The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-02-23
10 nlocK J. p. MORGAN.
Eaors Made by independents Phone
A1flprity stockholdsrs--They Main
tah Composition In OHIO Ia
seloed And They Seek to Prevent

/
New York. Feb. iO.-J. Pierpont
Nergan may voluntarily testify In
New York In q few days concerning
the recent purchase by his nrm Of
,controlling interest In the United
6taxss Telephone Company. Of Clevs-
land. and the Cuyahogn Telephone
Company. Of Ohio.
Protesting minority stockholders
of the companies are In New York
tAking depositions to be used In the
Ohio courts In suits to check con-
eummation OF the purchase. MAIN
ninins that J. p. Morgan q Co..
eActsd for the American Telephone
and telegraph Company (the Bell
lntsrssts) in acquiring six independ-
ant comapinss In Ohio and Indiana.
and that competition has ceased to
pzist IN that territory-hence the IL
LEGALITY OF the transaction.
Morgan and Co.. have held all
along that any purchases they made
wese simply an investment of the
hrA n. b. McCraw. Of Cleveland.
Hn1 samuel b. Jenries. Of st. Louis.
jOlntIy representing the minority
ecokholders said this afternoon that
Mr.. Morgan had volunteered AZ q
witness. and that ne would be called
probably In day or two.
The hearing Is being held here be-
fore = notary. deputized by the Ohio
Supreme Court. In which the origi-
al suit was brought. The American
Telephone and telegraph Company,
which controls the Central Union
Company IA Ohio and Indiana. con-
(ep1s that the deal never went
through: that II does not know who
owns me Independent companies and
fRet 4 has no interest whatever In
Aom II further asserts that COM
pc>(tton In that territory Il a. strong
- ever.
\ sSoeuce taken today showed that
ue An srican Telephone and Tele-
oPAph Company negotiated with r. l.
6Poy and Co.. bankers. to acquire the
eontrollins interest In the Ohio and
Indiana companies. on the under
Standing that the American company
would take these holdings n It found
e could do 20 legally. r. L. Day e.
ce. acquired the holdings and later
" Dosed Of them. but the American
'~ompany ASSERTS that II was not the
pUrchascr. t
a member OF the firm OF r.. L. Day
Co.. VIII take the stand. semorrow,
AND rho minority stockholders hope
show that J, v. Morgan g. Co..
(rs the purchasers acting for the
american Telephone and Telegraph
Company.
Tho American company admitted
today that Il loaned Day & Co., more
than s7.ooo.ooo to acquire the major
holdings. but maintained that when
PAY q Co. were released from their
contract. the loan vas paid.
ID. J. Hall. vice-president Of the
American Telephone and Telegraph
Company. said he did not know II
any outside interests were represent
"a on the board Of directors of his
)ompany. He stated that the Ameri-
ban Telephone and Telegraph Com
pany has an indirect interest in the
Maryland Telephone Company, of
\ Baltimore.
n. ID. McGraw. OF Cleveland. one
OF the counsel for the minority stock
. holders. read part OF letter written
@by President Vail. OF the American
Telephone and Telegraph Company
to the Attorney General Of Ohio.
saying that his company had been
offered a 30 per cent. interest In the
United States and Cuyayhoga COM
panies. Mr.. Hall said his company
| refused these offers. which were
made by MT. Con and James Brazil
ey.
The bill of complaint alleged that
Con and Bradley obtained the stock
nom holders under a different prom
oise. deposited II In the Mississippi
'alley Telegraph Company. at st.
Louis. and then sold 1t to n. L. Day
q Co.. that Morgan & Co.. backed
Day q Co.. and that the American
Telephone ard Telegraph Company
was represented by J. p. Morgan &
Co.