Omaha daily bee., 1912-07-08
SILENT CENTRAL
SOON TO DEPART
c. E. Yost of Nebraskr <oa. q ne
Company Says So eN.os
Gr >sos
nDREl ersrEn TO DIE
Nebraska Does Not Expect to 0per.
ate It to Any Extent.
WILL ABSORB THE EQUIPMENT
Stockholders Will Not Get Over
Thirty Cents on the Dollar.
MANY ORDERS FOR REMOVAL
Says Low Rates Forced Independent
to Do Business at Loss
Bell Company to Sell
Buildings.

! "The Independent telephone exchange
won't last thirty days in Omaha" said
President c.. Z. Yost of the Nebraska
Telephone company yesterday after the
sale of the Independent system to the
Nebraska company had been confirmed
by Judge Munger of the federal court.
| Mr.. Yost said the Nebraska company
! did not expect to operate the Independent
system to any great extent when 1t pur-
chased it, but much Of the property OF
| the Independent will be Of value to the
| Bell company. He said there are great
quantities of wires and cables, both above
and under ground, as well as poles and
other equipment necessary to the opera
tion of telephone system that are OF
! value to the Nebraska company.
"Wnile we do not need it just at pres
ent," said Mr.. Yost, I'VE are going to
need it in the near future II Omaha keeps
on growing and expanding as it has"
Mr.. Yost said the company eventually
will sell the buildings, of which there are
four, two in Omaha, one in Florence and
one in South Omaha.
Many Phones Ordered Out.
In the office Of the Independent COM
pany there are at present over 1000 orders
for the removal of telephones. according
to Mr.. Yost. He says he cannot say how
many subscribers there are on the system
in Omaha and the suburbs, but he be-
lieves all soon will turn in orders Tor
removal Of the telephones. He declares
that no company could operate system
on a paying basis on such rates as those
of the Independent in Omaha. The rates
were 81 per month for business and II per
month for residence telephones.
1t is the opinion Of Mr.. Yost that, Judg-
ing from the price the Independent
brought at the sale, the stockholders will
not receive more than 25 to 30 cents on
the dollar The receivers certificates, of
which there are 100000 worth, are to be
paid for at par with interest. This prob
ably will be done some time during this
week.
Lysle l. Abbott, receiver, yesterday
relinquished the management Of the plant
to the Nebraska Tslephons company. He
win distribute the proceeds of the, sale,
after which his duties will end.
II suppose II another group of pro-
moters should come tomorrow with a
proposition for a new telephone system
in the city the people would vote for 1t,
remarked Mr. Yost in his office. THE
promoters of the Independent proposition
came from California and no one knew
much about them. They sold quantity
Of bonds and established the plant. The
plant has gone into the hands of re-
ceiver and is sold and the people are no
better off than they were before they
had the two systems. AS to rates Of the
Nebraska company, there is no increase
contemplated unless they should keep on
taxing us so highly that we will have to
raise the rates in order to survive. This
system, of which ! am president, is
operating under lower rates than almost
any similar system know OF in the coun-
try. In Denver. for example, they charge
about Is per cent more than in Omaha"
The development Of the Bell system In
Omaha, the president said. is among the
very best in the country, the company
having between 1900 and $4,000 telephones
in Omaha, where the population is $4,000.