Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-21

|
1909 ..................... 1O.572.0O0
FFEFFFE4FF++FF FF+FF9FE+FFFEF
Never was a more striking story of
control of the telephone field written
than that contained in letter sent
to New York broker last week by
Theodore N. Vail. chairman of the
board of directors of the New York
Telephone Company. He boasts of the
company's domination of the territory
and of the methods that have been
exposed by the STARS fight for an
investigation IN this State. In discuss
ing the issuance of s10,0o0oO0 and 3,oOo,-
900 pounds sterling as part of gen.
eral issue of $1o,000,000 bonds of the
company, Mr.. Vail says:
Approximately $10,o00,000 of the pres
ent issue of bonds will be spent in con-
struction In 1910, and the balance ;.
may be temporarily invested in
short notes of other companies. guar
anteed by the parent company" In
other words, more companies are to be
wrecked in the continuance of a cam
| paign of business piracy.
| He shows that the surplus-let it be
| understood, surplus-earnings OF the
New York Telephone Company for 1909
were $40, 572, 900. How much of that
came from the pockets of Newark VIC
Tins of the octopus? The investigation
which the STAR proposes to bring
about will show that.
The public utilities bill before the
Governor will be effective July il it
becomes law, and the people will at
once apply to the public utilities COM
mission for an investigation OF the
rates and methods of the New York
-Telaphone Company. Should the Gov
ernor veto the bill, as some fear, 1t
will be because of constitutional weak
nesses in it. and 1t is believed the Leg
islature will at once cure them and en-
| act a new measure.
The letter from Mr.. Vail is worth re-
producing, contrasting so strangely
with the poverty cry of Union N.
Bethel. president of the company,
when he pleaded with the Legislature
to let him and his dummy combinations
alone. Here it is:
Not a Tale of Woe.
"The New York Telephone Company
is consolidation of all the Bell tele-
phone companies operating in the State
of New York, under State and munich
pal franchises namely, New York Tele-
phone Company, the New York and
New Jersey Telephone Company, Gen.
trail New York Telephone and Telegraph
Company and the Bell Telephone Com
pany Of Buffalo.
| "It is the only telephone company
operating in the city of New York, and
is the only company operating a COM
prehensive telephone system through
out the State.
"The company is controlled by the
American Telephone and Telegraph
Company through the ownership OF the
whole Of its share capital.
"The share capital of the company
outstanding Is sS5,672, 800.
1.-THE 100000 pounds and s10,00O,o0o
bonds which you are now issuing form
part of an issue of first and gen.
eral mortgage bonds limited to $4,000,
COO gold or it's equivalent in sterling OF
francs, of which there are now out
standing $25,000,000. These bonds bear
Az per cent. interest payable May
and November 1, and the principal is
payable November l, 1889. The mort
gage provides that a sinking fund of
per cent. of the bonds issued will be ap-
piled to their purchase and cancella-
ton in any year in which bonds can
be purchased at or under par.
Subject to $3,S14,000 of outstanding
mortgage Indebtedness. which must be
repaid and Cancelled at maturity, the
mortgage securing the above bonds is
first charge on the entire assets of the
j ir,, 1,a nct In h Ia
telephone property in the United States
and including real estate to the value
of 5000, 900, together with underground
conduits in the cities of New York,
Jersey City, Newark, Syracuse. Roches-
ter. Albany, Buffalo and elsewhere. In
fact. in all of the principal cities. and
in most of the larger towns, the ex-
change property is underground con-
| struction. connected with buildings
owned by the company and constructed
specially for the purpose.
"The assets and liabilities of the COM
pany February 2S, 1910, were approxi-
mately as follows:
Real estate and construction. $10s, ,SSi 900
Furniture and tools. ..,. 600, 900
Supplies and shops ...-...... 3,000,0OO
| pills and accounts receivable 6,446, 500
cash ............. 1854, 400
stocks and bonds ............ 22,553, 500
| Sinking funds ................ $4,000
Prepaid expenses ............ 100000
$144, LAG. 400
Liabilities
can,tal stock .............. $S5, ,672, 800
Surplus and reserves .... 22.5S1, 600
Bonded debt .................. 2S,439, 0OO