The sun., 1918-10-07

All unexpended balances from both to
be invested in the plant of the system
Charges against the depreciation reserve
to be In accordance with the rules OF the
Interstate Commerce Commission.
"Fifth-Employees pensions. disabil-
ity benefits and death benefits now In
operation to be continued.
"Sixth-All taxes. municipal, State or
Federal, to be paid, or reimbursed IL
paid by the companies. by the Govern
ment.
"Seventh-The license and rental con-
tract between the American Telephone
and Telegraph Company and the
licensee companies TO be continued, and
the American Telephone and Telegraph
Company is to give such advice and as
sistance as the Postmaster General may
require, is to maintain its scientific,
technical and engineering depa
It's patent protection for the benefit OF
the property in fhe same manner as
heretofore. The Postmaster General to
have the benefit during the period of
control, in the operation Of the wire
system. of all inventions, discoveries
and ideas which may now or hereafter
be controlled by the Bell system.
| These provisions are for the pro-
lection Of the property, the service and
the art and provide for the continuation
Of the service and for the continual de-
velopment of the art, as well as the
protection of the developed situation,
and are for the full protection of the
public in its services and the pro-
prietors in the property and develop
| ment.
For the security holders Is provided ::
| "(a) Payment OF the interest and
existing amortization charges on all
outstanding securities or obligations Of
the Bell system in the hands of the
public, including the per cent? con-
vertible bonds issued August /. 1913.
"(b) Payment of dividends at the
existing rate upon the share capital of
the Bell system outstanding in the
hands OF the public.
"tc) Payment of any charges, in
terest, dividends or other costs on new
securities or share capital issued in dis
charge. conversion or renewal or eX-
tension of present obligations.
Provisions for Extensions.
For extension to property:
AS provided above. unexpended de-
preciation shall be invested in property
Of the system. American Telephone and
Telegraph Company surplus shall be in
vested in its property. Surplus profits
Postmaster C eneral.
"If securities or capital can be issued
at fair terms the Bell system will issue
its securities IL desired, but the nominal
value Of the securities shall not exceed
so per cent. OF the amount expended in
the property.
Extensions to its property made with
the approval OF the Bell system by
money furnished by the Postma ster Gen.
eral shall be paid for In instruments OF
per cent per annum after the period
Of control ceases.
Extensions by the Postmaster-Gen.
eral to meet abnormal conditions and
made without the approval of the system
shall be appraised by the Interstate Com
merce Commission at the end of the
period Of control end their value to the
system as appraised shall be paid for in
instalments of 8 per cent per annum.
THE whole basis of the negotia ton
on both sides was to ask no more than
was right, to grant all that was RICH,
and to protect a great property and a
great service TO the public in every pos.
sible way.
I'm closing: The public should bear
In mind that we are in the midst of very
abnormal times. Scarcity Of labor. high
costs Of living and great increases in
demands on the service which are con.
gested and not we'll distributed will
create conditions which 1t will be diff.
cut for the telephone systems to meet
J no matter how much charges and wages
J are increased, and some considerable
, must be given before criticism is in.
dulged in"