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ainst call- boro | the lood- have this lates t for ould local vked hot 'OUS=- heir the they tell lave ave! out ight foot will the ery ing tice ner, ach out tly. lem 2am guy diel Was eps ced say THE OSHAWA DAILY TIMES, MONDAY, JANUARY 28, 1929 PAGE SEVEN A RADIO PROGRAMS |PoNATES desaeee 14 Ri * for housing TO NATIVE TOWN lh ge Pa Bg en [atid an oc euatien banker, av 650,000 to his native Noghly Fleming is already a prince dred hopses are to be built in [of benevolence to the village of To-Night"s Best Features 6.30 NBC (W AD <Butess of Budget London, Jap. 28.==Mr, Robert which present occupants of slum |Nettlebed, Oxfordshire, where his Mr. Fleming resolved to try his may be re-housed and the |home is now. The village has its only be a few shillings own hall, a schoo] and a recreation ground through his generosity. Founder of the first Scottish- American Investment fund in 1873, luck in London, but nearly chang-'time High Sherif of Oxfordshire. ed his mind and retraced his steps [One of his sous, Major Valentine to Scotland. Mr. Fleming gave the |Fleming, former M.P.,, for South Flemish gymnasium to University |Oxfordshire, was killed' in action College, Dundee, and was at one [during the war. Construction is mew proceeding in Toronio on the largest depart: ment store fp the world, béing built by .T. Eston Co., and. to have a floor space of more thap four million square feet. I AR " H-u. Cyrille Delage, suj + wince. the necting of the Roman Catholi¢ Schoc! Commissfor. ; t 8.00 J Kokey sud Hy] PEs Lk AL 9.30 [3 Tuesday Programs | YUESDAY'S BEST JEATUMS 10/00 a.m. NBC System (WJ2)=Dr, Copeland o I ymbia Netw: NT] Ww tkch NE § Siem @ irl ep N Sroum (Central)=Farm and $00 NBC. System EXE 5 » 4.20 NBe rm EAF Auction byl SD Yah sor {iage pi] Fy York iA id iz ew Yi Sym ge et Mh KL i Was (Al ork, Yusupe or: oe 6.15 Ste (447, op gd Toy ivy 8.0 CKCY (340.7) bec, La Soleil News. BAL a3 wl Di er mu wav heaectady. . Tina. New York. thie Pend to 7.00 WGR' beth" uffalo, Chevrolet prov §0E20 (370)~Mpls. St. Paul, Musicions wi (@45)=New York, Smalls and WNAC 2° lit)--Boston. News; Ames 'n' is] (48)--Cinei. Dog Talk; Enter- wo "(432)=Newark. Entertainers, 7.30 CNRW (384.4)~Winnipeg. Dinner my- Niic RB given, W We WH i iw Whe" Oaklands NAG Sitems Law Fundamentals to wii (428)--Cinci. Sohio Musicians al AM, wre Tt 6= Washington. Lotus opr h wa ns , Cryigs or achat, CNRA Winy (492)--Kansas City, Song "a i Sepy e! > wc, iGo, WO pL wi, whe cy ir | Daze to Wr 5 i Se Ne, RMB, KOI ( Sve ai a Noronto. Maytag Rawbr Rie (205y=8t. Paul. Justers College VBE System: Michelin r to WJ A WB A! WEBAL, A (AL Ni LL ( W K i br pe Wht Ws Ww wk Ww : wh Js hig 'B C Columbia Network: wi cA JAS, WADC, i WG WOW, {MOX, KMBC, ig Bory Witk, WLBW, WMAL. ( CNR A (322.4)=Moncton. The Four erobia Mi C4 Simmon's c oly mbis Ney SHARE WEAN wil? y hifved WER, W. AS hit AR w oh woah wep, {VOC ). > 5 ye : Three-In-One Theatre NB az WBA, WRAL WHAM, KDKA, WLW, KYW, W Ry @N--~New York. Old Town all. -] ford. Si School 44 ic ge Bucs ware instrels W Zz. a Kw wy WHAM, KPER WLW, KYW, WREN, -W ha RYA (270)--Richmond. Sandwiche Is nd 00 CN 322.4)=Moncton. Conce aso nk od Wm. Pens EOUMBIA Noms Seager Belines JOLUM Networ] ( ete to WNAC, WFBL, WEAN, BAe, WLBW, Wis, KTHS, ? WOWO, KM WREZ, elie, ov KMOX, . Wiss Warp: MAD, WF. ' Wi as: NEC Suen: © Sis KSTP," WIAR, TAM, a WOW, WDAF, WHAS, wen. WTMJ, KPRC, LR o 5Y, WHO, GR WRC, WGY, OAL WIR (400)--Detroit. Singing NBC Sistem: i singers to z, KWK, WB, WL Ww Cincinnati. Fillmore's and. Wiba (270)--Richmond. Veteran trou. $A 2 Fic Xe rm iy i War. WCAE, WWJ, WHO, WRVA, wey: (379.5)~Schenectady. Studio Cs) --Buffalo, Sheas studio. WHN (297)--N.Y. Dance Quchistis, hid Sid GRY. Dave he System: Fiesumap ck WiZ, WBZ, WB M, 9 Ww BAL, KDKA, Ki, WIR, WREN, KWK, COLUMBIA Eh "uty to WABC, WFAN, "a et WB! WAAL wi RLF RD Sy Bernie's Orchestra to NT, Sw, A wGY (an: $)--Schencctady. Kenmore orchest Ww HAM "(258.5)--Rochester. Organ se auest NBC ty stem: Slumber music to a WRC WLW (428)--Cincinnati. Si WRG (272)~Atlantic City. Silver hg per orchestra. 