Arizona republican., 1912-06-08
Negotiations Concluded Be tween a Committee of the Latter and a Represen- tative of the Mountain States Telephone Go.
APPROVAL NEEDED
 OF STOCKHOLDERS
It Is Thought That Little Opposition Will Offer to a Sale of Overland at a Price of Approximately $425,00O

1 Those citizens of Phoenix who have regarded two telephone systems in the l same town as a nuisance are about to have that grievance abateJ In all prob- ability the overland company will be taken over by the Mountain States Telephone company which last week acquired the Arizona Telephone com pany
 The negotiations for the purchase of the Overland have been going on for a couple of weeks but nothing regarding 1 them Was disclosed until yesterday when it was learned that an agreement had been reached between a represen- tative of the Mountain States com. pany ana a committee of the stock
 holders of the Overland
 The Mountain States representative, C. H. Fennimore of Denver came to Phoenix several weeks ago and entered
 upon d study of the Overland system and after having satisfied himself re-
 garding it, he began making overtures to a group of stockholders.
 The latter named a committee of three which finally submitted a propo- sition to MT Fennimore. They would accept q sum equal to seventy five cents on the dollar for the bonds and fifteen cents on the dollar for the stock of the Overland This will bring the purchase price of the Overland to something less than $425,000. This proposition was accepted by MT. F'enni- more with such alacrity that the mem-
 bers of the committee repented that
 they had not made better terms for themselves, since what they had done had been so easily accomplished.
 The deal, so far as it can be effected without the ratification of the stock
 holders. is said to have been concluded,
 but it is believed that a majority of the stockholders will favor the agreement
 entered into between MT. Fennimore and the committee.
 It is known, however that there will
 be some opposition to it by a group of
 stockholders who believe that under the mana cement of a receiver the prop ertv can in a short time be made more
 than the amount that would be re-
 ceived under the agreement. It is
 thought too, that there will be oppoSi
 tion on the part of some of the bond holders who believe that a receiverShip would result in an adjustment that would make the bonds worth par. or that they might. at any rate. receive par for them. It is said that many Of
 the bonds were purchased at sixty cents on the dollar
 The application for a receivership was first set for hearing last Wednes- day but at that time it was continued until next Monday It is possible that the deal may be cOnsummated or may l reach such a stage before Monday that ! the proceedings may be dismissed. The Mountain States Telephone company is a part of the Bell system and it will be recalled that at the time l of the organization of the Overland one i of the reasons advanced by it's then | promoters why it should be encouraged | was that it was to be independent of 1 the Bell
 In the comparatively short period ot 1 its existence the Overland has had a ] marvellous growth. Its equipment at i the time it was put in was the last i word in telephone construction ano since then an excellent and extending 1 service has been maintained, some oi the stockholders say, at such dis regard Of expense that its difficulties resulting in the application for re- ceivership are attributable to the lavish l expenditures for the improvement ant extension of the service