of all
nations.
To remove any possible excuse for
Misrepresentation on account of the
many misleading statements which
have been circulated as to the alleged
unnecessary and DISQUALIFICATION
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 its Associated Companies.
The entire Bell System on June 80.
1913, had outstanding In the hands of
the public obligations q. e.. notes,
open accounts. bonds and shares) to
the par value of $776.0o0.0o0.
The book value of the total tangi-
Bile assets, which is considerably less
ed to $3.50 100000. Many appraisais
of property included in these assets
have been made, and most of them
under the direction of public authori-
ties In no case has the value as 1t
stands on the books failed to be sus-
tanned and in most cases 1t has been
very largely exceeded.
The total dividends and interest paid
during the year 1912 amounted to
only 6.1To on the average of its out
standing obligations, and to less than
so on the average value of its assets.
The actual cash which has been
paid into the treasury of the Ameri-
can Telephone and Telegraph Com
pany on account of the capital obli-
cations now outstanding amounts to
$22. 100000 more than the par of such
outstanding obligations
The Associated Companies collected
from the public and paid back In
taxes over $10.000.000 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. 1918, inclu-
sive, the increase in telephone plant
was as follows: Toll line wire In
creased from 100000 miles to 2.242.-
600 miles; exchange wire increased
from 100000 miles to 100000 the
number of exchange stations in
creased from e.73o,ooo to 100000:
the number of stations OF independ-
ent companies connected with the Bell
System increased from $4,000 to
500 n00 The number OF fndepend-