The Irish standard. [volume] (Minneapolis, Minn. ;) 1886-1920, 1909-11-20
WIRE COMPANIES
IN BIG COMBINE
WESTERN UNION AND AMERICAN
T. &. T. CO. BROUGHT UNDER
ONE HEAD.
WILL FORM NEW CORPORATION
Billion Dollars Involved In Union Of
Big Wire Lines.-Combine Ac.
compIished Through Sale Of
81 Per Cent. of the Stock.

81 Per Cent. Of the Stock.
| New York. Nov. 17.-Announced in
Boston, confirmed in New York and
commented on with Interest every
where, another billion dollar merger
became reality in the financial world
with the practically complete absorb
ton of the Western Union Telegraph
company by the American Telephone
and. Telegraph company. The West
ern Union, one Of the pet properties
of the late Jay Gould. has been in the
Gould family for generation and 1t
was by the sale of Gould stocks that
the merger was. accomplished.
In order to make the absorption
I complete the incorporation Of new
billion dollar company, il is said will
be necessary to include the $592,475,-
100 Of bonds and stock of the American
Telephone company known as the Bell
company and the outstanding $l66, O0O,-
| 900 of bonds and stock of the Western
Union.
While the report has been current
that the Mackay's companies control
ling the Postal Telegraph company, ul-
Iimately will be included in the plan
Of reorganization, no confirmation of
this could be obtained In New York.
Officers of the Postal were emphatic
in their statements that the company
would remain on an independent basis.
| The officers of the Bell company re.
gard the step as one Of economy solely.
They point out that ever since the
telephone has been u factor in human
life 1t has had to compete with the
telegraph. Lines have been paralleled
and there has been an immense
amount of duplication. The officers
Of the telephone company believe that
the merger will save the Bell company
$75, 100000 in new construction, while
1t will also enable the utilization at
the same time Of wires for both tele.
graphing and telephoning.
| Absorbed Small Ones.
The history of the Western Union
dates hack to before the Civil war, but
the Bell company is Of comparatively
recent origin. Both companies pur-
sued the usual method of absorbing
smaller companies. The smaller COM
panies acquired by the Western Union
have been lost in oblivion. Some of
the associated corporations engaged in
the telephone business, the majority
of whose stock rests In the treasury
Of the parent concern. are: New York
Telephone company, s50,000,o00; New
England Telephone and Telegraph
company, $31, 100000: Bell Telephone
of Pennsylvania. s31,150,OO0; New
York and New Jersey Telephone COM
pany, 1925, 100000 Southern Bell Tele-
phone company, $21 100000; Cumber-
land Telephone and Telegraph COM
pany. $4,000 900; Chicago Telephone
company. s17,O00,000; Bell Telephone
company of Canada, $12,500,000.
President S. N. Vail of the American
Telephone and Telegraph company
had the following to say:
"From the very commencement Of
the telephone business it has been
thought that close co-operation-the
making of one business the auxiliary
TO the other business-would give addi.
tional public service as well as result
in large economies both to the public
and TO the companies.
There is much to be gained by the
joint construction and maintenance Of
plant and by its common use to the
greatest. possible extent, but the great
est advantage would follow the placing
of the millions of telephone subscrib.
ers in close and reliable connection
with the receiving and dispatching Of
Aces Of the telegraph companies.
While some provision for this after a
manner exists today a lack Of h.,.
mony and cooperation between the
companies and an inability to agree
on methods of fixing responsibility has
limited its utilization to cases of abso.
lutte necessity. The harmony and CO
operation necessary, it is believed, can
now be established and the resulting
advantage made available for the
public"
Postal to Merge With Independents.
Columbus, Ohio, Nov. 1.-THE an
nouncement that the American Tele
phone & Telegraph company, the con
trolling force in the Bell Telephone
company, had obtained control Of the
Western Union Telegraph company
| l.