Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-03-25
Summary Of the Annual
Report Of the Bell System

Eortv-five yoars after the Invention
C. the tcicrh0ne Europe nNG only cGc
telephone to each 100 of the popula-
ton, "Iilc The United States. with
only onc-si,teerth Of the population
OF the world, has tWo-thi-ds OF the
worlds tc!rDhoncs This statement,
set forth by President II. n.Tha"cr in
thc annual rcrort Of thu American
Telephone ard Telegraph Company, is
an indication o. III" steadily growing
demand for telephone service ami Of
the success achieved ii c1o@tinG that
demand.
Tho; yrar cnI;n" December 81, 1872 =,
scys the report, has bnal yea" NEicn
On review shows good pro%r"..; in Ia"
things which we consider most coil
Stl'u"tiv":
On" stool; issue added materially -
The strength Of ou;' financial structure
We approached more mea!.y - the
ability to fiji promptly new ;,pp;c"-
ti3Es t@r service.
The quality Of both exchange and
toll service stca.iil.; improved.
The efficiency - the whole opcrat-
ing force Increased and IS increasing
The Development Of tho art Of telr-
nhany hy research AMI Invention. and
by thcir @"rscation to the cons:ra"-
lion ard operation Of plant, WIS c;-
ccntion&tlv noteworthy.
While our ma1s.s earrings did not in
cg"2:;a aS !Mi1nt have hc"N eH"c,tcd
had business been normal. Gus net
earnings moro than h"iG thcir own.
We inl:ncG4d ani broad .r,nd crr
cffGrts - bring :,tu., :: hc::cr and
nio:c s2:nrathc;i" UNDERSTANDING, Of
NJ" pGi.e;:&, Dtoiisu5 sal practices
b. al 81 the clements milking ~ Tie
pablo Which re s2"ve
IRE report shows that The value Of
the property oi he Eel System corr
parties IS mprf in excrss Of tho hori:
figures, ana that tha pc: cent earned
last yaar on jhe book cost Of their
plan. enabled Tie American Telephone
end Telegraph Company. dgn to the
conservative finanria? structure Of
the system, to show III per cent
earnings on its outstanding capital
stock.
The policy Of the Bel! System to CO.
operate with and a;h regulatory bodies
IS "cai'irmcd ~ tho report on the
premise that Inc ""a! interests Hf the
company and it's patrons are identical
and shat regulation b. commission is
Of advantage to bath. Good service.
freedom from discrimination and rates
that would be Just and reasonable
were required Of the utility prior to
enactment uf commission laws The
commission statutes provide pach!n-
cry for correction Of the utility If it
fails in those requirements.
While the laws provide for rates
which will be inst and reasonable.
they 90 roi prescribe the revenue to
be derived from such rates. Although
rates which are confScatory are rro-
hhited By the national constitution
and those OF MANY states, Just and
reasonable rate is somewhere between
the hare COS: cf service and IS v&i;le
10 the use. 'f ]: is not less than tho
h%rc cost the business ron rot con-
time. # it is not lese than the value
of tt service thc number Of customers
will be restricted and again the bnSi-
ness c@r rot continue. This is the
economic law TO which all statutory
cnactmcrts mHSt Weld. The Set that
the te!cnhon" service can hn rro1';cnd
ri a cost anil 'soid to tc'HnhoNc users
at Z price vcry much loss thrn the
"a'n" RI the service to the subscriber,
constitutes thc insn"aNcn Of TIE STA
hilii" Of the business.
The report nn.nts ont also TINT com
uonn,uIouu mn aAru lsn:u SUCCESSFUL
and o~in~ to he cnn,ni:cated s>oae Of