The San Francisco call. [volume], April 21, 1907, Page 52, Image 52

About The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913

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First Offering of Stock in the
Southern Telephone=Elee=
trie Company
The telephone has become one of the most important
factors in the business and social life of the entire world.
This is especially true of the x United States. The tele-
phone is constantly in demand by the people, . and al-
though furnished at a very reasonable rental, it has been
found to be a very profitable investment. Large percent-
ages have been made by those holding securities of tele-
The Southern Telephone-Electric Company was
ganized principally to conduct a telephone business : in
one of the richest sections of the United States, viz. : The
State "of Texas, constructing and operating both long
distance and local telephone systems. The Southern
Telephone-Electric Company is not only . a telephone
company itself, but also a telephone construction com-
pany. It will work along lines somewhat similar to those
employed by the Empire Construction Company of the
Pacific Coast, thus assuring large and continuous profits
for its stockholders. *
Mr. E. L. Swaine, President, in speaking of the plans
of operation, states as follows : "The Company now owns
the Fort Worth Long Distance Telephone Company, and
will soon acquire extensions for the construction and
operation of local exchanges in a number of towns in the
State of Texas.
. \u25a0 . _ \u25a0 .
"The Company will hold control of the long distance
lines, which will enable us to protect the business of the
local exchanges, besides bringing a good revenue.
"When a local plant has been constructed arid in
operation a company will be formed among the business
men of the community. They will subscribe for the
stock, as it will pay a good interest on the investment,
and they will be the owners of the property in their own
town.
"The Southern Telephone-Electric Company will re-
ceive for such plants from the" new local companies part
cash and part bonds, based on the earning power of the
companies, which cash and bonds will give a very good
profit on the work of construction and place us in a posi-
tion to turn over the funds again in another locality.
"The profits in the telephone business have proved
very satisfactory, paying good percentages on bonds and
stocks, besides enabling the companies to lay aside a fair
surplus. This refers to the operating companies, from
which class we expect to secure a portion of our earn-
ings, the greater part to come from the profits, on con-
struction. It is the intention to set aside for sale only
sufficient stock to provide capital to carry on the work
in hand, which will enable us to pay very satisfactory
dividends on the outstanding stock.
"Our representative now in Texas writes of the great
possibilities there, and we are looking forward to remark-
able success."
The Southern Telephone-Eleo
trie Compariy
Is a corporation duly organized and incorporated under
the laws of the territory of Arizona. The capital stock
is ten million dollars ($10,000,000), divided into one hun-
dred thousand (100,000) shares jof a par value of one
hundred dollars ($100) per share. The stock is fully
paid and forever non-assessable. There is no preferred
stock and no bonded indebtedness. Each and every share
of stock is on an equal basis. The organization or; char-
ter member price of this stock has been placed at $25 per
share. Every share of stock issued at the present time
has been paid for in full at that price. Not one single
share of promotion stock has been issued., The officers
and directors of this corporation have paid the. same
price, $25 per share, for their own stock that they offer it
to their friends and acquaintances. \f r ?.
The purpose for which this Company was organized,
to acquire, develop and carry on a system of independent
or home telephone plants, both local and long distance,
in brie of the richest telephone fields in the United
States, will be dwelt upon at length hereafter, a ;;
The territory, or field, which has been selected by
this board of directors is one of the richest in the United
States and at present almost -overlooked, except by the
interest^ controlled by the Bell Telephone.
The charter of the Southern Telephone-Electric Com-
pany is broad, permitting the company to' carry on the
business of constructing" and operating telephone plants,
long distance lines and equipment, electric power and
lighting plants, arid any. and all business .pertaining to the
acquiring, operation or , development of the telephone
and electric lines. The charter permits this company to
act as a holding company. In other words, grants the
- » - •/••\u25a0'' — " •\u25a0 ' ;\u25a0 ...;-:' : ":.--'
HVHO^IVIATPipiN eOUPOJN
Southwestern Securities Co., Fiscal Agents
_ \u25a0 . > i \u25a0\u25a0 .* ° --•
200 to 231 Delbert .'Block, 943 Van »ss A \e n San Francisco.