0 GR (345)--Bufialo. Arcadia orch. 13 PadiFic Network: Maige program. WIAW (428)--Cincinnati. Quintile trio. WGN (416)--Chicago. Goldkette's Or- chestra; Dream Ship. 11.45 WSB (405)--Atlanta. Weldon's Orth. 12.00 CNRY (291)--~Vancouver. Strand Kyw cage. | Fiorito's orch. KMOX 275)~--St. is. Wriics orch. WCCO GMs. -St. Paul. K. of C Band. (Copyright 1929 by Audio Service, Chicago) TOO MANY HOLIDAYS, DECLARES DELAGE Quebec, Jan. 28. ~-- Holidays are top frequent 32 Sertain Roman Cath: olic schools according to 2 complaint made to the Quebec Ro: man Catholic School Commission by of nublic Fri of the Pro Measures should be taken to cor- rect this state of affairs, the letter continues. The letter was acknowledged at ts mae 0 thd The Bell Telephone Company and its Financial Policy O obtain new capital the telephone com- pany must attract investors in competition with other companies which ave also seek- ing new capital. Many of these offer prospects of high rewards either in dividends or in appre- ciation. These other companies are both Canadian and foreign, for in the investment of money there is neither sentiment nor geography. The telephone company's procedure in seeking pew capital is as follows: -- 1, To issue new shares of stock at intervals and only in amounts depending on the expansion required to meet public demand. 2. To offer the new shares for purchase by shareholders, in proportion to the number of old shares owned at the time of issue. 3. To determine the price by judgment of conditions at the time. Apart from new shares the company will seek new capital by offering also new issues of bonds, and these will usually occur at intervals between offerings of shares, This method of offering new shares is the exact procedure which the company has followed for the past forty-eight years, with a record In which it takes pride: 1, in forty-eight years it has never suggested noy yeceived a government subsidy, grant or loan; ©. in forty-eight years it has never split its stock, nor issued shares that were not fully paid for at par or over par; 8. in forty-eight years it has never been ex- ploited for the benefit of either individuals or groups, although it has become one of the largest institutions in Canada; 4. after forty-eight years it is today giving service at rates which are the lowest in the world for comparable service. the double obligation HIS policy has been followed, and this record established, because the management of the telephone company, through the years, has had constantly in mind the double obliga tion which exists for those who operate a pub- lie utility, On one hand there is the obligation to the users of the telephone system to provide them with adequate service at the lowest cost consistent with safety. On the other hand is the obligation to the owners of the system to safeguard their prop- orty and to pay a fair return on the money they have provided to build the system. In the case of the telephone company there is definite evidence available, of fact and figure, to demonstrate whether or not its policy has fulfilled this double obligation. obligation to users J vpiNg the money to build and extend the systems has been the first requirement. When the telephone system began in 1880 its limit of capital was only $500,000 because there was little idea then of how the telephone would develop. . But as the demand for telephone servics grew, more and more money was needed to provide it and parliament amended the company's act ° 50 that new capital might be to $80,000,000 in 1906 to $75,000,000 in 1920 regarding sale of new shares. ' The Bill before Parliament T== Bill which the Bell Telephone Company is bringing before parliament is an amendment to the company's act of incorporation by which the company may sor new capital for extension of the telephone system. Peoviows advertisements have given the details of this Bill and of the relationship with the Northern Electric Company and the American Telephone & Telegraph Company. This advertisement deals with the financial policy of the company to extend and improve the system, is over $27,000,000, And it has already made plans for similar expenditures during the next five years