1m
1.11 REUI1S11 INTERESTS
OF TIE BELL SYSTEM UNO THE REPUBLIC
' The suit brought by the United
States questioning the purchase of cer
tain telephone properties in the north
west, as well as the pending Interstate
Commerce Commission telephone In
vestigation, have caused many inqui
ries. Without taking up anything go
ing to the merits of these proceedings,
It has seemed to us proper to state
generally what has been our policy
' and purpose in the conduct of our
business.
We have found, or thought that we
had, that our interests were best serv
ed when the public interests were best
served; and we believe that such suc
cess as we have had has been because
our business has been 'conducted on
these lines.
We believe that our company has
an interest as vital as that of the pub
lic In the proper administration of the
problems of electrical inter-communication.
The success and prosperity of
our company depend upon a solution
of these problems which shaU be
sound from both the standpoint of the
company and the public which It
serves.
FollowInK our own best judgment,
Supplemented by the best obtainable
aumlee, we have endeavored to do
what would best serve the public in
t lest; wherever possible our plans
have been disclosed to the public in
advance, and what has been done in
carrying them out has been along or
dinary business lines, with the implied,
and generally, with the expressed ap
proval, authorization or consent of the
municipal and state authorities di
rectly Interested. Our effort has been
not only to obey the law, but to avoid
everything which might even have the
appearance of an attempt at evasion.
Our business methods and policy,
and practically all of the details as to
the transaction of our business, are
matters of common knowledge and
are, and for many years have been,
well known to the government. We
will willingly furnish the government
any additional information which is
in our possession or under our control,
and will cordially co-operate with it
in obtaining such further information
as it may require. Every possible as
sistance will be given by us to the
courts In their effort to determine
whether our policy is or has been In
imical to public interest. We desire
that anything wrong be corrected; we
will voluntarily rectify any wrong that
may be pointed out to us; and, so far
as it may be determined that our pol
icy or any ait under it is against the
public interest, we will promptly eon
form to such determination.
We believe that if each of our ex
changes were made an independent
unit and if each connecting line were
put under a separate control, the ef
fect upon the telephone service of the
country would be a condition so Intol
erable that the public would refuse
to submit to it and would immediately
require such physical connection and
common control of these various units
as would amalgamate them Into a
single system. Physical connection in
the case of telephone or telegraph
does not mean transfer of messages,
from one line to the other. It meuns
such a connection as will permit one
person to haive the actual possession
of the particular line of communica
tion from one end of it to the other
and th8 can only be given efficiently
by exchange systems and connecting
lines under a common control; and
that is what the Bell System Is.
In this connection, and for general
information, we will restate the pulley,
which controlled the building up of
the Hell System, and our belief as to
what a telephone system should be,
and what are its relations to the pub
lic. We believe in and were the first to
advocate state or government control
uml regulation of public utilities; that
this control or regulation should be by
permanent quasi-Judicial bodies, act
ing after thorough investigation and
governed by the equities of each case;
and Unit this control or regulation,
beyond requiring the greatest efficien
cy and economy, should not Interfere
with management or operation. We
believe that these bodies, If they are
to lie permanent, effective and of pub
lic benellt. should be thoroughly rep
resentative; they should be of such
character and should so conduct their
investigations and deliberations as to
command such respect from both the
public aud the corporations that both
the public and the corporations that
l oth the public and the corporation
will without question accept their con
clusions. Ve believe that the public would
in this way net all the advantages and
avoid all the manifest disadvantages
or public ownership.
A'e believe that center of buslnes
und population exist for the conveni
ence of the public as a whole, and
that no such center ran prosper with
out sufficient and efficient means of
Intercourse with other centers and
tributary territories; that such means
can only be afforded by prosperous
utility and service companies and thai
fair rates are essential to prosperous
companies. We do not believe that
any public either desires or can ob
tain, nor can any service or utility fur.
nlsh, permanent and efficient service
at leas than cost. Including capital
charges. We believe that ultimately
the public either directly or Indirectly
pays the losses involved In the efforts
lo furnish such service at leaa than
Ha fair coat, alther through the loss
of the capital Involved, the losses In
cident to poor service or (ha necessary
increase In charges required to pay
for duplication of capital.
