Omaha daily bee., 1912-01-09
North Platte to Bell, South Platte to
Ii Independents.
7ocK ISSUED FOR THE DEAL
Order Grants Permission for the
Necessary Flotation,
TWO MILLIONS PAID THE BILL
Formal order signed by state Off
GERS sets Forth in Detail PrOvis-
Ions Agreed Upon by the
Two Organizations.
lrrom a staft Correspondent.l }

(From q start Correspondent
LINCOLN, Jan Especial Telegram)
Contrary to expectations, the railway
commission passed finally this afternoon
on the proposed telephone merger, put
ting the seal Of official approval on the
plan by which the Lincoln Telephone and
Telegraph company, generally known as
tho Independent Telephone company, will
increase It's capital stock and take over
the property OF the BELL companies in tho
South Platte country.
The Nebraska BELL Telephone company
and the Lincoln Telephone and Telegraph
company signed contracts today by
which the former sells the latter all of
It's property in tho south Platte country
as far west as the west line OF Webster
and Adams county, while the Lincoln
company transfers TO It's rival all of the
property It owns north OF the river.
The price paid by the Lincoln company
to the Bell is s29O5, 80. payable In per
cent cumulative nonvotIng preferred
stock OF the Lincoln concern. In addi-
,i6n the hell agrees TO purchase addi-
tional stock OF the same character up 20
$500 600 and to underwrite all bond lssues
that may hereafter be necessary.
The present cRpi:ai stock OF the Lin
coin Telephone and Telegraph company
will be greatly increased. Application was
made this afternoon TO the state Railway
commission for authority to increase the
common issue stock sS5O,OoO and to Issue
81. 10000 3 per cent preferred stock. a
part OF this amount win be issued TO
| complete the purchase OF the Bell, while
the common stock win be used to buy
such Independent plants in the territory
named as are not now part OF the Lin
coin Telephone ard Telegraph company.
but which may desire to join a corpora
tlon that now dominates the telephone
business In this field.
DIvIsion OF Territory.
The territory from which the Bell with
drawa covers ttwenty-two counties In thu
state Riehardson, Nemahe. ,rass. otoo.
| Saunders Pawnee, Johnson. Lancaster,
Gage. Jefferson, Thayer. Nuckolls, Clay,
/ Hamilton, York, Polk, Butler, Seward,
saline, Fillmore, Webster and Adams In
addition to the toll lines and exchanges OK
It's own that IL has been operating In this
4 section, the Bell also hands over to tho
| Lincoln company It's majority stock In
/ terest In the Plattsmouth Telephone COM
pany. the Nebraska city Telephone com
pany. the Goldonrod Telephone company
]
pany. The two first named are indepen-
dent companies which the Bell has pur-
chased within the last fourteen months,
but which supreme court Injunction, se-
4 cured by the attorney general at the in
stance Of the independent interests, has
prevented being made a distinctive part
OF its system. The three plants conveyed
by the Lincoln company, through the
] u. % A,r fs,N.
those located at Fremont and Grand Is
land, and the several exchanges included
In the Howard County Independent COM
pany.
The prices paid by both companies rep
resent the physical valuation OF the prop
critics, inventories of which have been
completed, task that delayed the con-
clusion of the negotiations begun months
ago.
Interchange of business.
I While the effect OF this transfer wilt
be TO give the independents complete con-
troll Of the South Platte and make the
Bell the dominant factor in the North
Platte. an agreement for an interchange
Of toll business and the physical connee-
tion of the two systems at all necessary
points, gives 10 the state a unified sys-
TEN, where before II was divided serv-
ice. All connection contracts OF the Bell
with farm mutuals and independents not
a part Of the Lincoln system, wherever
these exist. are protected. The independ-
ent users in the South Platte will have
full opportunity 20 use the universal
service offered by the Bell, while all
Bell patrons in other sections OF the
state win be able to reach all independent
subscribers. The withdrawal OF the Lin
coin company from north of the river
does not change the present status OF the
independent companies in the section.
The Lincoln company, while the largest
independent corporation IN the South
Platte. owns only four exchanges out
right and large stock interests In a dozen
others. There are several large indie
pendents which are not a part of It, as
well as large number of small COM
panles that serve rural communities. In