Elmore County Republican. [volume] (Mountain Home, Idaho) 1910-1915, 1911-07-29
Bell Telephone Sole.

ltul lOr. SOluc tIIut Will FtlcT
ence to the acquiring Of The
Rocky Mountain Bell Telephone
Company properties by The Col
orado Telephone Company are
confirmed by the action of the
Board Of Directors of the form
er company at it's meeting held
recently.
A few days ago The Colorado
Company merged with it's asso-
ciate company to the south-The
Tri-State Telephone and Tele-
graph Company, which has here
tofore operated in Southern New
Mexico and Eastern Arizona.
The merged companies were re-
christened The Mountain States
Telephone and Telegraph Com
pany and the capital stock in
creased to $50,O00,000; and the
first act of the new corporation
is the acquiring of The Rocky
Mountain Bell properties by pur-
chase.
The official announcement of
the reasons for the combination,
as furnished at the headquarters
of The Mountain States Company
at Denver, is as follows:
"To those who are familiar
with the financial and operating
methods of The American Tele-
phone and Telegraph Company,
the combining of the properties
of The Colorado Telephone Com
pany, The Rocky Mountain Bell
Telephone Company and The Tri-
State Telephone and Telegraph
Company will be no surprise.
All licensee Bell Telephone
Companies are free from stock
jobbing methods and all addi-
tons to plant are made with
funds realized from the sale Of
their securities, and not from
their earnings. More than this,
securities are not sold in excess
of the actual amount invested in
the business, so no element Of
water is permitted to enter into
such financing. Recently The
Colorado Telephone Company
reached the limit Of it's capital
ization so that a re-capitalization
became necessary to it. The Tri-
State Telephone and Telegraph
Company was similarly situated,
and The Rocky Mountain Bell
Telephone Company has for sew
eral years felt the need of an en-
tire reorganization. What, then,
more natural than that the re-
organization take the form of a
merger of the properties to be
capitalized on a conservative
basis and at figures which will
insure reasonable returns to in
vestors and equitable rates to
the public.
The new corporation is capital
lied at $50,000,000, but less than
half this amount will be issued
against the properties and an
actual excess of physical proper
ty will be maintained over the a.
mount of stock issued. There
will be no preferred stock and no
bonds, and no attempt will be
made to pay dividends in excess
of what the public might consid-
er reasonable and honest. This
financial policy is merely a con
tmuation of that pursued by
President Field of The Colorado
Telephone Company for so many
years. The latter company has
long been known for it's conser-
vative financing and broad poll.
cy of making extensions, not only
as demanded by the growth of
the country but in anticipation
and advance of such growth.
President Field will continue
at the head of The Mountain
States Telephone and Telegraph
Company, which will be further
differed as follows:
President b. B. Field
Vice President and
Treasurer, Edw. B. Field, Jr
Secretary, j. E. Macdonald
General Auditor, Roderick Reid
General Manager, E. M. Burgess
Some knowledge of The Rocky
Mountain Bell Company may
prove timely. 1t has generally
been conceded to have been lack
ing in financial strength for a
number of years, and therefore
was unable to provide for exten
sions by the sale of Its treasury
| the intrusion of headings or tunnels