The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-03-14
ABSTRACT Of
ANNUAL REPORT
BELL system
THIS GREAT CORPORATION HAS
MORE THAN ONE THOUSAND
STOCKHOLDERS IN OKLAHOMA,
TWENTY IN ARDMORE.


thousand stockholders in oklahoma,
more than twenty of whom live in
Ardmore.
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 y. Vail,
just issued.
The Bell System now connects o.
151,221 telephones a gain of half n
million stations in the past year The
total wire mileage owned is 1S,50O,O0O
of which 1O,jOO,OOO is underground
There are nearly 100000 miles of
phantom circuits which carry an over
load from the wire circuits, and s.
652 100000 telephone connections
We're made during the year
The revival of general business is
reflected by a growth of 225,3OO sub
scribers' stations in the second half
of the year, as against 125,9OO during
the same period in 1914. The Bell
System has been able to respond
quickly to the demands made be
cause of its policy of providing plant
in advance of requirements.
The net permanent capital obi
cations of the whole system outstand-
ing in the hands of the public is only
$736, 1867 75G, although the telephone
plants stood on the books on De
cember 81 at $SSO,O6S,52O and their
appraisal value is over SCI 900. 900 in
excess of the book value. There was
$32, ,S63,717 added to plant and real
estate last year and it is estimated
that $57OOO,000 will be spent in plant
additions during the current year.
The gross revenue in 1915 of the
Bell System, not including the con-
Meeting independent companies, was
s239, 100000; an increase of over $13,-
100000 over last year OF this op-
GRAFTON consumed sS4,500,00O; taxes
s13, 100000 or 164 per cent on the
outstanding capital obligations: cur
rent maintenance $31 100000 and pro-
vision for depreciation s44,900,O00.
The surplus available for charges,
etc, was 66,2OOOOO of which $751;
100000 was paid in interest and $32,
100000 was paid in dividends.
During the past eight years the
100000, while the assets have in
creased nearly $445,O000OO, with an
increase of capital obligations and
payables outstanding of only $273,-
10000.
AS an evidence of the cheapness
of telephone service it is shown that
net earnings are only 5.S4 per cent
of the book value and other assets,
and that dividends and interest are
only 4.76 per cent on the plant and
other assets, using in both cases
the book value, which is less than
the appraisal value.
"The low percentage Of earnings
on the value of the plant, and the
average distribution to capital rep
resented by securities issued against
this plant, should convince the most
skeptical that under no possible diff
ferent conditions could the public
get cheaper service. Whether they
could get better service must be left
to the decision of those who have
had the opportunity of comparing the
service of the Bell System with that
of other systems either of this coun
try or of the world"
In the three years 1913-1915. inclu-
siye, the expenditures from the bene-
fit funds of the Bell companies have
aggregated S3,779,S96. The reserves
for this fund are $9.11432o and dur
ing 1915 the payments for pensions,
sickness. accident and death benefits
were sL397,742.
The net earnings of the American
Telephone and Telegraph company for
the year were S411174S7 The in-l
terest charges We're S6,49S,Sl9, and
the dividends at the regular rate Of
$ per cent per annum were 500 ,lO0,59l
OF the resulting balance there was
carried to reserves $2,5go,OoO and to
surplus S3Ols,Oi6.
The number Of STOCKHOLDERS, CO.
5l2, not including the $4,000 "em-
ploye" shareholders who are paying
for stock out Of their wages, shows |
an increase of G,O97. The majority |