515 to 516 Central Bank Building, Oakland, Cal. ' \
I am Interested in ronr SOUTHER]* TELEPHOSE-ELEC-
TRIC COMPANY, and if my request will uot obligate" me in
any wajr I shall be glad to receiTe further information.^
r . ' - -..\u25a0\u25a0\u25a0 - . ; \u25a0 \u25a0 - ,- .--;-..,.,/ ;
-.-•\u25a0 -....\u25a0,..._,. .-\u25a0 • .. ,-. \u25a0-\u0084 v _
ffiffE^'SA^
f j - \u0084 •
corporation all privileges of ' holding ; the i stock of l other
corporations— in fact, to : carry on all of , the ' business "at
present contemplated. It covers all exigencies which
can possibly be foreseen, facilitating. the future develop-, v
P^ent of the independent telephone business. in theC State
\u25a0Texas. -. -' • .-• ; .;\u25a0;; ; : ; ; ..'v-:- \u25a0.--\u25a0/\u25a0_ %-. ; \u25a0," \u25a0 \u25a0
The affairs of the corporation will be. under the man-
agement of the follow/ng Board of Directors : \
E. L. Swaine, General Manager of the Home Telephone and
Telegraph Comimiiy of ; Los Angeles, Cal." "; v ; -'
j R. J. McHugh/ Chief Installer and Pacific , Coast" Sales Man-
ager of the Kellogg Switch Board and Supply -Company.
.Jf. F. Wilson, San Francisco, Cal.' - r ,
Ernest A. Olds Superintendent of Construction of: the Home
Telephone and Telegraph Company of Los Angeles, Cal.
H. L. Edwards, Superintendent ':_ off; the"' Contracting .Depart-
ment of the Home Telephone and Telegraph Company. . v
- F. ; J. Morris, Cashier of the Occidental Trust \u25a0 and -'Sayings
Bank of. Los Angeles, < Cal.,. and formerly auditor of the Home
Telephone and Telegraph Company. ,
J.. JT.'fO. Kech, Attorney, Los Angeles, Cal.
Edgar A. Sharp, Attorney, Los Angeles, Cal.
: . The officers of the Company are:
E. L. Swaine, President; X. V: Wilson; Ist Tice President:
H. L. Edwards, 2d Vice President; E. A. Olds, 8d Vice President; \u25a0
J. \u25a0>". 0. Rech, Secretary; F.J. Morris, Treasurer; R.J.McHugh,
Chief Engineer. *>>:" ' ' r :
The men who\vill have charge of the field work and
operation of the affairs.of the; Southern Telephorie-Elec-"
trie Company are all practical,^successful telephone men
of unquestioned integrity and special ability in their par-
ticular branch of technical effort. . J
• The chief engineer for this Company, Mr. R. J. Mc-
Hugh, has been associated with the Kellogg Switch ,
Board and Supply Company for a number of years.
During that period he has : installed some -of the - largest
telephone exchanges in the United States, notably those
of Baltimore, Cleveland and St. Louis.
'The Home Telephone Compariy of Los/Angeles,
which has been one of the most prosperous and ;success-
ful telephone corporations of the United States, has had ,
as its General Manager Mr. :E: L. Sv/aine^ The
administrative affairs of. the corporation will be
under his management, ably assisted by Mr.
H. L. Edwards. Mr. Edwards has also ".been
connected with the Home Telephone Company of
Los Angeles fora number of years and has won an en- :7
viable reputation for himself by carrying out a success-
ful campaign for the securing, of contracts in Los Angeles
in the face of a tremendous opposition on the part of the
Sunset Telephone Company. . \u0084
Mr. Ernest A. Olds resigns as Superintendent' of '
the contracting department of the Home Telephone
Company to devote his entire time to : the Southern Tele-
phone-Electric Company. Mr. is ; the i man who set
the first pole for the EmpireXonstructiori Company in
Los Angeles, since which time -he has been continuously
employed as Superintendent of Construction of the Home
Telephone and Telegraph Company arid the Home Tele- V
phone Company of Los Angeles. In addition to these
duties Mr. Olds has, acted as; consulting engineer in the
construction" of numerous \_ small suburban . telephone :'
Joints constructed by independent corporations.
