The Richmond Virginian. (Richmond, Va.) 1910-1920, 1920-03-05
CO.'S
ANNUAL REPORT

The American Telephone and TeIe-
graph company has issued its annual
report for the 1919 calendar and fiscal
year. The report shows total earnings
available for dividends. reserve and
surplus of S44.395,791, compared with
S3e0f,321 in the previous year. On
the $44l.Ss1. zoo of stock outstanding
on December 81, the earnings for 1919
were equal to $1,000 a share. az com
pared with 1898 a share In the pre-
vious year.
In his remarks to shareholders,
President II. p. Thayer recommends
that the authorized share capital OF
the company he increased from $500
100000 to s750,o00,ooo. He says: The
limit of the authorized share capital
with "A reasonable reserve against the
conversion of the convertible bonds
issued has been reached The issue
coming due In 1895 becomes convert
ible August /, 1920. and the additional
stock is necessary in order TO provide
against the remote contingency of
complete conversion and to provide for
further Issue OF capital stock IL and
when it shall be found desirable. 4,
Touching upon the question of rates
President rhayer says that the times
being abnormal. the company Is ask
ing tho public utilities commissions to
P'P1@%t VIC tpipduy pF Allowing SUCn
margin of undivided profits as will
provide for any contingency above
whatever returns to the investor may
prove necessary to attract ca pital
We fully expect some Increased rates.
and we are prepared for increased ex-
penses." he says.
Whether the total of the dividends
paid is too much or too little" Presi-
dent Thayer says lis to be determined
nF1i y f,x - a.
and other securities of the American
Telephone and Telegraph company
The earnings must be enough to es-
tablish such narnet values az will
make new shares or securities readily
saiabie AS rule. we have found the
public willing to pay fair rates and
rate controlling bodies ready to au-
thortze them"
Sales OF the western Electric COM
pany, Incorporated. for 1919 aggre-
gated si35,ooA. 600. of which $4,000. =
600 were TO the associated Bell COM
panies. and ss5. 100000 to other Gus
toners. Starting the year with un-
filled orders aggregatng only s2s,-
100000. and poor prospect OF new
business the company gained steadily
from month to month. ending the year
with the largest months sales in It's
history, and untitled orders aggregat-
ing 100000
President Thayer says In part:
Whether the present rate of earn
ings is sufficient for present times and
conditions Is .debatable. In the Bell
telephone system. taken as whole
more than in any other utility, profits
are conserved within the system for
the benefit OF the public and the stock
holders, There are inter-company
profits on use OF patents. on expert
III n vi nfN
lecturers, but either through the Az
per cent pas2ent or the dividends OF
the manufacturing company these
profits come into the treasury OF tho
American Telephone and telegram
company the financing company of the
system. Except for the dividends on
the small amount OF stock of the as
sociated companies In the hands of the
public, all profits OF the Bell telephone
system ultimately come to the treasury
'f the American Telephone and Tele-
graph company. and all surplus over
and above dividends is turned back
INTO the system through investment in
plant, particularly the long lines plant
furnishing the intercommunication es
sential to universal service.
American Telephone and Telegraph
shareholders viii be asked to ratify
increase in authorized cant
al from $500 900, oe0 to s75o. 600. 900 MT
\ special meeting March 80 None OF
his stock will he offered to stock
holders at this time.
The last increase in authorized capt.
al stock was made in 1910, when the
tmount was increased from $500. 600. |
300 to s500.0G6.000 Stock has been
ssucd on conversion of bonds and Of
Tered I" shareholders from time to !
inc in he last ten years
At the end of 1919 sAAf aei o0n nF
itock haI been issued and was out |
standing. This increase will make i,
possible for the company to finance in /
Tears 10 come through convertible /
,onds or sale Of stock, at the discre- /
ion IF the directors