The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-03-27
WIRE SYSTEMS
SHARE RESULTS
OF SHARP GAINS
Communications Units Are
Expected to Record
Good Showing.


NEW YORK, March 27.-Com-
munications corporations are stag
ing an impressive recovery, and
earnings of the various units in
the industry will show improvement
in the first quarter over those OF
the first three months of 1895, esti-
mates today disclosed.
Perhaps the greatest improvement
will be shown by the telephone op-
Grating companies, which are con-
tinuing to record substantial gains
in local and long distance service
The companies also are still cam
paigning to regain stations lost dur
ing the depression era.
The squirt in commercial business
Is aiding these corporations SUBJ
stantially as are the increased op-
eratlons in the financial district.
brokerage houses have increased
their number of private and leased
wires, as we'll as the number of To-
cal stations which they have been
using.
Bell System Gaining
The % operating companies of the
Bell system, for instance, are show
ing net gains in stations since the
flrst OF the year almost double those
OF the same period in 1895. For in
stance, the companies for the period
ended February 90 showed a gain of
Ia, 400, compared with $1,000 a year
ago.
Telegraph companies also are re-
porting increased business over a
year ago, benefiting no little bit from
the present bull market in securities.
The January statement of the
western Union Telegraph Co.
showed gross revenues of 1888, 431,
an increase OF 81 per cent over the
corresponding month of 1855. The
company's net after fixed charges
was $178,110, compared with $4,000.
despite the fact that the 2 per cent
wage restoration became effective
on Jan. l. The February statement
also is expected to make a good
shown, and indications are that
March will show an impressive gain
unless the company should suffer
unduly from the effects of the floods
in the various sections.
In view of these reports, the state
ment for the first quarter should be
one of the best in recent years; at
least it will make one of the best
comparisons with former year.
Refunding Probable
Western Union, in view of it's i'm
proved earnings, is in good posi-
ton to refund the $15,000,O0O 61as
due Aug. at much lower inter-
est rate, perhaps per cent, thus
effecting saving of at least $780,
600 a year. In this connection it
also is probable that, if the money
market should continue favorable,
the company might consider re-
funding the $250Oo,OO0 25-year gold
IS, which become callable for the
first time Oct. l. Under present
conditions an issue carrying a 4 Der
cent or even lower coupon could be
floated
The Postal Telegraph Co., is still
in the process of reorganization
and while reports have been current
for some time that this company
would be consolidated with Western
Union, it is probable it's capital
structure will be remodeled before
any further steps are taken.
Another communication company,
Radio Marine Corp, also is report
ing increases this year. The COM
pany is said to be experimenting
with the transmission of facsimiles
to ships at sea. Already, daily
weather maps are being sent sue
cessfully to vessels in European
ports, and a full commercial serv-
ice may be inaugurated later.