Evening star., 1934-11-21
A. 7. 81. OCCUPIES
SPOTLIGHT TODAY.
Dividend Meeting Watched.
Interesting Statistics on
Business Compiled.
BY JOHN A. CRONE.


NEW YORK. November 2l.-The
telephone business is in the spot
light today as American Telephone &
Telegraph Co. directors gather for q
dividend meeting and the Federal
Communications Commission con-
tinues compiling data on communica-
ton companies in this country.
American Telephones action on the
s2.25 quarterly common dividend that
has been paid since 1922 naturally
interests the company's 1892, ,s05 Gus
toners. many of whom also are num-
bered among its $50 900 security hold
ers and 100000 employees.
The United States, with more than
1911, 900 telephones, or roughly, So
per cent of the worlds 1900, 900, has
1914 telephone companies. Twenty
five companies comprise the Bell
Telephone System. of which American
Telephone g. Telegraph is the parent
concern.
Foreign Service.
The Bell system, which will start
telephone service with Japan next
month, connects with all phones in
this country Except 10000 instru-
ments of 195 purely community COM
panieS), so foreign nations, and 20
transatlantic liners. 1t could furnish
telephone service to streamlined
trains, if there were a demand for
this service. 1t is also technically
possible to make telephone connec-
tions with every airliner. but the cost
of such service now does not make
it feasible
Americas 1911 ono telephones (as
of January 1897 'equire 1913
central Offices. of which 6763 belong
to the Bell System, and l2,l30 are
connecting and 300 non n-connecting.
The Bell System comprises Is COM
panies; the connecting companies
number 6,754, and nom n-connecting
companies 1876
Telephones in the United States re-
quire more than $1,000 900 miles of
wire, of which 65.8 per cent is in
underground cables; 283 per cent in
aerial cables and SO per cent in
open wire. When telephone con-
Struction is active. because OF the
settlement of new territory or an ex-
pansion in business, the industry is
large buyer OF copper wire and
various types Of cable. In the active
construction period in 1929. Amer
ican Telephone g. Telegraph alone
spent more than sl000.000 a day
for new construction. Now that its
work is largely confined to better
ments and requirements, construction
expenditures show large shrinkage,
averaging s445,00O day in the fourth
quarter of 1888
Huge Investments.
Investments in plant and equipment
Of the entire telephone industry in
this country approximate s4.700. .0OO,-
900, Of which 81 .239 GOO 900 is in the
Bell and s46l 900 900 in connecting
and non-connecting systems. Total
gross revenues in 1888 we're 1910 000.-
900. of which 1912 900, 900 were from
the Bell system.
American Telephone Is the largest
corporation in the world and has the
largest number of shareholders, ap-
proximately 68l 900. of which 38l 900
are women and about $4,000 Bell
employees. These holdings are of Tele-
phone common and do not include
100000 holders of preferred. $4,000
holders of common shares of the asso-
ciated "a companies. or the l80. 900
bondholders. Allowing for duplica-
tions. there are some 850.000 telephone
security holders, or more than one in
every seven security owners in the
country.
Division of Stocks.
Among the telephone common stock
holders. housewives. numbering 210.-
600. rank first; employees. ll5.000,
second; followed by clerks and sales
people. 10000; professional and
technical. 10000: merchants. $4,000;
manual laborers. 10000: educational.
trades. farming management and
financial and personal services. $4,000
each, and $4,000 Government en-
ployes
The telephone is sensitive busi-
ness barometer The Bell System in
the first 10 months of this year added
259 200 telephones. compared with
loss of $50 900 in the same 1888 period.
With the business recovery drive
now under way, many sales managers
with national staff are using a new
telephone service. This is the confer
ence service, whereby it is possible for
one person to talk to many persons.
even in widely-spread centerS, at one
time.
fConvricht 1o2tN