The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1908-05-08

construction are not taken care of
from the earnings: that the lndepen-
and financed by a bunch Of stock
jobbers" and "Thieves who are
flooding the country with worthless
securities. The influence of such liter.
AZURE can only be counteracted by ac-
tivity and publicity on the part OF the
local company:
1t is true that the Independents
have made many mistakes In the past;
have had many costly lessons. No
doubt there are some Stock jobbers'
and "Thieves"g4:n the Independent Tel
ephone business. There are many of
them among our competitors. but 1t
does not imply that all men engaged
in the telephone business. either Bell
; or Independent. are thieves A few
I Independent Telephone plants have
T. been financed on the wrong basis, Is
t suing water, bonus, or nrorrhter'e
: stock, and building the property out
OF the proceeds of bonds which aret
: some times sold at prices ranging.l
t form seventy-fve to. eighty-Iive cents.
. The value of the property represents
q but small percentage o. the capitals
!. cation. In other wards. tlie seventy
e five or eighty rents OF honest money
n invested In the IN nperty Is expected
i to earn dividends on from two TO
three dollars OF wutered stock. To
= meet this condition the initial rate has
It been found to be Inadequate. and a
5. raise follows. Tie business sapre., of
l. its re scnue to pa- dividends On bro:
IL moter's stock, leaving maintenance
S. and depreciation unprovided for.
IF Thus, the circular letter issued by our
Is competition is true SO far as it applies
Is to this class OF independent Tee,
S. phone securities. 1t applies also to
,r many subsidiary Bell institutions
IL which are today flooding the money
Of centres OF the United States with Sc
$. curlties the proceeds from which neT
II. err reach the property but are ex
IS hausted In warfare against competi
ie ton. 1t does not apply to the laie
an pendent Telephone operator who hi
e. financed his property by the sale o
e. high grade securities mt par. nn'
re whose property represents homes
OF money invested in an honest, legiti
h. mate proposition. While the circula
he letter referred to charges the indie
i'd pendent Telephone business as Who'll
er: ell securities. the same statemen
re- could well be said Of the Bell Telt
= phone business us whole. i belly
n they are beginning TO see the failur
r of this kind OF warfare. Securities
\ an honestly financed and well maj
Il aged Telephone Company, whethe
II independent or Bell, are good, and a
assault upon a competitor of TIL
character can but discrelit the tell
phone business rs whole In whic
both sides are engaged. Water 9
bonus stock should be, eliminate
II from the business entirely. Water !
II all right in It's place. but Its place
u not in stocks or bonds of IndependeI
II Telephone securities. Publicity wi
x do more. to relieve the business {
n wntered stock than any other metho
h and when the telephone business
u conducted with the same degree
n caution. with the same honesty q
E applied to other financial institution
n telephone securities will stand hight
II in the market than those OF any oths
Is public service corporation.
Since our last convention many ma
t. tiers or national Importance have tran
b PRED. the Rochester. New York, sit
alton is clearing up. and the plant {
u Rochester and Syracuse remain in tn
Il ranks OF the Independents, and ii
H litigation growing out Of the U.
H Independent Telephone Co. so far
II carried on was decidedly favorable
j Independent interests and ha
strengthened the general situation.
In 1896 the control Of the Kellog
II Switchboard G Supply CO.. OF chicag
III passed into the hands OF the Bell Il
/ Il terests. Suits were filed by Milo 4
kellogg. Kemsters B. Miller and sothe,
which have been pending sin the war
GUS courts of: the state Of Illinois wit
~ morss Or leas I'M ertainty sas "; the on