Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1909-12-23
MORGAN INTERESTS
IN TELEPHONE DEAL
SECURE CONTROL OF SIX COM.
PANlES WITH CASH OUT
LAY OF S8,ooo,ooo.
8ELL INTERESTS SUsPlCIONED
BUT PROMOTERS PROFESS
COMPETITION.

Toledo, Dec. 16.-The following was
issued yesterday afternoon by CIar-
ence Brown, counsel for United
States Long Distance Telephone com
pany, and the Cuyahoga Telephone
company Of Cleveland.
L am authorized by James S. Brai-
ley, Jr., to announce that J. PierpOnt
Morgan and company have purchased
for their own account majority OF
the stocks of the United States Ions
Distance and Cuyahoga Telephone
companies. No further statement can
be made at present.
Mr.. Bradley admitted that he had
perfected a deal for the independent
plants at Columbus and Dayton. The
announcement as to these companies
and the new long distance company OF
indianapolis and the Toledo Home
Telephone company is withheld for
the present, but unofficial information
is that they will be acquired also by
the Morgan company. The control Of
the six companies is said to represent
a cash outlay of $8,O0O,O0O.
The deal announced yesterday is
said to be the first investment or
financial interest of the Morgan com
pany in independent telephone proper
ties.
The United States company is the
long distance service Of the independ-
ents in Ohio and Michigan. The New
Long Distance company, of those IN
Indiana. The management will re-
main practically the same as now.
Except for the statement that these
properties will be continued as sep
arate plants in competition with the
Bell, but upon conservative lines,
without disastrous price cutting" their
future operation relation with the
Bell company is left somewhat open.
1t seems, however, that the fight of
the principal Independents of the mid
dlewest is shifted to the Continental
Telephone and Telegraph company,
which is being promoted by H. 5.
Stifel and Max Koehler, of st. Louis
and John A. Howard of West Virginia.
Mr.. Bradley yesterday declared that
the Continental company and it's pro-
motors, and not a minority of the
stockholders Of the independent prop
critics in good faith, had instigated
suits against the United States and
Cuyahoga companies, and inspired the
sources from which came much of the
recently published information con-
corning his telephone deals. He de-
clined to comment upon the testimony
that the transfer of the United States
and Cuyahoga stock was negotiated
in the New York offices of the Bell
company, nor upon the rumor that the
Morgan company are purchasing indie
pendent properties in the Bell inter
ests.
Information is given out that the
new owners plans contemplate that
the independent companies in the
smaller counties shall solve their own
problems, consolidating, if they desire,
with the Bell where opposition plants
are not profitable. Otherwise, the
Brailey-Brown interests declare, the
interests of all the Independent com
panies will be protected.
Counsel for Stifel said:
"The official announcement does not
say that the Bell interests are not
the eventual purchasers. It is not
uncommon for such deals to be made
through banks which hold the proper
ty until the organization to which the
property is to be turned over, is per-
fected."