CHAPTER XIII 
TELEPHONE SECURITIES 
A S we have discussed the securities of street 
railways and lighting companies in preced 
ing chapters and are now about to consider 
telephone securities, it is rather interesting to note 
approximately the extent to which each of these 
public utilities is a tax upon the people. 
Annual Charges Per Capita in the United States 
Steam Railroads $20.00 
Street Railways 8.50 
Gas 3.50 
Electric Light 2.60 
Telephone 1.75 
This does not necessarily mean that every person 
spends $20 a year on railroad fares and only $1.75 
on telephoning; but it does mean that for every 
$1.75 spent on telephoning in this country, $20 is 
spent on railroad fares or freight. As in econo 
mizing, it is natural and easiest to curtail first 
those disbursements which are heaviest, economiz 
ing last on those which are smallest, it is found 
that the earnings of telephone companies are less 
affected during periods of depression than the earn 
ings of any other class of corporations. It is greatly 
due to the credit of the president of the American 
Telephone & Telegraph Company, that most care 
ful studies have been made of this and other feat 
ures in order to determine the effect which a busi- 
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