Willmar tribune., 1915-08-04

schoolboy after the first pretty face
you see. For shame, Reginald Nelson!'
But the second voice would not be
downed. Engaged to be married." it
walled.
To be continu- -d)
OPPOSE GOVT. OWNER
SHIP. WHY?
Big Telephone Companies Looking
Out For Their Own Profits.
The Wisconsin Telephone company
IS circulating throughout Wisconsin
each month small pamphlets contain
ing arguments against government
ownership. These are entitled Give
Minute Talks on Government Owner
Ship" The latest one is addressed to
farmers and cautions them particular
ly against ownership of telephones by
the public.
Why is the Wisconsin Telephone
company opposed to government own
ership of telephones?
The recent telephone rate hearing
in Milwaukee revealed that 99.98 per
cent of the stock of the Wisconsin Tel
ephone company is owned by the
American Telegraph and Telephone
company, a corporation with head
quarters in New York city. The two
companies are practically one.
Figures from the annual reports of
the American Telegraph and Tele-
phone company shows some very good
reasons for opposition to government
ownership Of telephones on the part
of that concern.
Net earnings of the A. T. and T.
company for 1913 were $40,576, ,746.19,
and for 1914, f40,557,977.29. Total
net revenues of the company from
1900 to 1914 were $277,95S,449. These
figures show net revenue after paving
all expenses.
Figures from the A. T. and T. com.
pany reports indicate plainly the in
spiration for its attack on public own
ership.
In 1910 the company's earnings
were $35,358,32S.71 and expenses 49,
125,114.22, leaving net earnings of $751;
933, 3,214.49. OF this amount interest
absorbed $5,077,321.33. 5sa
Wall Street got $20,776,822.l1 in
dividends, $3,00o,000 were added to the
company's reserve, and the remainder
s., ,071.04, for which no use could
be found was laid aside as "surplus. !"
The report for 1914 shows telephone
rates have not been so low as to in
terfere with the sturdy growth of divi-
dends. Total earnings were $685.
$685. and expenses $5,6S8 ,621 Sc,
leaving net earnings of $40,576,7 ,746.19.
After paying $S,223,163.23 as inter-
est, dividends of $27,572,674.72 were
paid, $2,500,000 added to reserve and
$2,262,139.3 to surplus.
These net earnings ranging from
$50, 100000 to $40,000,000 annually, are
the result of payments made to the
A. T. and T. company from it's affili-
ated companies. The Wisconsin CON-
pany contributes 99.98 per cent of it's
dividends, AZ per cent of it's gross
earnings and other payments.
In the telephone rate hearing in
Milwaukee it was claimed that these
payments are excessive, that the A..
T. and T. company exists mainly for
the purpose Of absorbing profits of the
telephone business, and thus enabling
the associated companies from main
tanning rates that are excessive.
The enormous profits that are thus
taken from the telephone business by
the parent company are shown by its
own figures. From 1900 to 1914 the
A. T. and T. company paid $218,629,-
536 dividends, added to it's reserves
$630,768,477 and to it's surplus, $685.
$50 ,438.
At the close of the year 1914, the
company had laid aside as a reserve
to cover depreciation and all possible
emergencies, $27, 27,S70,699.92, and in ad-
dition surplus of $65,935,S ,S59.63.
This surplus represents profits for
which the company apparently has
been able to find no use. It is a
''melon" which some day will be
"sliced" to the great edification of
Wall Street.
These figures are too large to un-
derstand except by comparison. 1t
would take a man $4,000 years to
earn the surplus of the A. T. and r.
company at the rate of $500 a year,
and $500 is more than the average an
nual rate of wages paid workers In
the United States.
This company's net earnings during
the last 10 years equals the total earn.
ings for the same period of 32,280
laborers.
During the year 1914, net earnings
of the A. T. and T. company were at
the rate of $111,11S a day, $4,629 an
hour, Stills minute and $1.28 a sec.
ond.
The A. T. and T. company evident.
ly knows a good thing. Apparently it
does not propose to let go easily.
Public ownership is the only men
ace to the accumulation of these mil.
lions. Earning 100000 net annual:
ly from private ownership of tele'
phones, no wonder the A. T. and T.
company is opposed to public owner
ship which would cut off such profits
With a $66,oo0,o00 surplus, NO won
der the telephone companies can
print and circulate pamphlets attack
ing public ownership.
Are the people Of Wisconsin and the
United States such fools as to be-
lieve arguments issued by those whose
interests Are SO plain?- Milwaukee