Mr. F. J. Norris, formerly auditor; of. the Home Tele-
phone Company of Los Angeles,' and at present cashier
of the Occidental Trust ,and Savings; Bank, will act- in
. the capacity of Treasurer of .the Southern- -Telephone- '•
Electric Company, thus assuring; a- careful: and economi- !
cal management of the financial end of.this enterprise.
Further information as to the standing of the men
behind this proposition' seems unriecessary, 'as their long '
continuous record of success and their practical expe- f\
rience in their chosen work are sufficient evidence of their
ability to carry out the plarisj and assure success of the;
Southern - Telephone-Electric Company. Remember,^
also, that these gentlemen have sold arid are selling their
interests in other telephone corporation's " : and placing T
their available funds in ; the stock \u25a0 of ' the ! Southern Tele-
phone-Electric Company at the same price and on the
same basis as the stock is goffered ; to you., -
The territory^in 1 which^ this (corporation will operated
y 'is no less than the cotton .beltof Texas, a Jaelt containing
' ; a greater population than the three Pacific- States, Cali-
fornia, Washirigton and -Oregon combined. 2 This is vto-
- day, in the. minds . of these. men; "the best ; and richest ter-^:
ritory in the^United' States for the ; operations of suchVa -^
corporation. Let us emphasize; the -fact: that these men"
are familiar with -the; telejphbne^situaitib^ throughbutthe
United \ States and that \ they . have; chosen this rich cotU)ri
of : ; Texas because f it offers ; greater : : inducements arid^
quicker'arid surer profits than ; ~any; other territory; The
'company already^ possesses the keynote^to this entire ter-^
r ritory. >It(has; already purchaseHslbrig distance (telephoned
'lines, which are constructed V'arid" in operation*; 3 '
\u25a0also; rights; of way for -\u25a0% long- -lines ~'and' ; -
franchises "for;; constructing ' "V
systems in ' cities and ; towns \u25a0 up • ancl \: down i this •>\u25a0 belt -•\u25a0
\u25a0 Itf fact, so much work has already^been done and so riiuch i?
progress made ; that '- no ''other'.; company,; even should it
* possess the same^ financial £ advantages | r and l the; 'sarrie'ab'le
'I Board of ; Directors, could possiblytbecome a competitor;^
is a big element -in thesuccess;bf ; thisTcorpbratiori; : r
Great Profit jti Tele^hcirie ;
•Business
That there sis good- profit} in i • the .? telephone ; business • is i *
; a fact so universally acknowledged; that : it' seems ; urineces- - \u25a0 "'
sary to^ dwell \u25a0 upon : it. ,. A: small invejstrrient in the ; stock ; :
Cof the Bell Companyhas made many an inde- ''- '-
pendent fortune, vAt r the present time there ; afe ;more
independent telephones in Jthe IJnited \ States than Bell
telephones,, and there is just, as much money to 'beimade
out of an investmerit in, telephone securities 'now'as there
:was when you could r have bought Bell Telephone stock
cheap. .Furthermore, you; do. ! not, now have to take , the .
risk,that .was necessary when the telephone -.business. was
in its infancy. * Since its "inception the telephone business
has been classed among the most lucrative fields in which
large capital can be irivested. At the; present time
throughout ' the country irideperident telephone compa-^
nies, wherever established, working side by side with the \u25a0
Bell Telephone . Company, are enjoying - a much greater
> success than the great monopoly. *fwo important factors
create these conditions/
First— The average red-blooded individual has no
i love for any great (monopoly; and' public {sentiment has J."
.been a great factor in '-estabiishing and making a success
of the independent or home telephone lines. ;.
Second— The independent telephone lines have an
advantage in being able to place new arid up-to-date
: at the disposal of their subscribers - without .
\u25a0'\u25a0 -;being , compelled to lose : the capital whic^the Bell has'
: already tied up in old arid less effective equipment.
