Evening journal., 1914-03-16
BELL SYSTEM
SHOWS GROWTH
676,043 Stations Added by
the Company During
1913

The continued growth of the Bell
system. It's earnings and expenses
and general financial prosperity, its
attitude as to government ownership,
its agreement with the Department
OF Justice, the sale Of its Western
Union holdings and its relation with
the general public are forth in detail
in the annual report OF the American
/ Telephone and Telegraph Company
issued today.
President Theodore n. Vail has
something very definite to say in re-
gard to the government ownership of
telephones and his frank discussion
OF this question is perhaps the most
interesting feature Of the report. In
summing up the attitude of the com
pany towards this subject, Mr.. Vail
says:
"Our opposition to Government
operation and ownership is not based
on pecuniary, partisan, preiudiced or
personal reasons. IL is because Of
our interest in the upbuilding of a
great public utility and its preserva-
ton.
I'VE are opposed TO government
ownership because we know that no
government-owned telephone system
in the world IS giving as cheap and
efficient service as the American pub
lie is getting from all its telephone
companies. We do not believe that
our government would be any excep-
ton TO the rule"
As TO possible government pur-
chase. Mr.. Vail quotes Congressman
Lewis, the Congressional exponent of
government ownership, to the effect
that there is no water in the Bell
capitalization; and urges the stock
holders not to be induced to part
with their holdings through fear OF
confiscation.
He shows that there is a deficit in
all government-owned systems and
says that every telephone system in
the world adopts the Bell system as
a standard, uses the Bell operating
methods and either uses Bell appara-
tus or copies It. And yet there is not
one. he continues, that gives an ap-
proclamation to the facilities that the
Bell system gives or gives as good or
as cheap service, all past prophecies
to the contrary Notwithstanding.
Mr. Vail brings out the fact that
Americans are better supplied with
telephone facilities than any other
people, having six times as many
telephones per capita as Great Britain
and thirteen times as many as France,
and that the rates here are as popu-
lar as those Of any government-owned
plant
During the past year subscribers tele
phone stations have increased until now
there are S,l33Ol7, a gain of 616,9i3.
These stations reach 10000 localities or
10000 moro than the number of post
offices. The total wire mileage Is l6,
llllOll, OF which ~ per cent. is copper.
More than half the wire mileage is UNI
derground. the total underground plant
representing cost of $751; 900. The
number of daily telephone connections
showed growth of nearly two million,
reaching an average OF 81 ,237 900 a day.
Europe has only two-iifths of the .tcle-
lphonc traffic of the United States.
The extension of the telephone plant
during the year amounted TO Sol,S7 500,
making a total for fourteen years OF
S646,al5.200. According to present csti
mates the construction for the current
year will cost in the neighborhood OF
S56,00O,O0O, of which the local resources
of the companies viii supply S25OOO,OOo.
Large reserves have been made for
maintenance, reconstruction and depre-
citation, and steady improvement OF
service has been achieved. The report
says:
"The gross revenue in 1913 of the
Bell System-not including the con-
nected Independent companies-was
/ S215, 500, 600; an increase of over Sl6,-
600. 900 over last year. OF this, opera
ton consumed 75.400,000; taxes,
! s11 .30O,O 600 or one and one-half per
cent. on the outstanding capital obli-
cations; current maintenance, S32,-
1 100000; and provision for deprecia-
ton. S37.700000. The surplus avail
able for charges. etc. was S5S,700,
600, Of which S16,700,000 was paid In
interest and over SSO,SOO,0OO was paid
in dividends"
Taken by itself the American Tele-
phone and Telegraph Company shows
net earnings of S4O,576,74619, an in
crease OF S2,669, ,10193 over 1912 The
total outstanding capital stock and
bonds were $5O4. 207 800. which repre-
sent payments into the treasury OF
over s24,5O0,0O0 more than the par
value of the capital obligations.
The number of shareholders. 55.-
9S3, showed an increase of $3.50 dur
ing the year. The report shows that.
under the pensions, disability benefits
and insurance plan. in 16.054 cases
employees Of the Bell companies had
participated in the benefits and the
payments have aggregated over one
million dollars
DEATH OF ]. E. WALTERS.
James y. Walters. an aged resident
nl ~. IL -. L. ~