Evening star., 1923-07-21
TEL. & TEL. SURPLUS
SHOWS GOOD GAIN
Reserve Bank Reports
Money Firm-FeWer Fail
ures During Past Week.

The estimated surplus of the Amer
lean Telephone and Telegraph Com.
pany for the first half of the calendss
year ended June 80 amounted to S4O,e
579,417, after charges and taxes, or
the equivalent of $5.72 a share earned
on $70S,275,300 average amount OF
capital stock outstanding in that pc
riod. This compares with $32.364,133.
or 1915 share on S562.259,40O stock
in the first six months of 1922.
Thus the company has actually
earned but 3 cents a share less the
first half of this year on outstanding
capital. which is $146,015,900 larger
than it was in the same period a year
ago. In other words. this periods
earnings taken in relation to capital
outstanding the first half of 1929
would be 1921 a share. Furthermore,
TINS does not take into consideration
undivided equities in associated com
panies profits.
1t can be definitely stated that
there will be no new American TeIe-
phone and Telegraph Company fl
nancing in 1928. Recently II. B. Thay-
er, president, pointed out that on
July l. the Bell system. after hav-
ing provided for payment of the
\
phone Company, which mature in De
cember, had on hand cash and tenn
porary cash Investments of over
S120, 100000. This includes approx
mately $2S,000,00u received on ac-
count of the sale of the Illinois Bell
bonds some weeks ago On December
81 last the system had S14S.000,000
cash and temporary cash investments
on hand. Both the parent company
and Associated ones are constantly
buying government bonds and are
probably among the largest purchas-
erS of these issues.
Money Market Holds Firm.
The federal reserve bank state
ments indicate there is no disturb
ance ahead for the money market
but rather that there will be a con-
tinued supply Of funds.
There has been further liquida-
tion shown of $40.50O,O00 in discount
ID bills by the various members in
the combined statement, which now
has ratio of reserve of 76.5 per
cent, against G5.4 week ago and
I1.S for the same period of last year.
The ratio of reserves at New York
is now up to SS.3 per cent; Boston.
72.1: Caleveland.71.7; Atlanta. 76.5; San
Francisco, 72.7; st. Louis, SIS; Min
neapoiis. 64.5; Kansas City, Gil:
Richmond. 81, and Dallas. ass. with
the latter against SIS year ago.
Fewer Failures During Week.
Only slight change occurred in
the number of failures in the United
States this week. the total of PSI
comparing with one of 291 last week.
while the corresponding week last
year showed a total of 444 defaults.
OF this weeks failures 153 had lia-
bilities of $4,000 or more in each case,
or 53.3 per cent of the total. Last
week the ratio was sos per cent, and
for the corresponding period of last
year 55.4 per cent.
Canadian failures this week are So.
compared with &c last week and 81 a
year ago. OF this weeks failures, %
had liabilities of $4,000 or more in
each case. against 50 last week, and
2S for the corresponding week of
1922.
Bank CIearings Lower.
Bank clearings this week are some
what reduced as compared with the
corresponding week of last year, ow-
| ing to loss at New York city, where
| stock market operations are smaller.
but at the other leading cities there
is a gain, the figures for this week
being S6,59S, 100000, a decrease of
| 2.5 per cent compared with year
ago. There is a gain of 15.S per cent.
however. in comparison with the total
for the same week of 1921.