New-York tribune., 1921-03-30
Amer. Tel. & Tel.
Raises Dividend
Rate to 9P.C.
Action DecidedUpon to Keep
Stock at Premium and
Aid ia Disposing of New
Issues; Effect Immediate

Tha announcement was made by n u
.rn,y' mayer president of the Americas ~
ietsphone and Telegraph Connan,s
s,u.s'eruav OIL decision If the hoard nc
directors to place the comnanv,s stool
On y per cent dividend basis. berin
, 'lhp July 10. The 8 per cent rate nod
osen maintained since 1907. The do
ssloh had an immediate effect on th,
~ - ~ Inc stock advancing quickly
w "uVNs 1V' and closing at a net ad-
os $3.50 ol = points. at 1885, Advances
were rec orded. s4les
american Telephone and Tclecra,b
STOCK Is the most widely held ~ ap' apt
fA'neficah ht. "a, industrial corporation.
AR. ISayer's statement r.8ent;,,. -.
~, =, usa inofe than an ordinary diyiden,,
announcement. IN that it was q stsFn- s','-
,heht OF policy, was one of the dar,s
1es'ures in the market. The addition
% 4 per cent to the dividend rate u,a
,maue ho1 alone because earnings war
iansea an increased disbursement bn+
ac~s,;r; ~"nse ~ - tne company's policy OF
acquiring new capital throuph fhe ;s
suance OF stock rather than thro,nb
pohass and it is, therefore. necessary
10 maintain the stock at a premium, n
create demand for new stock.
MI Ihayer said in his annou,ca-
nient: .s "'houic"
'ne change in dividend rate is nc4b
ing more than an adjustment To a NOW
s"E OF conditions. 1t has alwavs hoe ,
the policy of the company TO nav snrr
olvldend as would maintain the mar
KEY vaiue OF the stock at d premiuu
sunncient to attract subscription to ncu
STOCK issues. The issue of fair pro
"ortion OF new capital rather than thf
a dnhf t.1~
ls necessary part of any sound finar
clal program. Before the war the 2
per cent dividend maintained the stock
at a satisfactory premium. The WI
PERIOD, OF course, could furnish no dats
lor program OF which permanency
should be an essential Since the wal
with efficiency and earnings eouivalen
20 pre-war standard, it's stock is bougb
nd sold at only about lar. Par valus
ndlcates satisfactory absorntion of tn,
present issue, but no demand for mor
st the same rate of return. Stock mus
,e at premium to indicate q readi
hess to absorb further issues.
Not only present financial condi-
tions governing the status of this and
other investment securities have been
considered, but also the probable con-
dItlons IN the future. and the action
of the directors is based unon the
conclusion that higher rate Of return
IS necessary to attract the portion of
the capital which must come from the
shareholders Ia order that extension
of the telephone service to keep pace
with the growth Of the country and
the demands of the public may 40 on.
Having arrived at this conclusion, thew
have authorized this announcement in
order that all shareholders may be in
formed at once. There has been no
time within the last ten years when
the company's earnings have not been
sufficient to pay the higher rate of
dividend'
At the annual meeting Of stockhold-
ers directors were reelected with the
exception of George l.. Green James
W. Green and Clarence L. Langridge
were elected to fill two vacancies.
resolution was offered and sec
onded that stock offering plan be
made to the employees, which would
limit them to purchase of fifty shares
in q year, and none OF such stock would
be issued to them until fully paid up
to par.
Clarence H. Venner referred TO a
letter he had written the president ask
ing for list of prices and dates when
subsidiary securities had been bought
and sold during the year. Mr. Thayer
replied that he had had no time to sup