In .1 894 there were > 300,000 telephones in use in \u25a0 the
United States,' or one telephone to every 230 people. / In
1907 it is estimated that there are s,6oo,ooo'telephones in
use, or one telephone to every"l 6 people. Of this nurhber
the independent or home v companies have 3,000,000
'phones, against 2,600;000 of the Bell monopoly. These
facts prove conclusively how important and necessary is
the telephone to all business interests of the country, also .
making. a ;mpst; convincing argument in favor of the in-."
dependent line's. : ,
As an evidence of the profits of a telephone enter-
prise we need only point to the earnings of the Los An-
geles compariy for 4y 2 years
1901 Gross Earnings; . . . $202,902; . Net . Earnings .... .8108375
1902 Gross Earnings;'.-. : .'5385,852; Net Earnings.. ...$156,142
1903 Gross Earnings. ... -$396,490; Net Earnings. .1 . .$182,529 •
1904 .; Gross Earnings . . :$485,272; Xet Earnings. . . . .$195,532
19Q5. Gross' Earnings; Six Months. '.':-. ... ..... . ... . .'. $273,375
\u25a0^J^tiiEarain^,^jx|Montns . .................. .^5119,685
The -Western Telephone Jou^-
r rnar Has This to Say /
; j of the Future:
' y " "It jis only a matter of time when the whole North
/'American 'continent will be. gathered under the '""banner';
of the Independents." : \ '":.'".'','. \ -
"No movement in the world's, history has a brighter
-outlook thart the; one in which' you are engaged. It has
passed through the stages W/doiibt and difficulty. It has
• survived the attacks of the monopoly and its creatures.
"The mighty wrongs and petty perfidy,'
.: foaming calumny, '
.The small whisper of the paltry, few,
And the; subtler Tenom of the reptile crew." V
''It only remains with courage and confidence to carry
r . • on : . the work until every citizen throughouto ut the land shall
b»e supplied, with this: means of conversing with his fel-
lowmen. I do, not'see, why, at the rnosr conservative es-
'\u25a0\u25a0l tirnateuUhei Independent
';• 10; per^cerit of the entire population lwithin the next few
\u25a0 years.*; This will require an investment 7 of approximately \u25a0
$600,000,000,; and ;of K this you rriay be sure; every, dollar of
• the 5 money i will -afford- a far more ; remunerative -invest-
ment than 'as jif the same
electric lighting or any other public utility." -' *
• ."Do riot ; be pessimistic about the future. As you pro-,
.^vide the facilities the people i r^ach(o^t for them.; It'
is not -many years since^, wsejmen^iri tJle;Doriiiriion\u25a0Pa^-
/liament predicted that the receipts of the . Canadian-Pacific-
• Railway would m ot pay for \u25a0the axle; grease. Today we
find l two more transcontirierital raHways. hurrying : for-:^
v ward iji a race . to connect the Atlantic \with :
the Pacific. -xThis' \s:, only; one iUustration^bf ,how we may
show timidity in estimating the possibilities : of Nthe :
. .vfutureV'-' . :" ;\-;r-,V; \u25a0;. > 7..',,. : -'.\.;V- > ." \u25a0:/•..:.'/•:'; .; .•':\u25a0\u25a0'- '\u25a0\u25a0\u25a0 : 'i\: . .;. \u25a0•.- *;. '•£'\u25a0
' - (Note: The foregoing was read before] the recent Illinois
• State : Contention. ,. Mr.^Dagger^is!; telephone expert r to :the
"Dominion House of Commons* select committee on telephone sys-
• temSj Ottawa, Canada.— -EDITOB.) . ? '> . . / .
New Telephone ' Qornpany Of-
fers Small Investor an Un=
usual Opportunity
The time has come when the people ought to \u25a0 own
the -public . service • corporations, arid they are going .to
owri :tliemr;to6^ )Here , is an opportunity for 'a ; sriiall? in- "'.
