Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-03-12
BELL TELEPHONE HAD
BANNER YEAR IN 1916
President Vail, in Annual Re-
port, Argues Against Gov
ernment Ownership of Wires

Theodore y. Vail. president OF the
American Telephone and Telegraph Com
pany in his annual report for the directors
to the stockholders for the year ended De-
cember 81. 1916. argues strongly against
Government ownership of telephone and
telegraph lines, which has been advocated
from several quarters for some time.
He asserts that the public would neither
get better service nor cheaper rates II the
telephone business were controlled from
Washington as one OF the branches or the
Government. Al the same time Mr.. Vail
calls particular attention to the value OF
the Bell telephone system TO the United
states both from civil and military
standpoint, and explains how, by actual
tests the Secretary of the Navy has as
sured himself OF the invaluable service he
could obtain through the phones in event
OF war.
The report is ono OF the best from the
stockholders viewpoint that the directors
have ever issued. rich harvest in profits
was reaped by the company through the
unusually prosperous conditions IN the
country at large, the earnings being far in
excess of any previous year. There was
also substantial increase in the value
OF the lines and other equipment OF the
corporation because OF the expansion OF
values OF wire and other materials.
PHONE WIRES HUM
During the year there was much
activity over tho wires Of the company
that the calls averaged 100 for each per-
son in the nation.
The total OF operating revenues OF the
Bell system In tho United States for the
year was s2s4.575,2so an increase OF s30.-
l50925 over the preceding year. or gain
| Of 1873 per cent, of these revenues depre-
| citation and maintenance consumed Vs.
| 5J6, 900, an increase OF ss797,000 over 1918 /;
traffic expenses consumed sbS,749,o0o. an
| increase of S7.963, 900; commercial ex-
| penses, s25. 500 900, an increase OF S2,1i6,-
| 600 and general and miscellaneous expenses
| sl1,91b0o0. gain OF ssb3,000. The taxes
| assgnable to operations totaled S14,91600O.
| or 81 $4,000 more than the previous year
| The total gross income" using the tern,
| officially provided by the Interstate Com
merce Commission, was S79.353,O00, gain
| OF al per cent over 1915. out OF this
| S22,1l4.000 was paid for interest, rents
etc, leaving s35,16O,0o0 for dividends and
| more than s22,O00,O 900 TO be carried into
| the surplus.
Because of the unprecedented business
| conditions the system was compelled to in
| crease its facilities greatly. and the eX-
| pendture for this work was more than
s66. .OO0. 600 which was $4,000, 900 more than
had been estimated at the beginning OF the
| year. The average daily number of calls
| totaled 29,42O. .0O0 or at the rate of 9,7s9,-
| 700 900 for the year. At the end of the
| year the number of telephone stations was
| 9S47,192. an increase for 1915, the largest
in history. of which 577,SsO are owned by
| Bell companies.
BONUSES TO EMPLOYEES
Employees Of companies comprising tht
system enjoyed benefits from the prosperity
o. the year also, there being distributed
among them about $4,000 0O0 in bonuses and
! additional compensation ITO meet the in
creased cost of living" the statement set:
forth.
Net earnings of the American Telephone
and Telegraph Company for the year wer'
s44,743.376. an increase of s3,625,SS9 Owe
the preceding year After the payment o
| all charges and dividends there was car
ried TO reserves So 100000 and to the sur
plus fund s4,39l,oe0.
To meet the construction requirements o
the company and the associated operating
companies there was issued and sold in De
cember $50, 000. 900 of thirty-year collatera
trust bonds Additional financing was pro
y,ded also by the offer Of new stock to tn
amount of $39.550,600. The total capita
} stock outstanding at the end OF the yea
was s395 603. 800, with tho stockholder
numbering 70,555, the majority of whom
are women.