The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-02
INDEBTEDNESS IS
OVER $4,000, 900
Has Been a Losing PROPOSE
tion From the Start,
the Management
Says.

cial condition OF the Utah Independent
Telephone company constantly becomes
worse and that II is impossible for 1t to
pay even a small part of the interest
let alone paying part of the principal
the directors of the company at a meet
Ing held Monday afternoon. passed by a
unanimous vote an order to offer the en-
tire property of the company at public
auction June s. 1911. In ascribng the
reasons Tor the declaration mentioned,
Waldemar Van Cott. president OF the
board of directors. said TO The Tribune
Monday night.
THE financial condition OF the COM
pany. as SET forth in the minutes OF the
meeting today. comes from the Inability
of the company 10 charge high enough
rates under ruinous franchise to Sc
cure sufficient income 10 pay the in
sonable rate of interest on the invest
ment. This has been true from the
start OF the operations of the company
and has continued. 1t has grown worse
on account OF compound interest sched-
ule being in effect Outside of what is
outlined in the report OF the meeting as
given by the. minutes there is nothing
The directors present at the meeting
Monday were Heber J. Grant, Eleber NJ.
Wells. Samuel F. Fenton. James II.
Ger. Waldemar Van Cott and Lawrence
Greene.
Sale to Be Advertised
According to the order of sale as
passed by the directors, the sale is 10
be. advertised ouee a for three
weeks prior to the sale In three Salt
Lake newspapers. one newspaper In
Butte, Mont: one newspaper in Spokane,
Chicago and New York. The president
and secretary OF the board are author
lied and commanded to make all prep
aratlons for the sale. which will be held
a w.sSf nT
county building on the dale named AT
10 o'clock a. m.
The person conducting the sale will
have the power TO continue the sale from
day To day and to reject bids. In the
notice OF sale as IL will appear In the
advertisements all the physical property
with the secondary franchises or without
them. as They may offset the sum To be
realized on the sale, In case the sale
is made including the secondary fran
chlses the company. by virtue of the
notice serves notice on the bidders that
the secondary franchises are transferable
only at the will of the city council OF
Salt Lake According to the terms of
the sale the purchaser is TO pay 10 per
cent of the purchase In cash, and the
balance when the company is sry, ready Eros TO
pective buyers have the privilege OF
looking over the property and to obtain
a full inventory thereof.
Financial Condition.
From the minutes of the meeting OF
the directors Monday the financial con-
ditions of the company are given and
are set out here as they appear III the
minutes. as far as what follows is
quoted.
ut appears TO the directors that this
company now owes interest on outstand-
ing bonds which Is due and unpaid as
OF April so. 1911, in the sum of SI22,624'li,
10 the amount OF s31.7S5.l3. More than
three-flfths of the outstanding bonds of
this company are held by the Registrar
and Transfer company and such bond
holder has made demand on the Utah
Savings & Trust company. as trustee, TO
demand the payment of all interest now
demanded OF this company the payment
OF all such interest. and this company
has answered that 1t IS unable TO make
such payment. and thereupon said trus-
tee has declared the principal OF all the
outstanding bonds due and payable. and
the amount thereof Is 81 i0l.i00. maxi
ing the total indebtedness now due and
owing by this company the sum of
So 1876 109.30,
THE financial condition of this com
pany constantly becomes worse and df
Is impossible for ii 10 pay even u small
part OF the interest. let alone paying any
part of the principal. II appears to the
directors that the above interest is due
TO The bondhoder, and above principal
OF the bonds is due to the bondholder.
and that the best way for the company
to proceed is to sell its property as
promptly ~ pbSSiule dlN't Alit %
due notice in such way as To realize the
largest sum at the least expense.
To Save Expenses.
1T is the judgment OF the directors
that by advertising the property fol, sale
1t will bring as large sum as by
foreclosure suit and that the former is
much less expensive than the latter IL
further appears 10 the directors that the
condition of the company becomes ftnan-
clally worse the longer the sale Us de-
ferred. and that IL is TO the companys S
advantage to convert Its property into
cash at the earliest possible date
ION April l. 1907, this company exc
cutcd and delivered to Strombers- Carl
son Telephone Manufacturing company
mand, for S4S1S369. with interest. from
its date until paid at the rate Of six per
ION April l. 1907, this company exc
cuted and delivered Ia Stromberg-Carl-
son Telephone Manufacturing company
its promissory note. payable on demand.
for sl5725.SI withs interest from It's
date until paid at the rate of six per
cent per annum.
ION April 3. 1907, this company exc
cuted and delivered 10 Stron,bergCarl-
son Telephone Manufacturing company
its promissory note, payable on demand,
for ST5, 600 with interest from It's date
until paid at the rate OF seven per cent
per annum.
1.-THE above three notes were indorsed
and transferred from such payee with
out recourse and are now held by the
whose legal name Is Regis
Continued on Page Two.