Omaha daily bee., 1910-01-22
Council Bluffs
IOWA COMPANIES TO MERGE
Independent Telephone Men Take
Action Like Nebraskans.
PRESIDENT HoLDoEGEL TALKS
In Spite of sharp Competition There
Are Now Quarter million Phones
In IOwa--Rates Ques-
tfOn.

The Iowa Independent Telephone associa-
tion, at a separate session yesterday was
expected to follow the example set by the
Nebraska association and lay plans for
forming an incorporation which will EN-
brace all the independent companies Of the
state OF Iowa. The proposition was freely
discussed yesterday by the members Of
the Iowa association. and the question Of
forming a merger on the same lines as the
Nebraska association will come up for ac-
ton, II was stated, at the session OF the
Iowa association today.
At the close Of the joint session OF the
Iowa and Nebraska associations at the
Grand hotel yesterday afternoon a number
Of the prominent Iowa indepedent telephone
men, including p. C. Holdoegel Of Rock
well City. president of the state association,
went into an executive session which lasted
late into the evening It IL understood
that the meeting was for the purpose of
formulating a plan for the merging OF the
independent companies in the state into
an Incorporation similar to that decided
upon by the Nebraska association, which
VIII be submitted at the session OF the
Iowa association this morning.
Some delay was experienced in opening
the joint session of the two associations at
the Grand hotel yesterday morning, owing
to the lateness OF the arrival OF the Ne
braska members The session. which
lasted through the afternoon, closed about
s o'clock. The program as arranged was
carried out, with the exception of the ad-
dress by c. b. Cheadle Of Joliet, H.. who
was unable to be here, and wrote express
ing his regrets at being unable to attend.
In his annual address President p. c.
Holdoegel Of the Iowa association said in
part:
In 1898. when the Berliner patents of the
WAS not single indepenSent line IN iowa
For from five to eight years after the
expiration of the patents, 1t was lmpossi-
nle to Interest capital to compete with
fight that TIE Bell interests made In the
courts for the extension of their patent
and the strongly established position Of
the Bell companies. In about the year 1898
the independent movement began, and in q
few years every city, town and hamlet
In the state could be reached over inde-
The business OF the companies compet-
ing with the monopoly has Increased stead
ily, at present there are 100000 phones In
the state operated by Independent com
panies, who controlled over COO exchanges.
After twenty years of monopoly and six
teen teen years Of &C competition the Bell interests
about one-fourth of the number controlled
by the independents.
Competition Sharp.
The Independent companies have met with
every class Of competition In their effort
10 establish themselves. In the effort of
the Bell companies to break competition
and re-establish monopoly, millions of east
ern capital was interested. In large busi-
panies had established exchanges larger
than had ever been dreamed OF before,
other companies were brought out by op-
/ NJ In ~ tu matt
tion the independent companies have at
present $24,50 900 invested In Iowa and do
four times the business Of the Bell COM
Due to this competition this state enjoys
cheaper rates than any other state or ma
tion. The competition has been SO stringent
that IN some cases ruinous rates have been
made. Notwithstanding the increased cost
of ali commodities, the Independent COM
panies have been forced to raise the estab-
lished rate In only few isolated Instances.
At the convention In this city today there
Is represented $46,00ooOo Of Iowa and Ne
braska capital, showing the great pros
perity OF the Independent interests.
Mayors Address.
Mayor Thomas MaIoney. in his adress
Of welcome, referred to the public inn
provements which have been carried out
in the last five years. including the ereo-
tion Of the Auditorium. He said that he
had delegated Charles A, Beno, a leading
member OF the Commercial club and secre-
tary Of the local Independent Telephone
company, to see to It that the guests OF
the convention were properly entertained
and taken care Of.
J, C. Thome OF Fairfield responded to the
mayors welcome.
The evening session, at which the visit
ing members were to be entertained at a
smoker and question box" was to have
been in charge of A. B. Hawley Of Clin-
ton,, Ia, was abandoned for lack OF at
tendance. The majority OF the out-of-town
members desired to take in the theaters
in Omaha and see some Of the sights across
the river as a mere matter of relaxation