totalling over $120,000,000. But to give adequate service is not enough The second part of the obligation to telephone users is to give service at the lowest cost con- sistent with safety. There are three sure ways of testing the results of the company's policy in meeting this obligation. The first way is to see whether the company has been economical in building the system, by examining its costs in comparison with the costs of other systems. The second way is to see whether the meney which has built this system has been provided economically, by examining the company's fixed charges in relation to total property used in the public service. The third way is to see what the actual cost is now to the telephone users in the monthly rates they pay. (a) low cost of building HERE are figures from the last published annual reports to show what the telephone company has spent to build the system in Ontario and Quebec as compared with other systems in Canada, the United States, England and Brazil, Some of these other systems are operated by governments and some are private companies. Jt must be recognized that the conditions of operation are very different. Some are easier; some are more difficult. But over so wide a range of comparison, and taking an average of all conditions, the figures tell the story. Numberof Capital cost System Telephones per telephone 1. government system in Great Britain , 1,611,686 $307 3. Brasil ....0000 4. all companies of Be!l system in United States . . .18,726,000 5. Bell Telephone Co. in Ontario and Quebec 668,383 3186 6. companies in B.C. and the Maritimes 160,616 $167 The average cost per telephone of sll the other systems, according to their annua! re- ports, has been $227. The cost per telephone of the system in Ontario and Qube has been $189, (b) low cost of capitol ox November 30, 1928, the total money which had been spent in building the tele- THE BELL TELEPHONE And the rates paid by users in Ontario and Quebec are lower than those charged in other provinces of Canada. This has been officially acknowledged in the judgment of the Board of Railway Commis- sioners following their investigation of the subject in 1926, The Commissioners stated that while eom- parisons of rates are not always conclusive, it was apparent that the rates charged in Ontario and Quebec are more reasonable than those charged in other provinces for comparable service, On every court--ecost of building, cost of money and actual cost of using--the facts demon- strate that the telephone company has fulfilled its first obligation as trustes of a public utility. It has given, and is giving, adequate services. And it is giving this service at the lowest cost consistent with safety. obligation to owners E second obligation is to the owners of the telephone system. The owners of the telephone system are 15,300 shareholders, Of these, 95 per cent live in Canada and hold 62 per cent of the total shares. Over 60 per cent of them are women, Of the remaining 38 per eent of the shaves, 31 per cent is held by the American Tele- phone and Telegraph Company and the owner- chip of these shares is divided again among 450,000 shareholders. The other 7 per cent of shares is scattered among people in the British Isles and other countries. The average individual owner of the telephone system has 27 shares of stock and the income from these is $216 a year. The largest indi- vidual holding is 1510 shares, which is one quarter of one per cent of the total. The obligation to the owners of the telephone system is to safeguard their property and to pay them a fair return on the money they have provided to build the system. There is a close relation between this obliga- tion and the obligation to the users of the system. For, if the rights of the users are permitted to intrude on the rights of the owners, the latter will cease to support the enterprise and the users themselves will ultimately suffer. At the same time, if the obligation to the owners is permitted to intrude on the rights of the users, the cost of service will be too high, the users will become dissatisfied and the security of the property will be jeopardized. In other words, the two obligations are sup- plementary to each other and a just and proper appreciation of this fact is required from the management. There must be a fair return for the owners, but no more. meeting this obligation "THERE is a. simple and definite way of dis- covering whether the company's policy has met this obligation. 