New-York tribune., 1909-11-19
NEW MERGER PLANS
TOLD By PRES. V1IL.
Ridicuics Report That Postal
VII BE 1bsOrbed.

Theodore X. YAH. president Of the Ameri-
can Telephone and Telegraph Company. ar
rived here yesterday from Boston. tie
said that the purchase OF the Gould hold
ings of Western Union stock by the tsle-
phone company meant that the interests
~ both concerns would Be unified for the
greatest good Of both the corporations and
tho public. What they were after FIRST OF
all, he said. Was SO give the public the
most efficient service possible. while the
many economies in operation made pos
siblo by the purchase would como later.
Asked n there would be any reduction
in telephone and telegraph charges as a
result Of tho so-called merger. he said
that II tolls could be reduced On the face
"a the greatly improved service that IL was
hoped 10 give the public. and without in
t,rfsring with tho payment os fair rate
~ interest 10 its stockholders. something
- the kind might 10 done
NJ NaH again stated that no changes
whatever acre contemplated Ia the man
seement ~ tho Western Union company
snd that William IL Baker had not been
Considered for place in the manage
nicnt. Iie said that the telephone COM
Ysuy expected 20 have some Of its rep
resentativcs elected TO the board OF the
western Il mon al Ale next lliffAit- u AAt'
directors Of that company. but whether
or not some II the present directors would
resign 20 make room for the new interests
or thc latter would he added 20 the pres
ent board he Was not prepared 10 say
Mr Vail said that the telephone com
rsnv would not have TO do any new
financing az a result Of the acquisition of
Tho Western Union stock. a. that had been
I,aid for from surplus cash In the treas
rry lie ridiculod the reports OF a billion
dollar telephone and telegraph corpora
tIon and said that however desirable, from
the point Of view Of economy and i'm
proved service, a merger OF the Ameri-
can Telephone and Telegraph. Western
Union and Postal Telegraph might bH no
such step WAS contemplated. and that such
consolidation would he. in his opinion.
violation of the interstate commerce
Law lie added that he and his associates
intended 10 observe not only the letter
hut the spirit OF the law.
President VAN said that the reports that
81 telephone stations were 10 he used as
receiving stations for telegraph business
were not true. but that an telephone pay
stations would 10 used FOR that purpose
Regarding the effect the closer relations
lsetueen the Western Union and the tele-
phone company would have relative 10 lie
roceu, suit decided in favor Of the West
oru Union by Special Master Z. ". Bur
dctt IN which about s6ooo.ooo Was involved
NJ Vail in a statement said.
The so-styled suit between the western
uion Telegraph Company ana the beh
Interests has neen decided twice an favor
of tho Bell company. and once paruallS
iu favor % the Western Union II haa
taen IN tho courts now tWenty-eght years
Hud win leo appealed.
The suit in reality is against the Amer
ilan Speaking Telephone Company. Whlra
was organized by the Gold a. stock Tele-
Eraph Company 2 subsidiary OF lhe
Western niou and the Harmonic Tele-
grsph company, a company organized by
pr White of Philadelphia, "a exploit
Professor Gray's patents When the
feiephon. came on. the Gold 4 Stock,
ON ming Edison patents. Joined with the
FTarmouic and formed the American
speaking Telephone company. This is
The COMPANY thar brought The suit against
fhc sen interests. II L. partly nsjority
Interest owned hy the Western Union
through the Cold a Stock Company. and
parfly hold hy outsiders. those holders TO
r'hom ihc Harmonic Interests were dis
iributcd
Trenton. X j. Nov. lS-Thc Atlantic
and Pa,1dc Telegraph and Telephone COM
psnv las increased its capital stock from
sG5.eao TO S210.eo The company belongs 10