The Julesburg grit-advocate., 1911-07-27

Rumors which have been prevalent
for some time with reference to the ac-
quiring of the Rocky Mountain Bell
Telephone Company properties by The
Colorado Telephone Company are CON-
firned by the action of the Board of
Directors of the former company at its
meeting held recently.
A few days ago The Colorado Company
merged with its associate company to
the south-The Tri-State Telephone and
Telegraph Company. which has here
tofore operated in Southern New Mexico
and Eastern Arizona. The Merged
companies were re-christened The
Mountain States Telephone and Tele-
graph Company and the capital stock
increased to $50, ZOO, 900; and the first
act of the Rocky Mountain Bell prop
critics by purchase.
The official announcement of the reas-
ons for the combination, as furnished
at the headquarters of The Mountain
States Company at Denver, is as fol-
lows:
ITO those who are familiar with the
financial and operating methods of The
American Telephone and Telegraph Com
pany, the combining of the properties
of The Colorado Telephone Company,
The Rocky Mountain Bell Telephone
Company and the Tri-State Telephone
and Telegraph Company will be no sur
prise.
All licensee Bell Telephone Companies
are free from stock -jobbing methods
and all additions 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 COM
pany reached the limit of its capital
ization SO that a re-capitalization be-
came necessary to it. The Tri.State
Telephone and Telegraph Company was
similarly situated, and the Rocky
Mountain Bell Telephone Company has
for several years felt the need of an
entire reorganization what then more
natural than that the re-or-
ganization take the form of
a merger of the properties to be capi-
talized on a conservative basis and at
figures which will insure reasonable re-
turns to investors and equitable rates
to the public.
The new corporation is capitalized at
$50, ,00O, 900, but less than half this
amount will be issued against the prop
critics and an actual excess of physical
property will be maintained over the
amount 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 con-
slider reasonable and honest. This
financial policy is merely a continuation
of that pursued by President Field of
The Colorado Telephone Company for
so many years. The latter company has
long been known for its conservative
financing and broad policy of making
extensions, not only as demanded by the
growth of the country but in anticipa-
ton and advance of such growth.
President Field will continue at the
head of The Mountain States Telephone
and Telegraph Company, which will be
further officered as follows:
President E. B. Field.
Tice President and
Treasurer Edw. B. Field, Jr.
Secretary j. E. Macdonald.
General Auditor Roderick Reid.
General Manager E. N. Burgess.
Some knowledge of The Rocky Noun
tain Bell Company may prove timely.
1t has generally been conceded to have
been talking in financial strength for a
number of years, and therefore was
unable to provide for extensions by the
sale of its treasury stock. An extremely
optimistic management built exchanges
and toll lines considerable in excess of
divident earning capacity, and since
dividends which would attract sufficient