Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1914-03-20
lR0MTM ~ In BILL sYsTEM.


The annual report Of the Bell system, JUS, re
reved By The Ncwa sets forth IN detail the ear
nings expenses and general financial prosperity.
and the attitude OF the American Telegraph and
telephone Company as 10 government ownership,
which ls frankly lu opposition.
Perhaps the most interesting feature OF the re-
port ls offered ~ o. summary showing the growth
81 the Bell System during the past year From
hgures gwen The News CLEANS the following as
evidcn,lng The gains made "a telephone extensions
throughout The United states
Duung thc past year subscribers telephone
station have increased until now there are r. 3d.
on gain OF G56 94j These stations reach
~. 600 locations or 10 900 more than the number
Of pos'ohccg The total wire mileage IS lo.ll IT,
o !. Of which - per cent is copper
More than half the wire mileage under
ground the total underground plant representing
q cost ol SIS 800 600
The number OF daily telephone connections
showed d growth of nearly TWO million, reaching
an average OF 2725I 600 day Europe has only
two hiths of the telephone traffic Of the United
States
The extension ol the telephone plant during
the year amounted to Sj4.BI $50. making TO
tal for fourteen years OF 500. 9l5, 200. Accord
my To present estimates the construction Tor The
current year will cost m the nclghborhood oi
5000 900 OF which the local resources OF the
companies wall supply Slj,OOO,OOO.
larg, reserves have been made for mamie
nance fcconstruchon and depreciation, and st.a-
DIV improvement OF service has been achieved.
he report says:
The gross revenue Of 1913 Of the Bell Sys.
,en,-no, including the connected indepcndcn
-ompanles-was 81 5 900 900, an increase ol
over 10000 600 over last year OF this. opera
ion consumed S74 400. 900, taxes 81 800, 000
" one and one half per cent on the outstanding
'pital obligations current maintenance. So,
90 900, and provision for depreciation, ST.
10000
The surplus available for charges etc, was
S. 700 600 Of which SO 700. 900 was pad II
interest and over $50 800 600 was paid IN dvi
lends
The total capitalization, including nter-com
pany items and Implications but excluding reac
CURED securities OF the companies OF the Bell Sys
tenn. ~ 81 800 IA 40 OF this 5000, 270St
- owned and in the treasury OF the companies oI
the Bell system The capital stock. bonds and
notes payable outstanding IN the hands OF the pub
ho at the close OF the year were $40, s. iS4
II To- this be added the current accounts payable
$40 ~ 66I the total outstanding obligations o
every kind were Si96.j8IO65 as against which
there were hquid assets cash and current accounts
receivable OF S722}I66j. leaving SPA $40 sc
as the net permanent capital obligations of lh,
whole system outstanding IN the hands OF tn,
public
We believe, continues the report that h,
valuation by the Interstate Commerce Commission
when completed wall confirm our repeated state
mrulr that the true value at our telephone plaut
s much greater th,p ihc book value
In the case OF lhc associated companies. *
Guiding The American Telephone and telegraph
Company. particular attention is called to the pei
GOVT OF uc, earnings aud OF dividend and Interes
disbursement, to total plant and other assets
Ne, earnings to plant and other assets } % pc
cent dividends and interest to plant and othc
assets 492 per cent In other words, the prop
criy employed earned less than per cent per IN
mum. and the dividends and mteres, paid wen
less than per cent upon the value OF the prop
criy which could not bc considered unreasonable
Taken by itself the American Telephone anc
Telegraph Company shows net earnings oi $40,
5I6.I4tI9 an increase OF 1909. l0l.93 Owe
1912 Inc total outstanding capital stock auc
bonds were S5O4 l07 500, which represent pay
mcnJs INTO the treasury OF over S24 10000 NOR,
.hau the par value OF the capital obligations.
The number ct shareholders, $685., showeC
lu increase ct 5 ESQ during the year.