Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-10-07
BELL COMPANY NOW
UNDER u. S. CONTROL
Terms Under Which Government
Takes over Telephone System Arc
Fair To Al Concerned.

ST LOUIS, oct. 6.-The agree
ment for use by tho government OF
the Bell telephone properties as
reached between Postmaster Cen
oral a. $. Burlcson and Bell officials
was announced here today by the
telephone company as follows:
After an extensive conference be-
tween representatives OF the post
master general and Bell system. that
there might he no misunderstanding
"A painstaking and exhaustive Discus
sion and frank exchange OF views as
To what constitutes Just Compcus1-
tion for the supervision. possession
control and operation of the Bell
system taken over under the procla-
nation OF the pesldent OF the United
States, has been agreed upon.
The principals adopted as basis
OF compensation were: First Any
compensation fixed for the period of
control was TO be considered as COM
pensatiOn for an emergency period
and in not any way considered AZ
establishing n value for the prop
erty Second The operation OF the
property is TO he continued on
basis OF efficiency relative to that OF
the past. Third. The property is to
be fully maintained so as to be
turned back to the company as good
as when received. Fourth. The ap-
propriation from current revenue for
maintainence, depreciation, obsol-
ency to be the same as the past, an
average OF 5.72 per cent on the fixed
capital A mortization Of intangle-
able capital to he relatively equal to
the past. All unexpended balances
from both 10 be invested in the
plant of the system. Charges against
the depreciation reversed to be in
accordance with the rule OF the In
torstate commerce commission.
Fifth. Employees pension. disability
benefits and death benefits now in
operation are to be continued.
federal to he paid or reimbursed IL
paid by the company by the govern
ment.
Terms Are Explicit
seventh. The licensing and
rental contract between the Ameri-
can Telephone and Telegraph Co.
and the licensed companies TO be
continued. and tho American Tele-
phone and Telegraph Co. TO give
such advice and assistance as the
postmaster general may require. 1t
Is TO maintain It's scientimic, tcchni-
cal and engineering departments
and its patent protection for the ben
eft OF the property in the same
manner as heretofore. The post
master general has the benefit dur
ing the period Of control, In the op-
Grafton of the wire system OF all in
vcntions. discoveries and ideas which
may how or hereafter he controlled
by the Bell system. These prow-
sions are for the protection OF the
property. tho service and the art, and
provide for the continuation or the
service, and for the continuation and
development Of the art, as well as
tho protection of tho developed sit
uation, and arc for the protection
of the public in It's service and the
proprictors in the property and de-
velopment.
For the security holders is pro
vided. a. Payment Of the interest
and existing amortization charge on
all outstanding securities for ohliEa-
tons Of the Rell system In the hands
Of the public, including the 6 per
cent convertible bonds issued August
I, 1918. II. Payment or dlVidehus
at the existing rate upon the share
capital Of the Bell system In the
hands Of the public. G. PAYMENT or
any charges, interest, dividends or
other cost on new security or share
capital issued in discharge, conser-
walton. or renewal OF extensions OF
present obligations. For extension
to property as provided above. un-
expended depreciation shall he In
vested in the property Of the svs-
tenn. American Telephone and Tele-
graph Co. surplus shall be invested
in its property Surplus profits from
operation may be invested by the
postmaster general. II securities on
capital can be issued at fair terms,
the Rcll system will issue its securi.
tics II desired But the nominal
value ~ these securities shall cx-
coed so per cent of the amount eN-
pended in the property.