."' We believe that the hi sheet com
mercial value of the telephone service
depends on It completeness on the
extent and comwehenstveaaas of the
facilities for Intercommunication, not
.m between Individuals bat between
centers of population; that isolated
section ran be considered tndepena-
, ently of any other section or of the
whole; that rates must be so adjusted
aa to mak It poasibla to obtain the
, maximum development by making It
possible for every one to be connected
a. ho will add to the valua of the ays-
. Urn. thus China; the greatest value lo
the greatest number; that tbs Iriitrdr
tndnce of the telephone service and
the value oT Complete and universal
intercommunication Justify and re
quire some services partly at the ex
pense of the whole for the benefit of
the whole. ,
We believe that this highest com
mercial value can only be attained by
one system under one .common control
and that It cannot be given by inde
pendent systems unless they are oper
ated under agreements which result
in one common control and one com
mon Interest, in effect making them a
single system.
We believe that rates should be so
adjusted as to afford the company
aufflcnt revenue to pay such wages
and compensation as will secure! the
most efficient service: to maintain the
very highest and most advanced
standards of plant and apparatus, to
carry on such scientific and experi
mental research and inventions as to
apparatus and methods as to insure
the highest standards, and to carry to
reserve and depreciation such amount
as will enable the company at any
time to replace old plant and old
methods with new plant and new
methods as fast as they may be devel
oped and found to be to the advantage
of the service. We believe that in
addition, such fair charges should be
paid upon the Investment in plant as
will enable the company at any time
to obtain money necessary to provide
the plant required to meet the contin
uing demands of the public; and in
order that waste and duplication of
effort may be avoided and uniformity
of purpose and common control be en
forced, that there should be a central
ized general administration in close
communication with and having gen
eral authority over the whole on
matters common to all or matters of
general policy.
We believe that any surplus beyond
that necessary to equalize dividends
on a fair basis should be used by the
company for the benefit of the public
and should be inalienable for any
other purpose, and should be either
Invested In revenue-earning plant un
til necessary to substitute plant which
may become inadequate or obsolete,
or should be used to make the service
cheaper or better.
We believe that under proper gov
ernmental control and regulation the
profits from promotion or operation
allowed to be distributed should not
be so large as to warrant or tempt
complete duplication of plant and or
ganization, with its duplication of its
capital charges and its organization,
operating, maintenance and deprecia
tion expenses; and we do not believe
that utilities giving at fair rates an
efficient and sufficiently comprehensive
universal service should be subject to
limited completion, not giving such
service. Competition which ignore
the obligation to furnish a complete
and comprehensive service is not com
petition, is not for the benefit of the
public in that it does not reach the
whole public interested.
if, therefore, complete duplication,
with Its dual exchange connection and
dual bills for service, is a prerequisite
to complete competition, government
control and regulation cannot go hand
in hand with competition.
We believe that the record of the
Ecll System will be. accepted by the
public as fully in accord with theee
declarations. Consistent adherence to
this policy has given the public of the
United States the best, most compre
hensive ami cheapest telephone ser
vice In the world and made the Bell
standards the standards of all nations.
To remove any possible excuse for
misapprehension on account of the
many misleading statements which
have been circulated as to the alleged
unncessary and overcapitalization
and excessive charges of the Bell Sys
tem, the following statistics are given
Except where stated, the figures are
for the Dell System; that la. the Amer
ican Telephone and Telegraph, and lis
Associated Companies.
The entire Hell System on June 30.
inn, had outstanding In the hands i f
the public obligations (I. e., notes,
open accounts, lM)nds and shares) te
the par vulue of 1776,000.000.
The book value of the total tangible
assets, which is considerably less thun
their replacement value, amounted to
SUti0.000.000. Many appraisals of
property included In these assets have
beep made, and most of them under
the direction of public authorities. In
no case has the value as it stands on
the books failed to he sustained, and
in most easel it has been very largely
exceeded.
The total dividends and Interest
paid during the year 1812 amounted
to only 6.1 per cent on the average oi
Its outstanding obligations, and to less
than !i per cent on the average value
of its assets.
The actual cash which has been
paid Into the treasury of tne American
Telephone and Telegraph Company on
account of the capital obligations now
outstanding amounts to $22,000,000
more than the par of such outstanding
obligations.
The Associated Companies collected
from the public and paid back In
laxes over $10,000,000 during the year
ISIS.
