The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-03-17

ing ut Boston, which Western users of teie-
phones should know: The Bell company owns
$J,51o,5UU or the capital stock Of the Central
Union Telephone Company, $1.O0O,000 Of the
capital stock of the Iowa Union Telephone and
Telegraph Company (said to be capitalized et
about SIS, 600. 000), and $I25 600 of the capital
stock OF the Iowa and Minnesota Telephone
Company (said to be capitalized at about $780,
OOOl From the Central Unionit had received in
May, 1885. dividends to the amount of 500 1888
upon shares entitled to earn dividends but by far
the greater part of its stock not entitled to
earn dividends until July l, 1887. These we're
tho provisions of an agreement The Bell COM
pany had waived its dividends on its stock in ths
Iowa Union Company and the Iowa and Mime
sofa Company until July /, 1886, and July 1,
1887, respectively. It's official statement, laid
before the legislative committee, showed that on
July l, 1887, it would b3 empowered to demand
dividends upon So 311 600 of its Central Union
stock and its $l25 900 of Iowa and Minnesota
stock while its $l,000,000 of Iowa Union stock
would be entitled to dividends on July l. 1886.
Do these facts throw any light upon the motives
and acts of the Central Union Telephone Com
pany, its parent and its alliesl
The system by which the Bell company, de.
handing and receiving every year 81 000 600
rent for the use of its $500, 600 worth of instru
ments, has endeavored to take possession of all
the local companies in the United States is a
system whose purpose is TO draw from users the
greatest possible sum without regard to the
value Of service or the amount OF money in
veSyed. 1t holds $2z, UuU,U0u or STOCK In THESE
companies In accordance with its plans the cap
itals of the local companies have been enor-
mously swollen with water. The New Eng
land companys nominal capital is $l2. 000.-
600. at least three-fourths of which il
water. and the Bell Company owns
$6,215, 600 of it. The rates in the region covered
by this company have been raised to pay dv
dends on this enormous capital, and subscribers
have complained. One of them, representing
the subscribers of Worcester. remarked in the
course of his testimony before legislative COM
mittee that he was willing that the patentee and
his associates should receive magnificent in
come, but that it should not be too magnificent.
He was asked what he meant by a magnificent in
come. when a company" said he, "pays in
$500. 900 in eight months makes $500 ZOO, and
then sells &c. $780, 900 of stock, all from the orig
inal $500, 900 investment call that magnificent"
Do the people of Indiana believe that $1O,-
600, 900 in money or its equivalent has been in
vested by the stockholders and managers of the
Central Union Companyf Can the people OF
Iowa find So 000, 900 in money or its equivalent
invested by the Iowa Union Company Proba-
bly, not; but these companies and their parent
propose that the people shall pay dividends
these fictitious sums, and they hope by frighten-
ing them to kill restrictive legislation in States
that are inclined to follow Indana's example.
The people must see that when all the Bell
Company's fictitious stock becomes entitled to
dividends the rates will be even higher than
they are now. They should not allow themselves
to be scared.