The river press. [volume] (Fort Benton, Mont.) 1880-current, 1913-02-19
THE MOUNTAIN STATES
TELEPHONE AND TELEGRAPH COMPANY
(%sYsTEn)
Executive Office. Telephone Building
J42I Champa Street
DENVER, Col, Feb. II, 1918.

DENVER, COL, Feb. IL, 1918.
To the Stockholders:
The following statement, submitted
by me on behalf of your board OF
directors, exhibits the financial con-
dition of the company, December 81,
1912.
On that date w had, in our entire
territory, $40 exchanges, furnishing
service to 1S4, 668 exchange stations,
including 1928 toll stations. In addi-
ton to these l84, 1858 exchange stations
there were stations connected with our
system or the lines of connecting COM
panies, making a total of 2O3, O58 SUBJ
%scribers' stations in service on De-
cember 81, 1912, an increase of 30,255
during the year, or a total increase of
40. 1913 stations since the merger of the
Colorado Telephone company, Rocky
Mountain Bell Telephone company,
and the Tri-State Telephone and Tele-
graph company, on July 81, 1911; a
gain of almost % per cent. since the
merger. The total miles of exchange
and toll lines, as of December 81. 1912,
were SOC, 61S. SO, an increase of 1867
$751; Is miles for the year. The increase
alone being more than four times the
circumference of the earth, and the
total wire mileage sufficient to go more
than twenty times around the earth.
Total miles of exchange and toll wire
underground on December 81, 1912,
We're $50, O2O. 90. Total miles of toll
lines on the same date were Il, SIG. O6.
Because of the comparatively brief
period which has elapsed since the
formation of the Mountain States
Telephone and Telegraph company,
some comment on the balance sheet,
which follows, is probably essential
to a thorough understanding of it.
An examin alton of the balance sheet
of the system of the Mountain States
Telephone and Telegraph company,
submitted herewith, will indicate to
stockholders the great increase in the
magnitude of the company. Since my
last report of the Mountain States
company we have acquired all the
Bell properties in Arizona, SO that
our operations now cover the seven
great states of Colorado, Utah, IDAHO,
Montana, Wyoming, New Mexico and
Arizona, with toll lines into all sur
rounding states.
Stockholders of the Mountain States
company, who were holders of Colo
RADIO Telephone company stock prior
to the merger in 1911, will recall that
in my letter of July 20, 1911, to Colo
RADIO Telephone company stockholders,
l referred to the advantages to be
secured through a wider distribution
of our general investment. Pursuing
the policy then commenced, the Noun
tain States company has expanded,
until today it is a corporation with
outstanding capital stock practically
2.7 times rs great as the entire issued
capital stock of the Colorado Tele-
phone company at the time the merger
was effected. The benefits of this
broadening of investment accrue alike
to those whose Mountain States Tele-
mer investment in Colorado Tele-
Bell shares, (which they exchanged
to those who have invested in our
shares since the merger was effected.
There was outstanding. December
81, 1911, as shown by my last annual
report, $40, 1854, 3OO.O 0 of Mountain
States stock. Though the average of
outs anding capital stock for the year
was SIS, $50, $780, 90. For payment of
dividends, during 1911 there was
available 81, 1851, 293. 70, against an
actual dividend payment of S .O22,-
sos. 45, leaving for 1911 $S44, 695. 81 for
surplus and reserves.
It will be noted that December 81,
1912, there We're outstanding 1926, 994,-
10000 in stock, representing al in
crease of So, 629, 900. 90 from figures in
my last annual report. OF this in
crease, 81, 29S, 10000 was issued in
December. 1912, with dividend obliga-
tions against it commencing January
l, 1913.
The average capital stock outstand-
ing during the year 1912 was S22,-
40, 354.O0. During that year there
was available s2,5l5, 37O.77 for pay
ment of dividend obligations which
reached the actual amount of $1,5S7,-
$4,000, leaving for 1912 a balance Of
1926. O36. u to reserves and surplus.
In the report of the Mountain States
company, as of December 81, 1911, our
statement showed payments on account
OF capital stock subscriptions mount
ing to more than $3.50. 600. 90, the
shares for which were not to be issued
and delivered until January, 1912.
The Mountain States system report
for 1912, coming at a time when no
such item of cash subscriptions to
capital stock appears on our books,
our cash and deposits necessarily
show a large reduction, amounting to
more than $50, 100000.
Our real esta'e holdings show an
increase during 1912 of nearly $780,
10000, our telephone plant, practically
100000, our supplies, furniture
and tools, more than $3.50, 900. 90, and
u stocks and bonds in connecting
companies, from which we derive bust
ness, almost 81, ZOO, 10000.
With the growth of the company,
ana plans under way to continue the
policy of diffusion to which l have
above referred, our bills payable show
an increase of something more than
1925. OOO. 90. Accrued liabilities not
due. some $3.50, OO0. 90, includes divi-
dends payable January Is, 1913, am
ounting to approximately $4OO, 900. 90.
There was a transfer of Sl75, OO0.O
from surplus to the employees benefit
fund.
II has never been nv thOupht to in.