Morning journal and courier., 1885-05-22
Friday, May 22, 1885.
THE BELL TELEpHONE.


 The unanimous report made by the Massa- chusetts legislative Committee on Mercantile Affairs against the petition of the Bell Tele- phone company for leave to increase it's capi- tai stock to $3O, ,000, 900 probably disposes of the matter, for this year at least The chief reason given for an increase was that it was needed for the purpose of building and oper- ating new lines of wires which should con meet with the present exchanges in the prin- cipal cities of the country in a way that would enable persons to communicate be- tween Boston and New York, Philadelphia or Washington. The committee is of the opinion that it is practicable to converse by use of the telephone for distance as great as that between the above mentioned cities, and perhaps much farther. But the success of long distance telephoning has not yet been demonstrated, and it was not shown before the committee that the work of building such lines would be undertaken except as the business from time to time and from place to place should be proved to be a commercial success.
 An interesting incident of the hearing upon the petition was the report of the sub committee, which gave very clear account of the history and present condition of the Bell Telephone company. It appears that the Bell Telephone association began busi- ness in August, 1877, with no capital, and granted rights to the New England Telephone company, which was organized February 12, 1878, with capital stock of $200, ,000, con- sisting of patent rights, valued at $15O, 900, and cash, $50, ,000. The Bell Telephone com pany was incorporated July 30, 1878, with 8 capital stock of $450, ,000, patent rights being valued at S400, ,000, and cash, $50,000; and the Nation al Bell Telephone company was incorporated March 12, 1879; capital stock, $850, ,000, con- sisting of patents, $65O, O,OO0 property, $780, GOO; and cash, $10,0O0. The American Bell Telephone company was incorporated April IT, 1880, with authorized capital stock of s1O, ,OOO, 900, of which s6, 500, 900 was paid to the National Bell Telephone company for patents, patent rights, licenses, inventions, telephones, leases, contracts, good will and all it's property of every name and nature, and S3, ,101, 100 was subscribed in cash, the total amount of stock issued being $9, ,602, 100 Of stock in telephone and other compa- nies other than the American Bell Telephone company that corporation holds, ried on their books. S22, ,016, ,523, for which there was paid in cash, on property other than patents, $6, ,432, 634. 34, the amount of stock received for franchises being $15, ,531,- O50. These figures do not indicate the ac- tual value of the stocks, stock received for the franchise being carried at par. while stock purchased above par is reduced to par; all other purchases of stock being carried at cost.
 The company has paid in dividends from January 1, 1881, to January 15, 1885, the sum of $3, ,995, ,004. It has paid to the Vest ern Union Telegraph company for stock, changes, instruments and royalty, altogether s1 1883, ,983 7S of which S1 ,164, ,563. 36 was for royalty, under-a contract dated November 10, 1879, providing for the payment to the Western Union of twenty per cent. of rental or royalty received by the American Bell Telephone company, and twenty per cent. of net profit on sales of telephones for export, etc.
 Bell telephone monopoly has waxed fat with a good deal of rapidity. But the committee could not see any good reason why it should be permitted to expand it's capital to thirty millions, and we imagine that it would be hard to find any.