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Show WIRE LINES AGREE! WITH U. S. ON PAYMENT Conditions Gorernment Operation Giren in Detail. A. H. DeNlke. dlvlalon general manager man-ager of th. Mountain States Telephone and Telegraph company, la In receipt of the following telegram from K. B. Field, preeldent. which aete forth the baala of aompenaatlon agreed upon by the Bell system and tha poatmaatar general: "After .xt.nded conference, between the repreeentatlvea of th. poatmaatar general and of the Bell eyetem. what cnnatltutea a Juet compeneatlon for the eupervlalon. poaaeeelon, control and operation of the Bell eyetem taken over under the proclamation of the preeldent of the United Btatra, haa been agreed upon. , MUTUAL FAIRNESS. "The repreaentatlvee of the Bell eyetem eye-tem throughout the negotlallona found nothing but helpfulneea, aeklng no more than they thought Ought to be paid by th. government. They found In Intent In-tent and riealre to pay all that ought to be paid, and for th. protection of the property to do all that ought to be don. and all that haa been done In th. paet. In taking over th. property the poetmaaler general also deairea to give continuity to th. eervlee and as far aa conslatent with government operation, op-eration, to th. p.raonnel which haa brought the prop.rty to its pres.nl de-gree de-gree of efficiency. PRINCIPLES ADOPTED. "Th. principle, adopted as a baala of com p-. neat Ion were: "First, any compeneatlon fixed for aa emergency period and not In any way conaldered aa eetabllahlng a varus for th. property. "8cond, th. operation of th. prop.rty prop-.rty la to be continued on a baala of efficiency relatively equal to that of the paaL 'Third, th. property Is to b. fully maintained so a to be turned hack to tha company aa good as when reoelved. "Fourth, appropriation from current revenue for maintenance, depreciation and obsolescence to be the ssme aa th. past an average of S.72 per cent on the fixed capital amortisation of Intangible capital to b. relatively equal to tha paat. All unexpended balancea from both to be Inveated In the plen of tha ayatetn. Chargea against the depreciation reserve to be In accordance accord-ance with the rules of the Interstate commerce commission. "Fifth, employes' pensions, disability beneflta and death benefits now In operation to be continued. "Sixth, all taxes, municipal, state o federal, to be paid, or reimburaed It paid by Jhe companies, by the government. govern-ment. "Seventh, the license and rental contracts con-tracts between he American Telephone and Telegraph Company and the license companiea to be continued and the American Telephone and Telegraph company la to give such advice and assistance as tha postmaater general may require. Is to maintain Its scientific, scien-tific, technical and engineering depart-mente, depart-mente, Ita patent protection for the benefit of the property In the ssme manner aa heretofore. The poetmaster general to hav. tha benefit during the period of control. In th. operation of th. wlr. ayetem, of all Inventlone, dls-coverlea dls-coverlea and-ldeaa which may now or hereafter be controlled by tha Bell system. sys-tem. These provlalona are for tha protection pro-tection of th. property, the service end the art, and provide for th. continuation continua-tion of the eervlee and for the continual con-tinual development of th. art. as well ss th. protection of the developed. situation, situ-ation, and are for th. full protection of th. public In Its service end the proprietors In the property and development. devel-opment. FOR SECURITY HOLDERS. "For th. aecurlty holders la provided: (A) Payment of the Interest snd existing ex-isting amortisation charges on all outstanding out-standing securities :or obligatlona of the Bell eyetem In th. handa of -the public. Including tha S per cent ton vertlhle bonds laaued August I. 1111. "(Bl Payment of dlvidenda at th. of control and their value to th. system sys-tem ss appraised shall be paid for In Instalments of I per cent per annum. Th. whole basis of th. negotiations on both aldea was to ask no more than was right, to grant all that was right snd to protect s great properly and a great service la the public In every possible way. ABNORMAL CONDITIONS. "In closing, the public ahould bear in mind that we are In th. midst of vary abnormal times. Scarcity of labor, la-bor, high coeta of living and great Increases In-creases In demanda on tha aervlc. and which ar. congealed and not wall dia-trlbuled. dia-trlbuled. will create conditions which it, will be difficult for the telephone systems to meet, no matter how much churgsa and wages are Increased, and some consideration muat be given be-fgrccHtMsirMs be-fgrccHtMsirMs Indulged!!! existing rats upon th share capital of the Bell systsm outstanding in the handa of the public. "(C) Payment of any chargea, Inter, est, dividends or other costs on new securities or ohar capital Issued In discharge, cooverelon or renewal or extension of present -Obligatlona. For extensions to property ss provided above, unexpended depreciation ahall b Invested In property of the system. American Telephone and Telegraph company surplus shall be Inveated In Ita property. Surplus profits from operation op-eration may be Investsd by ths post-msster post-msster general. If securities or capital can be issued at fair terms th Bell system will issus Ita securities If desired de-sired but the nomlnsl value of the securities shall not exceed I per cent of th amount expended In th property. proper-ty. Extension to Its property mad with th approval of th Bell ayetem by money furnlahed by th poetmaster general ahall be paid for In lneta intents of a per cent per annum, after the period of control ceaaea. Rxtenalona by th poatmaatar general to meet the abnormal conditions and mad without th approval of the system shall be spprataed by the Interstate commerce cnmmlaalon at th snd of th period |