Prosperous Gray

While last week stockholders of many corporations became apprehensive over dividend prospects, the few stockholders of Gray Telephone Pay Station Co. of Hartford received their second 5% extra of the year.

No publicity has marked the steady expansion of Gray Telephone Pay Station Co. Yet every year since 1922 has shown a gain in Gray's profits, swelling the $287,000 of that year to $935,000 in 1929. Liberal dividends have marked this upward march. In 1925 there was the regular $20 cash dividends, a $15 extra, a 100% stock dividend. In 1926 the extra dividend was only $5, but there was another 100% stock distribution. The next year brought stockholders an extra $10; the next an extra $15. In 1929 they received another extra $15, a 25% stock dividend. And in January, 1930, the stock was split 10-1. The new stock sells on the N. Y. Curb (infrequently) at around $80, represents $12,000 for the original $100 par.

Beneath Gray's prosperity lie basic patents for pay telephone equipment, of which it is the sole manufacturer. Western Electric Co. Inc., takes the entire output, keeps Gray's plant running at capacity. A subsidiary makes locks for metres and metal manufacturers, but the telephone equipment is the major money maker.

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