The Waterbury Democrat., 1931-02-03

New Haven, Conn. Feb 3-A net increase of 7,291 telephones. the {. conversion of approximately 56,0aO stations to dial service. the complet- ion of 479,20O,000 local and 22,659,- 900 toll calls within the state and 2.729,O00 long distance calls. a H- ancial statement tha. indicates the favorable future of the business, and a construction program for this ye IT amounting to approximately $10,- 100000, are the principal features in the aarual report of the South ern New England Telephone con- pany read by President Harry ~. Knight a: the annual meeting of stockholders today. Harry E. Curtis, of Bridgeport. treasurer of :l!e Bridgeport Hardware Manufacturing Company, was elected to the board of directors to fill the vacancy caus- ed by the death, April ,, of August H. Bullard, of Bridgeport, a director since 1910.
 The following directors were re- elected: James T. Moran. chairmn n |, James English. Victor Morris Tyler, Harry C Knights, Dennis A. Blake slee. John J. McKeon, Walter S. Clifford, Victor Roth, Charles ?. Cooper, and James Lester Goodwin.
 The balance sheet of the company us of December 31, 1890, shows as sets to.aljpg $75,661, ,S07.56, of which the major items are land and build- ings owIed worth $9,376,852. and other telephone plant and equip ment vaiued at $61, ,249.09.. Gen. eral equipment is valued at $1 ,333,- 7OO68.
 The company has $40,000.O00 cap- ital stock outstanding, and a fund I-a. surplus unappropriated at the close ot 1880 is s4,209,794.11.
 Int income statement for the year shows operating revenues of $17. 659,296.30 and telephone overatiag expenses of $12,062, ,62738, leaving net telephone operating revenues cf $5,406,6G8 92. Deductions for ua- collectible operating revenues and taxes assignable to operations leave an operating income of $4,303.407.! To this ngure is added s157.863.51 net non operating income. making the gross Income S4.461 ,271.21. De- auctions for rent, interest, and other purposes leave a net income of $3,- 411,331.10.
 @ After deduction of dividend ap- propriations from income there is T balance for corporate surplus of $511,331.i0.
 Referring to the increase of 7,251 telephones. President Knight says in the report. Tt was as large as could reasonably be expected under the prevailing conditions. It was accomplished largely through the energetic promotion of telephone sales activities on the part of our personnel under the so-called Eve.y- body Selling Plan which was in au- gurated r. the fall of 1929. The ef- fectiveness of these sales efforts is indicated Ly the fact that the tele- phone installations numbered 79,- 339 or o'i.y 5000 less than during 1929. The removals, of course. were abnorma'ly high. namely 72,04S as against 6I .647 for the previous year, with the result that 108 installations were required to effect a net increase of one telephone. At the close of the year 328,004 telephones or one for each 49 of poullation were con- nected into our II Connecticut ex- changes
 "Construction was maintained at high level during 1930." the report discloses. Careful reviews of our program from time to time indi- cated that the continuation of nearly all major projects was not only f- nancially sound but also essential to satisfactory operating results
 This procedure made possible the maintenance of continuous employ ment fo- all our regular construc- tion forces and enabled us to pro- vide for the growth which must 'n- evitcbly occur with tn return to nor nal business conditions The eX- Denditures for gross property ad1i- tions during the year was $12,416,- 900, while our plant retirements amounted 70 $5.027,000. At the close of 1930 our total plant investment was S70,663, 0O0."
 With the improvement of gen eral business conditions will come increased Demands for telephone ser vice and requirements for additional plant. Post experience indicates the desira bility in times like the present of providing necessary plant margins and of preparing in general for the