Show Independent Telephone Company Compan I J s Will V ill I I I Enter n t e r Rich R Ie h Field r Ie Id r First Firsti erin ng of o Stock in the V Southern South rn trac Company The telephone has become one of the most important fac factors factors factors tors in the tho business and social life of the entire world This Is especially true of the United States The telephone is constantly con constantly constantly in demand by the people and although furnished at ata a avery avery very reasonable rental it has been found to be a very ery profitable investment Large percentages have beon n made by b those hold holding holding holding ing securities of telephone companies The Tho Southern Company was organized principally to conduct a telephone business in one of the rich richest richest richest est sections of the United States viz The State of Texas constructing and operating both long distance and local tele telephone telephone telephone phone systems The Southern Company is not only a telephone company itself but also a telephone con construction construction construction company compan It will work along linos somewhat simi similar similar similar lar to those tho c employed by the Empire Construction Company of the Pacific Pa Coast thus assuring large and continuous pro profits profits fits for its stockholders Mr E I T Swaine President in sp speaking aking of the plans of operation states as follows The Tho Company now owns the Fort Worth Long Distance Telephone Company and will soon so n acquire extensions for the tho construction and operation of local exchanges in a number n of towns in the State of Texas The Company will hold control of the long distance lines Jines will enable us to protect the business of the local ex cx ext t changes besides bringing a good revenue When a local plant has been constructed and in operation a n company will be formed among the business men nen of the die community They will subscribe for the stock as it will pay paya a good interest on oh the investment and they will be the owners of the property in their own town The Tho Southern Company will receive for such plants from the new local companies part cash and part par bonds based on the earning power of the companies which cash and bonds will give gie a very ery good profit on the work of construction and place us in a n position to turn over tho the funds again in another locality The Tho profits of tho the telephone business have hae proved very ery satisfactory paying good percentages on bonds and stocks besides be besides besides sides 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 earnings the greater part to come from the profits on construction It is the intention to set aside for sale only sufficient stock to provide capital to carry carryon on tho the work in iu hand which will enable us to pay very ery satis satisfactory factory dividends on the outstanding stock Our representative now in Texas writes of the great pos possibilities there and we are looking forward to remarkable suc sue success cc cess c s The Southern Company Is a corporation duly organized and incorporated under the laws of the territory of Arizona The capital stock is ten mil million million million lion dollars divided into one hundred thousand shares of a par paT value alue of one hundred dollars per share The stock is fully paid and forever There Thore is no preferred stock and no bonded indebtedness Each and every share of stock is on an equal basis The organization tion ion or charter 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 tIlis corporation have paid the same price 25 per share for fort their t own stock that they offer it to their friends and ac ne acquaintances acquaintances The Tho purpose for which this Company was organized to acquire develop and carry c rry on a system of independent or home telephone plants both local and long distance in one of the richest telephone fields in the United States will be dwelt upon at length hereafter 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 a overlooked except by the interests int rests controlled by the Dell Bell Telephone The charter of the Southern Company is broad permitting tho the company to carry on tho the business of constructing and operating telephone plants long distance lines and equipment electric power and lighting plants and any and mid all business pertaining to the acquiring operation or development of the telephone and electric lines Ii es The charter permits this company to act as a holding company In other words grants the corporation all privileges of holding the stock tock of other corporations in fact to carry carryon on all of the business at present contemplated It covers all aU exigencies which can possibly be foreseen facilitating the future devel development development of the independent telephone business in the State of Texas Information Coupon Southwestern Securities Co Fiscal Agents 3 and 4 Mercantile Block SALT LAKE LASE CITY UTAH I am interested sted in m your SOUTHERN TELE COMPANY A Y and if my mi request re quest will not obligate me in any anyway way I shall bo be Clad plad to receive