The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-10-04
NEW YORK. ostober LIST. 1897.
The Michigan Telephone Company.


The Michigan Telephone Company was organized
In 1883. under the Laws OF tho State OF Michigan.
Since that time 1t has acquired the property and
rights Of the Telephone aud Telegraph Construc.
tlon Company OF Detroit, aud the Michigan Bell
Telephone Company. thus becoming the sole II.
censce Of the AMERICAN BELL. TELEPHONE
COMPANY for the State OF Michigan. covering an
area OF operation of 1000 square miles with a popu.
lation, last census, OF >. 2il. 900.
The number OF Exchange Subscribers as OF April
LIST. 1897, being 1897.
TIIUE.
The Value OF the Security covered by thI, issue OF
bonds as shown on the books. December 9lst, 1890.
was 62,57I,Ils,4l, represented by:
Stocks OF other companies, accounts due,
IL sun'iries' $4,000
10000
100000
construction. ......., l.sOO, 600
With regard to the value OF the Construction. the
Electrical Engineers report rs follows: I'VE have
estimated carefully the cost OF reproducing the Plant,
and believe that II cannot be replaced for an amount
that is materially less than that given above"
EARNINGS.
The Net Earnings for 1896 applicable TO the pay.
ment OF interest on the bonds was Sl92, oOG. or
more than fve 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.
-" 80 -1ND DIt IDENDS.
The Capital Stock is 81. 300. 900; and annual divf-
dends have been continuously paid since 1855 at thu
rate OF g per cent. per annum on stock outstanding.
The American Bell Telephone and the Western
uu!on 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 4, to provide funds for
aYfansinua which a. L. n.,t,..4 -, <
crease the earnings; anu all property acquired by
the proceeds Of sale OF these bonds will be ,ub.
tect to the Mortgage.
MINAG EVENT.
The Management OF tina: '.mpany IS controlled nv
the following Board Of - tors: Robert T. Lincoln.
Hugh Mcmillan, Norman Williams, Frederick
Forbes. William A. Jackson, Robert G.. Clowry, and
Ashley Pond.
one OF the above gentlemen represents the Western
Union interest. and another that OF the American
Bell Telephone Company.
The Company IS operated under the policy of thu
American Bell Telephone Company.
SINkISG FUND.
The Company is required TO place in the hands Of
'he Guaranty Trust co. OF n. Y. a. Trustees. each
year. commencing July, 1909. $780, 900 (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 cannon call Tho
bonds, and II holders are unwilling to soil a, ,,,.
price, the Fund must be Invested in the class OF
securities regulated by law for Michigan SAVINGS
Banks.
H<T ATTOSS AND REPORTS.
The legal Organization OF the Company. and Its
proceed 'ngs relative to this issue OF bonds. has been
examined by Messrs. Story & Thorndike. councillors,
Bostou; the Physical Condition OF the property by
Messrs. Stone a Webster. Electrical Engineers. OF
Boston; and the accounts OF the company by Henry
A. Piper, Public Accountant. OF Boston.
Copies OF the reports may be seen at the onices Of
the undersigned.
WE RECOMMEND THE ABOVE BONDS As a
INVESTMENT. AND OFFER
THEM FOR SUBSCRIPTION ~ LOIS TO SUIT
PURCMAsRRs AT 100 AND IN.
TEREsI.
SUBSCRIPTION BOOKS WILL BE OPEN
AT ORR OFFICES ON THURS.
DAY. OCTOBER 5Tn, IsS FROM Ic A. M.
UNTIL ne NJ.
Ii RIGHT Is TO REDUCE OR
REJ q SUBSCRIPTIONS.