The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-12-01
NEW PHONE COMBINE.
independents have Their Eye on the Chi-
cage Field.

cage Field.
Persons Interested in most OF the larger
telephone companies in Ohio, Indiana,
Illinois, Missouri, Wisconsin, Kentucky and
Iowa have joined with New York ~fnanciers
in an arrangement which is expected to Sc
cure a share at least In the Chicago field
and eventually TO bring about a consolida-
ton OF som Of the largest independent
telephone companies OF the country.
There is abundant capital behind the prof.
ect. 80 Martin W. Littleton. president OF the
newly organized Beaver National Bank and
attorney for some Of the largest independent
companies, said yesterday, and the transao-
ton is one Of the most important independent
telephone affairs that has yet been brought
about.
After negotiations for six months with
the Illinois Tunnel Company. which controls
the Chicago Subway Company. Inc New
York and Middle West syndicate has secured
from the Illinois Tunnel Company the ex-
elusive right to use its property for tele-
phone purposes The Subway company
owns the freight subways In Chicago and
also has an undeveloped telephone fran
chise. Its subways are, Of course, useful
as conduits.
K. H. Hartman is interested in the Sub
way company but onlyfor purposes Of freight
rafic for his railroads. A report that Mr..
Hartman was connected with the independ-
ent telephone movement was suthorita-
lively denied yesterday. Mr.. Littleton sad
yesterday that he was not at liberty to give
out the names of the New York men inter-
ested in the project.
The Middle West men in the syndicate
include 4. l. Barber of indian and j. ID.
Powers of Louisville, vice-presidept OF the
American Bankers Association and presi-
dent of the United States Trust Company
Of Louisville.
MIR. Barber, Mr.. Powers and fnanciers
associated with them are interested in
telephone companies having in the aggre-
gate more than 1000, 600 phones. The
Chicago field has been the Bells up
to the present time The independents
project c~ontemplates opening this field to
all the independent companies and, for that
matter, to any company which will sub
scribe to a stated form OF trHfic contract.
The Bell franchise in Chicago expires
within the year, and negotiations are low
under way for a renewal of it. 1t will make
no difference to the plans OF the independent
whether or not the franchise is extended.
It is the purpose OF the independent
syndicate to install g complete automatic
system. The work will be one as rapidly
as the money can be expended in con-
~struction. At least q, 900 phones will be
installed in the first year.
An expenditure OF 81, 900 900 accessory
TO install the tlrst 5000 phones has been
guaranteed by an underwriting syndicate
AZ the head OF which is a prominent Wall
Street banking house. Altogether il is
planned to spend SIS, 900, 900 in Chicago
alone.
A company will be Incorporated under
an Illinois charter, but the capitalization Of
this company will be omina There will
also be incorporated a company in another
State, and it is under this company that
most of the financing will be done. The
various independent companies will not
be a~malgamated in the neal future; but,
il was explained yesterday, it will be only
a natural development if the self interest
which brings them together in this project
prompts them to enter into a closer union.
Much of the financing OF the project, it
was said yesterday, would be done by J. B.
Russell 4 Co. of this city. John M. Shaw,
president Of the Atlantic Telephone Com
pany, is a member Of this banking house.
So is Albert G.. Wheeler, Jr., whose father is
president of the Illinois Tunnel Company.
Mr.. Littleton has been sted to APP
pear before the Chicago Common Council
and will explain the plans of the new syn
dictate next Monday. The syndicate, he
says, will bring 800 900 phones that are
now excluded from Chicago into connection
with Chicago business men.