Delaware gazette and state journal., 1896-01-30
THE NEW TELEPHONE co.
Temporary Suspension Of lis Move for
Subscribers in This City.
DIRECTORS WANT TO Be STRAIGHT
The Voting of Certain Shares
to "Promoter."
NOW WAITING FOR AN ADJUSTMENT

why the New Delmarvia Telephone Co.
Hus stopped Selling stock and Canvasaing
, for subscribers-som Matters That He-
quire Explanation Now Being Looked
Into by tho Local Directors.
An interesting story is connected
with the cessation Of activity in push
ing the new telephone company The
promoters OF the new system first OBJ
tanned the charter of the Delmarvia
Telephone Co., which had been incor-
porated by the Legislature at its last
session. Prominent local business men
.were named as directors After the
organization OF the local board care
tful survey of the. situation was made,
land it soon was made apparent that
before any success would be made Of
the new company great amount Of
water would have to be squeezed out.
The directors were flattered with the
reception which was accorded their
proposed venture, but circumstances
led them to the conclusion that while
they were willing to lose their own
money which they had put into it,
they would go very slowly before they
put before the public anything but
what they could recommend with alb
solute confidence.
II seems that the company was pro
NOTED" by W. j. Atkinson and ii. ].
Brewington Of Baltimore. assisted by
Hoffeclxer & Hoffecker, attorneys, of
this city. And in organizing it, it is
claimed by the present directors that
more stock was given to the promoters
than was justified by the facts in the
case; and the delay in the work OF
pushing the company is declared TO be
due 10 an effort on the part Of the
directors to adjust the differences on a
fair and equitable basis. The outlook
is said to be promising, but until that
adjustment is made tho public is not
to be solicited to take any more stock
in the new company.
The local directors of the company
are Joseph L. Carpenter, Jr., Presi-
dent; j. Parke Postles, Vice President;
j. Augustus McCaulley. Secretary and
Treasurer; Edgar M. Hopes, Francis
E. Gallagher, Mayor Charles II JEFF
ferris, Lindley C. Kent. DR.. Willard
Springer and Daniel W. Taylor.
The act of Incorporation of the Del
marvia Telephone Co. was passed by
the Legislature on May LIST, 1895. II
names as incorporators Edwin Il. Dill
Maher, Joseph l.. Carpenter, Jr.,
Mark NJ. Clcaver. William b. Clerk
and Daniel W. Taylor. 1t will be no
ticed that after the charter was turned
over to the Baltimore telephone people,
and reorganization took place, some OF
the old incorporators became directors
in the new board and some did not
The sale of the charter was negotiated
by Willard Salisbury. The considera-
tion for which the transfer was made
was either money or stock in the new
company.
Under the charter the capital stock
was 500, 900, which majority Of the
stockholders could increase TO $500. 000
The capital stock has been increased TO
$3.50, 000 After the purchase of the
charter the company is said to have
voted to Atkinson $3.50, 600 Of the stock
in consideration of the use of his tele-
phone switch board patents. This left
800, 900 in the treasury for sale to the
community.
II is alleged that the voting of the
$3.50, 600 of stock to Atkinson was done
before the present directors became
connected with the project, and that
they had no knowledge Of it until they
had gone in. When they learned the
fact they were not in the pleasantest Of
moods, and instituted a vigorous pro-
test. The state of mind into which the
local directors have come is indicated
by the fact that they recently secured
the services of Bradford, Vandegrift &
Byrne TO guard their interests
When they learned of the unequal
distribution of stock they declined to
go on until there was an adjustment, and
they have exerted themselves in order
TO obtain satisfactory adjustment Of
the internal affairs of the company,
bending every energy 10 secure a
reasonable and proper allotment of the
stock. 1t is their desire to conduct the
business on STRAIGHTFORWARD basis so
that the public of Wilmington shall
reap the benefits of the telephone sys-
tenn and be justified in subscribing to
the stock. They desire TO conduct the
affairs of tho company in such way
that the bona fide stockholders shall
have Legitimate share in the com
pany. They will not permit an undue
preponderance of stock to be taken as
bonus over stock that is paid for in
cash.
When the directors learned of the
lreal state of affairs they stopped all
canvassing for subscribers to tho new
company's system, as well as to the
capital stock. Up to that time how
ever, some stock had been sold and the
money received for it was held IN trust,
and is so held. In case a proper
arrangement is not reached such
money is to be returned.
just what the outcome of the trouble
will be ii would be difficult to say, but
the men interested have their fighting
clothes on, and Il few days more may
bring some further developments.