The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-16
VAIL PLEADS
FAIR CHANCE
FOR BUSINESS
Country Menaced as 500
ing" Concern if Med
ding Continues.
BASIC CONDITIONS
EXCELLENT. HE SAYS

Theodore n. Vail. presiden, OF the
American Telephone and Telegraph
Company. in u letter attached to the
annual report warns against the dis
turbing influences OF agitation for In
creased wages and undue legislative in
reference with business. especially that
Of Transportation and intercommuni-
cation"
President Vail points out that the
Bell Telephone System has had little
cause for complaint in its relations with
Legislatures, commissions. courts or
municipalities quite as large q per-
oentage of satisfactory conclusions. he
admits, have been arrived at by com
missions As would nave been the case
In the regular courts of Justice.
But unless there is n change In the
attitude Of lawmakers toward business
he thinks 'the increased demands OF the
country a. a going concern cannot he
met, to say nothing OF our country as a
growing concern.
THE ~irreducible minimum in unit eN-
pense has been reached in some Indus
tries and soon will be In all" says Presi-
dent Vail. "A corporation no more
than an individual can be bound hand
"Aiu hoO' oi' 49, r''
good service. Bankrupt public SER
vice in time means bankrupt communi-
ties"
IAN employment Is far below normal"
he says. There are fully 100000 un-
employed. whose yearly earnings should
be at least 81. $50. zoo. 900"
The nope of a remedy he sees In the
following
"Never were the basic conditions Of
the country better than now for a res
toratlon and continuance OF normal con-
ditions. 1t does seem as II huge COM
bined effort OF all, right ideas and a
right understanding might he brought
TO bear on the solution OF these ques-
tons.
THE public mind. which has been ex-
cited and influenced by exaggerated. mis-
leading and mistaken statements OF ir-
Irregularities. realizes that most Of Them
had no foundation In fact
War and business did not affect the
telephone business as heavily as other
Industries. according to President Vail.
The chief effect was to retard normal
growth rather than to reduce the amount
Of previous business. The Increase in
number OF subscriber stations was only
IS per cent OF the number added IN
1913 and was less than in any one
OF the our years previous.
The gross earnings OF the entire
Bell system for 1914 were s225.a52.-
1913, the greatest in the history of the
company, and slo.31a.3o1 greater Than
the year before. The net balance avail
able for dividends was $40. 3Os.s3s. a de-
crease ot $3.50. 25l, the balance for sur
plus being slu.0O2,45" a decrease OF ST.
7s2.742. The total outstanding obliGa-
tions Of the companies Of the Bell sys-
TEN are $500. 92a.1Sl. with current liquid
assets Of over $4,000 900. tho company's
appraisals OF the cost OF reproduction Of
its property being SCI. 900 900 in excess
Of the book values.
The property employed IN tho system
earned 5.5l per cent. and the dividends
and interest paid were t.s7 per cent Of
the value of the property.
Tho American Telephone and Telegraph
Company EARNED Si6,la6.5gs. against
Sib, 9O9. 1891 the year before. Net earn.
ings available for dividends were s3a
334,sl4 As compared with s32.a20.090,
equal 20 93S per cent. on the stock,
against 955 per cent the previous year.
OF gross revenue 4s per cent. went 70
wages. The company paid IN actual
charges for It's money 81 per cent. on
the capital invested in plant and 2 per
cent on its outstanding securities
.Could the money ho got for less -
asks President Vail IN commenting on
the possibility OF Government ownership.
Taking the average Of all the years Il
IL not probable nat even II secured on
government bonds or guarantee II could
ne obtained I'm the enormous amount
required for much less than the utilities
as a whole have to pay"
Regulation and control by commits
sions have come to stay. says President
Vail, and the few years experience OF
Them has already demonstrated great
possibilities for good.
There are more thar 100. 900 actual
owners of the American Telephone Com
pany stock, the report estimates, of
which 40 600 are emDlOyecs