Evening star., 1922-02-25
TO SHOW NET GAIN
|NANNUAL REPORT
American Telephone and Tel.
egraph Earnings Are Better
:. Than II Per Cent.

Within a few days the 1921 annual
report of the American Telephone and
Telegraph Co. will be given to the
public 1t will show net earnings
after charges and federal taxes of
somewhat better than IL per cent on
sa47,0o0,000 capital stock. compared
with 11.7o per cent on s442.sa5.400 in
1920 and 1904 per cent on S441.9S1 200
In 1919. These earnings Of IL Per
cent take no account of undistributed
equities in subsidiary companies.
The report will show depreciation
with the same percentage to plant as
in 1920. but a larger dollar total.
There were more than 100000 new
Bell-owned stations added during the
year, compared with 549.S20 con-
nected in 1920.
Last year was one of great progress
1or the company. in the face of un-
precedented conditions, including raw
ages left by the war and business de-
preston.
The announcement on March so that
this company had increased its rate
on stock from to per cent did much
70 stimulate confidence in the financial
Fabric of the country. Two months
later the company offered to share
holders $90.0OO,0O0 new stock, of
which the public bought SO per cent
and the company's employees the ball
ance. The stock itself has risen
steadily. selling this week at 40. the
highest price since 1917, when it sold
at 12S. and 27a4 points above the low
OF 1920. American Telephone and
Telegraph Co. has the largest total of
stockholders in the world.
Merchants' Bank Activities.
Final plans for the conversion of
the Merchants Bank into the Mer-
chants Bank and Trust Company ar :
being rapidly completed. At a meet.
ing of the directors yesterday sin
new members were added to, that
body, according to announcement
made by Peter 4. Drury. president
Don Foster, Washington representa-
tive of the Thompson-Kelly Company
of Boston: William A. Hill of Moore
4 Hill: Eugene A. Smith of the Dis
trict Title Insurance Company: A..
Cooper Waller. former treasurer of
the Federal Trust Company of Du-
buaue, Iowa. and now with the Inter-
national Bank. and Harry f. Alien
of Allen. Mitchell & Co.. engineers.
With the exception of four or FIVE
other directors of the board will be
the present roster of the Merchants
Bank. Every director of the new
trust company is required to own at
ASdSt lOU SndTeS Oh STOCK.
Work is being rushed on thes new
quarters of the Institution at the
northeast corner of 18th and H
streets. in order to have everything
in readiness for the opening Of the
new company, which, according to
present plans, is to be on April l.
Improvement In Merchandising.
The credit clearing house weekly
report of merchandising activities by
manufacturers and wholesalers shows
more favorable conditions throughout
the country. with increased purchas-
ing by merchants, lower Indebtedness
and increased payments. indicating
active buying by the public.
A. I. b. Omeials Here.
Robert B. Locke. manager of the
Federal Reserve Bank of Detroit,
Mich, president of the American In
stitute of Banking, and Richard w.
Hill, secretary of the organization,
arrived in the city today to attend
the eighteenth annual banquet to be
given at the New Willard Hotel to-
night by the Washington chapter of
the association.
Accompanied by Edward McQuade
of the Liberty National Bank. the
two A. I. B. officials called on Presi-
dent Harding this afternoon.