Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-08-10

Special to Times Republican.
Webster City, Aug. 10.-The recent
difficulties of the Mutual Telephone
Company, of Des Moines, and the In
ability of the board Of directors to
raise sufficient amount of money to
carry on certain needed improvements,
and changes required by the ordinances
of the city, has caused considerable
talk all over the state. The matter is
of more interest to towns than Des
Moines, for the reason that the Mutual
company is made up Of six different
toll line companies of the state. The
matter of properly financing the Mu-
not only to the Des Moines company
but as we'll to the directors Of the six
toll companies, which make up the
Mutual The Mutual directors held
meeting after meeting, but thus far
have been unable to meet the demands
upon them for raising sufficient
amount of money to carry on the bus
mess, as the owners would like or as
the city Of Des Moines is demanding.
r. II. Martin, of this city. owner AMI
personal manager of the Martin Tele-
phone Compan. of this city, and of
most of the toll lines running out OF
here, is also a director of the Des
Moines Mutual Company. He has
plan for the financing of the Des
Moines Company, which will startle the
other directors of the company, doubt
less, but one which he will present to
them, after they have taken up and
rejected the several plans now pending,
and proposed by the various directors
who reside in the city of Des Moines.
Mr. Martins plan in brief involves the
merging of the six toll lines, which own
the Mutual, the issuance of a million
dollars worth of bonds, the loaninS of
% per cent Of their present value of the
six toll lines, and the using Of the re-
| naming amount, which would be over
a half million dollars to rebuild the
Des Moines plant.
Mr.. Martins plan in detail contem-
plates the merging of all these COM
panies into one paramount company.
which will acquire absolute title, dur
ing the bond period only, to all of these
six companies, including, of course, the
Des Moines Mutual company. Under
| this plan, however, each subordinate
company is to operate it's own system
and such system is. to be known as a
district of the whole merged company.
| The present owner or manager OF each
of the six companies who owns the MI
| tual, is to be a district manager under
the merger and is also to be director
| in the paramount company-or merged
company. The paramount company
will then issue bonds for million dol
| lars on the combined properties, In
| GLIDING the Des Moines property. From
this million dollars the district COM
panies are to be allowed to draw, in the
| nature of loan, whatever sums they
may desire for the Improvement OF
their own plants, up to Is per cent OF
the present valuation Of these plants.
This plan would leave over half a
million for the improvement and re-
building of the Des Moines plant. Pro
vision Is also to be made for a sinking
fund from the receipts of the merged
companies with which the million dol
lars worth OF bonds are to be retired
within period of from ten to twenty
years. At the end of this bond period
| the title to the district or subordinate
Icompanies is to revert to its original
owner or company, which, during the
bond period has not lost Its lndividu-
| aljtv in any Way.