Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-01-14
Articles Drawn Up and Mailed Out
Stating Terms.
DEFAULT IN INTEREST THE CAUSE
Uncompleted Condition of Plant Also
Factor in Movement,
MODE OF PROCEDURE TO BE FIXED
Process of This ReOrRa nizRtiOn May
he by MOrtRREe. or Otherwise,
ms the Committee Shall
Elect.

A reorganization OF the Independent Tele-
phone company OF Omaha Is being worked
out A committee composed OF these men
has the scheme in charge; Frank II.
Woods, president Of the Lincoln Independ-
ent Telephone company; Edison Rich. gen
eral attorney for the Union Pacific Rail-
road company; Lysle !. Abbott, attorney at
law; Frank b. johnson, president Of the
Omaha Printing company, and Frederick
w. Stearns OF Chicago
Notices of the plan were last night sent
to the bondholders who control the prop
erty, and a tentative agreement that will
bear date of December Is has been drawn
and submitted to them.
This agreement supulates that inasmuch
as the company defauted in the payment
Of it's semi-annual interest on April Is,
1909, and October is, 1909, and made no pro-
vision for the further payment Of 1t and
that whereas the telephone exchange
constructed by the company is in an un-
completed condition and no provision has
been made for the completion of the same
and the development of the business OF
the company and the bondhoders, par
ties hereto of the first part, desiring to
unite to protect and enforce their rights
and to secure a wise administration Of the
necessary that committee should be APP
pointed with full power to investigate the
conditions, affairs and status of the prop
erty and to take such action with regard
thereto as to them shall seem advisable.
either by foreclosure or otherwise"
Turn Over Bonds at Once.
This agreement then stipulates that on
or before February the bondholders shall
deposit all the bonds and unpaid coupons
with the Merchants National bank Of
Omaha or the Title Insurance and Trust
company of Los Angeles, subject to the
order and full control of the committee,
transferring legal power and equitable title
also. The bondholders shall be secured
under this agreement with certificates rep
resenting the bonds.
Any creditor of the company who holds
bonds or coupons of this company, under
this agreement, may become a party to
this agreement. Also under this agree
ment this committee on reorganization
shall las soon as practicable" formulate
a plan for its work and submit It to the
interested parties by depositing 1t in the
bank or trust company.
This movement has been quietly promul-
gated in the last ponth. Frank II. Woods
Of Lincoln brought the matter to a head
when he sought to secure control OF the
local plant which, 1t was believed for
while. would go into the hands Of re-
ceiver. Woods recently gained the as
cendancy in the Independent telephone
world by getting elected national president
at Chicago
One of the heaviest creditors-perhaps
the heavlest-of the local company is the
Automatic Electrical company Of Chicago
which has held mechanics lein against
the plant which It installed.
According to the companys own state
ment, the total outstanding bonds amount
to 81, 100000, divided In this way: First
mortgage. authorized issued. s1,5OOOOO, 5
per cent; sinking fund.- s25OOOO, per cent;
gold bonds, $6JO,OOO, OF these bonds 81, 600, :
600 were issued for value and 100000 as
collateral. Lysle Abbott controls those
held in Oregon, 100000; Stearns of Chicago
holds 100000 and 100000 are held in Los
Angeles while Woods controls the re-
mainder.
Statement by the Company.
For the fiscal year ended June 30 1909,
the business and conditions of the company
were summed up in this statement filed by
the officers with the State Railway COM
mission at Lincoln: