The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-12-24


and apparatus owned or controlled BY the
in the territory comprising the States of Ohio. 1ndi.
ana, and Illinois. with the exception Of q few ooun-
ties In each State. mhinly adjacent to and including
the large cities. such - Chicago. Cincinnati. Cievo-
land. Evansville. etc.. where other local Bell Tole
phone companies exist.
with regard to the construction. the Electrical En-.
gineers in q report dated March e4. 1897. say that Q
great amount OF rebuilding has been done In each Of
the past three years, in accordance with the best
modern practice; that in their judgment the prop
erty "a q whole is In good physical condition. and
that the equipment generally indicates an apprecia.
tlon Of the advances that are being made in tele-
phone appliances and methods. AZ q result OF i'm.
provemcnts and extensions. the business from toll
lines has increased in 1897 over 1896 OIL per cent.
VALEE.
Al the time OF the examination. when there were
outstanding o.. a75.ooo of bonds. the Electrical En-.
gineers state. with regard to value:
Leaving out OF account the value of all licenses,
franchises, and rights. of.way we estimate the value
Of the property of the Company. based on the cost Of
reproducing II. to DO at present prices at -. 740, o0o."
The above represents the plant, and in addition the
Company owns, a. per the Accountants report,
stocks. franchises, licenses, and rishts-of.way. The
proceeds Of the present Offering will also add to the
value OF the property.
CARVINGS AND FIXED CHARG ES.
The Accountant reports; 1.-THE net earnings (after
deducting all depreciation. insurance. repairs. main
tenance. royalties. and all other charges except in.
tercst) for tho hve years ending recember 81. 1890.
amounted to 81 ,59S. 028. an annual average OF
$500, 1874" Although owing to extraordinary ex.
penditures for improvements and maintenance,
the net earnings for 1897. as Furnished by the Com.
pany, wcrc:
For tho 1rst ten months e2s1. 7s7
November testimatcd) NEUTRALITY-SUSPICIOUS.. $1,000
December " 1000
Making o total Of s34o,7 8
or more than double tho amount necessary to meet
the interest charge Of $3.50, 600. being 9 per cent. on
the bonds outstanding, including the present issue
lin all %. 500. 600.
CAPITAL STOCK.
The capital stock outstanding is 6s.8o5. 800, Of
which the American Bell Telephone Company owns
os. $50. 300. being the majority. II Is also q large
owner OF bonds. part Of thu present issue, and the
Central Union Company is operated under its gen
eral policy.
MORTGAGE.
The mortgage covers all the property, rights, priv.
leges. and franchises of tho Company. now owned
or to be hereafter acquired, and the assent of
the American Boil Telephone Company has been
obtained to the assignment to tho trustee OF the
licenses ana contracts.
EXAMINATIONS AND REPORTS.
The legal organization OF tho Company. and all its
proceedings relative to this issue Of bonds. has been
examined and approved by Messrs. Story & Thorn.
dixie. Counsellors. OF Boston. The physical condition
has been reported on by Messrs. Stone & Webster.
Electrical Engineers. and the accounts by Henry A.
Plpor. Public Accountant. boston.
These reports give Q very clear indication OF the
value of the security. and the care taken to safeguard
bondholdors' interests; and an examination Is solicit
ed. copies OF the same being on nls at each of our RE-
sPECTIvE OFFICES.
WE RE M y THR BONDS AS A
~DEsIuABLE H~EyEsTMENT. AND OYER THE
SAME FORs UBsi RIP TI0N At l0J AND IN
TERHsT. BOOKS WILL RE-
MAIN OPEN AT Our RESpEa TIVE OFFICES
UNTIL WEDNEsDAY. ). 1905.
NOTICE OF AGLOTMENTs BEING GIVEN
CATER Az Az PossIBLE,
DELIVERY WILL BE MADE ON JANUARY 10.
l60S.
THE RIGHT ~ RESERvED TO REDUCE Or
REJECT SUBSCRIPTIONS.