Bridgeton pioneer. (Bridgeton, N.J.) 1884-1919, 1886-03-25
BRIDGETON N ], THURSDAY. MARCH rs, 1885,
BELL TELEPHONE MONOPOLY.

BELL TELEPHONE MONOPOLY.
Bell took his telephone to the Cen
tennial Exposition. where it was seen
and experimental with by thousands
of visitors, who never suspected that
it would come to more than an ingen-
ious plaything. 1t was two years after
the Centennial that the first telephone
exchanges under the Bell patent were
established through a company that
had been organized in 1877. 1t was
not till 1879 that the new method of
communication was firmly established
as commercial and social necessity,
and from that year dates the marvel
lous growth and success of the Bell
Company It's capital stock on the
31st of December, 1884, was $24, 1000,
and application was made last year to
the Massachusetts Legislature for an
increase to $3O,O0O,OOO, which is half
the amount of the entire capital stock
of the Western Union Telegraph Com
pany. The receipts for rentals for the
fiscal year ending March, 1st, 1885, were
$1,000, 900, and the net earnings for the
same time were 1,71O,000.
The first dividend was not declared
till January 1st, 1881, when 1920, 500 was
paid to stockholders on 73,500 shares,
or 3 per cent. One more dividend of
| the same amount was declared that
year, three dividends of that amount
were declared in 1882, two dividends of
the same amount were paid in 1888,
and two of $2SS,063 the same year, five
dividends of $2SS, ,O63 each were paid in
1884, and one of the same amount was
paid Jan. 10Th, 1885, and several have
been paid since. Up to the 18th Of
January, 1885, the total dividends paid
to stockholders amounted to about
$4,000,000. The original investors in
Bell Telephone stock paid from $40 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 had and what he paid $50 for is
now worth 81, 200.
The amount paid in all the United
States outside of Massachusetts since
1881 up to the beginning of 1885 for
taxes, was less than $4,000. A com
pany that had combined salary and
tax expenses of about $150,000 a year,
with an income of 100000 year, is
fine illustration of this modern
scheme.
A number of men have grown very
rich through small investments made
in Bell Telephone stock five or six
years ago. Prof. Bell, who makes his
home in Washington, is supposed to be
worth $4,OOO,0OO. He was originally a
Massachusetts man, and when he ap-
piled for his first patent was a teacher
of languages in school for deaf and
dumb. 1t was through his Boston ac-
quaintanceship that the first company
was organized. w. H. Forbes, of
Boston, is the President. He is said
to be worth from So. 900, 900 to So, 900, 900,
which comfortable sum has accumulat-
ed on an original investment of $64, 900.
Other Massachusetts men who have
made fortunes in the same way are
Gardner G.. Hubbard, of Boston, said
to be worth So, 100000 G. P. Bowditch
of Boston, and Vice-President of the
company, is said to be worth fully as
much. Theodore H. Vail is the man
ager of the company and is million
aire two or three times over.