The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-08-22
OFFER MOUNTAIN
STATES SHARES
Merged Company Is Prepared
to Place Portion Of Stock on
the Market.
YIELDS YEARLY DIVIDEND
OF SEVEN PER CENT
Combination Has Made Possible
Improvement of Great Tele-
phone System.

The first offering of stock in the Noun
tain States Telephone and Telegraph
company, the company which recently
purchased the. Rocky Mountain Bell. is
made by Boettcher, Porter & Co. of Den
yer. The initial Offering Is at sl0i the
share. The stock is now paying quar-
terly dividends at the rate OF per cent
per year, January, April, July and Oc.
toDer l5- The stock ut the price or SlOl
per share, par value, yields G.93 per cent
on the investmeut. according to the an
nouncement OF the brokers. with no
charges ahead of 1t for bond interest or
dividends on preferred stock.
In q letter TO the firm from +. 3. Field,
president OF the Mountain States COM
pany. Mr.. Field says that only one stock
will be Issued. common TO all there VIII
be no bonds or preferred stock and $50
long as I am able, as In the past, 10
sell treasury stock for all extensions. no
bonded Indebtedness will be considered
Benefits of Merger.
President Field says that serious OBJ
stacie has been overcome in the merger.
because there will be Included several
In the past On this point President
Field says 'In enlarging the scope OF
our operations. we have eliminated what
may be considered the one weak point
In our investment as II formerly stood !:
The fact that we had but one large city
in our terrtory-Denver-w about
one third OF our exchange investment was
centercd. This condition Is most salts
factorily removed in THE Mountain States
Telephone and Telegraph company, with
Its wide extent and important cities and
towns"
The Mountain States owns and con-
trolls telephone properties in six states
and crosses the borders OF two others,
operating In Colorado. Utah. Idaho. Mon
tana. Wyoming and New Mexico. II oc-
cupies territory from Canada to Mexico.
agsregatins approximately $50, 600 square
miles. The company has 6l, 100 miles OF
toll wire and 337 900 miles of exchange
serves n population Of 2,3i7, 900. with 307
exchanges, To which are connected lB2,-
060 stations
Reorganization Plan,
Giving details of the plan OF the merger,
Boettcher. Porter & Co. soy:
This reorganization has been effected
by the acquisition OF the stock OF each
constituent company. with the transfer
to the new company of all the physical
and other properties. franchises, good
will. etc, of the three former companies,
The Mountain States company. incor-
porated in 1911 in Colorado. has an au
thorIzed capital OF s50.000,000 in shares
of par of 800 each. full paid and non
asse ssable: issued and outstanding. s1S.-
s37. 400 The company has but one class
OF stock. and no bonded or floating debt
so that it is unencumhered by fixed
charges. The merger has been achieved
siderably less than the combined capital
liabilities Of the three companies before
consolidation, which amounted to $50,
2S5, PSI, as follows;
The Colorado Telephone COM
pany ....,................ $40. 600. .OOC
The Tri-State Telephone and
Telegraph company ..,.. 1000, ,O0C
The Rocky Mountain Bell Tele-
phone company ...,....,..... 9,2s5, 25I
1.-THE reduction is s1,3i1,S5T, or 6.6 per
cent, which insures safety and additional
strength. The Mountain States company
has surplus, undivided profits. and de-
probation reserve Of 81 20S PSI =
The circular puts the Rocky Mountain
Bell In at 135 exchanges, 57123 exchange
stations. 605S connected stations, 107 .6SI
miles Of exchange wire and 32.S43 miles
of toll wire.
A condensed approximate balance sheet
Of the Mountain States company shows
$24.393.027 assets, as against not quite
$4,000, 900 Of stock.