The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-12-16
MORGAN MAKES y
TELEPHONE DEAL
FIRM OF MORGAN a GO. GETS
INDEPENDENTS.
Brailcy's Counsel Makes Statement
I Counsel for Stifel Hints mt bell
Interests.
CASH PAID WAS EIGHT MILLION

Toledo, Dec. 16.-The following
was issued by Clarence Brown. coun-
sci for the United States Uong Dis
tance) Telephone company, and the
Cuyahoga Telephone company, OF
Cleveland: -r
81 am authorized by James s.
Bradley, Jr., to announce that j. Pier
pont Morgan & company have pur-
chased for their own account a ma
jority of the stock OF the United
States Long Distance and the Cuya-
hoga Telephone companies. No fur
Their statement can be made at pres
emit"
Bradley admitted that he perfected
the deal for the independent plants
at Columbus and Dayton. The an
nouncement as to these companies
and the New Long Distance company
of indianapolis and the Toledo Home
Telephone company are withheld for
the present, but the unofficial lnfor-
nation that they will be acquired also
by Morgan's company Is credited.
The control of six companies is
said to represent a cash outlay OF
1000 900.
The deal announced Is said to be
the first investment or financial in
terest of Morgan's company In indie
pendent telephone properties.
The United States company Is The
long distance service OF the independ-
ents In Ohio and Michigan. and 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 sepa-
rate plants in competition with the
Bell. but upon conservative lines.
without disastrous price cutting. %
their future operation with relation
to the Bel company Is left somewhat
open II seems. however. that the
fight OF the principal Independents of
the middle west has been shifted to
the Continental Telephone and Tele-
graph company. which is being pro-
NOTED by II c. Steifel and Max Koeb-
Ter. of st. Louis. and John A. How
ard. OF West Virginia.
Bradley declared that the CONT
mental company and its promoters.
and not the minority stockholders OF
the Independent properties in good
faith. inTtigated suits against the
nj
panies and inspired the sources from
which came much OF the recently
published information concerning his
telephone deals.
Bradley declined to comment upon
the testimony that the transfer OF
the United states and Cuyahoga stock
was negotiated in the New York Office
of the Bell company. nor upon the
rumors that Morgan's company was
purchasing the independent proper
ties In the Bell interest
Information was given out that the
new owners plans contemplate that
the independent companies In smaller
counties shall solve their own prob
lens, consolidating. II they desire,
with the Bell where opposition plants
are not profitable. Otherwise. the
Brailey-Brown interests declare. the
interests OF all independent compa-
MES will be protected.
The counsel for stlfel said:
THE Official announcement does
not say that the Bell interests are not
the eventual purchasers. 1t is not
uncommon for such deals to be made
through banks which hold property
until the organization by which the
property may be turned over is per-
fected."