The steadily Increasing necessities
of the public not only for additional
but for new telephone service can only
be met by new construction. Involving
capital outlay. To meet these demands
during the six and one-half years from
107 to June, ml, Inclusive, the In
crease In telephone plant was as fol
lows: Toll line wire Increased from
1,400.000 miles to 1,142,000 miles: ex
change wire Increased from (.000,000
miles to IS. 000.000; the number of ex
change stations Increased from 1.710.-
000 to 1,200.000; the number of sta
tlons of Independent companies eon
nected with the Bell System Increased
from 141.000 to 2,120,000. The num
ber of Independent companies con
nected with the Ball System Is about
JJ.0O0. Ths number of employes In
Ihe Hell System, not Including ths em
ployea of connected companies, on De
cember 11, 1(12, was 141,000.
During this same period the num
her of shareholders of ths Amertcen
Telephone and Telegraph company,
not Including either the associated or
connected companies, Increased from
17,008 to about 4.000. About 47.000
shareholders hold less than 100 shares
each; 0100 shareholders hold from 100
to 1000 shares each; 147 shareholders
Hold from 1000 to (00 shares each
while there are only 10 shareholders
of 1000 shares or over In their own
right. A majority of the shareholders
are women.
AMERICAN TFf.EPHONB AND
TKLKOHAdi company
THRU. N. VA1U President
i adv,
MOTHERS DESIRE
GROUP PREMIUMS
Some Think "Better Babies"
Contest Should Give At
tention To Rouble Entries
A number of the ladles of Ashe
ville and this section are now making
demands on the Western North Caro
lina Fair association for "group"
prizes In the "Better Babies" contest,
which is apparently going to be one
of the biggest features of the fair this
fall. . Most of the mothers are proud
to have one baby to enter in the con
test, but there are others who can
boast of two or more between the age
limits of six months and three years.
and these are of the opinion that the
Fair association, the Womans Home
Companion, or whoever else U respon
sible for the premium list, should take
this fact Into consideration. It is an
entirely new point of view, and it is
very evident that something should be
done about It.
Until yesterday there had leen two
"double-header" entries in the contest.
and since then there have been two
others. These additional double en
tries are: William, Jr., two years old,
and Robert Bruce, nine months old,
sons of Mr. and Mrs. William John
ston, Grove Park; and Eugene, jr., two
years old son, and Deborah, seven
months old daughter, of Mr. and Mrs.
Eugene Carland, 56 Chestnut street.
The contest now boasts 49 entries,
11 since yesterday. The others are:
John Ringham, one year old son of
Mr. and Mrs. W. St. George Walker,
Black Mountain; J. C, Jr., 13 months
old son of Mr, and Mrs. J. C. Melton,
SO Starnee avenue; Millie, six months
old daughter of Mrs. J. O. Keith, 91
Woodlln street; Ernestine Lee, two
years old daughter of Mr. and Mrs.
J. Ernest Applegate, 172 Asheland
avenue; Mabrye, two years old son of
Mr. and Mrs. E. W. Candler, Candler;
Gordon William, jr., one year old son
of Mr. and Mrs. G. W. Dougherty,
West Asheville; Ernest, seven months
old son of Mr. and Mra Gus Stewart,
Asheville, route 2: Jack, eight months
old son of Mr. and Mrs. J. M. Mo
Canless, 247 Montford avenue.
CROWD CHEERS AS
THAW WINS BATTLE
(Continued from page I)
not handcuffed. His hair was brushed
neatly, and otherwise he showed evi
dences of having made a more careful
toilet than has been his custom of
lute in the jail.
A battery of camera men scaled the
Judge's bench and snapped the pris
oner again- and again. The old sheriff,
Aylmer, greeted Thaw cordially,
beamed at him, then began talking.
, Thaw Knjoys Hinwclf.
Thaw's face was flushed, counsel
lounged about the tables, growing im
patient for the Judge's appearance. A
newspaper photograph rapped for or
der, and when the crowd looked up
took a picture.
Thaw appeared 'to enjoy the atten
ion he was attracting and laughed
outright at the antics of the photog
raphers. Nuw and then he adjusted
his gray striped necktie.
The Judge entered at 10:20. Every
body rose as he took his seat.
"No. I17 exparte case of Harry
. Thaw," read the clerk.
Court Dwhlcn for Thaw.
The court took papers in the case
and begun perusing them, W. U Shurt-
leff, for Thaw, then addressed the
ourt.
Your lordship," he said, "since this
petitioner obtained a writ of habeas
orpus he hus tiled a notice of discon
tinuance, thereby declaring that no
ther proceedings be had In this
ourse. This action, I believe, is cov
ered under our code of civil nro-
edure."
lere the luwyer referred to clauses
n the code hearing on the run
Therefore," he continued, "we stand
In the position of having no applica
tion for a writ."
