Arizona republican., 1909-05-18
EVOLUTION OF THE
 TELEPHONE SYSTEMS
What the Old Companies Are Doing and What the New One is Going To Do.

It was learned last night, on what is deemed certain authority, that the Consolidated Telephone, Telegraph and Electric company has consum- mated a deal whereby it has bought the interest of the Sunset Telephone company in the Arizona lines, not withstanding a publication last even- ing announced the reverse of these facts. The Sunset originally built the Phoenix system and others in Arizona. The Consolidated built certain long distance lines, leased the Sunset lines, including the Phoenix system, and has since enlarged the local and other systems, thus creating property of it's own. It has now acquired the in- terest of the Sunset entirely by pur- chasing the leased properties. It is understood the plans are for the bet terment of the properties and for eX- tending the long distance lines to | California connections.
 | Another publication announced that i Col Epes Randolph had stated that | the Phoenix franchise expires in two | years and that no more improvements would be made on the Phoenix sys- | tenn unless the city grant ed another ! franchise. By what authority such publication was made could not be i lt armed and naturally it is rather dis | C, edited as one would hardly expect | suck an utterance frcEi the COnsoIi- .tafcd il'c rests, even were they in ac- cotdance with the c.,r;ran:' plans, | and it Is quite lilleiy the statemcn's | are those of some critic of the com pany, misapp!ied to a member of it.
 h. mt smoothly in respect of the proposed independent system for which a fran chise was voted early this month, with the provision that construction work should begin by July 20 Assur ance is given by Dr. Foss, Dwight B. Heard and E. S. Wakelin, holders of the new franchise, that work will be- gin before that time and that the line 1 will be completed to the point of ser ! vice just as fast as possible. over lures have been made from the Con solidated at one time and another that have resulted in delay, but no prop osition has been favorably received by the holders of the new franchise and it is proposed to hurry things | along just as fast as possible in ac- cordance with original plans.
 
 tlemen met yesterday afternoon in the 1 Hotel Adams at the instance of the | franchise holders to dispose of the preliminaries necessary for incorpo- ration Dr. Foss outlined the stua- tion, saying that for five years he has
 had the project of a new service for Phoenix under consideration, but did
 not consider until recently that the
 
 posting himself all that time on the conditions and has consulted nVnert
 authority on telephone building and has always been told that there was
 q better field here than anywhere for an independent line; that if the home
 people did not take hold of the mat
 ter that outsiders would at an early
 day; that the condition promises that
 even with the lower rates which will
 form the maximum charge of the in-
 dependent company, the new system
 promises annual dividends on capi- talization of S1OO.O0O, wherefore the
 projectors feel sure they can insure
 investors at least eight per cent. The purpose of the franchise hold
 CTS is to incorporate for Sl00,0O0 capital stock, par value S10, and to |. offer the stock to local SuDScrlDerS. II is not planned as a money making en- terprise, for the promoters and the . people will be encouraged to buy the . stock more to get good telephone ser vice than anything else, though it is . believed the stock will pay a good in- vestment profit. Walter Bennett, who . was present at yesterdays meeting . was directed to draw up the articles . of incorporation and at the earliest possible day, probably about the last of this week, the company will be in- corporated and the officers elected by the board of fifteen directors com . posed of the following named gentle 2 men: Charles Goldman, Walter Ben . nett, P. T. Hurley, C. H. Pratt, Dr . O. E. Plath, Barry Goldwater, Franl : Alkire, Dr. J. w. Foss, E. s. Wake . lin Dwight B. Heard, Dr. John Lentz . Walter Talbot, c. D. Doris, Chas < Korrick, C. Fl. Davidson.
 Propositions have been made by
 several outsiders to finance the com . pany, but the promoters prefer t ] make it popular. home owned enter - prise,