Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1902-10-16
TALK WILL BECOME CHEAPER
International Telephone Co. to
Charge Letter Rates.
A MESSAGE TO COST TWO CENTS
Same Price That is Paid for a
Postage Stamp.


Baltimore Sun, Oct. 18th.
special dispatch to the Sun last night
from Washington said
"Financiai circles in Washington and
elsewhere have been indulging in consider
able gossip over the 70 :mation OF the Inter
national Telephone Go. OF America, which
is Just entering the field as rival OF the
great Bell and other companies. Ihey
believe it to be only part OF the gigantic
| move to merge the telephone, electric rail-
| way, lighting and power interests OF Ine
East, involving the cities of Washington,
Baltimore, Philadelphia and Wilmington,
| concerning which the Sun published an OK
elusive story on Friday last:
''As stated in a special dispatch 10 the
Sun from Wilmington on September 26th,
the attorneys for the company on the pre-
| yious day recorded a deed of trust for
| s1OO, 100000 to secure an issue of bonds
| amounting to 100, ,000, 600, the greater portion
of which, il was stated, had been under
written in New York, Baltimore and Wash
ington. S. b. Rinehart, wealthy banker
Of Waynesboro, Pa, is president of the
company, whicn has central Offices in the
old Builders Exchange Building, on Thir-
teenth street, this city. This building, one
of the most spacious here, is being enlarged
by an addition! on the rear. Ehlem y; haI- ,-
rison OF Baltimoreis the treasurer, and back
of the concern ere some OF the biggest men
Several days ago a deed of trust for
100 COO, COO was filed at the oftoe OF the
recorder of deeds of this city. The an
nouncement was made yesterday that the
company had purchased the extensive brick
car barns of the Matrodolitan Railroad Co.,
on street, adjacent TO Rock Creek, for
500, COO. The Delaware company proposes
to establish in these buildings, which nave nave
10 acres of ground. telephone factory, with
a capacity Of 1,000 telephones day.
ut is stated, on what appears to be re-
liable authority, that the company, which Is
capitalized at what may seem an extrava-
giant figure, intends to install telephone
, services in all the large cities OF the country
, at rate of two cents a message-the price
, of a postage stamp. The old company
known as the Telephone Co. of America
!, was organized two year. 80 and lncor
porated with capital stoCl of Sb,OcO,OOO
! The two years work of the system Is sale
4 10 have proven 80 satisfactory and SO fal
= ahead Of anything anticipated that the!
: were compelled to form a new company
! the International Telephone Go. of America
= in order to increase the capitalization.
"By vote of the stockholders OF tn
Telephone Co. of America the common
y stock of 50, ,0O0, o00 has been cancelled. Th
. TREASURY stock of So, ,u00. coo is to be trans
! ferred to the International Telephone Co. Q
Z America On November lat. The entire bust
ness of the old company, with its rights
! franchises, patents and real estate has bee
= sold to the new organization. In the trans
= fer IL is stated that the stockholders will &c
y S15,0O0,OO0 of stock of the new company
y divided as follows: One-third OF y pc
y fcent preferred cumulative, or s5,O0O,OOt
is and two-thirds of common, amounting
SO, ,0O0, coo.
1.-THE international Telephone Co. {
America was organized last January for II
purpose of taking over the business OF IN
ie Telephone Co. of America and exploitin
Its telephone system to the utmost exten
of From the old company the new coneer
,r obtained the American, British, Italian
ii Spanish, Belgian, French and Austria
- patents of the Frost systein of telephon;
~ transmitters, circuit systems and switcl
U, boards, all OF which are to be manufacture
OF at the new plant in Georgetown.
III "The new company y'claims to have fral
chises requiring it to install over lO0,O
,d telephones within the next year and hal
q 1t has acquired tho property and franchis
of the Louisiana d Texas Long -Distan
m Telephone and Telegraph Co., having Q
OF changes in important towns along q
d, Southern Pacific railway for $40 mills we
mt OF New Orleans. The new company,
order to secure the necessary cash for q
N. expense of installation, has made provisi'
. of the issue of 800, 600 000 of per cent tir
" mortgage gold bonds. These are stated
u be secured by a first mortgage, or deed
cd trust upon all the business and property
en- the company the mortgage, or deed
mt trust, provides that $40, COZ face value
he the bonds shall be issued on security OF {
no properties of the company upon swo
rs certificates that these properties repl
sent cost to the company of more tin
'rs $40, 100000 and that the remaining bon
IRE can be issued from time to time upon swo
oh certificates as to the cost of plants a
he properties. In addition to tine abo'
re- mentioned security for the payment
"a principal and interest on the bonds
y; company is to deposit with the trustee
VI collateral security fully prepaid endowme
1er insurance policies equal In amount to
TIL full face value of the bonds, payable at
;he time of the maturity of the bonds.
led ITO this end the company has ma
,th arrangements to write the insurance on
"a bonds with tho Metropolitan Life Insuran
~ ~ Mutual Life Insurance and Washington L
as Insurance Cos. of New York and tine 10
ng Hancock Life Insurance Co. of BostS
he These policies are stated TO be payable
aid the case of the death of the insured,
which case the company Is to receive
loa amount OF the policy, and may purchas
RI new policy, to expire OH the same day rs
'no ~. bonds. the balance to so into the inter
oy account Of the company.
or, 1.-THE company has made contract "
ons Andrew Mayer OF New York to sell SIC, 900,
It's, of these bonds at their face value, and
the Mayer is to sell $1,000, coo a month fo
nm. period of 20 months, commencing Move
'"' ber LIST, 1902 The company figures on
staling 10000 telephones to start with,
cost of $4,0OU,UO0. Nearly a mill
dollars is to be spent in operating