Attorney Veret of counsel for New
Vork stute Interrupted the proceed-
ngs to say that New York desired to
resist the abandonment of the writ
I do not wish to bear from vour
side of the case," said the court. "ThiB
Is an ex-parte proceeding."
As this practically sustained Thaw's
lawyers, the crowd In the court room
rose to Its feet cheering madly.
wnne the cheering was at Its
height ths clerk cried out that the
case was adjourned until 1 o'clock
this afternoon.
PRESIDENT OUTLINES
, HIS MEXICO POLICY
(Continued from Dags 11 .
organizing and supporting the n
administration."
The president emphatically nrn Uri
toe execution of hia mission by Mr,
wnu ana sum he was led to believe
the Huerta government rejected the
American proposals, "because the
authorities at Mexico City had been
grossly misinformed and misled
upon the aplrlt of the American peo
ple In the matter, and upon a mis
taken belief that the present admin.
uuration aid not speak for the peo
ple of the United Htatea. So lone mm
such a misunderstand ins fC nt I n ti mA
imiuen aasenea that this na
tion "could only wait the time of their
awakening to a realisation of the real
raots.-
The situation." declared the ir.
"-I, mw ds given a little more
"me to work Itself out In h
circumstances."
us then outlined the position this
government shoo Id take. Concluding
aaoress, the president oredlcted
uw we "steady nresaura of mnnl
force will before many daya break the
Darners of pride and prejudice
down, and we shall triumph as
mem o a mends . asoner than
could triumph aa h-w enemies. "
PmildrM (Mm (tosliiia. ,
Senor Qui boa's nots. which was an
Beaded to Ihe prealdent'a address as
aa exhibit waa not rmmA b the utmI.
dent, but waa furnished te congress as
a printed document
Mra, Wilson and her daughters and
Secretary Hrvr had l.li,. ni... i
the executive avllery. other members
or in cabinet had taken places cut
ine ooor. ,v.ry head n the cham
ber had been boved and the solemnity
NATIONAL BISCUIT
COMPANY
CRACKERS
During the years that they have
been on the market, millions of
packages have been consumed
and the output is daily increasing.
National Biscuit Company Graham
Crackers are a revelation in
goodness.
They are not only nourishing, but
delicious. Try them. Always in the
protecting package that keeps in
their unique goodness. Always look
for the In-er-seal Trade Mark.
10c
of the occasion was Impressive us the
house chaplain, the Kev. Harry D.
Couden, in hia opening prayer said:
"Rule Thou in the hearts of our
rulers and sway the minds of these,
Thy servants, that as a nation we may
move forward to all that is pure and
noble until all the peoples of all the
world shall recognize the purity of our
motives." "
Although a deafening volley of ap
plause rang out as the president ap
peared he plunged Into the reading of
his message without delay and with a
bow of acknowledgement at the greet
ing. The president finished reading at
1:21 o'clock. Another great roar of
applause broke out. All those in the
galleries stood while the president left
the chamber and started back to the
White House.
The Joint session at once dissolved;
the house adjourned and the senate
filed back to Its side of the capitol.
BASEBALL GAMES ' POSTPONED
By Associated Press.
Boston, Aug. 27. Koston-Pltts-
burgh game postponed; rain.
Of Couras He Knew.
Farmer Wanter see me milk ther
cow? -
City Boy Au. gwan! Tou needn't
kid me 'ennse I'm from the city. Dey
gets milk out of a red wagon. Don't
far think f kDow?-Plttaburgh Press.
Shifting Ideals.
Most of the damsels thst I know
Or live among
Desire a Brummel for a beau
When they are young.
A man must boast of raven hair
Inclined te ourt
And be a multimillionaire
To win a girl " '
But with ths years a girl grows mask.'
She drops that moo
Aad twenty-seven plunks a wesk
Looks pretty good. -
Kaeeaa City Journal
Precautions of Old Time Doctors.
It waa formerly trie practice among
physician to carry cane having a
hollow head, the top of which was
gold, pierced with boles like pepper
box. i The top contained a small
amount of aromatic powder or of
snuff, and on entering the bouse or
room where .disease supposed to be
Infectious prevailed the doctor would
strike hie cane on the floor to agitate
toe powder and then apply it to bis
nose; hence all the old pritita of pby-
sJdana represent theta wltlrcuues to
their noses.
