Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-09-22
EFFORTS OF BELL PHONE TRUST
TO ABSORB MuTuALs TO BE
OPPOSED IN COURT.
LIFE OR DEATH STRUGGLE
FOR MUTUAL CONCERNS
Suit to Be Brought at pes Moines to
Prevent Absorption Of independent
Lines - Small Stockholders Be-
trayed by Men Who Had Got Con.
troll of Large Number of Shares.
Special to Times-Republican.

Special to Times Republican.
Des Moines, Sept. 22.-Des Moines
| is to be the scene Of one of the most
interesting and important legal battles
that has been known. 1t will be for the
purpose of determining whether or not
| it is against public policy for the Bell
Telephone Company to buy up all the
independent lines, to speak broadly
Actually it will be suit instituted by
stockholders of the Mutual Telephone
Company of Des Moines, to prevent the
consolidation of the Mutual with the
Iowa.
The Mutual Telephone Company
was organized in Des Moines for the
express purpose of securing competi-
ton in telephones in this city and for
the purpose. thru such competition, to
prevent increased rates. Immediately
the Mutual was organized the Iowa
Telephone Company, which is the
name of the Bell company in this state.
lowered its rates, which the stock
holders claim is prime facie evidence
that the purpose of the Mutual was
accomplished.
The Mutual was organized with
small stockholders. There were more
than a thousand of them. Nearly ev-
cry one who took a mutual phone took
one share of stock with the phone
Recently the Iowa Telephone Com
pany bought up a large block of the
Mutual company shares. These shares
had drifted into the hands of a few
NO prn, Of DOLL
~, had secured large block of the
stock. 1t is learned that they were
paid 100000 for their stock in the
Mutual, and the check with which
they We're paid was signed by the AM
crican Telegraph and Telephone Com
pany which is the main corporation
that controls the Bell companies, such
as the Iowa Telephone Company in
Iowa, the Central in Illinois. and 9TH
ers.
When the Bell people bought these
large blocks of Mutual stock they got
control of the Mutual company, that is
.hey secured a majority of the stock.
and since then it has been announced
7 ~ the Iowa Telephone Company man.
ager that there would probably be
an increase in the rates. There are
about 1000 stockholders of the Mutual
/ Telephone Company here who have re-
fused to sell their small holdings at
any price. They own but one and two
shares each and the money invested in
those shares represents a small amount
even if they should lose it all. They
bought their shares with the idea that
| they were organizing a company that
would ever insure competition in tele-
phone service in Des Mones. They do
not propose to lay down now.
The fact is they have consulted one
of the ablest lawyers in Iowa and are
preparing TO make fight against the
Iowa gobblng up the Mutual. They
/ propose furthermore 10 make the fight
on the broad grounds of public policy.
/ Thye will go into court and endeavor
TO show that it would be against public
policy for the Iowa to get control of
the Mutual and consolidate the two
systems into one and under one man
agement thus placing the people at the
mercy of one corporation again and by
obliterating the old Mutual give the
Iowa a monopoly of the telephone bust
ness in Des Moines.
Furthermore it is much more than a
fight between the Mutual of Des
Moines and the Iowa The independent
telephone companies over the country
are maintaining an organization which
takes in most OF the independent COM
panies of any size in the entire United
States. This organization is going to
be behind the fight of the 1000 Mutual
II stockholders of this city and it is more
than likely will be represented by an
attorney of its own in the fight assist
ing the attorney employed by the
Mutual stockholders.
The petition that will be filed is be-
ing prepared at this time and the evil
dence gathered. The best evidence viii
probably be the fact that the Brenton's
We're paid by check signed by the
American Telegraph & Telephone
Company. The suit will probably BIZ
filed in the federal court and will un.
doubtedly be carried from that to the
supreme court of the United States.
x
Anthony Mccall, of Woodward, will
probably be the next Representative,
from Dallas county in the Iowa legisla
ture, succeeding Representative Fox
Newton Wragg and w. w Cordel
have been mentioned as probable can
!, didates but it is understood now tina
1 tlleN nave WlLluTdW1 dllu INcNIdll VIII
probably secure the nomination from
DALLAS on the republican ticket withou
| opposition. He is one of the Mccall
family so prominent and influential il
Dallas county affairs
Up near Cherokee they have organ
zed the "Pilot-Rock Flowing Mattel
l Association" which met Sept. 16 O
4 he for or