The Washington times., 1910-02-10
Physical Condition and
Earning Power Not \
Investigated.
? SENATOR ALLEGED
TO BE PURCHASER
Broker Tells on Witness Stand of
Stock Trans
go. actions.

NEW YORK, Feb. 10-Au unnamed
Jersey senator was today mentioned as
the man who purchased stock in an
Independent telephone company I'm Hunt
inSton, W Va, which stock immediate
~ found its way into the American
Telephone and Telegraph Company, the
alleged Telephone trust
This came out during the testimony
Of w H. Remick. of r l. Day & Co,
brokers and bankers Who deposed be
fore the commission taking testimony
IN the suit brought by minority stock
holders fl Cleveland. Ohio. to prevent
the delivery Of independent stock TO
J. P Morgan & Co. on the alleged
ground that the Morgan firm Is buying
this stock for the account of the AmeTi-
can Telephone and Telegraph COMPANY
RemicES testimony contained many
startling statements among them that
he bought more than s. 90 worth OF
telephone stocks without knowing the
physical situation of the properties he
was buying. or without even inOuiring
into the earning powers OF these COM
panies: and that later he sold the same
stock 10 J. = Morgan & Co without
furnishing them with any such iufOT-
nation Il did not think It necessary
TO make an investigation. he said
Remick Tells of Deal.
Remick testified that he had been
summoned 10 the OFFICES Of the Ameri-
can Telephone and Telegraph Company
IN October, 1905, by Vice President Hail.
who told him the American Telephone
and Telegraph wanted 10 buy indie
pendent companies in Ohio and Indiana.
but doubted whether II could legally
acquire the properties Hall asked him
II ne would buy them and hold them.
giving the American. an option on the
properties RemiCk agreed II ne was
properly sareguarded and entered into
q contract whereby he was 20 buy the
properties from r. II. Con, OF Cleve-
land, and James 5 Bailey, IT., Of To-
ledo. The American Telephone and
IelegTaph Company was to furnish
him the money to buy the properties
and 10 guarantee him against any Pc
cuniary loss The American Company
entered into contracts with Bailey and
Con TO buy the stock. without ever
making an examination Of the proper
ties.
RemIck tod Of teiepHoue messages
rom GOff- then in Cleveland IN which
Goff told him If the institution Of suits
there to prevent the sale Cor told
Remick he CGOf) would be called on 20
testify
Delay of Witness Asked.
4 asked him 20 delay going on the
stand as long as possible so 7 could get
rid OF the properties said RemicI- IT
either varied to sell the stocks or form
d company 70 take them over before
Cor testified I rn.rde a request Of Con
a tie suggestion Of George V Leverett,
general counsel for the American TeIe-
Ti one and Telegraph Company
REmicIl then dev7i-ed certain CONVEX
satiOns ne had with Bradley and W H
Baker This was The first time Bakers
name had been mentioned. and AttOT-
ney MCGrav-, OF Cleveland represent
inE the minority stockholders, asked
who he was
"BGker IS 4 former vice president Of
the Macksy Comuany- I took him into
my employ TO assist me in managing the
compauies.' said EemiCk-
Asked why he hired Baker at a salary
o. $4,000 year, Remick said
= was called 10 the Office OF AR Pick
erDeU, OF the American Telephone and
Telegraph Company. ard ne introduced
ne To Baker rs the man I wanted for
that purpose He told me Baker would
CINE to work for me at $1,000 "A year
He said he was 4 practical ressphone
man. whom 7 cGG15 trust"
Baker remained n Remirk = employ
two months, gathering all the data pos