The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-04-28
NEW TELEPHONE STOCK.
A Popular Sale of S15O,OOO Has Been
Decided Upon.

The New Telephone Company has decided
to interest as many patrons and local CAPT.
talists as possible in its plant. in order to
strengthen the influence of the company in
the city. 1t will place $4,000 of its stock
I'm the hands Of the Union Trust Company
for a popular sale. the trust company agree
ing to guarantee the payment of 8 per cent.
dividends on this stock for a period of five
years. The telephone company is about
ready to begin the operation of its ex-
change. with over 5000 subscribers. A. II.
Nordykc, president of the company. said
Yesterday in reference TO the popular sale
OF stock:
I'VE are only carrying out our agree
ments with the public. When the company
was formed ii was announced that the citl-
zens generally would be given an opportu-
nifty TO become stockholders and snare IN
tho profits of the company. BY careful ana
persistent effort and at the outlay or con
prise far beyond the experimental stage.
The results so far nave been beyond our
most sanguine expectations; Having pre-
pared for 5000 phones originally, we have
added ZOO to this number, and the subscrip-
ton list is yet increasing. The franchise
granted the company provided that the or
ganization be maintained as a strictly local
and actively competing company. III ms
stock were all to remain in the hands OF "a
comparatively few persons, or be placed on
sale I'm the Eastern markets, where desira-
BILE Investments of this kind are especially
sought, there might be ground for the sus-
piciOn that we were not keeping faith with
the people of Indianapolis
Mr.. Nordyke was asked how the company
could prevent the stock thus placed on sale
from falling into the hands of some rival
company.
The limitation has been placed upon the
Union Trust Company in the sale of stock
that the same shall be sold only in sums
from 500 10 Sl,OOl. no one person being al
lowed to purchase over 1000 worth OF the
stock, and also that none of this stock be
sold TO any rival corporation or to any in
terests adverse 10 the plans and purposes
OF this company. which is TO be an actively
competing company, as provided by the
franchise.
sphe stockholders have also placed the
remaining So, 600 OF stock in trust with the
Union Trust Company for nve years, with
the understanding that IL Is not TO be sold
TO any rival corporation or adverse inter-
that the people can rest assured or our
good faith"
you anticipate a considerable demand
for the stock thus placed on sale?"
We'll inasmuch as the people have come
10 know pretty well what the New Tele-
phone Company Is doing, and what its pros
poets for the future are, and inasmuch as
the Union Trust company guarantees that
il will pay 8 per cent. dividend each year
for five years, We certainly do. The people
generally understand what q guaranty by
the Union Trust Company means. n guar
anteed 8 per cent. dividend. without taxes,
ought to be regarded as a desirable invest
ment. Such investments are not always
readily obtainable. Furthermore, the stock
may be paid for in instaliments. which Will
make IL quite easy for purchasers TO make
m on it."