Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1897-05-02
HONE TELEPHONE COMPANIES
A Specimen Wall from Stockholders
in One of Them.
Some Interesting Facts Disclosed
at Late Annu Al Meeting, Held at
Newark, n. J.-Fabulous Claims
Never Realized, and Promises
Never Fulfilled An Interesting
and Pertinent Story.

The interest awakened by an editorial
il the February number, says the Elec-
trical Engineering, relative to the So
called Chain or Home Telephone Com
panies, wrongly advertised TO be in full
operation in certain cities and to have
from Loco to 5000 subscribers, while
an investigation revealed that in some
of the cities named there was not sin
gle telephone in operation, and in only
one was there more than two hundred
telephones III service, justities us in
presenting a resume OF the actions that
led to the methods of the Home Com
panies being freely criticised at the an
nual meeting held in the city OF New
ark, New Jersey, on February l. The
Newark daily papers report that this
meeting was so well attended by anX-
iOus stockholders that many had diff
Guilty in securing admittance to the
room. A M. N. T. Barrett desired to
learn on what authority the circular
sent out some six months ago had been
made TO imply that the Newark COM
paEy had several thousand telephones
installed, when the list of actual sub
scribers just issued gave only 1O6
names. lie also desires to learn who
authorized the placing of a mortgage
for 100000 on the plant of the Newark
Telephone Company, and agreed that
in addition to the interest $4,000 should
be set aside on the first day of each
month, beginning November /, 1896, as
a sinking fund Mr.. Barrett was in
formed that the Board of Directors
had authorized both, and that while no
money had been set aside as called
for in the mortgage, I'VE will do so as
soon as We can
So great was the bitterness shown by
many stockholders that we made care
fCi Investigation, and believe the fol-
lowing to be facts concerning much that
has been done by the Newark Telephone
Company. The promoters we're George
II. and w J. Atkinson, claiming to be
backed by what was then known as the
Home Telephone Company, Of Newark,
and by liberal allotment Of stock sew
eral respectable citizens were induced
to allow the use of their names as OFF,
GERS and directors. The franchise was
obtained containing conditions that un~
less zoo stations were installed and in
actual operation within one year, 1,4O0
within two years and 200 within ttxee
years. the franchise might at any time
be abrogatcd by vote Of the Board Of
Works and that at the end of fifty years
or at the abrOgation Of the franchise,
all the property Of the company in the
city Of Newark should revert to the city.
Immediately upon the securing Of the
franchise circulars We're sent out So
Letting subscription to the stock Of the
company. Fabulous promises were
made as to dividends which the stock
holders would receive Us per cent. per
year. etc.) coupled with the assertion
that the Home Telephone Company
was already operating hourishing eX-
changes in Washington. Baltimore,
Cleveland. st. Louis and Pittsburg lover
24Co0 subscribers,) while the fact was
that in all these cities there were not
one hundred Home telephones in eX-
change service when the circular was
issued. As no large subscriptions were
forthcoming. agents were employed 10
solicit subscriptions from servant girls,
small traders and widows. In many