further information lama aware Address e o r rS S L I H IT I The 11 affairs of the corporation will be under the manage management ment of the following Board of Directors E EL L Swaine General Manager of the tho Home nome Telephone and Telegraph Company of Los Angeles Gal Cal CaIR CalI I H R J McHugh Chief Installer and Pacific Coast Salts Salos Sal s Manager of the Kellogg Switch Board and Supply CoN Co CoN CoN N F Wilson San Sall Francisco Cal Ernest A 1 Olds aIds Superintendent of Construction of the Home Telephone and Telegraph Company of Los Angeles Gal Cal H L Edwards Superintendent of the Contracting Depart Department Department Department ment of the Home Homa Telephone and Telegraph Company Compan F J Norris Cashier of the Occidental Trust and Savings Bank of Los Angeles Cal Cat and formerly auditor of the Home HomeT Telephone T and Iud Telegraph Company J N 0 O Rech Attorney Attorn y Los Angeles Cal Edgar A Sharp Attorney Los Angeles Angelas Cal The officers of the Company are arc areE arcEL areE E EL L Swaine President N F Wilson 1st Vice President I ri 11 15 L Edwards 2 1 Vice President E A Olds OMs Vico Vi President dent J N O 0 Rech Secretary F J Norris R J McHugh cHugh Chief Engineer The men who will have charge of the field work and opera operation operation tion ion of the affairs of the tho Southern Electric Com Company Company pany are are all aU practical successful telephone men of unquestioned unquestioned unquestioned integrity and special ability in their particular branch of technical effort The chief engineer for this Company Mr r R J J McHugh cHugh 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 not bly those of Baltimore Cleveland and St Louis The Home Horne Telephone Company of Los Angeles which has lus boon been b on one of the most prosperous pr and successful telephone cor corporations corporations corporations of the United States has had as its General Manager Mr fr E L Swaine The administrative affairs of the corpora corporation corporation tion ti n will be under his management ably abl assisted by Mr Ir H L LEdwards LEdwards LEdwards Edwards Mr Edwards has also been connected with tho the Home nome Telephone Company of Los Angeles for a number of years and has won an enviable reputation for himself by car carrying tying out a successful campaign for the securing of or contracts in Los Angeles in the face of a tremendous opposition on the tIle part of the Sunset Telephone company Mr Ernest A Olds resigns as Superintendent of the con contracting contracting contracting department of the Home Telephone Company to de devote devote devote vote his entire time to the Southern Com Corn Company Company pany pang Mr Olds aIds is the thc man who set the first pole for the Em Empire Empire Empire pire Construction Company in Los Angeles since which time he has been continuously employed as Superintendent of Con Construction Construction Construction of the Home Telephone and Telegraph Company of Los Angeles In addition to these duties s Mr Olds has acted as consulting engineer in the construction of numerous small smaIl suburban telephone plants constructed by independent corpo corporations corporations corporations rations Mr F J Norris formerly auditor of the Home Telephone Company of Los Angeles and at present cashier of the Occidental Occidental Occidental dental Trust and Savings Bank Dank will act in the capacity of Treasurer of the Southern Electric Company thus assuring a careful and economical management of the financial finan financial financial cial end of this enterprise Further information as to the standing of the men behind this proposition seems unnecessary as their long continuous record of success and their practical experience in their chos chosen en work are sufficient evidence of their ability to carry out the plans and assure success of the tIle Southern Company Compa y Remember also that these gentlemen have sold and are selling their interests in other telephone corporations and placing their available funds in the stock of the Southern Company at the same price and on the same basis as the stock is offered to you The territory in which this corporation will operate is no noless noless noless less than the cotton belt of Texas a belt containing a greater population than the three Pacific States California Washing Washington ton and Oregon combined This is today in the minds of these men the best and richest territory in the United States for forthe forthe the he operation of such a corporation Let us emphasize the fact that these men are familiar with the telephone situation throughout the United States and mid that they have chosen this rich cotton belt of Texas because it offers om rs greater inducements and quicker and surer profits than any other territory The company already possesses the keynote to the entire territory It has already purchased long distance telephone lines which are constructed and in operation also rights of way for long distance lines and franchises for constructing independent tel telephone telephone telephone ephone systems in cities and towns up and down this belt In fact f ct so much