The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1909-07-27
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FIRST VETO MERGE THEsMEW
YORK oPERATlNG CON-

BOSTON, July 27.-The banking
community has been disposed 10 grin
ut the statement OF the American Tel
cphone management that the object 1t
had in view In acquiring additional
stocks of the operating companies !Sas
to secure greater efficiency and econ
omy of operation. That. however, is
the exact status OF the case.
The Bell system grew lip. hit or
miss. There was not, and never has
been. any conference to the geographi-
cal subdivisions under which che vari-
Gus operating companies nave been
conducting operations. For. instance.
the Chicago Telephone Company sim
ply serves one big city. The New
York company is of the same rharac-
ter. The New England Telephone
Company operates In three or four
States. while the New York and New
Jersey company operates pnrtly In one
State and partly In another. There
are seven operating companies in the
state of New York. Still more com
pick is the situation OF the Bell conk
pany OF Pennsylvania. partly an nref:
atfng and partly holding company. :.
The lines serving these territories
or territorial boundaries have no re-
latfon whatever to the boundaries or
limits OF business or social spheres Of
Influence. For some time past the
American Telephone and Telegraph
company has been bringing unler one
common management companies COW
ering more or less one natural division
or district.
During the last five years the tele-
phone has forged ITO the front as an
essential pblicu utility. and more and
more the epublic hns come around 10
the point of view of demanding but
one single telephone company In Il Civ
n community. With this lmand hnH
grown coincidnt dmand for public
regulation. TIL day has now arrived
when the telephone Is to be subject to
State regulation. through commission
control, precisely as the railroads. the
street railways, gas and electric light
companies.
That day. In fact. has already arri".
ell for the telephone In Massachusetts.
and Is practically assured in the very
near future In New York.
The first move is to merge tho New
York operating companies. of which
there are seven. into one company. to
operate only In that State. and nc sub.
ject 10 State supervision.
So far rs the securities OF the Amer.
lean Telephone Company system arc
concerned. 1t makes not particle OF
difference what the arrangement oil
the subsidiary companies Is. For in
stance. there are now outstanding In
the hands OF the public s592.75.i00 at
Bell system securities. This includes
narent and subsidiary companies If
there is change it will be n reelection,
because the value OF the American
Telephone Company shares is greater
than the average value OF the company
stock.
One objection raised to the arrange
ment OF the operating companies is
that 1t will increase the burden al
financing falling upon thu parent com.
pany. This does not follow. for the
snb!companies would probably he bet
ter able to assist In the financial prob
lcm after htan now-as Mt present
many OF the sllhcompanies are entire
" flnaccd by the parent company. Any
Encouragement according to natural
and State limits would strengthen the
weak companies. without weakening
the strong ones.