The Indianapolis journal., 1904-03-05
WILLLAUNCH BIG COMPANY
INDIANAPOLIS TELEPHONE COMPANY
TO LEASE NEW PHONE COMPANY.
New Company VIII Have 81 ZOO. 900 or
SI,5OO,OOO Capital Stock-Wiu he
incorporated Next Week.

The Indianapolis Telephone Company. which
will lease and operate the property of the New
Telephone Company. will be Incorporated nex
week. The lease will be for about twenty years
the length Of the franchise Of the New Tele-
phone Company.
The indianapolis Telephone Company will be
capitalized for 81 2OOO01 ST. 900 OOO-SiO0.0)0 OF
100000 per cent. common stock and the remain
der per cent. preferred stock.
The general plan by which the Indianapolis
company will lease and operate the property OF
the New Telephone Company will be similar tC
the plan under which the Indianapolis Traction
and Terminal ard the Indiana Union Traction
companies organized.
The dividends OF per cent. upon the S4OOOos
common stock OF the New Telephone Company
tS24.eOO annually and the per cent. interest
upon the $4,000 bonds of the New Telephone
Company $4,000 annually will be guaranteed
by the Indianapolis Telephone Company the en-
tire time of its lease.
The plans for the organization of the Indian
apolIs Telephone Company and for the lease OF
the property of the New Telephone Company to
it will be formally launcheu next Tuesday al
the annual meeting of the stockholders of the
New Telephone Company.
The new company probably will be incorpo-
rated the day following, or at the latest, some
time next week, according to present plans. :.
l.. SneeIln, PRESIDENT Oh the New IelepnOne
Company Louis Hollweg. wee president and
H. =. sale, secretary and treasurer, VIII hold
similar offices in the Indianapolis Telephone
Company.
Holders OF common stock of the New Tele-
phone company Uhe company has never issued
amy preferred stocs), Will be permitted To sub
scribe Tor common stock in the Indianapolis
Telephone Company TO the extent of their hold
inss AZ so per snare. The par value OF the
Indianapolis Telephone common stock will be
500 Thus, at %, holders of New Telephone stock
VIII get the common stock in the new company
on d per cent. basis. With the common stock
in tine Indianapolis Telephone Company holders
OF stock IN the New Telephone Company Will re-
ceive a bonus OF Indianapolis Telephone pre-
ferred stock TO the extent of % per cent. of
BY his plan all of the common stock of the
indian.-72olis 20 Company VIII go to the present
Is S4JJOcV; also SlOO'OVo or LOU shares Oh the
II the capitalization of the company is s1,2OO.
000 this viii 500 00O of the preferred for the
general investing public. 1t has not been de-
clded definitely yet President Sheerin said yes
terday, whether the company will issue
$4,000 of common and ssOo,ooV OF preferred ref
ferred. This matter will be settled likely, at the
meeting OF the stockholders of the New Tele-
phone Company next Tuesday.
1t is the present plan, MI Sheerin says; TO is
sue at once only 10000 OF the preferred stock
OF stock in the New Telephone Company. II ii
IS decided TO make the capitalization sl.5Oo, 600,
Sl00. 900 common stock may be issued at once TO
be subscribed for by the general public. Divi-
dends upon the preferred will be paid semi-an-
nuay, IL is thought The manner of paying the
dividends upon the common has not been de-
cided upon yet.
The 500 900 of preferred stock. and the $780, 900
of common df the common issue is SJOO.O00, in
stead of sfco.Ooo will be used for the extensive
improvements the company will begin as soon
the weather will permit. Ii is the present in
tention 10 issue second 100000 of the preferred
when the extensions and improvements well
uT.der way near completion. The remainder OF
the stock will be held in the treasury to be is
sued from time time when the company needs
additional capital
The indianapolis Telephone Company will
make extensions this spring which will enable
IL to put into operation an additional 1900
phones The New Telephone Company has on its
books now 1000 more subscribers than II can ac-
commodate with its present equipment. The
company has in operation In the city more
than 1900 telephones, and in Marion county. out
side the city limits. more than 1000 phones.
The New Telephone Company organized
and incorporated Jan. %, 1898 Its franchise
is for twenty-five years, and renewable for
twenty-five years longer.