The Newark star and Newark advertiser. [volume] (Newark, N.J.) 1909-1909, 1909-10-20
BIG TELEPHONE
MONOPOLY DEAL
HALTED BY COURT
Vice-Chancellor Howell Grants
Injunction Blocking COmbina-
ti0n Scheme in Jersey.

TRENTON, Oct. 20.-The application
of Robert H.. McCarter, former attorney
general, for an injunction restraining
the transfer of any of the property or
securities of the Interstate Telephone
Company to the American Telephone
and Telegraph Company, or to n of
the subsidiary corporations comprising
the Bell system, was granted by Vice
Chancellor Howell yesterday.
The order also restraints the American
Telephone and Telegraph Company n
its associated corporations from taking
any steps directly or indirectly to ave
the Bell system acquire control of the
Interstate Telephone Company.
In the action Mr.. McCarter repre-
scented Charles West, of Harrisburg;
Louis Kuehnle and Charles Fortner, of
Atlantic City; the American Electric
Company, of Chicago, and the Strom-
,berg-Carlson Telephone Manufacturing
Company, all of whom are holders of
the stock or securities of the interstate
Company.
The substantial ground upon which
the injunction was sought is that the
proposed sale of the Interstate Com
pany to the Bell system Is in violation
Oh the terms Oh dn dSTeell1eIC ullu6T
which about rs per cent. of the hold
ings in the Interstate Company were
pooled and deposited with the Mercer
Trust Company under control of Mr..
West, ex-State Comptroller William s.
Hancock, of New Jersey, and Harry r.
Swartz, of this city.
The bill of complaint sets forth that
many Of the franchises obtained by the
I pfapsfofo Cnna,1an. - arranta1 on
the express understanding that the
lines to be constructed were to be main
tanned and operated in competition with
the Bell system. AS the result of COM
bfnations with other companies it is
claimed that the Interstate company
now controls about 1000 telephones in
New Jersey and has connections with
2S7. 900 others in New York, Pennsyl-
vania, Ohio, Virginia, West Virginia,
Delaware and Maryland.
The compliments alleged that as a
result of other contractural relations
throughout the United States there are
new independent telephone lines of suf-
ficient magnitude to successfully COM
pete with the Bell system, unless the
latter should be successful in its at
tempt to absorb or acquire control of
these lines.
1t is specifically charged hat the
American Telephone and Telegraph
Company, with its affiliated corpora
tions, constitutes a monopoly In VIOLA
ton of the Sherman antitrust act, this
being advanced as another reason for
interference by a court of equity. 1t
is also alleged that the Delaware and
Atlantic Company, a part of the Bell
system, organized in 1904, was con-
trary to law, because the company,
while organized under a special act to
regulate telegraph companies, attempt
ed to arrogate to itself the powers con-
ferred under the general corporation
act.
Mr.. West, in an affidavit annexed to
the bill, stated hat he had consented
to become a membe of the committee
with Mr.. Hancock and Mr.. Swartz,
with the understanding that the Inter
state company should not be disposed
of to the Bell system. He said that
the other two members of the COM
mittee have, nevertheless, lsignihed
their intention of ending negotiations
with the independent concerns and dis
posing of the trust holdings to the Bell
system. This he claims is beyond the
powers of the company, which Is a pub
lie utilities corporation.