The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1886-02-25

From the Neto York WorM.)
The figures given in an article con-
corning the American Bell Telephone
Company, publish, d by the New
York W0,M some days ago, related
onl. to the business of the parent cor
poration. There are snb-companeS
all over the United States nnd it is
by these that the actual telephone
service of the country is pcrfol med,
aud it is through them that the people
pay the enormous tax now cAtOrtrd
by that service.
Tie parent company, rs stated, is q
Massachusetts corporation with the
central Office ut No. %, Milk Street,
Boston, with an authorized capital OF
SlO,U0O,0O0. II is ia the great cou-
trolling aud absorbing head OF II vast
system that extends out to every city,
town and considerable village, gath,
cring in every year q gross income
almost us great as thar OF the Western
Union Telegraph COMPANY. The
authorized capital of the parent coin
panv is no index of its wealth and
future aspirations, and il is only kept
at 1000, ,OUU because OF refusal of
the legislature of Massachu>ctts to
grant The cOmpauy's applica ion fr
an increase to $3u, 900 900. The parent
cnmpany nuu the sub-CUmpauirs are
really one stupeudous concern, the
proii!abcress OF which probably cX-
crcdS that ufany considerable property
known to this aye OF profitable ven
lures.
AS soon as the practicability and
usefulness Of the telephone had been
established there was Il great rush in
all directions TO secure territory aud
form sub-companieS. These sub
companies have since been largel,
Consolidated, and in May, 1885, there
were thirty-six in existence in the
United States. The Que holding
sway over the city of New York IL
known as the metropolitan Telephone
and Telegraph Company, which itself
has four >nb-cornpanirs or sub Licenses
The Domestic Telegraph and Tcle-
phone Company, of New York and
New Jersey Telephone Company, the
Wcstchcster Telephone COMPANY and
the Station Island Telephone Company.
In the thirty-six sub-compulIics refer.
red to above no account is taken Of
L
metropolitan stands for all, and the
dealings of the parent company are
with it solely.
The parent company has an interest
in all tho thirty-siX Sub-compauieS of
the United States. The aryrepate
capital OF these sub companies amount
ed TO $53,OO0,OUO on the 3lst day OF
March. 1885. If we add to that the
$4,000, 900 authorized capital Of the
parent company it makes grand
total of $63,0OO,000. If the parent
company were to be granted the uddi-
tional $2O,OO0,OO0 of authorized capi-
tai stock they have asked for, the
grand total would foot up S83, 900 900,
which is $3,OUO,OU0 more Than the
capital stock Cf the Western Union
Telegraph Company. Without d
check ut some sort it will soon rcacl
that and even still greater proportions
THE GRASP OF THE PARENT COMPANY.
The Interest of the parent compan,
IN the various sub-rompanieS is vrr,
large ranging all the way from 33 tt
81 per cent. On the 3lst Of March
1850, its holdings in the various com
panles amounted in round numbers tt
100000 shares, the value Of whicl
Was estimated at $4,000. 900, SO that
Of the aggregate $53, 100000 of stock
held by all the sub companies com.
blned, the parent company held almus,
half. Its holdings in the metropolitan
Telephone Company OF this city
amount to 5000 shares, its holdings IN
the New England Telephone and felr-
graph Company to 81, i56 shares, and
its holdings in the Central Union Telr-
[ n
thousand shares. These shares in sub.
companies were oblaincdin two wavs
one hy so-Called purchase, the other bv
franchise, tile latter term meaning
simply gift for the right to exist,
while the purchases made are no more
than certain transfer of properties
upon which there may be placed tic-
tluons value. On the 31st of March
1880, the par value Of the shares ob,
tanned by fIanc;Se amounted to Ii, 800.
But telephone stock is rarely TO bt
estimated on the basis of Il par vnlua
tlon. he present company's stock
has sold as high as $50 and is now
worth about 300. The stock of nearly
oil the subcOmiancS is worth equally
AZ much. Very little Of ii ia on tht
market al all, it being too valuable fol
speculation purposes.
WEALTH OF THE SUB COMPANIES.
The combined wealth of the sub.
companies may be asce rtained, ut least
approximately, by calculations based
on the last report of the parent com.
pamy, issued 10 iIa stockholders March
32st, 1888. Ii is there stated that the
average number of exchange cnnncc
tions in the United States was G97, ,96G
per day, or 25I ,267 ,7G0 per wear. An
exchange connection il what is com.
monty designated a call Elsewhere
the report states that the subecribera
pay from three cents to five cents per
connection. Suppose we fix The aver.
age cnar2c ati"ur cents per ,nnpction.
Muit'uly the number of connections u
year, 35l,297,795 by fuur ccuts, we
"I,aln h;a' grand total Of 10000, ,71O 40,
when is fair estimate of the gross
Income. This is 6 CT ccn.. Of ab,u,
SlI5,o0O,0O0. Making reasonabIr
reduction for expenses, it is not nrnh.
able that the sub-cnmpanies Of tho
country receive IL NOT iucn,no NJ