Arizona republican., 1912-06-27
Contract Between It and Mountain States Tele- graph and Telephone Company Was Filed With
 Corporation Commission
ALSO A PETITION
 FOR ITS APPROVAL
Statement Regarding the Transaction by Mir. Fen nemore, the Representa- tive of Mountain States Company As to Plans

The negotiations which The Re
 publican exclusively announced three
 weeks ago were in progress for the
 purchase of the Overland Telegraph and Telephone company by the Noun
 tain States Telegraph and Telephone company have been concluded so far as it is possible under the laws of the
 state for the parties of the first and
 second part to conclude them. The
 next step must be taken by the cor pOration commission.
 That the sale has been consum- mated was made known by a petition which was filed with the commission yesterday morning by the officers of the Overland company, in which they ask permission to sell their plant to the Mountain States company, in ac- cordance with the terms of a con- tract entered into by the parties con-
 cerned, subject to the approval of the commission.
 The petition is accompanied by a copy of the contract of sale, which provides for taking over the entire issue of the outstanding stock and bonds of the Overland company. In their petition the officers of the Over l land company show that the com- pany is in serious financial condi- ton. The total bonded and floating l indebtedness is of such an amount ] that a receivership has almost been l asked for, however, they point out to | the commission that a sale under the contract with the Mountain States company will realize more for the | stockholders and creditors than could be expected from a forced sale that might be ordered by the courts. It is 1 further stated that the creditors will | be taken care of first.
 Under the stipulations of the con- l tract in question, the stockholders will receive 15 cents a share for their holdings and $750 a share will go to
 the bondholders Owing to the fact
 that the Overland company has never been able to make a fair return to
 it's shareholders and to the further fact that to longer continue to oper- | ates under the present conditions would mean a further loss it is
 thought entirely possible that the commission will approve of the sale. | I involved that will have to be solved but a consolidation will be effected as speedily as possible" said H. M. | F'ennemore, who is representing the Mountain States company in the ne- l gotiations. The whole matter, how l ever. is contingent upon the ruling l of the commission. If the sale is ap- proved the Mountain States company 1 will pay every cent that the plant is worth. The community at large will
 also benefit by the sale, because the
 consolidation of the plants will put an | end to the economic waste which l dual service entails"
 l When questioned as to the matter 1 of rates, MT Fennenore said that this was a matter that would be dictated | by the commission. He said. how ever. that while a unified service was unquestionably more valuable than l dual service the rates would not be 1 increased above the standard schedule 1 of the Mountain States company, which is practically the same as the | standard schedule of the Arizona | Telephone & Telegraph company.