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Show HEBER J. GMT HOW AI H HEAD Reorganization of Utah Independent Inde-pendent Telephone Company Is Completed. LOCAL CAPITALISTS WILL BUY STOCKS AND BONDS Capital of the Concern Will Be Increased From $1,000,000 to $1,300,000. After holding numerous meetings the business nun who nro interested in the reorganization of tho Utah Independent Independ-ent Telephone company finished their work Fridhy afternoon and adopted plans for the purchasing of all the stocks and bouds by local, capitalists. Before the close of tho final session libber .7. Grant was elected president, Hebcr M. Wells previously having resigned re-signed the presidency. M. H. Walker was elected vice president to succeed S. F. Fenton, resigned, and "E. Li. Sloan resigned from tho board of diroctors in order to provide a vacancy on the board to be filled by President Grant. It also was decided to increase tho directorate di-rectorate from nino to twenty-live members. mem-bers. As the meetings wore held for the purpose of adopting plans for the purchasing pur-chasing of tho company's stocks ami bonds and for tho forming of an independent inde-pendent company in every sense of the word the results of the meetings probably prob-ably will be announced in detail in the near future. It is understood that the promoters do not anticipate any diffi vulty in placing tho stocks and bonds in the "hands of local business men but that thoy prefer a largo number of shareholders to a few heav3' investors. TJiey therefore kopt this in mind while preparing their plans of reorganization. Secured an Injunction. When tho Utah Independent Telephone Tele-phone company was formed the bonds and part of the stock was secured by tho Strombcrg-Carlsou company and its interest later passed to the United StateB Independent Telephone company. Early this year the latter concern planned plan-ned to transfer its holdings to the Bell company hut Elmer B. Jones, tho managing man-aging diroctor of the local company, carrier tho matter into the courts and secured a temporary injunction which was later made permanent. Supported by the directors and heaviest resident shareholders, Mr. Jones went to Roches-tctr, Roches-tctr, N. Y., a few weeks ago to negotiate nego-tiate for the purchase of these stocks and bonds by a local sj'ndicate. On receipt re-ceipt of a cash payment of $50,000 tho eastern capitalists agree to part with their holdings for approximately $1,-. 250.000 and this sum is to be furnished by the new corapan' by October 1. According to tho plans of reorganization reorganiza-tion the minority stockholders of the Utah Independent company will be permitted per-mitted to participate It is understood that a moeting of these stockholders will he called for the near future to consider the matter of percentage upon which the redistribution is to be made. Since, however, approximately 90 per cent of theso stocks aro held by tho directors di-rectors who took part in the recent deliberations de-liberations it is probable that no serious se-rious hitch will be encountered in the coming meeting. Capital Stock. The coinnauy's capital stock is to be increased from $1,000,000 to $1,300,000 and on the basis of reorganization its bonds are to he reduced from $280,000 to $150,000. Approximately $400,000 is to he kept in tho treasury fund for extension ex-tension and improvement. It is said that the company is earning onougti now to pay 6 per cent on its bonds when the issue is reduced aa spocified, and 4 per cent on its stock. |