Mountain Home maverick. [volume] (Mountain Home, Idaho) 1906-1911, 1911-07-20

phone Company reached the limit OF
its capitalization so that a re-capital-
ization became necessary to it. The
Tri-Stae 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
reorganization take he form of
merger of he properties TO be cap
italized on a conservative basis ana
at figures which will insure reason
able returns to investors and equit-
able rates to the public
The new corporation is capitalize
ed at $4,000, 0O0 but less than half
this amount will be issued against
the properties and an actual excess
Of physical property will be main
tanned over the amount Of stock is
sued. There will be no preferred
stock and no bonds. and no attempt
Will be made to pay dividends in ex-
cess of what the public might con-
slider reasonable and honest. This
financial policy is merely continu-
alton of that pursued by President
Field of The Colorado Telephone
Company for so many years. The lat
ter company has long been known for
its conservative financing and broad
policy of making extensions. not on
ly as demanded by the growth of the
country but in anticipation and adj
vance of such growth.
President Field viii continue at
the head of The Mountain States
Telephone and Telegraph Company,
which will be further Differed as fol-
lows:
President, f. B. Field.
Nice President and Treasurer, Ed.
B. Field, Jr.
Secretary, J. p. Macdonald.
General Auditor. Roderick Reid.
General Manager. E. NJ. Burgess.
Some knowledge of The Rocky
Mountain Bell Company may prove
timely. 1t has generally been con-
coded to have been lacking in fin
ancial 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 ex-
changes and toll lines considerable
in excess of a dividend earning cap
acity, and since dividends which
would attract sufficient funds to pro-
vide additions and betterment were
not forth coming. the company has
been forced to borrow the money
needed for its growth, and the only
market for stock has been in the
neighborhood of sixty cents on the
dollar
| The debt has reached a figure
something like six and one half mil
! lions of dollars; but it is understood
that in assuming this debt The Noun
| tain States Telephone and Telegraph
| Company expects to fund it in stool
/ at considerably lower figure b,
/ doing this, and in purchasing tn,
Il property from the stock holders a
II an equitable value, it would seen
II that The Mountain States Telephone
II and Telegraph Company will have nj
II difficulty in making this portion o
II its property earn dividends equal t.
II those heretofore enjoyed by tn
II stockholders of The Colorado Tele
: phone Company and The Tri-Stat
: Telephone and Telegraph Company
s Several prominent stockholders il
q the Rocky Mountain Bell Telephon
= Company have expressed themselve
& favorably on the terms of the sale
4 Said one of them: Better have
& sixty dollar investment paying
s steady income than hundred do
3 lar investment whose greatest carr
= ing capacity merely allowed 1t to pa
interest on its debts"
\ In an interview given today to IN
4 Associated Press. President Fiel
Z said in part:
Z This merger is in no sense tn
4 formation of trust or monopol.
I as no competing properties are II
I cluded. It is merely the natural ou
4 come of our experience of the PAL