Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-02-11
President Vail of Big Corporation
Will Be Examined Then.
SHOWS
EVIDENCE
Attorneys for Plaintiffs Say They
Have Proved Their Case.
'. H. REMICK ON STAND
Broker who Negotiated the Deal
with Morgan & Co. for Majority
Interests Tells of the
Transfer.

NEW YORK Feb. 10-Counsel for the
minority stockholders in the Ohio and
Indiana independent telephone companies,
control of which was recently sold to inter-
ests yet to be officially identified, said to-
night in the hearings held here they were
satisfied they had already proved the con-
troll has passed to the American Telephone
and Telegraph company. The hearings
| were adjourned until week from today
because the western lawyers Insisted on
next examining President Vail Of the Amer
lean Telephone and Telegraph company,
and he cannot appear before then.
Before leaving for Cleveland tonight H.
IS. McGfaw one VI the principal attorneys
for the minority stockholders, who are
plaintiffs in the action said:
Through President Vail and w. II. Rem
| ick, the banker. who negotiated the deal,
we have already established that the Amer
ican Telephone and Telegraph company
loaned to Remicks firm (R. L. Day a Coz,
without security, S72SO,OOO for the purpose
Of buying these controlling shares in the
Independent companies of Ohio and Indiana
Number of Admissions.
"They admit that the American company
wanted the companies and provided the
money to make the purchase. They admit
American company and Remick's firm, but
between Remick and F. w. Goff and James
S. Bradley jr., who had the shares of stock
to sell, were drawn in the American com
panys office and that Remick was acting
for the American company.
Further, we have shown that the Amer,
lean company asked J. p. Morgan & Co. tC
form a holding company for these Ohio ant
Indiana companies and that when Morgan
& Co. took the holdings over the American
company released Remick from the optior
so that the transfer could be made to Nor
gan's firm.
I'VE believe that this shows conclusivelS
that the American Telephone and Tele
graph company, which owns the Centra
ULion company in Ohio and Indiana, has
quieted all competition there"
Remick, who testified today that hii
profit In the deal has been about $4,000,
exclusive of the brokerage on the telephone
company at Huntington w. Va, sails To-
Europe next Tuesday for a protractet
vacation.
RemicIx's Testimony.
Mr.. Remick testified today that he haC
telephoned TO F.. II. Goff at Cleveland t,
have the minority stockholders suit ther
delayed until he (Remicl) could dispos
of the majority shares here. He admittet
that advice to get delay in the CLEVELAND
proceedings was given him by Chief Coun
sci Leverett of the American Telephon
and Telegraph company.
Remick declared that from the time h.
first received the offer from Morgan e. CO
until after the deal was ended no one con
: nected with the American Telephone an,
Telegraph company knew the identity o
the prospective purchaser. He said he ha,
nothing whatever to do with the adjust
ment of rates by the United States TeIe
: phone company following the sale by Got
and Bradley. Soon after that sale tn
United States company raised it's rates t
those of the Central Union company whic
is owned by the American Telephone an
! Telegraph company.
In answer to a final question from MI
McGraw, Remick said 1t was in the Amer
can Telephone and Telegraph company
offices that he told Bradley that he wa
buying the stock for himself and not fo
the American Telephone and Telegrap
!. company or anyone else