Teaser Ffcrssss.
Thorn Tnsser. a writer of the all
teen to century, said: "It an 111 wind
turns no good," "Better lit thin
never." "Look ere yoq leap" and "The
stone thst It rolling can gather no
He Had Ream.
"Dear me, Tom, yon eat a good deal
for a Ultle fellow," remarked Uncle
John to bis nephew.
"I s'l'ert I aren't so little Inside a
t look outside," wss Tom's liigenlou
answer
, REGRET.
Regret cotnei into a9 Eve thai
are worth wUe. The Ue without
regret it ike Ue without gam. Ra.
gfet a) out the sght cl fuller w'wlxa
trom our pest, slut moating our fu
ture. t meant that we are waef
today than w were yesterday.
? s.
t SATURDAY. SEPT. C,
t Matinee and Mght.
fi ' Al Q. Field Greater Minstrels.
?
a. i if a I? . if I?, a .,
Al . Field Minstrels.
"The Movies In Panama," us pro
duced by Al G-. Field minstrel which
will be seen at the Auditorium matinee
and night on Saturday, September 4,
is an evident intent to burlesque the
manner in which the moving picture
people obtain material for their films,
however the startling effects entitle
the production to a more Imposing
plot.
Opening with a street scene in Pan
ama City, peoples of all nationalities
are seen, supposed to be there aajicin-
ttETIC
't ' - ' v,-- .-'' . i -t i-
COMPLETE
A LIVELY, LIKEABLE
AT THE MAJESTIC.
;;'5, ; "mm ' K v
The Pennant Winners
PRESENTS THURSDAY, FRIDAY AND SATURDAY ONE OF WEBER AND
FIELDS POPULAR MUSICAL COMEDY PLAYS . , .
Buncoe's Mineral Springs
1 I i i f ' '. a ..'. -i , .. . ;'),.,'.
It'll full of lauglinlile situation unj interKiKTwd with n number of LiH class
Bpecialti8 whirli, atlJn material ly to the BUct-esH.of the produotion and includes Uob
Jarvia the comedian and dam-cr, liitta Madera, violin soloist and the Tell Quar
tette. .''
You'll Enjoy It Everybody Does
MATINEE DAILY, 3:30, 10 and 20c. - NIGHTS 7:30 & 9:00, 10, 20 and 30c
ENTIRE BALCONY RrCZr.VED FOR COLORED PEOPLE, Admission. 10 & 15c
bled to participate In rttu; ceremonies
attending the opening of ths Panama
canal. A musicals by a tend of Ha
waiian, a Spanish cabaret, a storm, a
olcano In full erujnlon, the moving
picture actors and cancers, the pho
tograph fiend and Anally the opening
of the Panama canal, a display that
will mystify the most blase of theater
goers. The first ship the' Dread
naught passing "through the canal,
the White Squadron on the Atlantic
and Pacific.
The scenery, represents a view of
the Panama oanal from the Atlantic
ocean, the various scenes were paint
ed from pnotograpns furnished by the
war department of the United States.
They are wonderfully accurate an!
thus doubly Interesting. Looking from
the Atlantic across the entrance to
the canal can be soen the city of Co
lon, the Gntun locks, the Gatun dam,
Chagres, Culebra, cut, Pedro Mlrguel
and Miiiflores locks, with Panama City
In the distance.
WITH AL. . FII L1, AVDITORIUM. MATINEE AND NHiHT, SEIT, (,
CHANGE OF PROGRAM THURSDAY.
6
BEVY OF PRETTY GIRLS
With the beautiful effects, th
Ifig-ahrps- arhlgTtCthe tropica'," '
embellishment. In Panama rank,
the higher class ru.. ..,. . '"
of the stage. Th music. JZJ. pl
ranged for the production 1
factor In adding to the aitractw!011
of "In Panama." The nl?ht 'l'
will be S cents, 7 cents anal,
matinee prices will be 60 cents ,Jr
cents and through the courtesv m J5
Field, children will be admitted u
seat for 25 cents. The ticket eafe
open Thursday. September 4 , "
son's drug store. '
CHICHESTERSPlLLs
" ""AMU fliT. J
yonknmmHBix.iiu-. ..LLU
SOU BY DRUGGISTS EYEmw
' ' f :
COMPRISE THE CH0RU$
. ,
Company
THEM1E
' . W. i : , ' W -tin- ii ti .
r't
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