Bell System

Front pages instead of financial sections last week headlined the most important annual report, that of American Telephone & Telegraph Co. Salient facts regarding the Bell system (Western Electric and Bell of Canada not included except as investments) were:

Total assets rose from $3,826,683,584 to $4,228,430,088--the largest nongovernmental organization in the world. A.T.&T. alone had assets of $2,477,023,551.

Operating revenue rose from $975,426,-823 to $1,070,794,449. Net income jumped from $191,087,639 to $217,104,872. Net income of the parent company came to $166,189,758 against $143,170,491. These figures compare to General Motors' $248,282,300 net income in 1929. Ratio of net income to gross earnings rose from 60.7% to 63.3%.

There are now 469,801 stockholders compared to 454.569 last year. Over half are women. The average holding is 28 shares. No one holder has so much as 1% of the stock.

During the year 900,000 new telephones were added, a record. The system connects with 20,000,000 telephones in the

U.S., controlling nearly 75% of them. It is linked with 9,000,000 telephones in Canada, Mexico, Cuba, Europe, 86% of the world's total. Last year 18,000 transAtlantic calls were handled. TransPacific service is being worked upon.

Toll calls are being handled at an average speed of 2.4 minutes against 7.5 minutes five years ago. New York Telephone Co. has reduced the time from 6.9 to 2.1 minutes.

Expenditures for improvements during 1930 will approximate $2,000,000 per day. The total personnel is 454,000, including Western Electric.

In a separate report, New York Telephone Co. said that if a raise in rates is not granted, the common dividend will not be earned in 1930. Reason: decreased business activity; increased expenses.

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