New-York tribune., 1909-09-17
W. U. PHONE STOCK SOLD
AMERICAN co. THE BUYER.
Wall Street Sees in Sale More Ell
dence of arrangement 1cith Postal.

Following the announcement Wednesday that
special meeting of the stockholders of the New
York Telephone Company had been called for Sep
tember 20 to authorize the increase of the capital
stock from $50 100000 sO0 0Oo 0o0 it became known
yesterday that the American Telephone and Tele-
graph Company. which owns SO 215,7OO Of the New
York Telephone COmpanys present stock had pur-
chased the Western Union Telegraph Company s
holdings. These amounted 10 S9.7SS.1O0 of the fun
paid stock of the New York Telephone Company
and Ss ass 100 of the half paid stock. The American
company by that transaction became practically
the sole owner OF the New York company, holding
about $4S5OoOOO Of it's SOO0OOO capital stock. The
price paid is said have been about 150 and 1t Is
understood that the payment will be extended over
considerable period. instead of'being made In full
for cash at this time.
AS explained in The Tribune yesterday. the object
of the proposed doubling of the New York Tele-
phone Company's stock is TO enable the company
to take the other Bell companies in this state,
in pursuance Of the policy of consolidation which
has been adopted by the parent corporation. the
American Telephone and Telegraph Company.
The sale by the Western Union of its New York
Telephone holdings Of which the S9723.lOO fun paid
block has been held by II for many years. and is
at present pledged collateral for the Western
Unions a0.000.O0O per cent convertible bonds, is
taken by Wall Street lending corroboraton TO
the long current reports of plans for combination,
or at least close relations. between the Western
Union and its competitor. the Postal Telegraph
Company. The Mackay Companies, which controls
the Postal Telegraph Company and the CONNER
cial Gable Company. IS by far the largest stock
holder Of the American Telephone and Telegraph
Company. the so-called Telephone Trust. and ii is
thought by the Street improbable that the Western
Union would have parted with its New York Tele-
phone stock without receiving some assurances of
amity from the purchaser and its heaviest stock
holder, the Mackay Companies.
Robert G Cowry, president Of the Western Union,
said yesterday:
This is transaction the directors have had
under consideration for some time It means sim
ply that We think the money represented by our
Telephone holdings could better invested in some
other way. 1t has nothing TO do with other rumors
that have lately been in circulation. 1t no
change Of relations between the Western Union
and the Telephone company"
Mr. Clowry added that the American company
had recently acquired control OF a number Of
smaller companies. and that the purchase of New
York Telephone stock only in pursuance of IT'S
policy already exhibited He remarked that the
transaction had no bearing the long pending
suit between the American Telephone Company
and the Western Union. Judgment in which was
recently returned I'm favor Of the Western Union
for approximately 100000
According 10 a recent unofficial statement which
there Is reason 10 credit. the Mackay Companies
holdings Of American Telephone and Telegraph stock
amount 10 @.240S00 par value, out OF a total out
standing Of Sl3Sl+O0 common and 100000 pre-
ferred. The Western Union bonds for which the
SS''Ss.lOo New York Telephone stock is collateral
are subject To call los on and after Nav / 1917
ana convertible into stock at par from January .
1909. until January ?. 1919. Unless therefore the
western Union shall substitute some other securi-
Ties as collateral for its conyerbles or shall offer
special inducement to the bondholders TO surren-
der their holdings at earlier date, the American
Telephone and Telegraph Company will not be as
sureo OF possession of the g. 753lOO block OF New
AoFk Telephone stocI for nearly three years West
ern Union stock closed yesterday at 7gt