Evening star., 1926-02-18
NEW TELEPHONE
FINANCING SEEN
A. 7. & T.'s Annual Require
ments Expected Soon to }
Benefit Shareholders.
BY CHAS. p. SHAEFFER.

The recent rise in stock of the
American Telephone and Telegraph
Co, which carried it to $50 a few
days ago. has been traced to a rumor
emanating from Boston that the com
pany will shortly announce refn-~--
ing plans with valuable subscription
| rights to present shareholders.
Buying in anticipation of these
rights undoubtedly is ba sed on public
knowledge that the utility, which IS ,
Americas 8 greatest. requires approXi'
mately $500, 100000 annually of new
construction monies. and the fac;
| that no parent company financing
has been effected for more than a
year.
In view of the fact that the Ameri-
can Telephone and Telegraph Co. has
more than $4,000. 900 cash in it's
! trea sury, it would seem to the casual
observer that immediate financing iS
remote. But this huge amount is
only drop in the bucket when speak
ing of Bell telephone finances, and
| local fnanciers familiar with the COM
pany's refinancing operations antici-
pate additional capital will be required
before the Summer Wanes.
1t is recalled that a year ago Sl25,-
100000 of five-year 5 per cent
debentures were sold. while A stock
issue of $3.50. ZOO, 900 at par was f1oated
in May or 1924.
Stock Increase Approved.
Stockholders of the District Ma
| tional Bank yesterday unanimously
approved an increase of $3.50, 900 of
stock to 81 100000
| Under the expansion program. pres
| ent holders OF the banks shares may
subscribe for SO per cent of their pres
| ent holdings at S175 a share, for which
| 10 \
| part of the new shares will be dis,
ributed among persons who are not
| now stockholders, at price to be
| fixed by the board, with the amount
received in excess of 500 passing TO
surplus.
When effect is given to present
financing the bank will boast a SUI
| plus and undivided account Of NOR"
than 100000.
North Americans Outlook.
| Wall Street statisticians prognosti-
cate earnings of the North American
! Co. for 1925. which will not be made
public until March, will show not only
| substantial increase over 1924 in
the business and revenues of subsid-
| iaries, but also marked gain in the
parent company'S earnings.
Balance available for dividends on
North American common stock will
be considerably greater than in the
preceding year, despite larger appro-
priations for depreciation reserves
| than in 1924. Common stock out
standing December 81 last totaled
about 3.70l,518 shares. 777.S67 shares
more than at the end of 1924. OF this
increase 474.S32 shares were issued
during the latter part of 1925 in aC-
curing additional properties, and
303.o35 shares represented regular
dividends paid in common stock. De
spite this heavy increase. however
per share earnings on North Ameri-
can common. based on the total com
mon outstanding December 81, 1925.
will closely approximate S3.15 shown
for 1924
4apital Traction Strong
Capital Traction stock showed the
effect Of a powerful interested force
on the Washington Stock Exchange
when a single transaction of 10 shares
jumped the price to 10S. Rumors per
sist that the North American Co. has
made a fiat offer for control Of the
issue. but these rumors cannot be
Verifed-at least not in Washington.
The shares of National Bank OF
Washington sold up to 305, but Mer
genthaler eased off to 2126s on an
odd-lot sale. Railway preferred sold
! cA-diN iueIIu DIT SUoS, dS OlQ lIanStOn
at 82l2. Two shares of American Sc
curity and Trust Co. brought 400.
Merchants Transfer and Storage pre-
ferred was unchanged at 101i@
Dodge Breaks Records.
All previous production records for
Dodge Brothers were broken Monday
and Tuesday of this week when the
output OF their Detroit plant reached
1900 cars for each of the two daysi
The high mark was gained after a
period of steadily mounting produc-
ton. Throughout January output
ranged from 900 TO LOO cars daily
The 800 cars a day schedule, which
has been made possible by the recent
completion of a $4,000. 900 expansion
program, including new buildings and
equipment, is to be still further in.
creased. Demand is now the greatest
in the history of Dodge Bros, and
every effort is being made to speed up
production to the point that will sup
ply the full requirements of dealers.
At the present time a completed
Dodge Bros car leaves the end of the
, assembly lines every As seconds