Gamblers Rapped

Trading in shares of American Telephone & Telegraph last week received a new impetus when A. T. & T. closed at 2341, giving the company's 13,132,154 outstanding shares a book value of more than three billion dollars. Standard Oil of New Jersey and U. S. Steel have stock valuations of more than one and a half billion, but only General Motors ($3,675,750,000 common, and over four billion with common and preferred) exceeds the A. T. & T. figure.

In spite of its new ranking as a three billion dollar corporation, however, A. T. & T. took particular care to discourage this bull statistic with a relatively bearish announcement. Knowing that pool operators were eyeing A.T.& T. as a prospective bull favorite, and that rumors of an approaching stock split up had already been started, A. T. & T. officials emphatically denied that any such split up was under consideration. Also, with momentous significance, these officials called attention to President Walter S. Gifford's 1928 report. In this report, President Gifford said: "The American Telephone & Telegraph Co. accepts its responsibility for nationwide telephone service as a public trust. Its duty is to provide the American public with . . . service at a reasonable cost. To attain this end it is the policy of the company to pay only reasonable regular dividends. . . . Extra or special dividends are entirely inconsistent . . . and unsound." The reiteration of this statement was perhaps the booming of a new philosophy of business as well as a ponderous rap at lightweight Wall Street gamblers.