Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1904-06-08


Interest and Taxes. ,993 $50
Telephone Traffic. Observation-Disclosures. 1898, 424
Total Expenses .............$ $50, 967
Net Revenue. SO. 564 ,665
Dividends Paid Observation-Disclosures. 5,6l9, $50
Balance 1886, 5l4
from the subsidiary companies reflects the ire
mendOus growth in business as indicated by
the table showing instrument output. The in
crease, amounting to 81, 1879 or over $50 per
cent for four years, was not due to higher
dividends rates, but to the increase in the
stock OF the subsidiary companies. The latter
issue new stock to stockholders for construc-
ton purposes. and the parent company takes
its pro rata portion in order to retain control.
1t will be noted that the dividends received
from the subsidiary companies each year have
been only little less than the dividends Of the
parent company.
The rental Of instruments is derived from
Icensee companies, including all the subsidiary
companies. By means OF this income, the
parent company receives a greater benefit
from the earnings OF the subsidiary companies
than the minority stockholders. The divi-
dends and the rental OF instruments more than
provide for the dividend requirements of the
parent company, leaving the net earnings OF
the long distance lines available for reserve
funds.
feature OF the table is the gratifying in
crease in long distance traffic, the increase in
four years being $2s19, 79e, or 80 per cent.
The increase in gross earnings, including all
items Of income, was 50 SIS, 251 or us per cent,
for the four years. The increase In net earn
ings was Sc, 294, 157, or 147 per cent This is an
exhibit OF progress which can hardly be
equaled in any other branch OF industry.
Summing up the results of our analysis we
arrive at the following conclusions:
Q) The growth of the Bell Telephone sys-
TEN has been very rapid and competition has
on the whole been beneficial.
(2) The growth Of the system is rejected in
the earnings OF the system, which shows a
substantial surplus over the dividends paid
e, The undivided earnings Of the subsidiary
companies are an additional reserve for the
parent company's dividends.
az In good financial years rights may be
expected 10 additipn to the dividends paid
(5) The financial condition OF the company
is very strong, showing that it is well able to
fight its competitors.
The question OF competition appears to be
the only serious problem before the Bell man.
agement. So far competition has served to
| stimulate economies and better SERVICE with
| the result that the telephone companies are
prosperng as never before.
The above extracts from the circular
mentioned shows the methods used by
the great Bell monopoly, told in the
neat phrasing of the bond broker.
The method used in extending the
lines of the Minnesota Central we're
strikingly similar to that described
above-''stock was sold for extensions
but a controlling interest was always
retained by the parent company
There ia nothing in the circular how.
ever that goes to show that the parent
Bell company ever offered to buy
back shares from stockholders at from
IS to IS per cent discount of what they
had received for them.
Tallman's company has 80 far hai
its own way thruout this territory, bu
competition was inevitable sooner o.
later. Independent lines have beer
springing up thruout the country will
amazing rapidity. Had not the Trl
state people made arrangements Il
build up into this territory, we be
lieve there would have been an ut
tempt to federate number of the in
dependent local lines and build q lin,
to the cities in the near future. Blu
up to this time Tallman has had n,
trouble to control the situation, be
cause the small independent and co
} operative lines have been 1T his mere!
for connections, and the independents
have lacked cohesiveness and unity O
; purpose! But why should itio1
be such q bugsboo, when the Bel
people find that they have mad,
their greatest progress since com
petition began, as stated in the cir
> cular? II competition will tend t,
popularize and develop the use of th
telephone, Why try to stifle Il? Tall
man was free to offer us advice her,
! u ours to him: Withdraw your %