Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-03-11
TELEPHONES PLAYING
BIG PART IN THE WAR
Annual Report of Bell System
Shows Important Service
to Government
RECORD YEARS GROWTH
Operating Revenues Total More
Than S294,9OO,OOO, a Gain of liz
Per Cent Over 1915

Theodore y. Vail. president of ths
Bell Telephone system. in the annual
report for 1917, which came out TODAY.
dwels at length on the part the tele.
phones are playing in the war, showing
that the wires are giving the Govern.
ment large service and thousands Of op-
orators and other employees have been
specially trained to serve the United
states in many ways at home and
abroad
The year was one OF record expansion
for the system and the earnings were
large. although increased expenditures
cut into them.
Five times the toll switchboards at
Washington have been increased and
farther increases are already under way
The Bell system has been called upon
to furnish a very large amount of tele-
phone equipment and supplies Of every
kind, including many special devices for
the arfy and navy, both for use in this
country and by the American exped.
tionary forces in France.
Fourteen battalions of picked officers
and men, trained in telephone and tele-
graph work. have joined the signal
corps from the Bell system.
A division of research and inspection
for the American eXpeditionary forces
in France has been organized and re.
cruited largely from the scientific stan
and laboratory forces of the Bell sys-
tenn. which is represented altogether BY
about 1900 employees in the various Coz.
ernment activities incident to the war
At the end of the year the number
of stations in the Bell system was
1O475,67s. an increase during the year
OF 628,4S6. OF the total number OF
stations in the system, II,O3l.53o were
owned and operated 10y Bell companies
and 3.444,l4S by local cooperative and
rural independent companies or assocla-
tions having sublicense or connecting
contracts with the Bell companies.
1t was a record year for physical
growth, rs the plant additions made by
the Bell companies in 1917 were Slle-
599,4f2 In the last eighteen years the
plant additions have amounted to S9li-
64S,400.
Importance is given in the report TO
the fact that the Bell companies mace
ample provision for maintaining their
property and set aside from re enue the
usual alotments for reconstruction.
During the year s94.071. 900 was applied
out of revenue to current maintenance
900 as compared with 1916.
The statement of earnings and ex-
penses is presented in the form called
for by the Interstate Commerce COM
missions accounting system. In round
figures the total operating revenues OF
the Bell system were S294, 100000. an in-'
crease of S3O.300, 900, or l1.5 per cent
over the previous year. of these rev.
enues depreciation and maintenance con.
sumed $94.O71.O00 an increase OF H..
per cent traffic expenses consumed
S6s.l22 900, an increase OF 26'1 per cent
commercial expenses, S2S,364,OO0' an
increase of 10.4 per cent: general ana
miscellaneous expenses, Sl3.S5O,00V, an
increase of 1914 per cent: taxes assign
| able TO operations, $20,7ll.OOo, an III.
crease of 3S.9 per cent. The total Of
all taxes was $21,1s6.000, which Is ~
per cent on the outstanding capital obi.
cations, or III per cent on the value OF
the plant and other assets.
! The total gross income" using the
term officially provided by the Inter
state Commerce Commission. was Wv.
$4,000. a decrease of S2,s29,000, or ~
per cent under 1916,
The capital stock, bonds and notes
payable Of the Bell system outstanding
in the hands Of the public at the close
of the year were S9l1,376,i2@.
The net earnings of the American
| Telephone and Telegraph company
segregated from those of the Bell Sys'
tenn, are shown to be In rough hgures'
S4.197,000 more than during the previ'
Gus year. There was total increase
of the company's assets of si0,934,ooo'
against which was net increase u
capitalization. and Indebtedness OF sSl,
100000, showing a net improvement IN
the company's financial position OF sS-
G3S.000 in rough figures. which is repre-.
sented by the Increase of that amouhI
In surplus and reserves.
The number of shareholders Of RECORD
on December 81 was S6,599. an increase
of 1904 during the year. To these may
be added some $4,000 employees OF the
Bell System who are buying stock under
plan Of easy payments. The averaee
number of shares held was 80, and the
M n nf etA