St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1916-04-05
BELL TELEPHONE COMPANY
Annual Report BY Pres. Vail Shows
Gross Resources of $2S9, 900. 900.

Annual Report BY Pres. Vail Shows
Gross Resources of $239, Zoo, 900.
That the American Telephone and
Telegraph company and associated
companies were never as a whole in
more satisfactory position financial
| ly, physically and particularly in their
mutual relationship with the public
| is clearly shown in the annual report
of President Theodore NJ Vail, just is
sued.
The Bell System now connects g.
| Isl, 221 telephones, gain of half a
million stations in the past year. The
total wire mileage owned is 1S,50O,-
900 of which 1O.5OO,OOO is under
ground. There are nearly 100000
miles of phantom circuits which car
ry an overload from the wire circuits,
and $3.50, 400, 900 telephone connec-
tons were made during the year.
| The gross revenue in 1915 of the
! Bell System, not including the con-
Meeting independent companies, was
| $3.50, 900, 900; an increase of over 3d.
! 90O,O 900 over last year. Of this, oper-
alton consumed $84,5O0,00O; taxes
$1S,1OO,0O0 or 1.64 per cent on the
outstanding capital obligations; cur
rent maintenance $31,2OO,OOO and pro-
vision for depreciation $4,000, 900.
The surplus available for charges, etc.,
was $66,20O,O00 of which $1S,1OO.0 900
was paid in interest and $32,90O,0O0
was paid in dividends
American Telephone and Telegraph
Company.
The net earnings of the American
Telephone and Telegraph company for
the year were $41,117,487. The inter-
est charges were $6,498,S49, and the
dividends at the regular rate of per
cent per annum were $29,100,591. OIL
the resulting balance there was car
ried to reserves $2,500,00O and to sur
plus $3,018,046.
The number of stockholders, 65,512,
not including the $4,000 employee"
shareholders who are paying for stock
out of their wages, shows an increase |
of 6,097. The majority of the COM
pany's shareholders are women. The
financing for 1916 was taken care of
by the sale of $50,000,OO0 Az per cent
coupon notes.
Mr.. Vail says the Bell companies
have been foremost to establish and
propose to continue their efforts to |
maintain good wages and good work
ing conditions for their employees, a |
condition of the utmost importance to
efficiency of the service to the public.
He shows that since every legal safe
guard has been thrown around en-
ployees the combination of employees
leading to the suspension of the service
and the inconvenience of the public,
should not be possible. such action
on the part of the employees of
public utility is as unjustifiable and
objectionable as would be an arbi-
trary suspension of service by the
utility"
Conclusions.
In conclusion he says that the Bell
companies have established good re-
lations between their employees and
the public, have passed the danger
which arose from a promoting specu-
lative boom. and the springing up of
unsound duplicating enterprises. Fur
thermore, the apprehensions that rate
adjusting bodies might bear hard on
rates and reduce them to an unprofit-
able point, have not been realized.
Mr.. Vail states that, 80 long as the
policies which now. control the com
panies are followed, so long as there
are fair rates and good service there
is little danger of public ownership.
The public are recognizing the fact
that in the rates charged for telephone
service in the United States there is no
exaction, and are beginning to believe
that these charges are the cheapest in
the world, and the service the best
and the total cost to the public is less
than it would be under government
ownership.
With a reasonably satisfied public;
with reasonably liberal public; with
a reasonably inclined federal, state
and municipal control and regulation;
without any onerous or unreasonable