The sun., 1919-01-09
OFFER $65,O0O,OOO
NEW A. at. BONDS
Nndicate Of Bankers Will Sell
subscriptions to Two
Issues To-day.
ALL ALLOTMENT SMALL
yotes Are for Funds to Retire
Obligations Of Subsidiaries
Maturing Feb. 1.

A banking group. consisting OF J. p.
v-ran 4 CO.. Kuhn, Loeb q Co., Kidder.
r,body q Co.. the First National Bank
"A National City Company. Harris,
mrses 4 Co. and Lee, Higglnson &
Z. Il was announced yesterday. viii
/ FER at 10 o'clock this morning 100000
40 dve year 8 per cent. notes OF the
american Telephone and Telegraph
Company. at ssti and interest to yield
,Sout e.17 per cent. ana $4,000,
40 thirty year per cent. sinking fund
.s,nture bonds of the New York Tel
sscne Company at 1o1 and interest to
Md about S.s3 per cent.
Tire members Of the selling syndicate
trnd yesterday that a heavy oversub-
,rp,on Of both issues Is assured. The
,,rments specified In the letter sent
n. on Tuesday night 20 syndicate men,
yrs b. j. P. Morgan & Co. we're com
t,lned about as being too small by
early every member OF the syndicate.
According 10 statement issued yes
r6ay by J. p. Morgan & Co:
'The American Telephone and Tele-
carh Company notes are issued to re-
ire an equal amount OF subsidiary
crpanv notes 'ndorsed by the parent
Jnpany. maturing on February /. so
at the company's interest charges,
,hch during the last nine years have
,rrsged less than one-flfth the net
rnngs, will not be increased.
During the last ten years the Amer
al Telephone and Telegraph Company
IL done the bulk OF its financing either
Iact,y through the issuance of stock
through bonds. which wero converted
;,o stock. President Vail states that
ten years the debt outstanding has
zen increased only about $50. 000.0 300,
rh!Ie the capital stock has increased
i5ou' S?ss,oo0,o00
The New York Telephone debenture.
A.. followed by s150.ooo.0o0 stock pay.
Tg dividends at the rate of s per cent.
AL o. this stock being owned by the
American Telephone and Telegraph
Company. Tho New York company for
lie iss; nine years has shown net earn
Iass averaging moro than 81. times It's
i,trest charges, and has paid dividends
o. a: least s per cent. per annum for the
asst twenty-five years. Tho bonds are
nrther protected by a cumulative sink
ng fund which Is estimated as euffi.
lent 20 retire the entire issue by ma.
'urity and which Is to be utilized IN the
Turciase OF bonds below ITO and In.
crest or their call on any interest dat,
ol sixty days notice at that price.
Theodore y. Vail. president of III,
omDany. in n letter sets forth the term.
4 the Federal Governments contrac
With tho company which. in brief, pro.
iles that the license or rental contracts
s'ween the parent company and the
associated companies are continued
rat the Government Is fully to main
iin The property. is TO make provision
Or depreciation and obsolescence rela-
arely equal TO that of the past. viz. an
average OF 5.72 per cent. annually on
RE book value OF the depreciable prop.
srtv, and in addition Is to pay an an
-ual compensation sufficient to provide
,0r the payment OF the annual !nteres,
charges on all outstanding securities OF
ne Bell system in the hands of the
public, dividends at the existing rate or
The share capital In the hands OF the
public, as we'll as all charges OF secur.
ne additional capital either for new
work or in providing for maturing OBJ,
'gs,!ons
The provision OF the Federal Gov
eminent contract as to dividends In
tllde per cent on the stock OF the
American Telephone and Telegraph
Company OF which there was outstand.
tg at The close OF 1913 nearly s442.-
IN 900"