Omaha daily bee., 1909-11-17
It Will Take Up Stocks and Bonds Of
Constituent Companies,
GOULDs SELL THEIR STOCKS
Transfer Makes Absorption of Tele-
graph Company Possible.
VAST INTERESTS ARE AFFECTED
Property of Companies in COmbina-
tion said to Have Physical VaIua-
tiOn of over six Hundred
Millions.

BOSTON, New, Nov. 16-A long stride
toward the complete control by one cor
poration Of all wire communication in the
United States was made today in the ac-
QUESTION by the American Telephone and
Telegraph company Of the control of
Western Union Telegraph company.
In order to make the absorption com
pIete, the incorporation Of a new billion
dollar company. it is said. will be neces-
sary to include sss2 475,4OO of bonds and
stock of the American Telephone COM
pany, known as the Bell company, and
the outstanding S165 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 sufficient
amount to insure control, said to be 81
per cent, was taken over.
The offices of the telephone company
believe that the merger will save the
Bell company $75OOOOOO in new construc-
/ ton. while it will also enable the utiliza-
/ ton of wires for both telegraphing and
teephonlng.
Companies Interested.
Some Of the associated corporations en-
| gagged in the telephone business, the ma
iority of whose stock rests in the treas
ury Of the parent concern, are: New
York Telephone company, s50.OOO New
England Telephone and Telegraph COM
pany. sSl 700 OOO Bell telephone of Penn
sylvania, S31 150, 900; New York and New
| Jersey Telephone company, S25,40O coo;
Southern Bell Telephone company, $2l 400,
CO. Cumberland Telephone and Telegraph
company. SIS 900 OcO; Chicago Telephone
company $17 500 900; Western Telephone
and Telegraph company, sl6.OOOOoO; Bell
Telephone company Of Canada, $l2. 900 900
! The telephone system annually transmits
59-6, SEQ 900 messages. whine the Western
Union handles eS0O5S,OOo. The telephone
system has S09S,679 miles of wires and the
Western Union 1.SS2,5O9. The total prop
erty value of the telephone company is
ss45 Oi6. 600 and that of the Western Unior
a124OS6,s2O
GouIds Sell Stocks.
NEW YORK. Nov. 16.-Announced II
Boston, confirmed in New York and com
mented on with interest everywhere, an
other 81 900 900 600 merger became a reality
in the financial world today with the prac
ticaI absorption of the Western Union Tel
egraph company by the American Tele
phone and Telegraph company.
The Western Union, one of the pet prop
critics of the late Jay GouId, has been ii
the Gould family for a generation, and
was by the sale of Gould stock toda!
that the merger was accomplished.
While the report has been current tina
. the Mackay companies, controlling tn
: Postal Telegraph company. will ultimatel'
, be included in the plan Of reorganization
no confirmation Of this could be obtaine
in New York. Officers Of the Postal wer
, emphatic in their statements tnat the com
pany would remain on an independen
basis.
Stocks Of the Western Union fell point
r on the Stock exchange on news of tn
4 passing of the control.
4 Official denial was given this Afternoon
e I Of reports that President ClowTy and As
{ slstant General Manager Barclay would re-
sign from the Western Union It was re
r ported that William H. Baker, formerl
o vice president and general manager Of tn
i Postal Telegraph company, would becom
a general manager of the Western Union.
j James S. Bradley, jr reputed to be
o large buyer of Independent lines woul
not commit himself as to whether tn
Postal company was his financial baclIe
in his recent purchase.