The Dayton forum. [volume] (Dayton, Ohio) 1913-1949, 1939-03-10
TELEPHONES In UNITED STATES
NEAR 70 MILLION FIGURE

The number Of telephones in the
United States was near the 20 mill
lion figure sit the end OF 1888, nc
ording to the annual report Of the
American Telephone and Telegraph
Company issued Wednesday.
OF this number, 15,I6I,000 We're
owned and operated by the Bell Sys-
tenn, which had net gain Of about
100000 telephones III 1888. More
than so per cent Of this gain was
made in the last four months Of the
year.
"The average daily number of
telephone conversations during the
year was $4,000. 900, about 100000
over 1897 the report states.
while there were about II per
cent more local conversations than
in the previous year, there were ! 4
per cent fewer long distance con-
versations. At the years end how.
-teyer, the daily number of long dis
tance conversations was somewhat
higher than at the end Of 1897
In 1888, the Bell Systems gross
operating revenue was Sl,052,65s,-
600, approximately the same as II
1887. Due principally 10 increased
wages and continued increase IN
taxes, net operating income was less
by $l6,4s3.O00, Or s per cent. With
decline III earnings Of Western
Electric Company, Inc, which we're
adversely affected largely BY fall
ing Off in Bell System construction
activities, other income was less by
$I2,794,00o. Total net income for
the year applicable to American
Telephone and Telegraph Company
stock was Sl55, 5,543, ,000, or S8.32 per
share. This compares with $9.76
per share ID 1887. In 1898, diyi-
dends paid were not earned by
,$I2,638,o0o but III 1887 there WAS
balance after dividends of Sl4,-
10000 Thus, for 1888 and 1887
combined, dividends were slightly
more than fully earned.
Cash assets Of the system at the
end Of the year, including funds
temporarily invested in Government
obligations, were $1a5,a65,opp, q
which this company held S9e,9l1,
900.
During the year, plant additions
amounted to S296,so0,o0o and plant
retirements to S19T300, 900, result
ing III i net increase in plant Of
Sa9,5oo,ooO, or 2.3 per cent. This
compares with net increase h.
plant 81 Sia0, 0,a00.0 600 hi 1887.
Total Bell System assets 1T the
end Of 1888 we're $5,l19,l0,0o0 and
investment ID telephone plant was
equal to S285 pr telephone.
Taxes continued to rise and the
total, including taxes charged to-
construction, amounted to Sll7,-
100000, S9,7opooo over 1887
Taxes ID 1888 we're S5a,o0o.000
greater than III 1885, an increase Of
56 per cent IN three years. Taxes iii
1893 were equal to about so cents
per month per telephone, IA per
cent of the average telephone bill,
or about one third Of the total pay
roll.
AT the end Of 1898, there were
$4,000 American Telephone and
Telegraph Company stockholders.
The average number Of shares held
per stoekholder was 20 Geograph-
ically, the stock Was widely held.
Swing. Mikado for a 1899 Worlds
No stoekholder hela as much Is one
per cent of the total stock Approx
imately one fourth Of Bell system
employees owned stock III the COM
pany."
Among other developments men,
toned III the report were the follow
ing:
Until 1927, the longest distance a
telephone call could be made was
about 5000 miles Today there Is
no limit-one can talk around the
world.
Cost of three-minute New York
to San Francisco telephone call 20
years ago was $3.50. Now it is
$3.50 and for nights and Sundays,
S425.
Fifteen years ago the average
time required to make long dis
tance connection was seven and one
half minutes. Today it is one and
two-ffths minutes.
Total payroll for the year. includ-
ing operating, construction, manu-
featuring and laboratory personnel
Of the Bell System was s564, 1oo,-
900.