Salt Lake Telegram | 1932-10-25 | Page 13 | Telephone Omits 'Rights' This Year

TELEPHONE OMITS RIGHTS THIS YEAR YEARBy t j By BERNARD S. S OHARA O'HARA Associated Press Financial Writer L NEW YORK Oct 25 25 Iri In omitting omit omit- ting hag a new stock offering this year the American Telephone and Telegraph Telegraph Telegraph Tele Tele- graph company terminates a year 10 record of biennial offerings carrying I valuable rights for stockholders The company's failure to announce any stock financing in 1932 1032 scarcely calls calIs for an explanation in view o othe of the huge expenditures for plant exI extensions ex ex- tensions over the past few years and the substantial decline in hi demand for telephone service in the current year I Another reason relates to the adVerse adVerse ad- ad Verse Vere conditions in security markets and th the company's charter limitations t as regards new stock offerings The Theft Ther p ft charter provides that any new stock stocky r y issued must be sold to stockholders at its par pr of a share Wall street has no fixed opinion pinion as asto asto to when the company will have to raise additional money for plant extension extension ex- ex tension and improvements but is inclined in- in timed dined at the moment to believe that it iU its present reserves for this purpose will see sec it through at least another rear lear ear No company has been more successful success success- I ful rul than American Telephone and andt andI t I Telegraph in raising new capital through its own stockholders Approximately Approximately Ap Ape t. t proximately of new money passed into the company's r t. t treasury as a result of the stock offerings of of- I. I since 1920 and each transaction tim tion was completed without any banking banking bank bank- ing lag underwriting to take up stock not subscribed for