The Portland daily press., 1886-03-31
THE TELEPHONE.
Annual Meeting of tho American
Bell Company,

Boston, March 30-The annual report of
the directors of the American Bell Telephone
Company was submitted to the stockholders
at the annual meeting here to-day. The
total number of subscribers January 1886
was 1850, gain of 2960 since last year;
number of instruments under rental 333, ,040,
a gain of 4460; number Of exchange connec-
tions made daily in the United States TAG,
517, total per annum of 272,47S, ,705;
total number of extra territorial connections
is 2,431,99 per annum; yielding a gross
revenue of $55S, ,740 of which the American
Bell company's share is S72,677, an increase
of $500 over last year. The seasons report
shows the gross earnings for the year of 81
765,SS4 and net earnings 81, 783, 1856. There
up to 81, ,809, ,196. From this dividends have
been paid aggregating $1,562,236 and there
has been written off to reserve for deprecla-
tion of instruments $100752 leaving a
of $4,000. The total surplus to date is
81. .204, ,120 During the year. there was
received in dividends from licensed COM
panies $685., ,469, gain Of $122,000 over the
previous year. The report says that ex-
perience has proven to licensed companies
ting their plant is greater than was antici-
pated, hence they have appealed to.the parent
company Tor concessions in their contract
relations and important concessions have
been granted. They have agreed that the
parent company's share of the earnings
Jointly with that of other stockholders may
be applied to the construction and they have
made reduction in royalties in small places
where the rates are low. This reduction has
involved loss of 100000 in the annual
royalties. but the directors believe it is offset
by keeping more telephones in use than
would be out under the old rate, and show
that it affords relief where it is most needed.
In the case of the New England Company
viding for the future construction and also
looking to the payment of regular dividends
from the net earnings. The American Tele--
phone and Telegraph Company, organized
by the American Bell Company mas under
taken the construction of copper lines for
long distance talking and has erected line
of % wires between New York and Philadel-
phia at a cost of $215.00o The Pan Electric
case and the proposed government suit was
discussed at length, full and detailed
statement being given of the origin of both.
1t is claimed that the real object of those
who urged the bringing of the government
suit was to get the suits against the Pan
Electric, and its associates stopped on the
plea that inasmuch as the government had
entered a suit all other proceedings should
close. On this head the directors say:
1t is easy to understand the injury to the Bell
interests that would follow if the United States
ment could try again and determine all questions
which it has taken the United States government
years of arduous litigation to bring to their
present condition of readiness for the Supreme
court.
The report deals at length with the Indiana
rate law and recent decisions of the Supreme
court of Indiana and shows that under these
it is impossible for local company to do
business without great loss. Hence it is
compelled to withdraw. The report closes
as follows
The directors feel that the outlook ahead is
promising, that there is a good prospect of an
early and favorable termination OF our most i'm
Portant suits ana strong & reason as n to hope tha
tempted.
Directors were elected as follows: F.
Blake, G. B. Bowditch,. G. L. Bradley, G.
Eustis Hubbard, G. G. Hubbard, R. B. Min
turn, G. E. Perkins, W. G. Saltonstall, Il.
Sanders treasurer, W. R. Driver; clerk, G.
E. Hubbard.