The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-04
President Van COtt Answers
Questions Relating to Sale
of Independent.
QUERIES ARE PUT BY
FORMER ST0GKH0LDER
Matter of Bend Issue Is the
Real Subject of
Inquiry.

In telephone circles there is conHd'
cradle speculation as 10 the outcome
OF the public sale OF the Independent
telephone plant Monday. Hoy many
and who VIII bid are the questions left
unsettled by every source Of lnforma-
tion available Ii is certain that there
are prospective bidders interested, IN
asmuch as inventories of the plant have
been compiled and sent out to at least
four separate persons or corporations.
AT least one Of these inventories was
sent 10 persons outside Salt Lake. IL
is presumed that the other requests for
an invoice came from salt Lake inter
csts. However, this particular infor,
nation has not ben given out, 10 al
inquiries the answer has been, Malt
till Monday and YOU viii know. Nlth
the execution of the Bell Telephone
company, thcr is no known bidder That
the Bell interests will bid was made
an assured fact when II. Vance Lane,
in an interview a week ago, gave out
that information
Some agitation has been apparent
among certain capitalists regarding the
formation Of syndicate to bid on the
plant as whole with the intention oil
taking over the franchise and contin
-
independent company. The Bell com
pany. in the event of its being the sue
eessful bidder. has declared that the
two lines will be operated as one.
E. w, Hammer, one of the promoters
of the Independent Telephone company,
who was a stakeholder in the company
for two years after its organization,
but who sold his interests at that time,
gave out an iDterview in which he de-
clared that he was at the head OF a
coterie or syndicate of capitalists to buy
the plant and operate it on franchise
which would be asked for from the city
council. Mr.. Hammer, whose home is III
Chicago. but who maintains an Office In
Salt Lake City. is in charge of the
business of installing Independent tele-
phone plants with the automatic sys'
TEN. In his previous interview, Mr..
Hammer made the assertion that the
Bell company has owned the 1ndepend-
ent company for several years and fur
ther declared the coming sale TO be 2
subterfuge. At the time or his in
terview. Mr.. Hammer insisted that his
syndicate would bid on the plant If 1t
was thought advisable.
z. w. Hammers Letter.
Following up his assertions of "A
week ago. Mr. Hammer addressed a
letter to each member of the board of
directors of the Independent Telephone
company in which a number of ques-
tions were put as to the plans and
terms Of the sale, claiming that the
notice of the sale did not adequately
set these things out, Under date of
June Q, Mr. Hammer wrote as follows:
To the Board of Directors OF the Utah
Independent Telephone Company:
1.-asa hD trNt dfNfi if,yt
OF the undersigned and some of his as
sociates 10 make a bid upon the assets
OF your company advertised for sale on
June D. 1911. but upon looking carefully
over your advertisement 1t appears that
the same is not sufficiently definite TO
give Il clear understanding 10 parties in
tending to bid as TO what Is offered for
sale and as TO the methods To be Dur-
sued by you in making said sale
Your attention is called to the facs that
information has been given out that a
bond issue. with accrued interest. agere-
eating more than three million dollars,
secured by mortgage upon the property.
exists; and your notice OF sale Is silent
upon the question OF whether the prop
erty is intended TO be sold by you sub
ject to the lien OF the mortgage. or
whether. on the other hand. YOU have
arranged with the holders OF said mort
gage for the discharge OF the same In
the event OF the sale of the assets OF the
company.
The undersigned and his associates are
laboring under the opinion that the bond
issue Is far I'm excess OF any price that
will be bid upon the assets OF the com
pany. which would make 1t impossible
for anyone to submit bid, subject TO
the said bond issue and hence only the
owner of the bond issue would find ii pos
sible TO make an offer for your COMPANY S
assets. thereby making q farce OF the
proposed auction sale.
Seven Questions Asked.
Here followed seven questions which
were taken up in order and answered
by Waldemar Van Cott, chairman of
the board of directors of the independ-
ent company, Concluding his letter
Mr.. Hammer says:
In view OF the fore going suggestions
which have presented themselves. IT Will
the facts before the bidding public are
not sufficient to enable it to bid ad-
visedly or intelligently. and the under
of submitting a bid. desire TO have u
thorough understanding as to the sug-
gestions above enumerated TO the end
that no misunderstanding may arise In
they may know as to whether said sale
will be made under conditions that
are calculated to protect their interests.
Reply Of Van Cott.
Under date Of June 3, Mr.. Van Cott
GuuISSocu q itIlel W MI III
which the full text Of the questions
as put by Mr.. Hammer are repeated
and answered. The letter signed by
Mr.. Van Cott, chairman of the board
of directors, is given herewith in full:
Mr.. E. w Hammer. City:
Dear Slr-Your favor of the End inst
at hand, addressed 10 the board OF d.
rectors of the Utah Independent Telc-
phone company. and the same IVES re-
ceived this morning. the 3rd inst. I!
did not occur 10 us that It would be nee
cssary TO say that when our property
was sold to help pay the compaDy's deb,
that the property sold would be free OF
| the mortgage lien. That Is self-evident
proposition. 1t would be fraud to take
anyone's money for the property sold and
| then for the company TO claim that the
| property is still subject 10 the mortgage
| lien. IL that were true, a very small
| amount of property In value would pay
| n large debt. provided sufficient num-
| ber OF uniformed people could be OBJ
| talned to buy the property over and over
But answering your question categori'
cally. II is here stated that the property
will not be sold subject TO the Hen ol
! the mortgage, but II Will be free OF the
mortgage. and the mortgage will he re-
| leased as TO all OF the property sold YOU
ask the following questions. and the an
| swcr follows each question respective
| ~, to wit.