[Illustration: _Each of Western Electric’s 29 distributing houses maintains an efficient repair shop where service-worn telephone apparatus is reconditioned so that it will give good service once again._] Because telephone equipment must be tailor-made—much of it in small quantities—it is necessary for the manufacturing and supply unit to have intimate knowledge of Bell System plant everywhere. And since telephone plant must give trouble-free service 24 hours a day, telephone equipment must be of the highest quality and built to exact, uniform standards. Experience has proved that the design, manufacture and operation of standard telephone equipment can be accomplished best when the designers, the makers, and the operating people work closely together on the same team. Supplies—when and where needed Western Electric’s purchasing people constantly study world markets, prices and potential sources of raw materials and finished products. They work closely with suppliers that provide equipment and supplies that Western itself does not make, so that these will meet the Bell System’s high standards. Western also helps them develop better production methods. [Illustration: _A fingertip view of a “2A” transistor, one model of the astonishing electronic device invented by Bell Laboratories and now being produced by Western Electric._] In a recent year Western Electric purchased from 28,000 large and small suppliers located in over 3,000 towns and cities in all the 48 states. Purchases included, in addition to all kinds of raw materials, finished products ranging from pencils and pen points to automobiles and telephone poles. Western Electric operates 29 distributing houses through which materials flow to the Bell companies. Each house is set up to meet the supplies requirements of the telephone company it serves. It works closely with the telephone organization to deliver the goods promptly and efficiently. Each distributing house maintains a repair shop to recondition service-worn telephone apparatus so that it will give good service again, or, if not economical to repair, to dismantle it for salvage. In a recent year the repair shops reconditioned over $155,000,000 worth of used equipment for the telephone companies, including 5,400,000 telephones. Highly trained Western Electric men install central office equipment for the Bell telephone companies. Altogether, Western Electric is able to supervise all steps in making the equipment ready for use, from purchase of raw materials to finished installation. This assures the telephone companies that new apparatus will give the best possible service. A national asset