Salt Lake evening Democrat. [volume] (Salt Lake City, Utah) 1885-1887, 1886-02-20
Salt Gake nrmotrat.
GOOD STOCK TO OWN.
Profits Wade by the Sell Telephone
MONOPOLY.


The New York Times SAYS. The people
would shed no tears il the Bell telephone
patents should he declared null and void
The monopoly that has been established
upon these patents by the American Bell
Telephone company has few friends ex.
cept those whose friendship has been
bought and paid for. For many reasons
IT has become obnoxious TO the public.
II demands and collects from the people
enormous prices for the use OF telephone
Instruments. The company has testified
that the cost OF II set of these instru-
mcnts--a transmitter and receiver
delivered to its inspecting department Is
only S3.42. For the use of these two in
struments it charges TO local company
an annual rent OF $l4. The rent in this
city is said TO be $50. March 20. 1886.
the parent company had 320,926 trans
mitters and receivers in use, and its re-
ceipts from rent Tor the preceding year
had been 81 1863, 442. BY the company's
own admission, the cost of these instru-
ments was only $j64 900, and the value
OF its telephones for the calendar year
1884 was entered in its statement OF as
sets at only $55S,379 Still, upon this in
vestinent OF less than 100000 it de-
manded and received from the local sex
changes" an annual rent of nearly So
600 900. ...
Here is an enormous annual profit of
$50 per cent. which the Bell company ex-
acts from the local exchanges. These ex
changes must take another profit from
the subscriber. Let us see how much
this profit is. About one year ago n per-
son thoroughly familiar with the tele-
phone business estimated the cost of wire,
instruments, exchange plant, etc, for an
exchange OF 1000 subscribers in this city
at S364,000 n year, and the expenses iol
salaries, repairs, etc, ut $4,000 year
On the other hand, the receipts for the
year from 1000 subscribers. at an average
annual payment OF $l75, would be $780,.
600, so that in one year the entire plan,
would be paid for, the running expenses
met and n surplus Of $500 laid aside
for stockholders. These figures may in.
dictate the size OF the profit taken by the
local exchange from the subscriber.
What percentage OF the capital paid in
cash the dividends issued by the Bell com
pany represent it is difficult to ascertain
An official statement presented to the
Massachusetts, Legislature when the com
pany was asking permission to initiate lis
capital from $10,000,000 to $4,000, 600
shows that only $4,000 was paid int
the treasures of the three companie.
that preceded the Bell company and were
merged into it. After 50, 1902, 100 in stool
had been issued, the company STATED
that 50, 100000 had been paid in cash ant
that $6,50O,0O0 had been paid in stock tc
the National company for property value,
by that company at only $S50,000 Tn
Boston Globe, and other papers have de
clared that the stock has been watere,
seven times, or by giving TO holders fol
each original share seven new ones, s
that the value of the shares, which wa.
ut that time very great, has been dilute
until the profits do not appear TO. excee,
Il per cent. But ii it be true that tn
total amount oil cash invested did not ex
coed 81 100000, the size of the dividen
will appear, ior the net earning
OF the company in the year END
ing March !, 1885, We're $1,7l0,S9:
TO say nothing OF the dividends iron
stock in local companies. to the face val
lie OF over 500 100000 held by the parei
COMPANY.