American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1914-03-26

The continued growth of the Bell
system, it's earnings and expenses and
general financial prosperity, it's atti-
tude as to government ownership, it's
agreement with the department oI
Justice, the sale of it's Western
Union holdings and it's relation with
the general public are all set forth
in detail in the annual report of the
American Telephone and Telegraph
company just issued.
During the past veal subscribers
stations nave increased until now
there are S,133,01 a gain of 676,943.
These stations reach 10000 localities
or 10000 more than the number of
post offices. The total wire mileage
is 16,111,O oil, of which go per cent is
copper.
More than half the wire mileage is
underground, the total underground
plant representing a cost of $751;
800, 900.
The number of daily telephone con-
nections showed a growth of nearly
two million, reaching an average of
27,237,OOO a day. Europe has only
two-ffths of the telephone traffic of
the United States.
The extension of the telephone
plant during the year amounted to
s54, S71, 1856, making a total for four
teen year of $685. 15, 200. Accord
ing to present estimates the construc-
ton for the current year will cost
in the n~eighborhood of $50, 100000 of
which the local resources of the COM
panies will supply $25, 900, 900.
Large reserves have been made for
maintenance, reconstruction and de-
probation, and a steady improvement
of service has been achieved.
The report says:
1.-THE gross event in 1913 Of the
Bell system-not including the con-
nected independent companies-was
$685. 600, 900; an increase of over
s16, 00O, 900 over last year. OF this,
operation consumed $75,40O. 000;
taxes SILL 300, 900 or one and one-half
per cent on the outstanding cantiai
obligations; current maintenance e,
1872, 500, 900; and provision for depre-
citation, $37, 200, 900.
THE surplus available for changes,
etc, was sos, 200, 900, of which S1G,-
700, 900 was paid in interest and ovce
$50. 300, 900 was paid in dividends.
'The total capitalization, including
inter-company items and Implications
but excluding required securities OF
the companies of the Bell system, is
1880, 242,4 7O. Of this $620,127,0 S6
is owned and in the treasury of the
companies of the Bell system. The
capital stock, bonds and notes pay
able outstanding in the hands of the
public at the close of the year were
z O,115,3S If to this be added the
current ccounts payable, $26,471,6S
the total outstanding obligations o
every kind were 1896, 5S7, O65 as
against which there were liquid as
sets, cash and current accounts re
ceivable of $72,237,SS5, leaving
$724,3 49, $50 as the net permanen
capital obligations of the whole sys
tenn outstanding in the hands of tn
public"
I'VE believe" continues the repor
that the valuation by the interstat
commerce commission when complet
ed will confirm our repeated state
ments that the true value of our tel
ephone plans is much greater thai
the book value"
In the case of the associated com
p%anies, excluding American Telephon
and Telegraph company, particular al
%tention is called to the per cent c
net earning and of dividends and in
terest disbursements to total plar
and other assets:
Net earnings to plant and othe
assets, $50 per cent.
Dividends and interest to plant an
other assets, 4.92 per cent
In other words, the property en-
ployed earned less than 6 per Gel
per annum, and the dividends and II
terest paid we're less than 5 per Gel
upon the value of the propert
which could not be considered III
Reasonable.
Taken by itself the American Tel
phone and Telegraph company SHOW
me- earnings of $40,576, 746.19, an i
Grease of 1869 O1.93 owe 191
The total outstanding capital sto'
and bonds were 1904, 2O7 800, whi'
represents payments into the. trea
Dry of over s24,5OO.O 900 more tn;
The par value OF the capital oblig
lions.
The number of shareholders. $685.
Showed an increase of $3.50. duril
me year