The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-20
CASH PUT UP BY
ELMER B. JONES
Utah Independent Telephone
Company Out from Under
United States Concern.
DEAL MADE IN ROCHESTER
AMOUNT OF MONEY INVOLVED
is Se5O,00O.
(SpeciaI TO The HeraldN

Rochester, n. Y, July 19-The men
in charge of the reorganization of the
properties of the United States indie
pendent Telephone company were
greatly encouraged today when Elmer
b. Jones. managing director Of the
Utah Independent Telephone company,
arrived in Rochester with $4,000 in
cash, which he deposited for an option
for ninety days on the Utah plant.
which is controlled by the United
States company. He agreed to pay
$95O,OOO within ninety days, and the
deal was practically closed.
There has been so much stage
money" fiOurished by promoters seek
ing TO buy separate properties under
the control of the United States indie
pendent company that the sight OF $50
600 in the form of a bank draft was
very welcome.
part Of Reorganization Plan.
Mayor Cutler said tonight: The
plan Of selling the Utah company at
S950,0O0 is part Of the reorganization
plan that will be presented to the
stockholders committee on Tuesday
afternoon. 1t will involve no change
of the plan as drafted, because it was
anticipated. 1t was not intended to
say anything about the details Of the
reorganization until the complete re-
port was submitted TO the stockhold-
ers' committee on Tuesday, but. as Mr..
Jones arrived on the scene with the
money yesterday, I suppose there is no
objection to anticipating this part Of
the report"
Consent of Directors Required.
1t requires the consent in writing Of
the majority OF the directors of the
United States company in order to sell
any property belonging to the com
pany, so the bargain cannot be actual
ly closed until such written consent is
obtained, and there is not "A majority
of the directors in the city at the pres
ent time. But that is a mere formal
ity. The men in charge of the reor-
ganizatiOn plan regard this sale as
practically settled. When the $3.50 900
cash is paid over and the transfer of
the Utah plant completed, the money
Will be used 10 wipe out some of the
mortgages and notes and thus reduce
the Indebtedness.
Only Sale Proposed.
1t was stated last night that no
other properties were to be sold under
the organization plan- All the prop
critics of the company were to secure
payment OF the collateral notes issued
last fall. aggregating $500. 900. 1t has
not been decided now to raise the ex-
ira 3S,00O,000 in cash, that it is esti-
mated Will be required to pay the
floating debt and provide an adequate
working capital for the future, but the
sale of this one property fakes care Of
$9oO'OOO OF this amount in a general
way, 1t Is known that the reorganiza-
ton involves the cutting down of the
bonds and stocks to somewhere near
the actual values represented by the
assets Of the companies and the trans
formation of all the old securities into
common stock The fresh capital that
IS raised Will naturally be made either
preferred stock or bonds, as it cannot
be expected that additional capital can
be obtained unless it is secured as a
nrst mortgage on all the assets of the
company. These details viii be sub
mitted to the stockholders committee
on Tuesday afternoon.