Omaha daily bee., 1911-02-12
Council Bluffs
MORGAN BUYS BLUFFS PLANT
Independent Telephone System Sold
to Eastern Magnate.
HOLDERS GET PAR FOR STOCK
check for eI25,OOO sent West and
Made Available TO string Of
Investors ne the First Ma
tiOnaI Bank.


denied the fact was established yesterday
that the Council Bluffs Independent TeIe-
phone company mas become a part OF the
large project that is being engineered by J.
Pierpont Morgan
For several days. even as long ago as
FEBRUARY g. holders Of the Independent
company's stock here began receiving offers
lot us purchase. The offers came from
agents representing eastern purchasers
some were Tor less than the par value Of
the stock, but i'm most cases the holders
were offered all the stock had cost them
including earned interest. Later President
F. J. Day and other officers and directors
OF the company entered the field as pur-
chasers Of the stock. and notices were sent
TO the stockholders notifying them that
helr stock would be taken II presented at
the company's office. Responses to these
,1t'ers indicated large willingness to
turn such holdings into cash, and many
opportunities to buy were presented.
Check for s125.OOO.
On Thursday a check Tor $4,000 was re-
ceived at the local office from New York
and deposited in the First National bank
and all day yesterday there was small
procession OF stockholders coming and going
from the bank. presenting and cashinR
checks When questioned the holders Of
the checks stated that they had Just sold
their Independent Telephone stock. but did
not Know who the real purchasers were
lheir general understandings however. was
that 1t was being taken up by the company
as part OF the plan for reorganization
and betterment
PRESIDENT Day Of the company said yes
terday afternoon that there was nothing
Ouf
Der OF the local stockholders had sold their
interests in the company and that there
would be no change in the local business
ana but slight changes in the manage
ment.' Questioned about consolidation
with the Bell company. Mr.. Day was abso
lutely speeches., but could not conceal the
apparent interest he took In efforts to
ascertain the facts. He plainly regretted
MS INABILITY at the present time TO give out
more definite information
Frank Elgan, manager Of the Council
BUTTS otfice OF the Bell company. knew
nothing whatever about the transfer Of the
business that Is going on and received his
iirst intlmaton Of the deal from questions
asked him
The Independent Telephone company OF
council Bluffs was organized by local BUSH
ness men and capitalists in 1905 and there
mas since been little change in the personnel
OF us otlcers and directorate. +. j. Day is
president; E. H. Merriam vice presidents
charles A. Beno, secretary, and T. G
Turner, treasurer c. A. Laubach has boor
general and local manager from the begin
ning, but resigned a few days ago and sn-
nounced that he was going to locate in
Columbus, o. The board of directors are. q
Il
Day, T. q. Turner DR.. II. b. Jennirgs
{. A Beno' John J Tiarks and E. H. Mer
ram. all among the most prominent ana
successful business men in the CITY. The,
have managed the affairs of the comna,,,
with splendid skill and given a ser,ina =,
high efficiency. They erected a modarn
telephone building and equipped if wis am
Of the best approved devices required for
the service. Its switchboard is one 81 ~
largest in the state.
strong Institution.
The Bluffs exchange has nearly soo,.
phones IN service in the city and outstds
lines that put its subscribers into cor
nection with more than LOO exchange ~
other cities and towns covering All ~
Iowa and portions Of Nebraska. Missour,
and Minnesota II Is the best organized
anu JUG VI INC SlIoHbeSJ Independent
changes in the west. Its stock is all ovvnsd
by people residing in the city and coun,,,
numbering more than $50 shareholders
No statement has recently been made =,
the amount OF stock issued, but Il is ss,d
TO be about 32OOOOO with a bond issue or
approximately $4,000
The assets OF the company reprsser,
its extensive and well-constructed iInaa
with copper trunk wires and feeders o,-.
tending INTO Missouri and beyond Sion
city, Us miles Of cabled lines carri.d
through conduits and on poles Ia the c,,,,
and its other permanent ana vaIuah,,
property.
The question Of the future OF the CON,
pany is a problem that is now safely IN
the keeping Of Mr.. Morgan and his iie,,-
tenants. Ills representatives I'm Courcu
Bluffs emulate the sphinx. Whether thor.
Will continue TO be two exchanges in tb,
city, with continuation OF the presen,
low rates, or whether the two exchange.
viii ali 10 under one management. fol-
lowed by a stimulation Of rates, win onI,
be disclosed by time. One thing, however
is certain. Those who have not sold tbeb.
stock are not anxious to let Ko of IL now
but they are few In number, apparently