New-York tribune., 1909-12-16
MORGAN PU RCHASER
OHIO PHONE LINES.
SAID Not To BE an Interest of
Bel Com pany.

Toledo Dec I5.-Announcement was made
here to-day that j. p. Morgan q Co are
the purchasers Of two of the independent.
telephone properties in which James :.
Bradley. jr.. OF this city. recently obtained
control. Details Of the deal and future op-
Grafton are not made known officially
On authority from Morgan & Co. the Col
lowing statement was issued this after
noon by Clarence Brown. general counsel
for the United States dong distance) Tele-
phone Company and the Cuyahosa Tele-
phone Company. OF Cleveland
| am authorized BY James s. Bradley. ir..
to announce that ]. p. Morgan & Co have
purchased for their OWE account a major
ity Of the stocks OF the United States Long
nles. Further than this no statement can
be made at present.
G A Seiders local counsel for H c.
stifel the local independent telephone pro-
mOter. said tonight:
The official announcement does not say
that the Bell interests are not the eventual
purchasers. II IS not uncommon for such
deals to be made through banks. which
hold the property until the organization 70
which the property Is TO be turned over Is
perfected"
Mr. Bradley admitted to-day that he has
perfected deal for the independent plants
OF Columbus and Dayton. Ohio An
nOuncement as to these companies and the
New Long Distance Company Of Indiana.
the Indianapolis Telephone Company and
the Toledo Home Telephone Company is
withheld for the present. but the unOfti-
ciaI information that they have or viii
be acquired also by Morgan & Co is cred
ited. Control OF the seven companies IS
said TO represent cash outlay OF sS,0o0.o10.
The deal announced to-day is said TO be
the first investment or financial interest OF
Morgan & Co. IN independent telephone
properties.
The United States company Is the long
/ distance service OF the independents in
/ Ohio and Michigan and the New Long Dis
/ tance Company OF those in Indiana The
management will remain practically the
I same as now.
! Except for the statement that these
/ properties viii be continued as separate
/ plants in competition with the Bell. but
| upon conservative lines. without disastrous
/ price cutting" their future operation with
4 relation 20 the Bell company is left some
| what open. as far as Official Information
/ goes 1t seems. however. that the fight on
/ the part OF the principal independents in
| the Middle West has been shifted TO the
/ Continental Telephone and Telegraph Com
I pany. which is being promoted by H c.
\ Stifel and Max KOehler. OF St Louis, and
/ John A. Howard. OF West Virginia
\ The Bradley Brown interests make no de-
\ NAL OF this, and Mr.. Bradley gave out a
statement to-day declaring that the Con-
/ tinental company and its promoters. and
not minority stock holders OF the indepen-
dent properties. instigated the suits against
the United States and CuyahOga companies
| and inspired the sources from which came
much of the information contained in re-
cent newspaper publications concerning his
| telephone deals.
Mr. Brailsy would make no comment to-
night upon the testimony OF 2. H. Gof, of
the Cleveland Trust Company. that the
transfer Of the stock OF the United States
and Cuyahoga companies was negotiated
with r. l. Day s. Co. OF New York. after
a meeting IN the New York Offices OF the
American Telephone and Telegraph Com
pany. nor upon the rUmOr. circulated some
weeks ago. that Morgan & Co. were pur-
chasing the independent properties in the
interest OF the Bell
In addition 10 the official statement I'm
formation was given that the plans OF the
new owners contemplate that independent
companies in smaller counties shall solve
their own pre- bIems. consolidating. il they
desire. with the Bell where opposition
I plants are not prOnIable- OtherWiSe, the
Brailey-Brown interests declare. the inter
ests of all the independent companies will
be protected.
AmpIfying the official announcement, Mr.
Bradley said tonight:
"Messrs. Morgan & Co. bought the prop
erty for themselves as a permanent invest
ment. This confirms the original Statement,
that no Bell money was concerned in the
purchase.
The United States Company covers Ohio
and part OF Michigan. with long distances
connections in Buffalo. Pittsburg. Indian
apOls and Detroit, and owns exchanges al
Canton, Youngstown. GAINESVILLE. Findlay,
| Alliance and other places. comprising a
total of twenty thousand telephones. The
I Cuyahoga Company operates twenty-five
! THOUSAND telephones IN Cleveland"