The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1900-01-06
HELLO, HELLO!
Minority Stockholders Of
Newark Telephone Co.,
Alarmed.
THINK IT'S A FREEZE OUT GAME
Recent Sale. Of Controlling
Interest to Be Investiga
ted in Court.
THINK IT'S 4 FREEZE OUT GAME

WV AAA 0OS%A "
The minority bond and stockholders OF
the Newark Telephone Company are about
to commence legal proceedings to inves-
tigate the recent sale of the controlling in
terest to Colonel j. b. Curtis, who has OBJ
tained control of the Hudson Telephone
Company. The sale to Mr.. Curtis of the
Newark stock was made by t. A. Nevdns
and Samuel Doty in November last, and
the minority stockholders wish to have
their interests protected.
John Illingworth, one of the minority
bondholders, says he has been told that
a big company is backing Colonel Curtis,
and that it is the intention of that com
pany to reorganize the Newark Telephone
Company have it sold out and then buy
it in on terms which will practically leave
the minority shareholders out il. cold :"
This might be accomplished, heS@ by
effecting the sale at a figure just sufiA
to meet claim for construction held -
Mr.. Nevins, amounting to $sS,sl0.36.
1T ds time,' said Mr.. Illingworth, that
the smaller shareholders combined and
made some move to protect their inter-
ests. I feel that something is on foot,
wiping US out entirely.
.I would suggest that the minority
shareholders get together and engage
counsel to inquire into the recent sale
and see to what extent our interests
have been jeopardized, if at all"
A meeting of some of the minority
stockholders was held early in December,
at which c. L. Roller, Henry C. Kees.
were present. 1t was then decided that
nothing should be done until the meeting
of the company this month.
The minority stockholders, in talking
over the affairs Of the company, have
brought up the question of it's present,
status before the Board of Works. They
hold that two sections of the ordinance
under which the company is granted per-
mission to use the streets have been vio-e
lated, and that by. the violation of one
section the company has given the Board
of Works the option of revoking the
franchise, and by the violation of the
other section the subways copstructed by
the company have become SIC property
of the city
Section is the first part of the ordin-
ance which, it is claimed, has been
violated It is as follows
spThe said company shall have installed
and in use in the city of Newark within
one year from the date of the passage of
this ordinance at least 700 telephones and
within two years from the date aforesaid
at least 400 telephones, and within three
years from the date aforesaid at least
l. 400 telephones. If such telephones are not
installed and maintained in use as afore-
said, then and in that case this ordinance
shall be void at the option of the Board
of Street and Water Commissioners, ex-
pressed by. resolution passed for that pur-
pose by the said board either at the time
of such failure or at at any time there
after"
1t is pointed out by some of the minority
stockholders that the company has not
the requisite 200 telephones in operation.
President John M Gwinnell says that the
company had in operation between 1,4oo
and 1,5oO telephones, The other section,
which, it is claimed, has been violated, is
sections. 1t reads
'That the said company be and is here
by required when they shall have COM
menced work of construction of said sub
ways and underground conduits, to pro-
ceed diligently and continuously to the
completion of such, subways and under
ground conduits, and in case such work
shall be suspended, the subways thereto
fore constructed, or in case any of the
said subways or conduits or parts thereof
shall be abandoned and shall not be used
for telephone purposes by the said New
ark Telephone Company or it's successors
for three months, then and in case the
subways or parts thereof so constructed
or abandoned shall, without any action
on the part of the Board of Street and
Water Commissioners. or the Mayor and
Common Council or the city of Newark,
become the property of and shall pass to
and under the complete control of the
Board of Street and Water Commission
ers in behalf of the said city of New
ark.
The interested ones point out that the
three months clause in the section above
has been violated, in that 1t is for four
months since the company did any work
on subways. The last permit for the
construction of subway was granted by
Superintendent Mundy of the street de-
partment, in August, 1899. They say that
by this violation of the ninth section the
company's subways now belong to the
city,
President Van Duyne, Of the Newark
Board of Works, when asked what, If
any, action in the matter had been taken
by that body, replied
None that / know of. 1t is point
which has probably escaped the memory
of the commissioners. have not looked
fed to give you anything definite on It.
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