Bisbee daily review., 1911-07-22
BIG MERGER Is
 ACCOMPLISHED
Telephone Companies United Under Name The Mount ain States Telephone
 and Telegraph Go.
STEP WAS NOT A SURPRISE


 Runners which have been preyaien. for some time with reference to the acquiring Of The Rocky Mountain Reh Telephone company properties hy The Colorado Telephone company are confirmed by the action of the board of directors Of the former com Uany at it's meeting held recently.
 4 few days ago The Colorado con- nany merged with it's associate com nany to the south-The Tri-State Tel ephone and Telegraph company. which has heretofore operated in southern New Mexico and eastern Arizona. The merged companies were reohristened The Mountain States Telephone and Telegraph com many and the capital stock increased 10 S50,G0a,0Oe: and the first act os the new corporation is the acquiring 5f Tho Rocky Mountain Bell prop critics by purchase.
 The official announcement of the reasons for the combination, as fur nished at the headauarters Of The Mountain States company at Den yer, is as follows:
 TO those who are familiar with the financial and operating methods of The American Telephone and Telegraph company, the combining of the properties of The Roclzy Mountain Bell Teleuhone company and The Tri-State Telephone and Telegraph company will be no sur prise.
 All licensee Bell Telephone com panies are free from stock-jobbing ana arc made with funds realized from he sale of their securities and nor rom their earnings. More than this securities are rot sold in excess of he actual amount invested in the business, so TO element og water is permitted to enter into such finan cing. Recently The Colorado Tele- phone company reached the limit of its capitalize ton so that a recap talizatiOn became necessary to It. The Tri-State Telephone and Tele, yraph company was similarly situ- IJed, and The Rocky Mountain Bell Telephone company has for several years felt the need of an entire re organization. What, then, more nat lral than that the reorganization axe the form of a merger of the properties to be capitalized on 9 conservative basis and at figures which will insure reasonable returns .to investors and equitable rates Jo he public?
 The new corporation is capitalized 3t S50000,000 but less than half this amount. will be issued against the properties and an actual excess Of
 aysical property win be maintained over the amount of stock issued. There win be no preferred stock and no bonds, and no attempt will be made to pay dividends iu excess Of what the public might consider reasonable and honest. This financial policy is merely a continuation of that pur- sued by President Field Of The Col orado Telephone company for so many years. The latter company 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 ard advance of such growth.
 President Field will continue at the head oi The Mountain States Tele- phone and Telegraph company, which will be further ofiicered as follows; President, F. ?. Field. Jr: Vice-presi- dent and treasurer, Edw. E. Field, Jr Secretary, J. Es Macdonald; Genera Auditor. ROderick Reid; General Manager, r. N. Burgess.
 Some kuowledge of Tie Rocky Mountain Bell company may prove timely. It has generally been con ceded to have been lacking in fin ancial strength for Q number of years, and therefore was unable to provide for extension by the sale Of it's treasury stock. An extremely optimistic management built ex- changes and toll lines considerably pi excess Of a dividend earning ca pacity, and since dividends which would attract sufficient funds 10 pro vide additions and betterments were not forthcoming, the company has been forced to borrow the money needed for it's growth, and the only market for stock las been in the neighb,rhood of sixty cents on the dollar.
 The debt has reached a figure something like six and a balf mil lions of dollars; but t is understood . tttdL n dorAtitiiS titio orSs ht -ND@@i- tain States TeleDhoae and Telegraph company expects to fund it in stock at a considerably lower figure. By doing this. and in purchasing the property from the stock holders at an equitable vaiue. 1t would seem that The Mountain States Telephone and Telegraph company will have 10 difficulty In making this portion Of it's property earn dividends equal 10 those heretofore enjoyed by the Stockholders of Tho Colorado Tele.
 rhone company and The Tri-Stste Telephone company.
 Several p=sminent stockholders in The Rocky Mountain Bell Telephone | company have expressed themselves ! fa1oTably on the terms of the sale. | Said ore of them; Peter to have sixty dollar investment paying a