Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1920-10-29

The Municipal League Bulletin, is
sued by the Municipal League of
Georgia, which is an organization of
municipalities and their representa-
tives, presents some interesting fig
ures in connection with the applica-
tion of fhe Southern Bell Telephone
and Telegraph company for an in
crease in rates, which application is
now being heard by the Georgia Rail
road commission. Says the Bulletin,
declaring reduction should be
granted:
"The entire capital stock of the
Southern Bell Telephone & Telegraph
Company is owned bv the American
Telephone & Telegraph Company of
New York. The American Telephone
& Telegraph Company also owns $40
of the stock of the Western Electric
Company, Inc, which company man.
ufactures the apparatus and instru-
ments used by the Southern Bell.
Purpose of Raise.
"The capital stock of the Ameri-
can Telephone & Telegraph Company
was 100000. In 1898 it had been
increased to $7.500,000. In 1901 it
had become $100,000,000, at which
time the stock was increased to $780,
100000. In 1903 the stock was in
creased to $25O.0OO.000. In 1909 to
$500, 100000. In 1910 an increase
to $500, 100000 was authorized. In
March. 1920, a further increase of
$3.50, ,OOO,O 900, making the total stock
$3.50, 100000. The rate of dividends
paid by the company upon this COM
mon stock prior to 1906 was Z 1-2%o
per annum Since that year it has
been go.
"Were these increases bona fide in
vestments of new capital or stock
dividends?
''To pay dividends on this last in
crease in capital stock at the rate of
8% will require an additional an
nual expenditure of $40, 1000, 100000.
"In 1908 dividends and undivided
profits of the system were S33 $685.
500. In 1919 they had increased to
.957,565. an increase in eleven
wears of S18,064, ,065. In 1914 the
combined balance sheet of the entire
Bell Telephone system in the United
States controlled by the American
Telephone & Telegraph Company,
showed a surplus reserve OF $189,-
955.149. BY 1919, five wears later,
this surplus and reserve had been
more than doubled, becoming $685.
574,000.
Wheels In Wheels.
"The Western Electric Company,
Inc. had outstanding on December
81, 1919. 10000 shares of common
stock with no par value, and $3O,-
600 900 go cumulative preferred
stock of the par value of $4,000 per
share. The American Telephone &
Telegraph owned 146,784 shares OF
the common stock and $29, ,269, 600 OF
stock was retired on March 8. 1871,
the preferred stock. The preferred
at Sl2O per share and the dividends.
Dividends on the common stock were
paid at the rate of $4.00 per share IN
1915, $500 per share during 1916
1917 and $1,000 per share during
1918-1919. Therefore in 19lS-l9l9
from this common stock alone the
American Telephone & Telegraph
Company received dividends amount
ing to 81 ,467,84 On February I9th
of this year the stockholders OF the
Western Electric Company voted to
authorize an increase to 5OV,OOO
shares with no par value, each COM
mon stockholder being given the
privilege to subscribe at $loO per
share in proportion of 11-3 shares
of new stock for each share OF COM
mon stock held, making 100000
shares in the new issue of common
stock and total outstanding OF 35O,-
900 shares.
"To pay dividends at $1,000 per
annum on this increase of $4,000
shares will require an additional an
nual expenditure of $3,500,00O.
The business of the Western Elec-
trict in 1908 amounted to $32,313,-
500. In 1919 it had increase to
$135, ,722,489.
"The capital stock of the Southern
Bell Telephone & Telegraph Com