The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1909-11-17

New York, Nov. 1.-THE passing OF the
Western Union Telegraph Company into
the control OF the American Telephone
and Telegraph Company. foreshadowed
by the events OF some months past, was
announced to-day. Theodore y. Vail,
president OF the telephone company. In
q statement issued In Boston. said that
his company had obtained a substantial
minority" of the stock OF the Western
Union.
Absolute control OF the Western Union.
and that by direct purchase, was said
by an authority % be the true meaning
behind Mr.. Wallis statement The same
authority gave as his opinion that tho
American Telephone and Telegraph Com
pany had purchased the holdings OF
George Gould and his associates. together
with those OF Mrs. Russell Sage and the
stock owned by the late Giovanni p
Morosini, amounting in all to about 5Oo,-
600 shares. valued at about s42.A0,0O0.
Important changes are expected in the
administration OF the Western Union. II
was rumored to-day that William II.
Baker. who was vice president and gem
eral manager OF the Postal Telegraph
Cable Company for twenty years up %
May. 1eG7. and who has been intimately
connected with the American Telephone
and Telegraph Company since that time.
will succeed Col. Robert C. Clowry as
general manager and possibly as presi-
dent Of the Western Union.
Big saving Predicted.
A competent authority estimates that
the joint operation OF the two companies
will effect a saving OF from 100000 20
100000 annually
In some quarters the control Of the
Western Union by the American Tele-
phone and Telegraph Company was taken
20 be but the preliminary step for uni
fcation Of the three companies into one
immense corporation having virtual
monopoly Of the telephone and telegraph
business Of the United States
Edward !. Nally. Ce-president and
general manager Of the Postal Tele-
graph-Cable Company, said that he had
no knowledge Of any such combination.
He declared that no such step was likely
20 be taken az any time In the near
future.
Holdings Of Western Union stock BY
the Mackay companies have long been
admitted. though the precise amount has
been withheld.
Both Parties Benefited.
From the very commencement Of the
telephone business" said Mr.. Wallis state
ment. 1T has been thought that a close
corporation-the making Of one business
be auxiliary 10 the other business
would give additional public service as
well as result In large economies both
TO the public and TO the companies.
There Is much 10 be obtained by the
joint construction and maintenance Of
plant and by its common use 10 the
greatest possible extent. but the greatest
advantage would follow the placing OF
the millions OF telephone subscribers In
close and reliable connection with the
receiving and dispatching offices Of the
telegraph companies. While some pro-
vision for this exists. after a manner.
to-day a lack OF harmony and co-opcra-
ton between the companies and an IN
ability 20 agree on methods Of fixing
responsibility have limited its utilization
TO cases OF absolute necessity"
Mr. Vail added that the combination OF
the two services would insure more salts
factory administration. despite the mu-
tually distinct financial differences OF
opinion.
Late this afternoon George Gould save
out this statement.
1T Is a fact that we have sold a large
part OF our holdings in the Western
Union Telegraph Company 20 the tele-
phone company I believe this viii insure
to the benefit OF both the public and the
Western Union stockholders. as the busl-
ness OF both can be handled so that they