The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-10-11
PRESIDENT ORTGN,S REPORT.

The last quotations of the stock of the
Western Union telegraph company, as in
dicated by the sales at the New York bro.
kers' board, are at siyty-one and quarter
cents. That is to say. il sells for thirty
eight and threc-quarter cents less than its
par or face value. To one unacouainted
with the situation, it would soem that thi.
stock should command d premium. instead
of selling so much below its nominal value
The capital stock of the company is a tri-
fie over forty-one million of dollars, seven
and quarter million dollars of which il
held by the company, and may not, there
fore, be taken into the account, except in
30 far rs the company may, from time to
time, IN ORDER to raise money, throw this
stock on the market for sale. At the Close
OF their last fiscal year June 30th, 1873
they operated-wc give the figures in
round MISUNDERSTANDING thousand miles
"of line" and hundred and fifty-fve
thousand miles ''of wire, " having fivcthou-
sand seven hundred and forty offices, and
nine thousand one hundred and ninety en-
ployes. During the year, they transmitted
fourteen million five hundred thousand
messages, being an increase Of some six
teen per cent, over the business of the pre-
ceding year The whole debt of the COM
papy Is six million dollars less hy mil.
lion dollars than the stock owned hy them
which was incurred in the construction
OF new lines or the purchase of rival lines.
The gross earnings, or receipts. Of the COM
pany, for the year, we're something over
nine million dollars, aud the expenses about
III the same proportion more than six mil
lion dollars, leaving the net earnings cy-
nctly two million seven hundred fifty-seyen
thousand nine hundred sixty-two dollars
and ninety cents (T2, 20, 1862. 90. These
figures are, all of them, reliable, being TAX
en- from the report of William orion.
president Of the company, made to the
Stockholders at their annual meeting,
"Wednesday. 1t will be seen that the net
earnings, as stated, are over five per cent.
Of the stock and debt of the company. in
GLIDING that held by them, while excluding
the stock retained by the company. the net
earnings that is the profits of the year,
after paying all expenses--would pay
nearly seven per cent. interest on the bonds
and the same dividend on the stock. View.
ing these facts and figures, it may be a
matter of surprise that the Western Union
telegraph company is classcd among the
fancy stocks and sells so much below
par. Ordinary investors we mean those
who buy securities for investment and not
for speculaiion-are content with an an.
nual return of five per cent, which this re-
port shows is earned and could be paid.
Once convince capitalists that this com.
pany can and will pay five per cent, and
it would cease to be fancy" and, in fact.
withdrawn from market.
Why then is the stock 80 depressed ,
Why is ii sold at the stock exchange Mt lees
than two-thirds of its par or apparent
valuef Why is IT not eagerly sought as
an Investment Without referring IN
these questions, Mr.. Orion, with an honesty
and openness which is commendable, ex-
plains the whole matter. The free bust
ness transacted by the company would il
paid for at the ordinary rates, add some
million of dollars to the income of the com
pany, making an addition of nearly one
third to their net income or profits. Some
OF this "free business" is, perhaps, hgti-