Arizona republican., 1909-05-30
Salt River Valley ReayWeey Building and Improvement Summary
INVESTMENT PHASES
 OF THE HOME COMPANY
pr. J. w. Foss Discusses the Financial
 Side of the New Telephone Company.

Almost every one in the city is in terested in one way or another in the new telephone company. A large part of the public is looking to it for bet ter service and a smaller part is inter- ested in it's as a means for profitable investment.
 The company has obtained it's fran chise. refused the offers of consOlida- tion made by the old company, and is now pushing the work preliminary to the construction of the lines as rapidly as possible In order to finance the company. and at the same time make it a peoples project, shares are now on the market at a par value of $10 each. The company is capitalized at S10O.000.
 Dr. John W. Foss, the president of the company, was seen yesterday and asked if he expected any serious diff ficulty in raising the funds necessary for the construction of the system.
 Not the slightest he said; mot the slightest. There is no broader field and none which offers greater advan- tage to the investor than the telephone business. To the stockholder it offers more favorable inducements than any of the public service or other corporo- ation stock. Its earning power is sta ble. the income can be depended upon, and the conditions for a rise in the price of the stock more promising than in other forms of investment.
 T suppose that the average investor who wants to be absolutely sure of his l,.a no bond offered him which assures a safer form of investment than that of a well llmanaged telephone company whose properties are well built and in good condition. the income from which is sufficient to provide for the interest, and other expenses, leaving a surplus sufficiently in excess to provide for maintenance and depreciation. That is the sort of system we shall put in Phoenix.
 Tn the early history of the tele- phone. there was a time when enOr- nous and unnatural profits were ob- tained from telephone systems. When the Bell company was first in opera ton, their profits were almost beyond computation. It was a period of stock IObDlllS- anu sAlll Slstu lO Setl llidl Pcl iod is past AIt is now a legitimate business proposition. founded on the assets. liabilities and earning capaci- ty of the company. It will be found that nearly all of the independent eX- changes of the country are under the control and management of the home people. The securities of these home companies have always been an at tractive investment, their value de- pending largely on the population of the city. the connections, the person. nel of the men behind it and the man. agement. Statistics show that less less than two per cent of all the many independent companies of the country have defaulted on the interest or prin- cipal of their bonds. which is certain ly a creditable showing. as compared with any other business or corpora tion now in existence.
 'In practically every other line of business, the merchant and manufac- turer is compelled to change the style. quality, and price of his goods from year to year to meet the demands of the public, the competition of his