New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-21
MAKES BIG STOCK ISSUE
Tel. and Tel. to Sell SoO'ooo'ooo
for Outside Extensions.
SHARP DECLINE FOLLOWS
Western Union Affected-farls
Bourse Trades in Stock for
the First Time.

The directors Of the American leiepn"he
and Telegraph Company autno''AeN
issue yesterday Of G0."o.0W ne" 0"pi''
stock. increasing the amount outstahoiht
from $3.50 $40. 500 10 S3ls. S4o.5oo Inc .o, 'l
authorized capital stock Is f'V''''
Stockholders will be allowed 10 Su"S'i'"
for the new stock al par 70 the extent Vi
one share for each five shares now he'u'
Payment is 10 be made in four equal IN
stalments at three-month Intervals tne
first instalment being payable on Novem-
Der /. 1911. and the last on August l. l'l-'
An official statement explaining the oOJe''
Of the new issue SAYS IN part
The proceeds Of this issue Of capital
stock will be mainly used 70 pr0Vlue ~
outside of me state OF New York with
funds for current and ordinary consrlc
ton and extension OF plant anu ~. 80,
represented In the treasury OF the AIhet t
can Telephone and Telegraph company oy
tho share capital or the capitaI ad AM
notes of such companies. part VIII pe
used for extensions 20 plant uous III
lance servicel Of the American Itiepnonr
and Telegraph COMPANY outside the State
OF New York. and part 20 maintain .ne
cash balances now being drawn upon LOT
al the above purposes
The charges OF this proposed issue on
preciahle-as a matter of fact the usual
yearly dividend on the whole amount
could BE- met out Of this years revenue
and still leave "a surplus The business OF
the current six months or this year VIII
show a continuation OF increases IN gross
and net. although the toll ana long dis
lance business. as usual. shows the effect
Of business depression.
A sharp decline IN the price Of Ameri-
can Telephone and Telegraph stock on
the New York Stock Exchange followed
the announcement OF the new 100000
issue. the selling being based upon the
possibility that the dividend rate. now 3
per cent wear might be- lowered
The price FELL from 1914, 20 1875 within
a few minutes. and closed AZ l47--. its low
Of the day. which represented a net loss
n 97s points Western Union which IS
controlled by American Telephone and
Telegraph closed with net loss Of 1
tious in rights" on the new stock 70 the
amount OF 800 shares al from 6i2 20 S.,
the final sale being ~ 65s.
The last previous sale Of stock by the
company was I'm June. 1907 when the stock
holders sur scrihed for 81. 925 20o AZ par. A
banking syndicate bought SloooOoo'o OF the
or mpanys per cent convertible bonds in
1906 and an additional s50o0.oco in 1905.
Gable advices from Paris brought the
news that American Telephone and Tele-
graph stock was traded in on the Paris
Bcurse. in the parquet department. for the
FIRST time YESTERDAY The opening price
was - francs about s150 share and
the closing quotation was 793 francs Ne
eouations for the admission OF the stock
20 the parQuet had been in progress since
last November. The issue has teen listed
for several years on the London Stock
Exchange
The regular quarterly dividend II . per
cent was declared Yesterday hy the Amer
lean Telephone AM Telegraph directors
payable on July -. The View England
Telephone and Telegraph Company sub
sidiary declared q quarterly dividend OF
"a. per cent. comparing with IL per cent
three months previously