: yestdr ' to" buy ;stoc^:;that; should {ultimately make him r
J financially; independent^ :THe; conditions ?that * rnake^pbs-
;^sibleJthVsucc^
;prbmisirig*tharithey^e^;when
\u25a0 ; was first offered to the (public. "y - 1 "_• VVI :*: * •; - ' ''^^^
, V;. ;forjcarrymgf out-the
;\u25a0; prise > is ibeirig; raised^by the. sale' of; com^ri stock, which
\u25a0•\u25a0.'•: is' the;brilyj form of security;; issued.
;•-\u25a0 of -bonding tHis: property^ to\ the; bursting -poirittwill" not
-\u25a0..V;prevail/[in .thisienterprise.^^Nbt .^a; dollar : in, bonds, pre-,.
'\u25a0'•; \u25a0: ; f erred stock; or security of any; kind stands "ahead : or takes
; . over; th^
; ; woriwn;^at ijwantsj a(shar^
"Vrelephbne-ElectricJC^mp will;' be on an : equal* footing
; f^c first, l last i arid - all ; the i time.- iThe \u25a0 f ull • par lvalue ; of ;\u25a0 the
.V;shares:is^sloo; fullylpaid-; ami o'forevw non-assessable*
;\ j aliyargej enterp^ses^the )fifst : : stoclc J sold 'riiust^
; -;_: be off ered- at 'a .bigjsacrifice ; irVojrderJto quickly raise suffi- ':
\u25a0 cient^ capital vto > poiU the
earning basisJ^ A^ portionlof, th^S^sh^rcs'ofithe SouUi-1
\u25a0•' < r .erri*. I^leph^e^lertricKlornVg^
..; v s2s fper "shared '
: /' lbw'price of |$25Dwilli;lir^few^ibrithsy(ri1^^
. their fullj Psr:svaauj,|bjgr^y2traes|more. The * shares '
h of 'the :HomejTelephone Company, in ', Los 'Angeles could-
';tiave" beeeri ; boughtl^^
;. ;cents on the dollar. These shares of common stock are
now earning; dividends, after the company has* paid out
thousands of dollars on a tremendous bond issue. Bear
\ in' mind that the Southern Telephone-Electric Company
will have no bonds; that it has but one -security— com-
mon stock— and that every stockholder is on an equal
footing. 4 . ;"-..:.
Shares of a certain bank in New. York City that stand
, for $100 value cannotybe bought for less than 53000. ' The
'Great Northern Railroad shares, at a par value of $100.
sell ; in open market for $283. An investment of $500 in
Bell Telephone ; stock some years ago would have made
\u25a0 you a millionaire today.; There are many such cases, but
"\u25a0none' of theni will ever show such a surprising rise as will
the shares of the Southern : Telephone-Electric Com-
pany.,. Many a clerk, grocer,' plumber, carpenter or other
\u25a0men of moderate means who have the foresight to~ realize
-; the marvelous possibilities of. this investment and buy at
the present price will be numbered among our rich men
five years hence.
The profits that this telephone company will make
<^fbr its stockholders are almost beyond calculation. The
natural rise in values of the shares, because of the extra-
ordinary earning power, is likely .to be such that an in-
vestment* of $100 at the reduced price at which the first
shares are marketed may^ at the end of a few years
'stand for a quoted market, value $2000 and a yearly in-
ebme of $200. If it does this, and it is not at all unlikely
that it , will, a. man who invests $500 in its shares now
will have a yearly income of $1000. Of course the only;
time such colossal profits can be made is at the veryj
start^ After this company organizes telephone company
after telephone company, establishes- plants in various]
.cities, and towns, increases its earning capacity day by
day,- the value ;;of its shares 'will rise high in value andj
those who buy at the present price of $25 will be the oneai
who will reap the biggest profits. \ ;\u25a0' \u25a0"<
\u0084 • Nothing . can prevent the success of this enterprise. •
Every possible safeguard surrounds the investment of the
money in this stock. Telephones are a necessity.
' The telephone is the only public utility that thrives in
hard times. \ We have tried to show you that this is your
.opportunity to lay the foundation of wealth. Whether
you have much or little money, we say to you in all
frankness and candor that you will be doing a wise thing
if you invest every dollar you _can spare in the stock of
the Southern Telephone-Electric Company. Don't let
fears, or doubts deter you, but just make a careful study,
of: the facts as we have told them and then let your owni
common sense and better judgment guide you.
