New-York tribune., 1921-10-15
Tel. & Tel. Earns
S7.65 a Share i'm
First 9 Months
Total Operating Inc om e
Shows Gain Over Three
Quarters Last Year: Busi-
ness Growing, Says Thayer

The American Telegraph and Tele-
phone Company in the first nine months
Of 1921 earned $7.65 a share on the
$3.50 ,98s,o2s stock outstanding now.
Total operating income in the first nine
months Of 1921 amounted TO sS1,A75,-
600, compared with SIT 1856 900 in the
spending period of 1926
The American Telegraph and Tele-
phone Company actually operates Che
long-disssnce telephone lines Of the
Bell telephone system, owns control
ling interest IN the subsidiary com
pany which operates the local Bell
telephone systems throughout the
country and also receives a certain
amount as payment for IT'S services as
manager for the Bell system.
Telephone traffic in the Amer rican
company's report represents. therefore,
revenue from long distance lines. and
this amounted 20 $4,000 900 in tho
ne months Of 1921, rs compar red with
$at,789 900 from telephone trafi 9
earned in the first nine months Of 1920
Dividends in the American Teleph one
and Telegraph income account repre-
sent the am ount wh ch subsidiary csn1-
panies distribute on their stock, and
are therefore an arbitrary amount
within certain limits. in contrast to re
ceipts from long-distancc lines. Divi-
dends received by the parent company
n the first nine months of 1921
amounted to S2S S346, 900, comparing with
S26.07o 000 IN the corresp ponding period
Of 1920
Federal taxes, expenses, etc, call for
S25.922 600 in the nine months of 1921
and for S24,056,000 in the nine months
Of 1920.
The American Telephone and Tele-
rranh Company with more stock out
standing and vi Il 8 per cent instead
IF an per cent rate, had dividend re-
qVirements % SO $4,000 n the 1921
rerod and S26, ,527 600 in the 1920 pc
ri d. There was surplus Of SO 29t,-
GEO after dividends in 1921 and s12,.
6Sl 900 in 1920.
II. b. Thayer, president Of the Amer
ican Te'eph ne and Telegraph Com
panv. said in his remarks tat accom-
panied the third quarterl statement
The business OF the Bell system as
a whole continues to show q healthy
growth in spite Of the fact that busi
ness in genera has been ompa1atively
quiet. There has been no abatement il
the receipt CT requests for telephon'
service. and Notwithstanding the ins+al
lation OF new telephones 1T more than
the normal rate, untitled application
for service are still largely in excess
OF the normal amount. The net earn
ines 81 the Bell stem show substan
tia! Improvement over last year.
The company on May 10 1921, Of
/ Yered to it's stockholders of record o,
May 90, 1927, shares Of new stock fo
cash at par. Subscriptions amounting
T. s33, IT'S 600 were received under ;hi
offer, thus putting the company ii
funds for profitable investment in ey
/ tensions TO the business
''ft viii be noted that the earning
of the hn ericar Telephone and Tele
nah Componv for nine months endr
4eutember 70 w ich Do not includ
the c~mpany's interest in the undivide,
earnings Of the associot"d companies
show n incre"se for that period owe
Tho same months last veo~ Of 81 600
00o in The amount avai'a aN'o for divi
lends. Approximately 81 600 o00 NOR
hove hecn distributed in dividend
thror~h tno increased dividend rat
end uoo0 tho 'areer canital ieavinc un
divided ~.'i''--~ for the period Of NOR
than Sc 10 nO0o