The daily Republican., 1902-10-13
TELEPHONE TALK
WILL BE CHEAP.
New International Company
to Change The Letter
Rates.
RIVAL OF BELL LINES.
Claim is Made That 100000
Instruments Must be In
stalled in Eighteen
Months.

tIle IDTllluulOu Vi ull6 lHucl llullOllul
Telephone Company of America,
which is just entering the field as
rival of the great Bell and other
companies. They believe it to be
only part of the gigantic move to
merge the telephone, electric rail
way, lighting and power interests
of the East, involving the cities of
Washington, Baltimore, Philadel-
phia and Wilmington.
As stated in the local papers on
September 26, Josiah Marvil and
other attorneys for the company on
the previous day recorded deed of
trust for $100 OO0,0 900 to secure an
issue of bonds amounting to $780,
100000 the greater portion OF
which, it was stated, had been un-
derwritten in New York, Baltimore
and Washington. S. B. Rinehart,
a wealthy banker of Waynesboro,
Pa, is president of the company,
which has central offices in the old
Builders Exchange Building, on
Thirteenth street, Wilmington.
Ehlam B. Harrison, of Baltimore, is
the treasurer, and back of the con-
cern are some of the bigge st men in
the country.
CAR BARNS FOR FACTORY
Several days ago deed Of trust
for 800, 100000 was filed at the
office of the Recorder Of Deeds OF
Washington. The announcement
was made yesterday that the COM
pany had purchased the extensive
brick car barns Of the Metropolitan
Railroad Company, on P street, ad-
iacent to Rock creek, for 5000, 900.
The Delaware company purposes to
establish in these buildings, which
have 10 acres Of ground, a telephone
factory with capacity Of 2, 900 tele'
phones day.
1t is stated, on what appears to be
reliable authority, that the company
which is capitalized at what may
seem an extravagant figure, intends
to install telephone services in all
the large cities Of the country at a
rate Of two cents message--the
price Of a postage stamp. The cid
company, known as the. Telephone
Compa nv Of america, was org anilsd
two years ago, incorporated with
capital stock OF $5, 100000. The two
years work OF the system is said to
have proven so satisfactory and so
far ahead Of anything anticipated
that they were compelled TO fc rm a
new company. the 1ntcrnato n al
Telephone Company of America. in
order to increase the capitalization.
By vote of the stockholders OF
the Telephone Company of Anne RIGA
the common stock Of ~, 900, 900 has
been Cancelled. The treasury stock
of SO, 900, 600 is to be transferred to
the international Telephone Com
pany of America on November /.
The entirc business of the old COM
pany, with its rights, franchises,
patents and real estate, has been
sold to the new organization. In the
transfer it is stated that the stock
holders will get $15, 900, 600 Of stock
of tho new company, divided as
follows: One-third of per. cent
preferred cumulative, or IS. 600, 600
and twO-thirds of common, amount
ing to $4,000, 900.
The International Telephone
Company Of America was organized
last January for the purpose of
taking over the business Of the
Telephone Company of America
and exploiting its telephone system
to the utm' st extent. From the old
company the new concern obtained
the American, British, italian,
Spanish, Belgian, French and Aus
tran patents of the Frost system of
telephony, transmitters, circuit sys-
tens and switchboarls, all of which
are to be manufactured at the new
plant in Georgetown.
The new company claims to
have franchises requiring it to install
over 100. 600 telephones within the
next year and half. 1T has acquir-
ed the property and franchises of
the Louisiana and Texas Long.
Distance Telephone and Telegraph
Company, having exchanges in i'm
portant towns along the Southern
Pacific railway for 24O miles west Of
New Orleans. The new company,
in order to secure the necessary cash
for the expense of installation. has
made provision Of the issue of $780,
100000 Of 5 per cent. first mortgage
gold bonds. These are stated to be
secured by first mortgage, or deed
Of trust, upon all the business aud
OF the company. The mort.
gage. or deed OF tru st, provides that
SlO, 900, 900 face value of the bonds
shall be issued OH security Of the
properties Of the company upon
sworn certificates that these proper.
lies representa- a cost to the company
,f more than $4,000 900 and that
.he remaining bonds can be issued
rom time to time upon sworn GER
ifcates as to the cost OF plants aud
In addition to the above
mentioned security for the pay
nent Of principal and interest on
he bonds the company Is to deposit
with the trustee as collateral securi-
y fully prepaid endowment insnr.
!nce policies equal in amount to the
ull face value Of the bonds. payable
It the time Of the maturity OF the
,onds.
THE FINANCIAL PLAN.
To this end til Q company has made
arrangements to write the insurance
n the bonds with the Metropolitan