U. S. Telegraph Co.'s Contract:
Four Stations in China with Shanghai's Omnipotent New York, Sept. 22.
Announcement was made yesterday that a new corporation would be formed soon to take over the $13,000,000 contract recently closed by the Federal Telegraph Company of California with the Chinese Government calling for the construction of four wireless stations in China. The station to be erected in Shanghai will be larger than any in this country and its completion will mean direct communication between the United States and China.
The new company will be known as the Federal Telegraph Company of Delaware. Owen Young, President of the General Electric Company, will be Chairman of the Directors, and R. P. Schwerin, President of the Federal Telegraph Company of California, will also be President of the new Delaware company.
The capitalization of the new company will be $9,500,000, of which $3,500,000 will be preferred stock, and $6,000,000 common stock. The Radio Corporation of America will buy all the new preferred stock, and of the common stock the Federal Telegraph Company of California will own 40 per cent. and the Radio Corporation of America 60 per cent. It is asserted that the profits from the Chinese contract will amount approximately to $6,500,000, and in addition a percentage of the net earnings of the stations for a long term of years will, go to the two companies mentioned.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.