The daily sentinel., 1913-02-13
Corporation Shows Healthy Condition After
Expansion Now Controlling More Than
l84,668 Phone Stations in West
TO THE STOCKHOLDERS:
Denver, Colorado. February

TO THE STOCKHOLDERS:
The following statement submitted by me on behalf Of vo,r
Board OF Directors EXHIBITS the financial condition of the Com
pany, December 3D. 1912
On that date had entire territory RIO exchanges
furnishing service to IS466S Exchange Stations including
Toll Stations In addition these IS66S Exchange Stations
there 1890 stations connected with system on the lines
Stations service December 3I 1912 increase of
during the total increase of 4o2 stations since the
OF he Colorado Telephone Company, Rocky Mountain
Bell Telephone Company and the riState Telephone and
Telegraph Company on July 81 91I gain of almost IS per
Ines as or December 81 80 p were o6olS9 increase of
do5S3L76 miles for the year The increase alone being
than four times the circumference of the earth and the total
mileage sufficient to go more than twenty times around the earth
Total miles OF exchange and toll underground December
81 1912 were ISo929o9 Total miles of toll lines the
date 7I,5 600.
Because of the comparatively brief period which has elapsed
since the formation of The Mountain States Telephone and ee
graph Company some comment on the balance sheet which fol-
lows probably essential thorough understanding of it.
An examination fthe balance sheet of the The
Mountain States Telephone and Telegraph Company submitted
herewith will indicate stockholders the great increase in the
tain States Company have acquired all the Bell properties
of Colorado Utah, Idaho Montana, Wyoming New Mexico
and Arizona, with toll lines into all surrounding States
Stockholders of The Mountain States Company who were
holders of Colorado Telephone Company stock prior the
ger in 1911 will recall that in my letter of July 20 1911 to
Colorado Telephone Company stockholders referred the ad
yanages be secured through wider distribution of gen.
era investment Pursuing the policy then commenced The Noun
tain States Company has expanded until it today corporation
with outstanding capital stock practically 2z times
the entire issued capital stock of the Colorado Telephone Com
pany the the merger effected he benefits of this
broadening of investment alike those whose Mountain
States Telephone holdings from their former Investment
Colorado Telephone holders of Rocky Mountain Bell shares
(Which they exchanged for Mountain States oc and also
those who have invested shares since the merger eff
fected
There outstanding December 81 shown by my
last annual report $2o3643oooo of Mountain States stock.
Though the average of outstanding capital stock for the year
y 96oS5 For payment Of dividends, during 1917 there
available $S6729372 against an actual dividend payment
of 59S45 leaving for $S4469527 for Surplus and
Reserves.
1t will be noted that December 3D. 1912 there oustand-
$269942oooo stock representing increase OF $6629,
from figures last annual report OF this
$429S7oooo issued December with dividend obi
cations against it commencing anuary l, 1913.
The average capital stock outstanding during the year
wass$22739354oo During that year there was available $2
3y37o77 for payment of dividend obligations which reached
the actual amount of $S33o leaving for 1912 balance OF
$926o36.77 to Reserves and Surplus.
In the report of The Mountain States Company of Decem
ber showed payments of capi
tai stock subscriptions amounting than 5oooooo, the
shares which be issued and delivered until anu
ary 1912 The Mountain States System report for coming
time when such item OF cash subscriptions to capa stock
appears books cash and deposits necessarily show
large reduction amounting than 81 100000.
Our real holdings show increase during 1912 nearly
$ooooooo telephone plant practically $425oooooo our
stocks bonds connecting companies from which derive
business, almost SI,oOoooooo.
With the growth of the company, and plans under way to
the policy of diffusion which have above REFERRED
bills PAYABLE show OF something more than
Accrued liabilities due, $o5oooooo includes
dividends payable January IS, amounting to approximately
S4ooooooo There transfer of $I75,ooooo from Sur
plus to the Employees Benefit Fund.
has been my thought insist upon large surplus
which might readily been accumulated had nvarabe pol
icy been keep the Company rates at the lowest possible
level with good service but an analysis OF the an
nua reports of The Colorado Telephone Company and ne Noun
States Company its ncepon) will show that the pocy
of carrying adequate for the ample potecon