The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1886-04-02
the TELEPHONE BONANZA.
IMMENSE FORTUNES THAT HAVE BEEN
MADE BY BELL AND OTHERS.

Bell took his telephone to the Cen
tennial Exposition, where it was seen
and experimental with by thou
sands of visitors, who never sus-
pected that it would come to more
than an ingenious plaything. 1t
was two years after the Centennial
that the first telephone exchanges
under the Bell patent were estab-
lished, though company had been
organized in 1877. 1t was not till
1879 that the new method of COM
munication was firmly established as
n commercial or social necessity, and
from that year dates the marvellous
growth and success of the Bell Com
pany. Its capital stock OH the 3lst
December, 1884, was S24, 100000
and an application was made last
year to the Massachusetts Legisla-
ture for an increase to $50, 900, 900,
which is half the amount of the en-
tire stock of the Western Union Tele-
graph Company. The receipts for
rentals for the fiscal year ending
March 1, 1885, were $1,969, 900,
and the net earnings for the COM
pany for the same time were 81, no.
900. The first dividend was not de-
clared till January 1, 1881, when
1920, 800 was paid to stockholders
on $500 shares, or 3 percent. One
more dividend of the same amount
was declared that year, three divi-
dends of that amount were declared
in 1882, two dividends of the same
amount were paid in 1888, and two
of s2SS,063 the same year, five
dividends of S28S, 063 each were
paid in 1884, and one of the same
amount was paid January 10, 1885,
and several have been paid since.
Up to the 18th of January, 1885,
the total dividends paid to stock
holders amounted to about $4,000
600. The original investors in Bell
Telephone stock paid from $50 to
$40 per share. Since then the stock
has been increased or "watered"
seven times and the shares are worth
$3.50 each, so that an original holder
has now eight shares for every one
that he first held, and what he paid
say $50 for is now worth 81 200.
On the 1st of January, 1885, the
Bell Company controlled in the
United States and Territories 772
exchanges, 107, 440 circuits, 101, 734
miles of wire, gave service to 5,16S
employees and had 1874 900 sub
scribers. Its payroll last year
averaged about $4,000 a month, or
about $4,000 year. The en-
ployees are nearly all girls, who re-
ceive very small salaries. The ex-
penses are very light, the original
cost of property small and the in
come sure. AS a monopoly of the
modern school it has no rival, and
what it will attain to another ten
years, unless checked in its pro-
gress, no one would undertake to
foretell. The character of its pro-
perty, when it comes to a valuation
in dollars and cents, is very well
illustrated by the insignificant
amount it has paid to the various
States for taxes. Up to the begin
ming of 1885 its total outlay fol-
taxes in all the United States had
reached only $129, 900. The amount
paid for taxes in New York for 1884
was $24.S6. The amount paid in
Missouri the same year was S54.76.
In Massachusetts where the capital
stock is taxed, the amount paid in
1884 was $24, 410. The amount pait
in all the United States outside OF
Massachusetts since 1881 up to thu
beginning of 1885 was less thar
$4,000. A company that has {
combined salary and tax expense O.
about $3.50, 900 a year, with an in
come of So, 900, 900 year, is flint
illustration of the modern scheme O
money-making.
A number of men have grown very
rich through small investments made
in Bell Telephone stock five or si'
years ago. Prof. Bell, who makes
his home in Washington, is supposed
to be worth $4,000, 900. He wa
originally Massachusetts, man, ant
when he applied for his first paten
was teacher of languages in ;
school for deaf and dumb. 1t wa
through his Boston acquaintanceshil
that the first company was organ
lied. w. II. Forbes, of Boston, i
the President. He is said to b
worth from 5000, 900 to $4,000,
600, which comfortable sum has &C
cumulated ON an original investmen
of $64,000 Other Massachusetts
men who have made fortunes tn
same way are Gardner G. Hubbard
of Boston, said to be worth So, 000
600. C. p. Bodwitch, of Boston, an
Vice-President of the company,
said to be worth fully as much
900 III Vail ;s @ka ,,,n-nrnr =