1t is fo examine the return the individus! shareholder has actually received over a period of years. A test case is provided in the typical experi- ence of an individual who bought 80 shares of Glopistn Sik U0 4 STE: Siltin Ye) ago--just as an investor ight do todsy--and has since taken advantage of his opportunity to buy new shares at each offering duxing the fifteen years. Here are the figures of his transactions: 1913--bought 80 shares on market at $145 $11,600 19191 new share for 4 old-- 20 new at $100 re 2000 1921-1 new shave for 4 old-- 25 new at $100 eee 2,500 1922-1 new share for § old-- 25 new at $100 eee. 2508 1924--1 new ghare for b old-- 80 new at $100. 3,008 1927-1 new share for 5 old-- 36 new at $100. 3,608 Jn 1929 he has 216 shaves and has paid $25,200. His annual dividend on 216 shares is $1,728, His annual rate of return is 6.9 per cent. This is typical because the latest records show that the holders of 84 per cent of the company's tota! shares subscribe to new shaves in exactly the manner shown above, A return of less than seven per cent on common stock to a shareholder who has exercised all the privileges allowed by the ca nany's policy, for fifteen years, is but a fai. § um. It demonstrates that the company's policy has handed out no "melons" to shareholders, mor excessive dividends, It has provided only the fair return necessary to fulfil the obligation to the owners of the system and to attract their continued support for the expansion of the service, policy is justified I has been suggested by some that vestrie- tion should now be placed upon the telephone company in its financial policy. The company believes ihat its policy should not be changed becausé: 1, the record of the past forty-eight years, in fulfilling the double obligation to the users and to the owners of the system, justifies continuance of the policy by which this has been accomplished. 2.1f the financial policy of utility companies is to be defined by parliament, it should be made a matter of general legislation applicable to all such companies rather than a matter of singling out one company which does not deserve discriminating re- strictions. 3. the proposed change in method of offering new shares, whether applied only to the telephone company or to all such ecom- panies, is not in the national interest of this country. The first two of these reasons are self-ex- planatory, The last requires more explana- ton. the third reason HERE is no septiment in the investment of money. If public utilities in Canada sve to be restrict- ed in their method of offering new shares ne . investor can be expected to purchase shaves of Canadian utilities in preference to the shares of numerous telephone, telegraph, railway, light and power companies in the United States which have no restrictions and which 'thus are more attractive as investments. These are the companies with which the tele. phone company in Ontario and Quebec must compete in inducing investors to supply new capital for extension of the telephone system. the national interest HOSE who advocate restricting the tele- phone company do so, in most cases, with sincere conviction that this will obtain more money for the Company and cheaper rates thas the present policy. In unusually strong markets this might be so temporarily, but whether it would be true over a long period of years, in bad times as well as good, is a matter of judgment. But, in, any case, the question of national interest is one of wider importance and more definite consequences. * So long as the double obligation to the users avoids sending their momey to the United Sites to ind reste nduougent, I tho polay to be followed. This is the policy which the telephone company bas followed and wishes now to continue. COMPANY OF CANADA ONNANVANRNE Fo ore oa | oe TTR ER 4 ee m=