The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-07
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PLAN COLDLY RECEIVED
COMMERCIAL CLUB DISCUSSES PRO
POSED TELEPHONE TRUST.
Rival Companies Turn the Meeting
Into an Exchange of PERSONAL
ities-DirectOrs Suggested.

The meeting of the members of the Com
mercial Club, called by the president to con-
s.der the plan for organizing a peoples tel
ephone company on the Potts plan, was
not successful, from the point of view of
the promoters. 1t was largely attended by
rival telephone interests. There were acri-
monous discussions between the attorneys of
the rival companies Some of the members
of the club who were present became dis
gusted, and motion to table resolution
for the adoption of the plan recommended
by the directors for the Incorporation of
popular company was made. This prevailed.
Another motion was made to refer the en-
tire subject back to the directors. This
also was carried. Some Of the members of
the club who are interested in the various
companies declare that the directors have
no power in the matter, and that the only
way such a scheme can be given to the pub
lie as a club plan is by vote of the men,
bership.
The meeting was called to order by D. M.
Parry, president of the club, who stated
that plan had been adopted by the d-
rectors for the formation of a telephone
company, to be organized on lines of the
Consumers Gas Company, or on what was
more Familiarity known as the Potts plan.
Evans Woollen, secretary of the club, read
the reports of the directors, both on the
plan, it's legality and financial feasibility,
which have heretofore been published.
There were about fifty members of the
club present, including Messrs. Vail and
Hill, Of the Central Union Telephone Com
pany, Messrs. Walker, Sheerfn, Gates and
other directors of the New Telephone Com
pany, and Messrs. Pickens and Porter, of
he Tn 6iOc 1a
report, Mr.. Woollen supplied the names of
Messrs. Alexander C. Ayres, D. P. Erwin,
J. A. Lemcke, Henry Schnull and Charles
F.. Smith as the proposed trustees of the
Commercial Club company, and Messrs. H.
w. Bennett. William c. Bobbs, John N.
Carey, Edward D. Evans, H. e. Kinney,
A. q. Metzger, A. F. Potts. Edward B. Por-
ter and Thomas H. Spann as the proposed
directors
w. P. Fishback member of the COM
mittee that reported to the directors in ia
vor of the plan under discussion, explained
that it was based largely on the same lines
as the Consumers Gas Trust Company.
When the trust company was formed, there
was a question as to whether irrevocable
proxies to vote the stock could be placed in
the hands of the trustees. This was OBJ
Waited by making the proxy in the original
subscription After a curative act was
passed by the Legislature comforting this
power on various corporations, but tele-
phone companies were not included, unfor-
tunately. However, he did not apprehend
that any one who would subscribe for tele-
phone stock would raise question of this
sort. Beside, it would be an easy matter
to have the Legislature insert the word
telephones in the law. He assumed that
the financial subject had been carefully in
vestigated. AS he understood it, 100000
cash was to be raised and bonds TO the eX-
tent of $3.50 con sold to raise the balance of
the necessary money on the securities of
the company. He spoke OF the financial
success of the Consumers Trust as one
that ought easily be duplicated in the tele-
phone situation.
In answer to a question, Mr.. Potts said
that the power of filling vacancies in the
management of the company caused by
deaths or removals had been lodged in the
Board of Works largely to allay the charge
that the board was to he a -perpetuating
body He said that there there had been
panic in gas stock when 1t was reported
sold their holdings. If they had known that
men like Messrs Barnes and Schnull were
holding theirs, that Simon Yandes was buy
ing the stock, they would not have sold. 1t
was for the purpose of enabling every
stockholder to know who was buying and
selling stock that the provisions for re-
ports to the city controller We're made. He
said that at one time the company had been
about completed when officers of the Com
merc1al ClQD asked 10 De allowed 10 make
it a Commercial Club plan. and that he and
Mr.. Pickens then cheerfully withdrew.
EX-JUDGE WALKER POINTED.
Ex-Judge Louis c. Walker, the next
speaker at the outset admitted that he WAS
the employed representative Of the New
Telephone Company and intimated that
Messrs. Pickens. Potts and Fishback were
also there 70 represent rival interests. This
assertion was at once taken up and degen-
Grated into personalities. Mr.. Walker as
serted that the trust plan was not legal
He read statute Of the State relative to
the incorporation OF telephone companies
which provides the manner in which the d.
rectors shall be chosen-that Is, at an an
nual election of stockholders. He said that
Mr. Fishback admitted the word tele-
phones would have to be added 10 the
curative gas law 1t was his opinion that
no telephone company could be legally IN
corporated save under the. telephone law
He said that Mr.. Potts talked like an ex-
nerieucod felephOnt finaucier. when uld