The Blackfoot optimist. [volume] (Blackfoot, Idaho) 1907-1918, 1911-07-27
MOUNTAIN STATES COMPANY
TAKES OVER BELL SYSTEM.

TAKES OVER BELL SYSTEM.
Consolidation of The Colorado Teie7
phone Company, The Tri-State TelS
ephone and Telegraph Company
and Rocky Mountain Bell TeIe-
phone Company, Placing All UNDER
One Management.
Rumors which have been prevalent
for some time with reference to the
acquiring nf The Rocky Mountain
Bell Telephone Company properties
by The Colorado Telephone Company
arc confirmed by the action of the
Bo.rd of Directors of the former com
pa,ny at it's meeting held recently.
A few days ago The Colorado Com
pany merged with its associate com
pany to the south-The Tri-State Tel
sphoae and Telegraph Company.
which. has heretofore operated in
lSbutherh New Mexico amdl Eastern
Arizona. The merged companies were
re-christemed The Mountain States
Telephone and Telegraph Company
and the capital stock increased to
$50 ,0OO, 900; and the first act nf the
new corporation is the acquiring on
The Rocky Mountain Bell properties
by purchase.
The official announcement OF the
reasons for the combination, as fur-
nished at the headquarters OF me
Mountain States Company at Denver,
is as follows:
ITO those who are familiar with
the financial and operating metaods
of The American Telephone and Tele'
graph Company, the combining of the
nropertins of The Colorado Telephc ne
Company The Rocky Mountain Bell
Telephone Company and Inc 1rl-
State Telephone AID Telegraph Com
pany will be no surprise.
AN licensee Bell Telephone Compan
les are free from stock jobblng meth
ods and all ad1itIohE to plant are
made with funds realized from the
sale of their securities, and not from
their earnings. More than this, Sc
curities are not sold in excess OF the
actual amount Invested in the busl-
ness. SO no elem mt OF water is per-
mirted to enter into such fina-clng.
Recently The Colorado Telephone
Company reached the limit OF its cap
italization so that re-capitallzatloni
became nee essary to it. The Irl-State
Telephone and Telegraph Company
was similaly situated, land The Rocky
Mountain Bell Telephone Company
has for several years felt the need OF
an entire reorganization. What, then
mo,e natural than that the relorgaAl-
Eat ON take the form of merger Of
the properties to be capitalized on
cons ervative basis and at figures
which will insure reasonable returns
to investors and equitable rates to
the public.
nhe> new corporation is capitalized
atS5O, 900 900, but less than half this
amount will be issued against tho
properties and am actual excess OF
physical property will be maintained
ever the amount ct stock issued.
There VIII b. no preferred stock and
10 bonds, and L-,o attempt will be
made to pay dividenas In excess Oh
what tile public might consider rca-
sonaDle aIL horuest. TEis financial
policy is merely continu-tlon OF
that pursued by President Field or
The Colorado Telephone C-mpa-y 1oT
so many Years. 1nc latter company
has long been known for its cons erva
tive financing and bread policy G. ma
king extensions, MT oily as demand
&c by the growth OF the country but
in anticipation and advance OF such
growth.
PresId ElG Fled Will continue at tie
head If The Mountain States Teie-
phone and Telegraph Company, which
will be further oLficered as follows:
Presidea e. b. Field.
Vice Presid mt and Treasurer -.
...............E Edw. 2. Field, Jr.
Secretary ......J. E. Macdonald.
Gaaeral. Auditor 49,. Rocerick Red.
General Manager EN-. Burgess.
Some KIN wledge Nf The Rocky
Mouu.ain Ell Company may prove
timely. IL has generally been cOuceG-
&c to have beeAA hacking in finaLr
cial strength iCr (, number OF years,
and thereflre was unable to provide
Tor extensions by thu sale of its treas
ury stock. An extremely optimistic
management built exchanges and toll
lies considerably in excess OF a divi-
dend earning capacity, and since diyi
dends which would attract sufficient
funds to provide additions and better.
ments were not fcrthcomiEg,th COM
paIy has been forced to borrow the
money needed for its growth, and the
only market for stock has been N tn.