The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-06
NEW YORK. October lat, 1so'
The Michigan Telephone COMPANY.


PROPERTY.
The Michigan Telephone Company was organized
in 1883. under the LAWS OF the state of Michigan.
Since that time II has acquired the property and
rights OF the Telephone and Telegraph Construc-
ton Company OF Detroit, and the Michigan Bell
Telephone Company, thus becoming the sole H.
censee OF the AMERICAN BELL TELEPHONE
COMPANY for tho state OF Michigan. covering an
area OF operation OF 81 1000 square miles with a popu-
lation, last census. OF 2~,2II.00o.
The number of Exchange Subscribers a. OF April
LIST. 1897, being 1927.
ThLUE.
The Value OF the Security covered by this isauc of
bonds as shown on the books. December 3lst. 1890.
was 90, 574.41s.4l. represented by;
Stocks of other companies. accounts due,
and sundries. a4oo.ooo
Franchise llo'ooo
Real estate EE"'o"o
Construction. ..... l,SOO,ooo
with regard to the value of the Construction, the
Electrical Engineers report as follows; 1--WE have
estimated carefully the cost OF reproducing the Plant,
and believe that It cannot be replaced for an amount
that is materially less than that given above"
EARNINGS.
The Net Earnings for 1920 applicable to the pay
ment OF interest on the bonds was Sl92 900, or
moro than nve times the amount necessary to meet
the interest on the full issue authorized.
The Net Income Of the Company for nve years past
has been in no year less than the above amount.
CAPITAL STOCK AND Dividends.
The Capital Stock is o.. SOC. 900; and annual dlvi-
dends have been continuously paid since 1885 at the
rate Of 9 per cent. per annum on stock outstanding.
The American Bell Telephone and the Western
Union Telegraph Company are largo holders Of the
stock.
These Bonds take precedence of the above. both as
to principal and interest.
PURPOSES.
The purpose Of the issue is to provide funds for
extensions. which It is estimated will further In
crease the earnings; and all property acquired by
the proceeds OF sale OF these bonds will be sub.
1ect to the Mortgage.
MA ElIENT.
The Management OF the Company is controlled by
the following Board OF Directors: Robert T. Lincoln,
Hugh Mcmillan. Norman Williams. Frederick A.
Forbes. William A. Jackson. Robert C. Clowry, and
Ashley Pond.
Union interest. and another that Of the American
Bell Telephone Company.
The Company is operated under the policy OF the
American Bell Telephone Company.
SINKING FUND.
Tho Company Is required to plaza in the hands OF
the Guaranty Trust Co. OF n. Y. as Trustees. each
year, commencing July. 1909. $50. 600 (Which will
! retire the full issue OF bonds at maturity, TO be in
vested in bonds OF the Company. but only II they
can be obtained from holders at a price not exceed.
ing par and interest. The Trustee cannot call the
bonds. and II holders are unwilling to sell at this
price, the Fund must bo invested in the class Of
securities regulated by law for Michigan Savings
Banks.
EXAMINATIONS AND
Tho Legal Organization OF the Company. and its
proceedings relative to this issue OF bonds. has been
examined by Messrs. Story & Thorndike. Councillors.
Boston; the Physical Condition OF the property by
Messrs. Stone s Webster, Electrical Engineers. OF
Boston; and the accounts OF the Company by Henry
A. Piper, Public Accountant, OF Boston.
Copies OF the reports may DO seen at the ofnces OF
the undersigned.
WE RECOMMEND BONDS As =
INYEsTM ENT. AND OFFER
THEM FOR sUBsCRIPTION Nv lots To SLIT
1T 400 AND FL IN.
TERF:sT.
SUBSCRIPTION ROCKS WILL. BE OPEN
AT OUR OFFICES ON THU RS
DAY. 5TH. 1897. FROM 40 A. VI.
UNTIL I3 ~.
THE RIGHT Is RESERVED TO REDUCE OR
REJECT SUBSCRIPTIONS.
KESSLER & co.,
"a WALL TREET n. r.