work has already been done and so much progress progress progress ress made that no other company even should it possess the same sarno financial advantages and mh the same sarno able Board 1 tor torn could possibly become a competitor r This is a big ole ale clement ment in the tho success succeSs of this corporation Great Profit in Telephone Business That there is good profit in the telephone business is a fact so universally acknowledged that it seems unnecessary to dwell upon it A small investment in the stock of the Bell Telephone Company has made many an independent fortune At the pres present pr prent present ent time there are arc more independent telephones in the United Unit d Stats than Bell telephones and there is just as much money to tobe tobe tobe be made out of an n investment in telephone securities now as there was when you could have bought Bell Telephone stock cheap Furthermore you do not now now have to take the risk that was necessary when the telephone business was in its infancy Since its its inception n the telephone business has been classed among the most lucrative fields in which large capital can be invested At the present time throughout the country inde independent pendent telephone companies wherever established working sideby side by side with the tIle Bell Telephone Company are enjoying a much greater success than the great monopoly Two im important important important factors create these conditions First The average individual has no love for uny ony great monopoly and public sentiment has been a great I factor in in establishing and making a 1 success su success of f the independent pen or home telephone t lines Second The independent telephone lines lin have an advantage advantage advantage tage in being able to place new and aud equipment at nt atthe atthe the disposal of their subscribers without being compelled to lose the capital which the Bell has already tied up in old and nud Jess effective equipment In 1894 1891 there were telephones t in use in the United States or one telephone to every people In 1907 IDOl it is es estimated estimated estimated that there thero are telephones in use or one tole tele phon pIlOn to every 16 people Of this number the independent or home companies have phones against of the Bell monopoly These facts prove conclusively how im important important important and necessary is tho the telephone to t all business inter interests interests interests ests of the tIle country also making a most convincing argument in favor of the independent lines As an evidence of the profits of or a telephone enterprise we need only point to the earnings of the Los Angeles company for four and years Sears cars 1901 Gross Earnings Net Ket Earnings 1902 1903 Gross Earnings Net Earnings 1903 Gross Earnings Net Earnings 1904 Gross Earnings Net Earnings 1905 Gross Earnings Six Months Net X et Earnings Six Months The ft Western Telephone Jour Journal Journal Journal nal Has as This is to Say Sayo o of the Future F ture It is only a matter of time when the whole North Amori Amon can continent will be gathered under the banner of the th Inde Independents I Independents No K 0 movement in the worlds history has a brighter brighte outlook than the one in which you are engaged It has passed through the tho stage of doubt and difficulty difficult It has hns survived the attacks of the monopoly and its creatures The mighty wrongs wrongs and petty perfidy The loud roar of foaming calumny The small whisper of the paltry few And the subtler venom of the reptile crew It Tt only remains with courage and confidence to carry carryon on the work until every citizen throughout the land shall be sup supplied supplied supplied plied with this means of conversing with his fellow men I do donot dolot donot not lot see why h at the most conservative conser estimate the Independent ent development should not reach 10 per cent of the entire pop population population population within the next few years This will require an invest investment investment ment mont of approximately and of this you may be sure every dollar of the money will wiIl afford a far more remune remunerative r remunerative mun investment than as if the same amount was put into railroads electric lighting or any other public utility Do not be pessimistic about the future As you provide the facilities the people will reach out for them It is not many years since wise men in the tho Dominion Parliament pre predicted predicted that the receipts of the Canadian Pacific Railway would not pay for the axle grease Today we find two more transcontinental transcontinental transcontinental railways hurrying forward construction in a race to connect the Atlantic with tho the Pacific This is only one illus illustration illustration of how we may show timidity in estimating the possibilities possibilities possibilities of the future Note The foregoing was read before the recent Illinois State Convention Mr Dagger is telephone expert to the Do Dominion Dominion Dominion minion House of Commons select committee on telephone systems systems systems Ottawa Canada New Telephone Company Offers Small |