Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-14
Special Dispatch to the Star.

Special Dispatch to the Star.
NEW YORK, March 14.-Viewed
from depression standpoint, the
operating results of American Tele-
phone & Telegraph Co. for 1880 were
highly satisfactory. While net income
did not show the usual normal growth.
total income showed an increase over
| 1929, the aggregate of 92,014,87l for
| 1880 comparing with 75,695 GOT in
| 1929 and $235, 781 978 in 1929 Net in
come was approximately the same as
that for 1929, being $165, 544, TOT, against
! S166, 1879 1853 in 1929 and S143, 170,49l in
| 1923. The 1880 net after depreciation,
! interest, federal taxes, ETC., was equiv
alent to $10.44 share on 15,856,696
average number OF shares outstanding
| during the year, and compared with
$1267 a share on 13,113,746 average
shares for 1929.
Applying the 1880 net to the 1929
/ shares, the earnings were but few
cents a share less than indicated for
that year. For the first time in many
years, the management was unable to
keep earnings in step with capital ex-
pansion. During 1880, the company
| issued a record total of new shares,
offering one share for every six held in
| April of that year which required an
additional 2,418,958 shares.
During 1880 also, the company paid
out the huge total of $l39 ,238,073 in
dividends, compared with $116,378,77
in 1929 1t received from associated
companies during the year an aggregate
of S148,178, 1886 IN dividends, compared
with $140,911 $50 in 1929 and $119,-
| 176,197 in 1923.
Revenues Gain.
Actual telephone revenues during 1880
aggregated $114,560,866, against SILL
892, 242 in the previous year. Interest
| and other income accounted for $29,-
275, 119, against $22,894 075, and I'M
doubtedly was swollen by interest on
funds on hand during the latter part
of the year as result of stock and bond
sales as well as convertible bond con-
version.
Expenses and usual taxes and de-
probation amounted to $94, 034, 1886,
against $81 1873, 035, while interest paid
| totaled S32 LABS, TIE, against SGT ,633,114
Surplus for the year was reduced by
s23, 504, 1853 to $26,306,634 from $49,-
810,987.
AS whole, the SAB 7s, 1886 dividends
received from subsidiary companies
were actually earned by margin Of
$10,000,000.
The telephone operating revenues are
| ODIdlIlSO ODG1dttOIl VI LIlC lOIlB-
distance lines and payments from the
associated companies for services fur
nished them under the license con-
tracts.
Ample Funds on Hand.
The chief item of interest in the
company's 1880 balance sheet is the
large amount of funds available. These
| sums grew out of the large total Of
financing done during the year. Cash,
Government, state and municipal bonds
aggregated $388,857,763, against only
| SAL ,387,13 at the end Of 1929. Thus
it is obvious that the company will
hardly find it necessary to do any new
financing in 1881. The Bell System
expansion expenditures for 1881 call
for $3.50, 100000, and any advances the
parent company may have to make can
| amply be cared for out Of the large
sum available.
The parent company's investments,
at cost, in stocks of associated COM
panies increased by $188,735,318 in
1880 to $1,778,062, 693. This compares
| with its own capital stock outstanding
at $1,795 ISL 200, an increase of $473,-
| 81, 400 during the year.
The company had an investment in
stocks of subsidiary companies at the
end of 1880 aggregating $168, 692 1888,
an increase of $40, 533, 1886. These in
vestments are in other than associated
| companies and include an interest in
such companies as Bell Telephone Lab
oratories, Bell Securities, Bell Tele-
phone of Canada, Cuban American
Telephone and Telegraph Co., Western
| Electric Co., 1876 Broadway Corporation,
Eastern Telephone and telegraph Co
| Of Canada and Transpacif1c Communi-
cations Co., Ltd.
| Current assets as Of December 81,
last, aggregated 407,678,132, against
current liabilities Of S77,338,873. At
end of 1929, current assets were $780,
$4,000, against current liabilities OF
| $66,174,895.
The company's total assets amounted
to $3162, 926,191, against S2,477,023,550
in 1929. Total surplus was 1922. 3e9,47o,
an increase of s2i, 1922, 1856 for the year.
Surplus after dividends for the year
| amounted to $26,306,634, but there
| we're deductions amounting to SABA
| 278 for taxes on new capital issues and
| discount and expenses on bonds issued
| less premium on bonds retired. Amer
| lean Telephone and Telegraph ended
| the year with funded debt aggregating
| 1882, 615, TOO.
Gain of l22,50O in Installation.
There was an actual gain Of 122,500
| telephones installed by the Bell System
during the year, bringing the total to
20,098O59, including Bell connecting
companies and lines. This compares
with an increase of 821, 400 in the pre-
vious year, and represents the smallest
increase in new installations IN about
20 years.
Since American Telephone and Tele-
graph Co. began to make rate reduce
lions in 1926, 1t has actually saved
about S12,O00,000 annually to the users
of long lines. The last cut was made
on January 1, 1880, with a saving OF
SIS 600, 900 to long distance telephone |
subscribers Undoubtedly further re-
auctions will be made when warrant
able.
At the end of 1880, the company had
ST., 694 shareholders of record, an m
crease of 97,893 during the year, the
largest increase for any year in It's MS
tory. Large amounts of the stock Went
into investment boxes and fixed trusts
portfolios The average holding IS 81
shares. No single stakeholder owns as
much as l per cent of the total shares
outstanding, and there are 211,384 stock
holders who hold five shares or less
and 319,627 with ten shares or less
Those holding 100 shares or less num-
located