Everym an or woman who invests in the shares of the,
. Southern Telephone-Electric Company at the ground- j
floor price of $25per share, at whfch we now offer thenv
will in all human probability be able ultimately to "get;
dividends in excess of 40 per cent on the investment or**
ibe able- to sell- the stock within a short-time for- many *
times; its present value. $25 buys a share today. Partial
V or installment payments may be made at the rate of 20'
percent down and 10 per cent per month until shares are;
' paid for. At the present price of $25 per share this means ;
\ $5 per share in cash or its equivalent with your subscript
tion and $2.50 per share "per month for the next eight
months.' No interest will be charged on 'deferred pay-
ments. We want the small investor to participate in the j
;. profits of this great enterprise. We will give the same^
attention to a" subscription for a single share as to that*
\u25a0 -for a thousand 'shares:
Iristallmerit^Payments on Stock
Can Be Made as Follovys
h \u25a0 - -We are offering the -f nil paid, non-assessable $100 par
/value stock, of . the SOUTHERN TELEPHOXE-ELECTRIC
'COMPAJTT on the following easy terms:
\u25a0"\u25a0.- f25 buys .1. Share, par raluc $100, pay down $5 and $2^6 a
month for 8 months. ,
$75 buys 3 Shares, par Yalne $300, pay down $15 and S7«>o a !
~'~-".' i month for 8 months. : ;\
$125 buys 5 Shares, par value 6300, pay down $25 and $12.50 a «
1 month for 8 months. . v
$230 buys 10 Shares, par value $1000, pay down $50 and $25 a! •
month for S months.
$625 bnys 25 Shores, onr Talne $2500,' pay down $125 and $62^>0
* . ' a month for S months. * •
$1250 bnys 50 Shares/ par vaiue $5000, pay down $250 and $125
a month for 8 months. .-'\u25a0,. \u25a0. \u25a0 \\
Ton can contract for any number of shares, paying for
; them in the same proportion;; Ton can pay more' down and
more-per morith-if yon desire, or yon can, pay in the entire
balance due at. any time, when. a certificate will be issued.'
Make all remittances payable to the Southwestern Securities'
.Company. - : ~ "— . .
Cornel to' our, office, if you can, and we will explain'
to.you all the details. Jf you 'cannot, come, fill in the:
coupon: below' and mail to us, with remittance in regis-
tered letter, or by , postal or express money order for the '
numberof shares you wish., '
I This announcemerit is being made in aU the important^
newspapers in. the West today, and without a doubt sub-l
•j ' scriptions- ;to the capital" stock; of ' this corporation will|
. : pour. in. . Owing to the ; great merit of ;this investment?
V, proposition and. the excellent standing of the management!
vwe have every, reason tp^believe" that the small block off
/stock 'offered at the groimdrfloor ; price" of- $25 per share j
wiirßequickly, subscribed. For this reason we urge you ?
iv tol act ; promptly and out one of j the coupons below ',
and send: it to our office immediately if ;you cannot call.
Southwestern Securities Company
200 to 231 Delbert EUock J
?43 Van Ness Avenue, San
515^0 516 Central Bank Building, Oakiarid, Ca!. '?
" RU RQH ASB G Q|p G) N ]
\u25a0 \u25a0\u25a0' Southwestern Securities Co., Fiscal Agents
V 200^^31 t Delbert^^^^^ ATe v San^ nc i 9i 9C o. |
- : aU t0 016 Central Bank : Buildlng,* pakland.;Cal.
M~> eu° SCd find $ "':" ' : • • : '- V- ,'" in 6 ••••••\u25a0 V- (say: whether, fall ]
or partial) paymenMw;^ . V % ;. . -. -. [ . .ghares of stock' of the «
SOUTHEKX TELEPHOXE-ELECTBIC COMPAXT.
\ /Address . . ; . '. . . . -.^^j^MwlLußUtli^BSß^^
& y> ...,.*..\u25a0 .- . -.... ...--.\u25a0-.' * ' ' '' '"" H