Omaha daily bee., 1909-11-18

NEW YORK. Nov. 1.-THE report that
the controlling interest In the Western
Union Telegraph company obtained by the
American Telephone and Telegraph com
pany would lead to a closer community
Of interest between those companies and
the Postal Telegraph company and prob
ably an ultimate merger Of the three COM
panies was given more color today when
officials of the American Telephone and
Telegraph company frankly said that the
Postal company was the largest single
stockholders in their company.
President Theodore N. Vail Of the Ameri-
can Telephone and Telegraph company is
in Boston today. It was said, comforting
with other high officials Of the company
and the plans OF the new combination
in regard TO the Postai's interest and other
matters could not be learned in his absence.
There was a report current today that
Special Assistant Attorneys General Ellis
and Harrison had come to this city to
investigate the merger Of the American
Telephone company with the Western
Union company. The report has not been
confirmed.
It Is known, however, that the govern
ment has since May, 1908, been investi-
eating the telegraph and telephone com
panies In accordance with a resolution
adopted by the United States senate.
Plans of Merger.
BOSTON, Nov, ia long stride to-
ward the complete control by one cor
poration Of all wire communication in the
United States was made today in the &C
QUESTION by the American Telephone and
Telegraph company Of the control of
Western Union Telegraph company.
In order to make the absorption com
p1ata tho instrumentation 80 a an h4ITF1,
dollar company. it is said. will be neces-
sary to include $500. AIS. 400 OF bonds and
stock of the American Telephone COM
pany, known as the Bell company, and
the outstanding $165, 0OO,0 900 OF bonds and
stock Of the Western Union.
The acquisition of the Western Union
by the Bell company has been In progress
for about six months and only a sufficient
amount to insure control, said to be 81
per cent, was taken over.
The officers of the telephone company
believe that the merger will save the
Bell COMPANY S5, 900, 900 In new construc-
ton, while it wi. also enable the utillza-
ton of wires for both t~elegraphlng and
telephoning.
Companies Interested.
Some OF the associated corporations en-
gagged in the telephone business, the ma
jority Of whose stock rests in the treas
ury of the parent concern, ares New
York Telephone company, $50. 900. 900; New
England Telephone and Telegraph COM
pany, 331, 10000 Bell Telephone Of Penn
sylvania, ts1, $50, 900; New York and New
Jersey Telephone company, S25, 400, O0O;
Southern Bell Telephone company, s21, 400
900; Cumberland Telephone and Telegraph
company, SIS, 100000; Chicago Telephone
company, 81, 500, 900: Western Telephone
and Telegraph company, SIG, 0O0,O 900; Bell
Telephone company Of Canada, $12, 200, 900.
The telephone system annually transmits
1886, 800.o 900 messages, white the Western
Union handles eSO,O 5s, 900. The telephone
system has s,0eS,e7 miles Of wires and the
Western Union 1881, 500. The total prop
erty value OF the telephone company is
$545. 0i5, GOO and that Of the Western Union
$124, 0S6. $40.
Vail Denies Merger story.
BOSTON, Nov. ~1Z-'There is absolutely
nothing In the story was the comment Of
President Theodore N. Vail Of the Ameri-
can Telephone and Telegraph company,
when his attention was called to. a report
from New York that a merger OF the Postal
Telegraph company with the American Tel
ephone and Telegraph might follow that
Of the telephone company with the Western
Union.
Referring to the report that the govern
ment attorneys might investigate the mer-
ger Of the Western Union with the tele-
phone company, Mr.. Vail remarked that
his company had nothing to fear from such
action.