The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1907-04-19
Elmer B. Jones Returns From
New York After Three
Months Legal Battle.
INDEPENDENT COMPANIES
TO BE CONSOLIDATED
Telephone Situation Is Clarified
by the Recent Action in
New York.

Elmer B, Jones, managing director
of the Utah Independent Telephone
! company, has returned from n three
months legal BATTLE with the Bell
Telephone company in New York. Hay
ing achieved what he proposed TO do
when he left for tho East, namely, the
securing OF an injunction restraining
the Bell company from acquiring a
controlling interest in the Utah enter
prise he is now planning to make the
Independent company purely local
concern, The Independent companies
of Utah, Idaho and Montana are to be
consolidated and remain free and
distinct from the Bell company. with
all the stocks and bonds Of the con
Germ owned by local capitalists.
Mr.. Jones was preparing to leave
for the East about three months ago
when he received message stating
that the United States Independent
Telephone company, which had ac"
quired controlling interest in the
local concern, was about TO sell the
stocks and bonds to the Bell people
Originally the local company had Il
contract with the StrOmbero- Carlson
corporation. whereby the latter was to
furnish S3,000,000 for construction. in
return the Stromberg company received
00l 900 shares of the Utah company s
stocks, controlling interest, and
$500. 600 in bonds Afterward the
United States Independent company
took over the Stromberg Carlson inter
ests.
Got Busy at Once.
Early this year the United States
company made contract with the New
Jersey Trust company, in which it
agreed to turn over lis interest in
the Utah company on March 8. Mr..
Jones at once interceded with the At.
torneyGeneral of New York. An in
nelly act. passed in 1899, which pro-
hibits the consolidation Of business
concerns so as to restrain trade. The
officers of the Bell company were
brought into court, and, 1T is said, con
fesscd that they formed the New
Jersey Trust company About ten
DAYS ago the Supreme Court of New
York handed down its decision and is
sued permanent injunction.
1.-The Bell company had offered
handsome price for tho Utah stocks
and bonds" said Mr. Jones, "and had
it succeeded in it's design it would have
meant the suppression Of all local com
petition and the creating of complete
monopoly
All of the stocks and bonds of the
Montana Independent Telephone com.
pany, OF which Mr., Jones is managing
director, have been placed in that
State, thus making it q purely local
concern, and that is what Mr.. Jones
intends to make of the Utah company
The United States Independent com
pany now proposes TO let the citizens
Of the various States take over their
own securities, and that Will leave the
firm with nothing but the msnufactur
ing plant. Some of the most promi
ueut finsnciers of Utah have subscribed
for large blocks of the Utah com
pany's bonds and stock. and Mr.. Jones
is now organizing a big syndicate to
take over the two and a half million
bonds and sol 900 shares Of stock con
trolled by the United States company
Hitherto the Utah and Montana com
panies have been entirely distinct. ex-
cept for an agreement as TO the eX
change of toll, but now they will be
consolidated into one big company, The
Independent exchange in Butte. Mont,
is neariug completion, and will be ready
for service in about sixty days. AS
soon as the financial deals are com
pleted extensive improvements will be
made in all departments of the local
plant