Connecticut western news., 1906-11-15
A'TELEPH0NE FIGHT
STOCKHoLDER MAKES COMPLAINT


 ginning to Cause Uneasiness in the
 Camps of Older Companies-Farm-
 ington Valley Go. Expanding.
 A resumption of hostalities between the Southern New England Tele- phone Company and the independent company known as the Torrington Valley Telephone Company, seems imminent. The Pennington is known as an independent and Is one of a chain that has been making life more or less uncomfortable for the larger companies like the Bell for some time and which have made decided inroads into the business of the older com panies.
 The Pennington Valley Company has a line from New Britain to Win sted and from point near Cornwall Hollow by way of the Sharon Tele- phone Company to Millerton, N. Y., where 1t connects with the lines of the Columbia Telephone Company, which extends to various points in New York state.
 The company was formed in 1899 and had done some construction work before the telephone law was pass ed. which has restricted its operations and which has brought 1t into more or less prominence at each succeed ing session of the General Assembly. Its capital stock is little less than S4o,0OO. Some time ago its officers purchased controlling interest in the Sharon Telephone Company, which operates in the town of Sharon and westward into New York state, and they are also officers of the Co., 1umbia Telephone Company, which does business in New York state and in Massachusetts. They are now en- deavoring to get line from Corn wall Hollow to Winsted and, if this IS done, subscribers may secure a toll service we'll into the Hudson Val ley.
 The company has been paying six per cent dividends on its stock, but passed the October dividend. Vice President J. H. Bidwell of Collinsville saying that this was done in order that the money might be used in con struction work between Winsted and Sharon. About this time all stock holders received circular letter from w A. Spaulding of New Haven, a stockholder, alleging that the com pany Is being mismanaged, that its dividends have been paid out of sub scriptions to capital stock and that the company is being smilked" for the benefit of the Columbia Tele- phone Company. He says that their investments in the Sharon and Co., lumbia companies are Ill advised Tn his opinion.
 In answer to this circular Treas urer R. L. Andrews of New Britain issued second one, which has also been mailed to all stockholders, in which he says that MT. Spaulding mis- represents facts; that his stock Is held in the interests of the Southern New England Telephone Company and that MT. Spaulding's circular was issued for the purpose of injuring the Pennington Valley Telephone Com pany.
 "The meat of the matter" says MT. Andrews, ''is that the Pennington Valley Telephone Company is a thorn in the flesh of the Southern New Eng land Telephone Company, and while no direct proof Is to be offered at this time, circumstantial evidence would, we think, convict NIT. Spaulding of being more interested in securing con- trol of the stock than of representing the company on sound financial basis. The stockholders must realize that his apparent purpose is to de- press the stock with the object of se- curing control at favorable figure Were iIe to secure control the com pany would, no doubt, be wound up HI SIlOTt OTQeT ana Inc lI1l0OIlIy SIOCk- holders lose all that they have in vested
 The statement that the Farming ton Valley, Columbia, or Sharon Tele- phone Companies, are mismanaged and going to wreck has not even a shadow of support. In fact, the prop critics have made more headway the past year than ever before.
 At the last session of the legisla- ture an offer was made by lobbyist in the employ of the Southern New England Telephone Company, to the president Of the Pennington Valley Telephone Company, for control of the stock of your company, at a pre- mium, per share, far in excess of that at which any of the stock has so far been sold. Failing in this, telephones were offered our subscribers. in some sections, at half price, or So per year. In some cases, we are sorry to say, this offer was accepted, though most of our patrons remained loyal as the increase of our St1hScriDtiou Iict +ae