Evening star., 1925-03-05
PLAN HALF-B|LL|ON
INCREASE IN STOCK
A. I. & 7. Directors Will Ask
Shareholders to Sanction
Boost in Capitalization.
BY CHAS. p. SHAEFFER.

The American Telephone & Tele-
graph Co. today recommended to
stockholders that the authorized
share capital stock of the company be
increased from 81, 900, ,00o, 900 to 81 500
100000 IF and when it shall be
found desirable" The recommenda-
tion was made in order to provide a
margin over the requirements for the
ensuing year and for the issue of cap
ital stock at some future date. No
new stock offering is contemplated in
1925, 1t was said.
Net income available for dividends
of the American Telephone G. Tele-
graph Co. for 1924 amounted to S9l,-
146,32II, or s11.31 per share on the
average amount of capital stock out
standing during the year, according
to annual report made public this
morning.
Net Earnings Increase.
After meeting all operating charges,
making adequate provision for de-
probation and adolescence and for
Federal and all other taxes charge
able against 1924 earnings, the com
pany had net earnings available for
interest and dividends of s107,619,-
362.S2, an increase of $12,229, ,444.79
over 1928. Interest charges were
s16,573. 3.041.4, an increase over 1923
80 II
Dividend charges during the year
amounted to s70.9iS,227.27, an in
crease of s7,643,S39.19 over 1923, re-
fecting the increased capital stock
outstanding. OF the resulting bal
ance of S20.12S,09414 there was ap-
propriated for contingencies $1,000,
00o and the remainder, $l7,12S, ,094.14,
was carried to surplus.
Officials of the company state the
-1xr n n
sented a return of not more than
per cent on the value of the COM
pany's property, less the amount of
its debt
Total Assets &S07 ,OOO, ,OOo.
During 1924 the investment in telc-
phone plant of the system increased
approximately $2ss. 900, 900. At the
end of the year this investment in
cluded more than S216. 900, 900 in land
and buildings, $S07, ,000. 900 in central
Office and subscribers equipment and
3S.00o.000 in outside plant in the
form of poles. wires, cables and con-
duit, the balance being mainly rep
resented by construction work in
progress
The total assets at the end of the
year were s2,664.194,546. The funded
debt of the system increased only
the capital stock, including install
ments. increased approximately s202,-
000,0 OF this increase in the cap
ital stock. more than s163, ,00O, 900 was
in the stock of the American Tele-
phone and Telegraph Co, the re-
mainder being in common and pre-
ferred stocks of the associated COM
panies outstanding in the hands of
the public.
anu hn- ha 1ar
Der of stockholders of any corpora
tion in the world, and none has its
shares more widely distributed. Of
the 345,466 stockholders of record
one-sixth are employees of the Bell
| system, owning an average of nine
shares each.
Savage to Keep Up Fight.
Francis NJ. Savage, president of the
no abatement in his several years
fight against branch banking wire
from him from Santa Fe. N. Mex, to-
day asserts the controversy will con-
tinue before the country, Congress
and the American Bankers Associa-
| tion, that the misuse OF the Mills
paugh act to authorize branch bank
/ ing Is Washington and the injustice
of its use in certain cases be correct
! ed, and for the good Of young men
\ of the Nation
Local Stocks Go Higher.
An upward tendency was the out
| standing feature of trading on the
! Washington Stock Exchange TODAY
The attention of the trade was CEN
| tered on market favorites, with
prices paralleling the high levels for
1 the year.
| Railway common sold at 1o4n, with
| but 10 shares available, while the
| preferred netted a gain of a quarter
point to SlA on sales of 20 shares
Lanston moved upward to 50 on sales
| of 80 shares, but National Mortgage
and Investment preferred soll off to
SA in heavy trading involy ing $50
shares. Washington Market Co. was
active for the first time this year. 90
shares bringing SO, and Gas firmed
up to 5s1a
Utility bonds were very firm George
| town Gas 5s brought s5. with Wash
| ington Gas 5s selling at e9A and the
6s at 103% Potomac Electric con
solidated 5s sold at 9SA, and Rail
way 6s at 1011s. Railway As were
pegged at 7s%.
1nNr 1ar~y ~~y -a-~-~x~-