The Montgomery advertiser., 1909-11-17
WESTERN UNION
CHANGES HANDS
Telephone Company Takes /
Over.
A GIGANTIC CORPORATION
Capitalization Of New Organization
Nearly 1000, 900, 900.
Gs.s STEPS Towards Merxi.s An Tsie-
srsph ana TsiepAene Interests
u n. ceuntry.-PostaI
sem .. rndsp<ndent
Basfa


Boston, Mass, Nov. ia long
htrids toward the complete control by
one corporation Of all wire communica-
fion in the United States was made to-
day In the acquisition by the Ameri-
can Telephone and Telegraph Company
;of the control Of the Western Union
Telegraph Company.
4 In order to make the absorption conn
lplefe, the Incorporation of new bill
lion dollar company, II Is said, will be
necessary to include the $5s2.475, 400 OF
bonds and stock OF the American Tele-
phone Company. known as the Bell
Company. and the outstanding $685.
100000 Of bonds and stock of the West
ern Union.
The acquisition OF the necessary stock
and voting rights OF the Western Union
by the Bell Company has been In pro-
gress for about six months. The work
has been conducted quietly and only
n sufficfent amount to insure control.
said to be 81 per cent, was taken over.
The officers Of the Bell Company be-
iieve that the merger will save the Bell
Company s75.000,00o in new construc-
tion, while IL will also enable the utii-
ttxation at the same time OF wires for
tboth telegraphing and teiephoning.
Many Associated Companies.
The history of the Western Union
dates back TO before the Civil War, but
the Bell Company Is OF comparatively
recent origin
Some OF the associated corporations.
the majority OF whose stock rests In
the treasury of the parent concern, are:
New York Telephone Company, $780,
100000.
New England Telephone and reie-
avrn nh fs<xsx. NY nm mn
Bell Telephone Company of Pennsyi-
vanfa. &ei,i5o.o0o.
New York and New Jersey Telephone
Company, &25. 100000.
Southern Bell Telephone Company.
e2i, 900.
Cumberland Telephone and Telegraph
Company. SIS. 100000.
Chicago Telephone Company. $780,
Western neIsp1one aud Teiegrapn
Company, $4,000, 600,
Beli Telephone Company, Of Canada.
&12s5p0. 900.
! The telephone system annually
the Western Union handles 6s.O5s, 600
The telephone system has s.0sS,679 miles
OF wire and the Western Union I,sS2,-
sos. The total property value of the
telephone company Is s546. 500, and
that Of the Western Union. $124.0Sss920.
y
Bis Companies Merge
Kew York. Nov. 1e--The control of
the western Union Telegraph Conn
pany passed today to the American
Telephone and Telegraph Company,
and long ptep was taken toward the
merging OF the telephone and tele-
graph companies into q corporation
with capitalization Of nearly $1,000
100000.
the Western Union.--for years known
as q Gould property--by the Ameri-
can Telephone and Telegraph Com
pany, came today from Boston. The
acquisition Of. the Western Union and
the recent absorption Of various dis
trict Bell Telephone Companies in va
rious parts of the country. indicates
large increase IN the present capitan-
zation Of, the parent company, the
American Telephone and Telegraph
The present capital stock of the
American Telephone and Telegraph
Company Is S30o,00.090 In stock ana
s22s, 900 in bonds The western
Union has a capitalization OF slz6.ooo'-
coo In stock and $40.0oo.Ooo IN bonus
Ofacials of the Postal Telegraph
Ssotnnanv stated that their company
would remain ON an independent pA-
Official denial was given this al.
ternoon OF reports that Fresluens
Ciowry and Assistant General MANA
ger barclay would resign from the
western Union. 1t also was reported
that William H. Baker formerly vice
president and general manager OF the
postal Telegraph Company would be-
come general manager OF the Wes-
tern Union.
The western Union was one of the
pet properties of the late Jay Gould
which has been in the Gould family for
a generation, and 1t was by the sale
of Gould stock today that the merger
was accomplished.
at is q fact that we have sold a
large part OF our holdings in the Wes-
tern Union Telegraph Company. to the
telephone company. / believe this Will
inure to the benefit of both the pub
lie and the Western Union stoekhold-
ers. as the business Of both companies
car, be handled so that they will form
q complement to one another, thus
giving to the fullest extent prompt
ana satisfactory service to their pat
IONS. They should be worked in har-
mony. which will be to the great adj
vantage OF the public as well as to the
mutual interests OF both companies.
while the report has been current
chat the Mackay companies. controlling
the Postal Telegraph company Will
ultimately be included in the plan of
Generalization, no confirmation of this
eould be had IT. New York.
Oflcials of the, Postal were emphat-
&c in their statement that the compa-
nv would remain on an independent
basis.
Preaident Vail Talks.
New York, Nov. 16.-President T.
N Vail, OF the American Telephone
and Telegraph Company had the fol-
lowing TO say:
From the very commencement OF
&ha telephone business 1t has been
l4houRht that a close operation-the
making of one business the auxiliary
10 the other business--wouid give adj
ditional public service as well as re-
suits in large economies. both to the
public and to the companies.
There is much to be gained by the