The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-02-24
PHONE SITUATION
IS VERY CRITICAL
Fate of Utah Independent Com
= pany Hangs in Bal
ance.
WHY JONES WENT EAST
BELL COMBINE USES STRATE-
GEM TO GAIN CONTROL.

The Utah Independent Telephone com
rany is holding its own against its COM
petitOr. and so far as | am aware there
will be no combine of the two cOmpan-
les" said c. G. VickeTy of the Utah In
dependent Telephone company, Saturday
1t is true that the Bell people have been
trying to gain control of our company
but ! have every reason to believe that
they will not succeed. Mr.. Jones is now
in the east on business relative to this
matter. but I have heard nothing which
would lead me to believe that any COM
bine would be effected. The Utah indie
pendent Telephone company is in excel
lent condition, financially and every 9TH
er way"
Recent events have indicated that the
Utah Independent Telephone company
would shortly pass into the control OF
the American Telephone a TelegraSa
company, which controls all of the B.eil
lines
The trip east of Elmer B. Jones' man.
aging director Of the Independent com
pany- is for the purpose of aVerting the
combine. Soon after the company was
organized bonds for S2-JBJ.taD were issued,
a large number OF these bonds being Ia
ken by the United States Telephone COM
Dany- Reports from the east are TO the
effect that the Bell combine has an OPP
ton on the United States cOmpanys as
sets. and that the United States COM
pany is at this time practically inso-
vent. This being the case its assets are
on the market and among these assets
are the bonds of the Independent Tele-
phone company.
Hope for Present Owners.
II was stated last night that these
bonds carry with them controlling m
terest in the stock of the company with
all the voting power. etc. commonly go
ing with stock The American Telephone
& Telegraph company is apparently in
control of the situation at this time, but
il is believed that lOOphole will be
found whereby the actual control of the
company will be retained by the present
regime.
In discussing the matter last night Mr..
VicNery admitted that the situation was
critical just 1T this time. but that he had
every confidence in the ability of Mr..
Jones to extricate the company from its
present difficulty.
According to my understanding. said
Mr. Nickery. "a certain portion of the
stock or bonds reVerts to the company
on the 18th of this month. and this por-
/ ton will be sufficient to ensure the re-
/ tanning of control by the present own
/ ers Mr. Jones IS provided with full au-
/ thOrity to arrange for the purchase of
any of the stock that may be offered or
| that he can in any manner gain posses
/ sion of. on behalf of the eastern stock
holders now i'm control IL he is success
/ full in this there will of course be no
change in the control an the manage
ment will remain unchanged
Control in Jeopardy.
Heber NJ. Wells. in speaking of the sit
/ uatiOn last night, said: 1T is true that
/ the control of the Utah Independent Tel
/ ephosne company is at present IN jeopardy
/ by reason of the fact that the American
/ Telegraph d Telephone company hold an
! option on a number of the company S
/ bonds which carry with them control
4 ling interest in the cOmpanys stock Mr.
/ Jones Is now in the east in an endeaYor
/ to effect some sort OF arrangement
whereby sufficient stock can be gotten
/ hold of to allow the present owners to
/ retain control of the company. The board
/ of directors of the Independent Telephone
/ company is elected for five years and the
present board has still another year to
serve For this reason even if we did lose
/ control there could be no election of Of
/ fieers and consequently no change in the
management until this period has ex-
4 pired. 7 am unable to say in detail just
/ what Mr. Jones plans are. but have
I every confidence in the favorable out
come of the negotiations
The Utah Independent Telephone COM
/ pany is earning good rate of interest on
the investment at this time and the local
stockholders are perfectly sausfled- ADD
/ ed to this the company is giving a good
/ teleDhone service and for some time past
/ has been growing steadily. In the event
/ of the American Telephone * Telegraph
\ company gaining control of its stock, the
outcome is not difficult to foresee- The
! Bell system is part of the combine
/ known as the American Telephone & Tel
| egraph. and in all probability the indie
/ pendent company would be simply merged
/ with the Rocky Mountain Bell with the
/ latter in undisputed control of the local
telephone situation.
/ j In the meantime Salt>Lakers will be i'm
patient to, learn what happened 20 Jones
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