The Paonia progressive and the Paonia newspaper., 1911-07-27
new TELEPHONE CO,
Colorado Telephone Company
and others. Corporation
Capitalized at 5O,OOO,OOO

Rumors which have been prevalent
for some time with reference to the
acquiring of The Rocky Mountain
Bell Telephone Company properties
by The Colorado Telephone Com
pany are confirmed by the action OF
the Board of Directors of the former
company 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
Telephone and Telegraph Company,
which has heretofore operated in
Southern New Mexico and Eastern
Arizona. The merged companies were
re-christened The Mountain States
Telephone and Telegraph Company
and the capital stock increased to
$50, ,000. 900; and the first act of the
new corporation is the acquiring of
The Rocky Mountain Bell properties
by purchase.
The official announcement of the
reasons for the combination. as fur
ni-hed at the headquarters of The
Mountain States Company at Den
yer. Is as follows:
ITO those who are familiar with
the financial and operating methods
OF The American Telephone and Tel
egraph Company. the combining of
the properties of The Colorado Tele-
phone Company, The Rocky Noun
tain Bell Telephone Company and
The Tri-State Telephone and Tele
graph Company VIII be no surprise
All license Bell Telephone Cumpan-
ie- are free from stock -iobbins. meth
ods and all additions to plant are
made with funds Realized from the
sale of their securities. and not from
their earning. More than this. secur-
tiles are not sold in excess of the ac-
tual 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 fitscapitalization
so that recapitalization became
necessary To 1t. The Tri-State Tele-
phone and Telegraph Company was
similarly situated. and The Rocky
Mountain Bell Telephone Company
has for several wears felt the need Of
an entire reorganization What.
then. more natural than that the re-
organization take the form OF a
merger of the properties to I've capt
tailed on conservative basis and
at figures which will insure reason
able returns to Investors and equita-
bile rates to the public.
The new corporation l. capitalized
at $50. 900. 900. hut less than half this
amount will be issued against the
properties and an actual excess of
phy steal property will be maintained
over the amount of stock issued
There will be- NO preferred stock and
no bonds, aud no attempt viii he
made to pay dividends in excess of
what the public might consider rea-
sonable and honest. This financial
policy Il merely continuation of
that pursued by President Field of
The Colorado Telephone Company
for so many years. The latter COM
pany has long been known for it's
conservative financing and broad
policy 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 he further officered as
follhws:
President. L. b. Field; Vice Presi-
dent and Trearurer, Edw. b. Field.
Jr: Secretary, j. +. Macdonald
General Auditor, Roderick Reid: Gen
eral Manager. L. NJ. Burgess.
Some knowledge of the Rocky
Mountain Bell Company may prove
timely. Ii has generally been con-
ceded to have been lacking In iinan-
cial strength for number of years,
and therefore was unable to provide