Los Angeles herald., 1906-07-20
MERCER PLANNED
IN TELEPHONES
CONCERN WITH CAPITAL OF
S2o,0o0,O00
Union Home Telephone and Tele,
graph Company contenplates
Combining Az Home Plants in
Southern California

Articles of Incorporation of the
Union Home Telephone and Telegraph
company, with an authorized capitali-
zation of $10.000.O00 stock and S10,00OOOC
bonds, were filed in the office of the
county clerk yesterday. The incor-
porators are ]. M. C. Marble. A. X
Detwiler, John Van Lew, j. r.. Fish
burn, Frank Wachter, John E. Marble
George Il. Ellis, James V. Baldwin and
A. b. McCutcheon.
The company has been organized
for the purpose Of taking over and
combining the Home Telephone plants
in several of the Southern California
cities. SO far ten of these outside COM
panies have been absorbed, and it is
understood that options on number
of others have been secured. OF the
ten companies taken over five have
completed plants in operation. These
are the San Pedro, Long Beach, Santa
Ana, San Bernardino and Ventura
Home Telephone and Telegraph com
panies. Incomplete plants of which
control has been secured are those at
Anaheim, Fullerton, Corona, Cotton and
Highlands.
OF the authorized capitalization of
the new company there has been issued
100000 of stock and the same amount
OF bonds The five companies which
have completed plants are each capt.
talized for 100000 stock and 100000
bonds. The stock and bunds SO far Is
sued by the Union Home company have
been suffi cient to purchase these prop
critics, together with the five uncom-
pleted plants, and leave a balance Of
about 100000 remaining in the treas
liry. This money will be used in putting
the incomplete plants in operation as
soon as possible.
In Complete Control
About 90 per cent of the stock of the
companies named has been secured by
the Union Home company. This gives
the new corporation complete control
of all the properties, but until the re-
manning 10 per cent has been gathered
in it will be necessary to continue
the old organizations. The promoters
of the Union are confident, however,
that the holders of the outstanding
stock will soon find it to their ad-
vantage to join hands with the new
corporation and turn in their stock.
1t is the purpose of the men at the
head of the Union Home company to
take in several more companies. 1t is
understood that negotiations have been
opened with telephone concerns in
most of the cities of Southern Cali
fornia and those that are willing to
place a fair price on a controlling in
terest in their property will be taken
over.
The plants at San Pedro, Long Beach,
Santa Ana, San Bernardino and Ven
tura now return net income on their
capital stock of $4,000 a year, and
with the improvements which the new
company will make and the economies
in operation which it will be able to
introduce it is estimated that this in
come will be doubled within the next
year or two. In several of the smaller
cities in Southern California the tele-
phone companies have, been badly han
dicapped by reason of lack of capital,
and the service which they have been
able to give their patrons has in con-
sequence in all cases not been up to
date. The new company will have an
abunda nee of capital at it's command
and will be in a position to make i'm
provements which will not only give its
patrons better service, but will cut
down the cost of operation materially.
Advantage to Stockholders
It is pointed out also that those
stockholders in the outside companies
who turn in their stock to the new
company will enjoy another important
advantage in that their investment will
not all be tied up in one plant. Under
present conditions, if the particular
plant in which their money is invested
is destroyed or does not pay they are
likely to lose their entire investment
But the stockholder in the Union
Home Telephone company will have
an equity in a large number of plants,
with a chance that his losses in one
will be more than offset by the profits
in the others.
The bonds of the Union Home COM
pany bear interest at the rate of 5
per cent year, and they run for
twenty years. The $1,000 900 thus far
issued have been underwritten by
syndicate composed of the incorporators
of the new company and other local
capitalists. Officers of the company
have not yet ben elected, but it is prob
able that Col. j. M. c. Marble will be
chosen president. Mr.. Marble is pres-
dent of the Home Telephone company
of Los Angeles and of the National
Bank of California. He has ben one
Of the leading men in the organization
of the Union Home company. The new
company's field of operation will ex-
% r1,, 20 Go