Evening star., 1925-11-06
TELEPHONE INCOME
SHOWS GOOD GAINS
Bell Systems Net for Sep
tember Totals S3,159,073.
Railway Common at 200.
BY CHAS. p. SHAEFFER.

Operating income of the American
Telephone and Telegraph Co. for Sep
tember increased to S3.159,073 from
$2,733,910 in 1924. and for the nine
months of this year to S27,876,322
from $22, 2,959,792 a year ago.
Assets of the system as of Sep
tember 80 last totaled $1,600,00o 900,
with reserves and surplus of $215 900
600. The company has surplus and
reserves in excess of $707 900 900.
while its funded debt is approximately
$S45. 900, 900 and it's mortgage debt
$452. 900, 900. Book value Of the total
assets is over $4,000 100000. and book
value of it's physical property is ap-
proximately 81, 500 ,000, 900 Land value
alone is S235, 900 900.
The American Telephone and Tele-
graph Co. earned it's interest on it's
funded debt after depreciation in the
last 10 years from 81 per cent times
in 1920, the low year, to 60 per cent.
Associated companies have earned
theirs from 3.4 per cent times to 4.g
per cent times.
Next year the Bell system will Cele-
brate its fiftieth anniversary. In 1876
the first words were transmitted by
telephone between Cambridgeport and
Boston.
There are 44.0OO,0 900 local calls daily
In the United States and over 100000
toll calls, an aggregate of $4,000 900
telephone conversations daily. These
are conducted over AZ 900 900 miles Of
wire, OF which more than $4,000, 900
are underground. approximately 325,-
600 employees are involved in these
operations.
Recent statistics made public by the
company state that nearly 1,0O0,0 900
persons are interested in the bonds
and stocks of the Bell system. The
American Telephone and Telegraph
Co. which has the greatest list of
shareholders in the world, has 35S, 900
registered shareholders, excluding an
army of over 100000 employees who
are paying for their stock on the
partial payment system. There are
l6o,0O preferred shareholders in the
Bell system and there are approx
mately $4,000 bondholders.
Seaboard to Take Collateral
The Interstate Commerce Commits
sion today authorized the Seaboard
Air Line to take from the Treasury
Department $3.70O, 900 in bonds which
have been held by the Government
as collateral on loans.
The carrier was originally required
to deposit with the Treasury $40
100000 in bonds as security for the
repayment of $50, ,000,0 900 in advances
made TO 1t by the Government. The
railroad desired to obtain some of
the deposited security to aid in
hnance operations, and the Com
merce Commission held that the set.
tlement in the price of its securities
justified the release.
Railway Common at New Top.
Common stock of the Washington
Railway and Electric Co. eclipsed all
former high records on the local Stock
Exchange this morning, when "A
shares were traded in at 200, doubling
par. The source of the new buying
interest could not be learned, but
brokers attribute it TO renewed eff
fort on the part of out-of-town buy
ers who hope TO realize profits in
some obscure manner.
Lanston Monotype was in good de-
mand, 119 shares selling at IS, while
interim receipts of Potomac Electric
Power preferred stock sold at 103, 10
the extent of 10 shares. Railway pre-
ferred remained strong at fractionally
above 81, and 10 shares Of Continental
Trust Co. brought 81.
Baking Merger Completed.
Paul H. Helm, president of the Gen
eral Baking Corporation, yesterday
announced arrangements for taking
over the General Baking Co. had been
one IIIOIllI1 dlleI ILS SlOCh-
holders had received their first offer
to enter the merger. The company
purchased operates 33 plants in II
cities.
Moody's Weekly Review.
Moodys weekly review of financial
conditions in its current issue says, in
part:
"A bearish position seems prema-
ture and unwarranted. because the
economic indicia have not turned bear
ish, whereas in the past they nearly
always did turn bearish prior to any
serious decline.
Nevertheless, the average yield of
11S active stocks is now about q of
a point less than the average yield of
newly issued corporation and foreign
bonds; and this means that the yields
of stocks upon their current prices
are unreasonably and abnormally
small. Such situations in the past
history Of the market have usually
denoted approximate top.
In view of the excellent trade stu
alton, however, and of the prospect
that general prosperity may continue
increasing through the Winter, any
selling of stocks should be confined
to realizing in preparation for the
next large reaction whenever this may
occur.
Funds thus released may con-
servatively be re-employed either in
high grade short-term notes and
bonds. or in other stocks of higher