Bisbee daily review., 1913-02-13
DenFer, Colorado, February, TO THE STOCKHOLDERS: !:

ted by me on behalf of your Board of Directors, exhibits the financial condition Of the Company. December sl. 1912.
 On that date we had in our entire territory, 3T0 Exchanges, furnishing service to ls4.6sS Exchange Stations, includ ng l.293 Toll Stations In ad- dition to these 1S4,6es Exchange Sta tions. there are 1S,390 stations con Rected with our system on the lines | of connecting compan.es, making a total of 203.05S Subscribers Stations l in service on December 5l, 1912, an 1 increase of 39,255 during the year, or ! a total increase of 40i23 stations since the merger of The Colorado Telephone Company. Rocky Noun 1 tain Bell Telephone Company. sh,i l The Tri-State Telephone and Tele- graph Company. on July 3I, 1911; q gain of almost 25 per cent. since the I merger. Tine total mSles of eX- change and toll lines. as of Deeeni- | ter 31. 1912. were 5e6,61S93, an ,a- crease of 105.S31.76 miles for the year. The increase alone being more than four times the circumference ef l the earth, and the total wire mile age sufficient to go more than tw-en- | ty times around the earth Total miles Of exchange and toll wire un- i dergTound on December 3I, 1912. 1 were 1S0,92909. Total miles of toll | lines on the same dIte were n ,516.G5. 1 Because of the comparatively brief period which has elapsed s.nce the [ formation of The MC,cntain States i Telephone and Telegraph Company, some comment on the balance sheet, which follows, is probably essential to 8 thorough understanding of it. An examination of the balance sheet of the system of The Mountain States Telephone and Telegraph Con- ipany. submitted herewith. will ind- rcate to stockholders the great in kcrease in the magnitude of the Com ipany. Since my last report of The | Mounta States Company we have acquired all the He'll properties in Arizona so that our operations now cover the seven great States of Colo lrado, Utah, Idaho. Montana. Wyom- iing, New Mexico. and Arizona. with toll lines into all surrounding States. Stockholders of The Mountain States Company, who were holders of
 
 prior to the merger in 1911, will re- call that in nay letter of July 20. 1911, to Colorado Telephone Company stockholders. l referred to the ad. yantages to be secured through a wider distribution of our general in sestment Pursuing the policy then commenced. The Mountain States Company has expanded. until it IS today a corporation with outstanding .cap.tal stock practically 2.7 times as great as the entire issued capital stock Of the Colorado Telephone Company at the time the merger was effected. The benefits of this broad ening of investment accrue alike to those whose Mountain States Tele- phone holdings come from their form Ter investment in Colorado Telephone, to holders of Rocky Mountain Bell shares, (which they exchanged for Mountain States stock. and also to those who have invested in our shares since the merger was effect ed
 There was outstanding, December 3i. 1911. as shown by my last annual report, S20.354 ,SO00O of Mountain States stock Though the average Of outstanding capital stock for the year was si5.960, ,S50.00. For payment or dividends, during 1911 there was available sl.S67, ,293.72, against an ae- tuai dividend payment of s1 .022, ,59S. i 45 leaving for 1911 SS44 ,695.27 for l Surplus and Reserves.
 1 It will be noted that December 3l, Il912, there was outstanding S26 ,994.. 200.00 in stock, representing an in crease of $6,629 .90g0O from figures | in my last annual report Of this ' increase. S4,298, 10000 was issued in ! December, 1912, with dividend obi | gations against it commencing Jan uary !, 1913.
 The average capital stock outstand- ing during the year 1912 was S22,- ! 739, 9,354.00. During that year there was ava lable S2.s13,S70.77 for pay
 ment of dividend obligations which
 reached the actual amount of S1 ,5S7.- 3340O leaving for 1912 a balance oi I S926. .036.77 to Reserves and Surplus
 In the report of The Mountain States Company. as of December 31, 1911, cur statement showed payments on account Of capital stock subscr.Ir tions amounting to more than si .359-
 90e %, the shares for which were moi to be issued and-tieliyeTed tiH January | 1912 The Mountain States System .l report for 1912, coming al 8 time |, when no such item of cash subscrip
 tions Go capital stock appears oB our
 tooks. our cash and deposits neces
 sarily show a large reduction
 amounting to more than s75e. .O90 co Our real estate holdings show an
 increase during 1912 nearly $58e,0o0.
 0e. our telephone plant, practically
 Sf.250, ,001.00. our supplies. furniture
 and tools, more than s250 .e00.00. anf our stocks and aaonds in connectinl companies, from which we derive business. almost SI .O01. .6ti0.0G
 With the growth of the Company
 and plans under gay 10 continue tho I policy of diffusion to which I have above referred, our bills payabss
 show an increase Of something nor,
 than s2z5. .06s 06. Accrued .liabilitiel ! not due. somei s6s0. soc %. includes disisenos Iayakie lznnary Is. 1sls
 amounting ID approximately 1tse, F 0900 CO. Thereswas d transfer Of Si75, c 00o.0o from Surplus to the Enployes Benefit Fund