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Show INDEPENDENT SS v , . TO SELL PHONE Directors of Telephone Company Decide to Dispose Dis-pose of Property at Public Auction on June 5 Indebtedness of Independent Company Com-pany has Reached ?3.156,109 Proposition Prop-osition Has Never Paid. Following a declaration that the j financial condition of tho Utah Independent Inde-pendent Telephone company constantly constant-ly becomes worse, and that It Is Im- possible for it to pay oven a small part of the Interest, let alone paying part of the principal, the directors of the company, at a meeting held Monday afternoon, passed by a unanimous vote .fh order to orfer the entire property prop-erty of the company at public auctlou Juno 5, 1911. Tho directors present at tho meeting meet-ing Mondav were Hebcr J. Grant, He-ber He-ber M. Wells, Samuel F. renton, James H. Moylc. George T Odell. John D. Spencer, Waldcmar Van Cott and Lawrence Greene Sale to Be Advertised. According to the order of sale as passed by tho directors, the sale is to be advertised once a week for three weeks prior to tho sale in three Salt Lake newspapers and one paper in Ogden; one newspaper in Butte, Mont.; one newspaper In Spokane. Wash, and one newspaper each in Chicago and New York The president and secretary of the board are authorized author-ized and commanded to make all preparations prep-arations for the sale, which will be held at the west front door of tho city and county building on the dato named at 10 o'clock a. m Tho person conducting the sale will have the power to continue th salo from dav to dav and to reject bids In the notice of sale as It will appear in the advertisements all tho physical property of the company is mentioned, together with the secondary franchises or without them, as they may offset the sum to be realized on the sale In case the sale Is made Including the secondary franchises, the company, by virtue of the notice, serves notice on the bidders that tho secondary franchises fran-chises are transferable only at the will of tho city council of Salt Lake. According Ac-cording to the terms of the sale the purchaser Is to pay 10 per cent of the purchase In cash and the balance when the company is ready to turn over the property. Bona fide prospective buyers buy-ers have the privilege of looking over the property and to obtain a full Inventory In-ventory thereof. From the minutes of the meeting of the directors Monday the financial conditions con-ditions of the company are given and aro set out hero as follows. Financial Condition. "It appears to tho directors that this company now owes Interest on outstanding out-standing bonds which is due and unpaid un-paid bb of April 30. 1911, in tho sum of $722,625,177 and owes Interest on other Indebtedness to tho amount of $31,785.13. More than three-fifths of the outstanding bonds of this company com-pany are held by the Registrar and Transfer company and such bondholder bondhold-er has made demand on the Utah Savings Sav-ings & Trust company, as trustees, to demand the payment of all Interest now due and unpaid, and said trustee trus-tee has demanded of this company the payment of all such Interest, and this company has answered that it Is unable un-able to raakp such payment, and thereupon said trustee has declared tho principal of all tho outstanding bonds due and payable, and the amount thereof Is $2,401,700.00, making, mak-ing, the total Indebtedness now duo and owing by this company the sum of $3,156,109.30. "The financial condition of this company constantly becomes worse and It is lmposslblo for it to pay even a small part of the Interest, let alone any part of the principal. It appears to "the directors that tho above interest inter-est is duo to the bondholder, and above principal of the bonds is duo to tho bondholder, and that tho best way for the company to proceed Is to sell Its property as promptly as possible pos-sible after the giving of due notice In Buch way as to realize the largest sum at tho least expense. It Is the Judgment of tho directors that by ad-ertislng ad-ertislng tho property for sale it wJll I bring as large a sum as by foreclosure foreclos-ure suit, and that the former Is much less expensive than the latter. It further appears to tho directors that tho condition of the company becomes financially worse the longer the sale is deferred, and that It is to tbc company's com-pany's advantage to convert Its prop-1 orty Into cash at tho earliest possible I date. "On April 1, 1907, this company ex ccuted and delivered to Strombcrg Carlson Telephone Manufacturing company its promissory note, pavablo i on demand, for $4S.133 G2, with Interest Inter-est from Its dato until paid, at the rate of six per cent per annum "On April 1. 1907, this company ex ccuted and delivered to Stroinberg-Carlson Stroinberg-Carlson Telephone Manufacturing company Its promissory note, pay-' able on demand, for-$15,725 31, with In-torcst In-torcst from Its date until paid, at the rate of blx per cent por annum "On April 3, 1907, this company executed ex-ecuted and delivered to Stromberg-Carlson Stromberg-Carlson Telephone Manufacturing company Its promissory note, payable on dcinandfl for $75,000,000 with interest inter-est from Its date until paid, at the rate of seven per cent per annum "The above three note1? wero endorsed en-dorsed and transferred from such payee without recourse and are now held by the bondholder, whose legal name is "Registrar and Tranfor Company," Com-pany," anything to the contrary In the foregoing minutes notwithstanding "Tho Interest on said notos was paid uutll November 1. 1907, but no interest in-terest has been paid since such date, and the principal of said notes, to-gother to-gother with Interest, aro now due and crwing. "Said note for $15.725 31 was and is secured by 100,000 of the flr-st mortgage mort-gage bonds of this compauv. which were delivered as collateral with said note. "Said note for $75,000.00 was and is secured by $150,000 of the first mortgage mort-gage bonds of this company, which were delivered as collateral with said note "No collateral security was given with said noto for $1S.133.G2. "The totaH indebtedness duo from this company as of April 30, 1911. Is the amount heretofore mentioned namely, $3.1oG.lo9 30, and the amount of the foregoing notes, namely. $13S,-S5S93. $13S,-S5S93. making a total indebtedness due and owing from this company of $3,294,968.23." |
