The Owosso times. (Owosso, Mich.) 1897-1926, 1919-02-28
TELEPHONE MERGER CON.
TRACT APPROVED.

Permission of the government to
put into effect the merger contract
between the Bell Telephone Co. and
the Union Telephone Co. agreed on
some months ago by the two corpor-
ations, has been granted, according to
notification received Monday by both
companies from G.. G. Todd, acting
attorney general. The attorney gen
eral was the last official of the gov
ernment to pass on the matter, it
having previously gone through the
state railroad commission and the
postmaster generals department for
approval.
With the government sanction CIV
en-, it is up to the subscribers of the
two companies as to whether or not
the merger will be put through. Both
companies are piling up deficits under
the existing rates and have petitions
before the state railroad commission
for permission to increase their rates.
The companies have reserved the right
in the merger contract to cancel it
all, and withdraw the petition "unless
a substantial number of the subscrib-
ers of the exchanges affected by this
merger of properties, approve of the
merger and agree to such readjust-
ment of rates as may be later author
lied by the state railroad commission"
In other words if the subscribers make
such protest to the railroad COM
mission, that it declines to grant a
reasonable rate increase, the merger
will not go through.
"To merge, under the existing rates
would mean that we would simply be
getting into deeper water financially
than we are in now," declared Cen
eral Manager Melchers of the Union
company Monday. "The purpose of
the merger is to eliminate duplication
and expense, and give the best SER
vice at the least possible cost and still
earn fair profit on the investment.
However, if the rates are not increas-
ed and we put the merger through,
we would simply be adding to our
load and increasing the deficit. For
this reason, it is all up to our sub
scribers, whether or not the merger
goes through. If it does go through,
there will be but one telephone where
we operate, improvements in equip
ment will be made that will enable us
to give better service, and any of our
subscribers having a telephone will be
able to talk TO anyone having phone
anywhere in the United States. There
will be universal connection"
The Michigan State Telephone Co.
(BelD operates toll line system and
telephone exchanges throughout the
State of Michigan. In the particular
territory in which the telephone pro-
perties involved in the present plan are
located the Michigan State Company
has 18 exchanges, of which IA are at
points also served by the Union COM
pany and 4 are at points not served by
the Union Company.
The Union Telephone Company In-
dependent), with headquarters in
Owosso, Michigan, operates in the
territory in question IS exchanges
anu 81 WI lLllG oJoCCiAi VI NPpAOhl-
mately 2,014 miles connecting them.
Of these exchanges, IA are at points
also served by the Michigan State
company and 81 are at points where
the Michigan State Company has no
exchange.
The plan contemplates that the
Michigan State Company shall trans
fer all of it's exchanges 60 at COM
peting points and 2 at exclusive
points, to the Union company, and
that the latter company shall trans
fer to the Michigan State Company
exchanges 6 at competiHr ard two
at.exclusive points.) AS a result of
this transaction the Michigan Com
pany will acquire approximately 1888
telephone stations and will relinquish
approximately 9,051 stations-some
1900 more than it acquires-and the
fourteen deplicate exchanges will be
eliminated. About 795 duplicate tele-
phone stations in these exchanges will
also be eliminated.