The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-21
S 150,,000,000
STOCK ISSUE
BY A. T.&
New Stock Will Be Offered at
Par to Present Owners
on June 10
BY HARRY GUSACK.

More than $500 Washington
stockholders in the American Tele-
phone and Telegraph Company to-
day received notice that directors
Of the company at a meeting yes
terday decided to issue approx.
mately $3.50. 100000 Of new stock,
which will be offered June 10, 1924,
for subscription at par $500 in the
ratio OF one. new share for each
five shares owned. The present
shares were quoted at 123M on the
stock exchange today.
Funds from this issue will be used
for extension to the nationwide
telephone service of the company,
demand for which continues at
record proportions, according to
President H. p. Thayer.
The number of stockholders is
over 100000, making an average in.
Eestment' of about $500 each. The
payments for the new stock will
be spread over a period Of eight
months, the first installment of
$50 being due on, August /, the sec.
ond of $40 in December 1, and
third of $40 on April 1, 1926. In
terest at the rate of per cent
amounting to $3.50 per share will
be allowed on the installment pay
mentsr from their due dates to April
and will be credited on the final
payment reducing it to $3.50. The
stock so paid for will be issued UNI
der date Of April 1, 1925.
Payment In Full.
Subscribers, however, will be per.
mitted to pay subscriptions in full
on August l., or having made the
first installment payment when duo
they may pay the two remaining in.
stallments on December /. In such
instances they must pay a small
amount per share in addition in
order to make the net rate paid on
the money by the company until
April l, 1925, 6 per cent, the rate
allowed on installment payments,
instead OF per cent, the current
dividend rate. If, therefore. sub.
scripttons are paid in full on Aug.
ust 1, the price per share will be
par ($10O plus $275, a total OF
$1O2.75 per share, and if final in.
stallments of $50 per share are made
on Dec. l, 1924, the amount payable
then will be $2.10 per share add..
tional, total Of $82.10 per share
Stock as paid for will be issued as
OF Its date of final payment.
The directors also declared the
regular quarterly dividends of 1922;
per share in advance for a full wear
They are payable July is, Oct. Is,
1924, and Jan. is and April Is, 1925
Increase In Subscribers.
President H. B. Thayer in his
announcement to the stockholders
says: y
During the last five years more
imam 5000, 1000 telephones have been
aoded to the Bell System. The
increase in 1928 was the largest for
any year in the history of the bust
ness, and the demand for telephone
service continues without any
abatement, growth of the telephone
business gives stockholders an on
portunity for the remunerative in
vestment Of additional money.
The funds from this stock issue
Will provide for extensions to the
nationwide telephone service.
The substantial size Of the issue
makes any further offer of stock t.
the stockholders improbable for 3
considerable period to come"
bankers Committee to Richmond.
Robert V. Fleming, Harry v
Haynes and John Poole, comprisine
special committee of the District
OF Columbia Clearing House Asso
citation, will go to Richmond a week
from today to confer with Cover
nor Seay Of the Richmond Fedora
Reserve Bank.
The committee will take up with
Governor Seay a proposal to facili
tate the transfer Of cash to Dis
trict OF Columbia banks by the use
OF the Treasury cash room. If the
committee is successful it will
materially reduce the amount OF
cash reserves required of loca
banks.