The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-03-16
TELEPHONE COMPANY
MAKES ANNUAL REPORT
President Vail Shows Condition OF
Country In Shape f1r Rcstora-
ton and Improvement.
ORGANIZATION DEVELOPMENT.
Description Given of Rise and Prog
ress OF Concern. and Says increase
In Revenue More than $4,000, 900
Over 1918.

The annual report OF the directors
Of tho American Telephone and Tele-
graph Company, for the year 1914.
is just out As an index of business
conditions in the United States the
report Is particularly Interesting.
without progress there can be no
prosperity is the war President Theo-
dore y. Vail sums mp the situation.
Telephone business has not suffered
as other industries. BAT the growth OF
the Bell system has been retarded.
Therefore, Nj Vail goes back to first
causes and IL a letter accompanying
his report gives searching analysis
of economic conditions. which have
put two milton people out OF employ
ment.
Never wer the basic conditions of
the country better than now for res
ioration and continuance of normal
conditions. The correction is simple
and Is pointed ont by numerous pre-
cedents OF the past and by we'll estah-
lished economic laws.
The opening OF the transcontinental
telephone line. bringing San Francisco
within commercial talking distance of
the principle cities on the Atlantic
seaboard. gives particular interest to
the engineering features of the year s
report.
From a legal standpoint the Bell
System is IN an excellent condition.
there being no suit pending against
the American Telephone and Teie-
graph Company. or any OF the asso-
o!ated companies. charging any viola
ton Of any State or Federal antitrust
law.
Welfare work. pension and sick
benefit plans are reported to have
demonstrated their practical value.
During the year benefits were paid
In 90 e16 cases Of disabsi or death,
and at the end OF the year 211 former
EN- ployees were being carried on the
pension rolls. The total amount ex-
pended for all classes of benefits was
s1,33s.261. most of 1t among the lower
salaried employees to whom the loss
of wages, even for n short period,
would have been a hardship. The
recent offer of stock at a low price
on tnstallmerts was intended as an
announcement to saving, and over
10000 employees availed themselves OF
this offer.
The report shows how sopndly the
Bell System Is financed event as com
pared to government undertakings.
An Interesting description lis given
OF the development of tho Bell organi-
IA ton from the time when electrical
science was In its laboratory
swaddling clothes and the telephone
was called Yankee toy" for which
no proper financial support could be
obtained.
1t is shown how the local conf anies
were organized and how the need o.
a common remedy for common
''rouhle. resulting In a central clearing
house and finally in the centralized
general administration with its enor.
nous economies. Its wonderful con.
triouttons TO the perfection OF the ar
and the value OF the service. now tn,
premier service OF the world.
Largo Increase for Year.
An increase Of 515.976 telephone
stations has been added to the Bel
System during the year, despite the
retardation of growth. Also 1,3s4.5ss
miles OF wire for exchange and toll
service were added during the year
In the Bell System alone. not includ
ing the additions by connecting com
panies. In traffic the number OF mes
saSes shows the small gain of slightly
over two per cent.
For the wear 1916 II il estimated
that the current additions to plant
will aggregates about $s5,0oe,o0o and
construction work Is now proceeding
on that basis.
Bell System--not including the con-
nected independent companies-was
S226. 100000; an increase OF over $40.
100000 over last year.
The total apitalization. including
inter-company items and Implications
but excluding reacquired securities
Iof the companies OF the Bell System,
Is $1,4le, oSs,ess. OF this, $624,324.-
7sI Is owned and In the treasury OF
the companies of the Bell System
The net earnings of the American
Telephone and Telegraph Company for
the year were }4o.55I s772s. approx
imately the same as in the previous
year. The Interest charges were ss.-
22S,lf323 and the dividends at the
regular rate Of eight per cent per
annum were s21572 61s.12 OF the
resulting balance there was carried
to Reserves 25o0.0o and to Sur
plus s2,262,1
For the $3ii.6sl, 500 capital stock
1859. 1858 has been paid into the
treasury OF the company. the. s24537.-
f5s in excess of par value represents
premiums.
Ihe number of share holders was
as,al5 on December 81 showing an
increase OF 1882 during the year.
On RAMPAGE OF THEFT