The Detroit times., 1912-07-11
From a staff Correspondent

FROM StuTT Correspondent.
LANSING, Mich, July 9.-Attorney
James o. Muffin, former circuit court
Judge OF Wayne county, filed applica-
ton with the State Railroad Commits
sion, today, for permission TO allow
the Michigan State Telephone Co.,
for which he is acting, TO purchase
the Home Telephone Co. OF Michigan
! and its allies, which are as follows:
The Macomb County Telephone Co.,
Of Mt. Clemens; the Interstate Long
Distance Telephone Co., which oper-
ates in Livingstone county; the De-
troit River Telephone Co, OF Wyan-
dotte, and the Wayne County Tele-
phone Co., OF Worthwhile and Ply
mouth.
1t has been stated inSThe Times on
more than one occasion during the
past six months, that negotiations
were under way for the amalgama-
ton Of the Michigan and Home com
panies, but the people in control OF the
situation would not confirm the story
That The Times was justified I'm pub
fishing the rumors OF the merger is
now borne out In the application of
Mr.. Muffin. Ii was necessary for him
10 consult the state railroad commits
sion in the matter, as the last state
legislature enacted a law which pro-
yides that no combination OF the kind
proposed can be consummated without
the approval OF the state railroad
commission In other words the leg
islation makes telephone companies
common carriers and subject TO the
jurisdiction Of the commission.
In speaking Of the proposed mer-
ger Mr.. Muffin said to The Times:
The Home Telephone Co. has an
authorized mortgage loan Of 100000
600, of which a little more than S.
100000 has been issued and is out
standing. The business has never
prospered enough TO pay the interest
on the bonded debt, TO say nothing OF
dividends,
The Michigan State Telephone Co.
has about $4,000 subscribers In De-
troit. while the Home company has
only 10000. II is figured that about
.f,0O0 are duplicate subscribers; that
IS. patrons who have both phones. b.
the amalgamation, the public will
benefit. for IL will not be necessary
thereafter TO pay for two phones and
will mean a saving of about 100000
year to the present duplicate SUBJ
scribers combined.
The Michigan Co. announces that
the merger will not affect the rates In
the slightest degree at the present
time. No contracts now in force will
be changed or in any way disturbed
until they run out; in other words,
Home subscribers will not have to pay
the present rates of the Michigan Co.
until their contracts with the Home
Co. expire. The Michigan Co. also
figures on giving the people OF the
state much better service with the In.
creased equipment. The Michigan
Co. plans to use the entire plant OF
the Home Co This will give present
Home subscribers an opportunity OF
being in direct communication with
the $4,000 Michigan subscribers as
soon as the deal goes through The
Michigan subscribers will also get
benefit from being able to commun-
lcate with the Home lines
For the Home equipment. the
Michigan Co. Is to pay little over
$780, 900"
The Home Telephone Co. was es-
tablished in Detroit in 1907 at a cost
Of over $4,000. 900 The financial back
ing came largely lIOIn luuiNluudis WV
nected with the Common wealth Trust
Co, of st. Louis, Mo. Local capitalists
also subscribed literally for stock.
They are on the board Of directors
and are as follows: John NJ. Dwyer,
George E. Lawson, Charles B. War
rem, Howard J Lesher, Andrew b.
Green, Jr., Alexander Mcpherson,
VIM. T. Barbour. VIM. A. Jackson,
VIM. B. Cady, Homer Warren and
Fred Postal.
other directors are James f.
Davidson, Bay City; Arthur d. Eddy,
Saginaw; r. Bruce Mcpherson, Howe,
Mich. Elias Michael, Edward F. Col
ira, Sam B. Jeffries, BENJAMIN
Altheimer, Albert N. Edwards. Thorn
as Dunn, Henry Koehler. Jr.. A. w.
Lambert and George L. Edwards, st.
Louis, Mo.
The officers are: VIM. A. Jackson.
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