New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-02-10
FEAR MORGAN DEAL
TELEPHONE INQUIRY
Is UNDER WAY.
U-;tness Denies Purchases
Here Made for Bel
Interests.


-,-s FOR the purchase Of the inde-
sen+ Telephone lines in the Middle
=. - the interest of the Bel concern,
IS +es-irled Yesterday. were discussed
AIorgan & Co. and the Ameri-
7srsrhone and Telegraph Company,
,ps negotiations were dropped and
..s actual purchase represented an IN
-,-5ert Investment Of the Morgan
- i was added.
-hs testimony was given in the hear
-. before John r. O'Neil. notary pub
= IN the Mutual Life Building j
[7t,-,arr Morgan VIII take the witness
-.srd later. Il was learned. in this pro
,.s5irg which has for its purpose the
Ling of 6eposirions for use in suit
.-stf-rred in Cleveland by stockholders
~ The independent companies They
-1--ar1 that AIr. Morgan. in buying con-
.,or of -he companies recently, was act
Ing ss an agent Of the Bel interests.
should he results Of the investigation
us--5r- further action steps Viii be
,sser 10 c dissolve the merger IN the state
courts of Ohio and Indiana. where the
+r5e7erE5rl lines do business, and suit
- runssa the American Telephone and
telegraph company as a monopoly viii
Be instituted ID Missouri.
Fer u Hcstetter. special representa-
I've n Attorney General Major Of Mis-
s---t. Is a close listener at the hearings.
The independent Telephone Association
( rer-esented BY Thomas Harlan. Of St
Touis H B NcGrav-. OF Cleveland and
Z Jefries. % St Louis. represent the
.,-7rlsining stockholders The Ameri-
1sn Telephone and Telegraph Company
= s-er~eseu1ed by George Y. Leverett. It's
re-e~ai counsel. and by :. H Tolles. Of
cleveland. and Clarence Brown, Of
Toledo
HITCH II THE DEAL.
II Han. vice-president Of the Amer
3cgr Telephone and Telegraph Company,
qro vas the chief witness yesterday
r-t~ra5 o-5- that the Bell company had
-esuv r-ied hard 10 buy in the stock of
re independent companies, From his
-eg-5--orz- It appeared that the Bell COM
1arv had had many opportunities 10 buy
in the smaller competitors IN the last
.sver or eight years and that the puT-
chase had been practically made last
ssu Ths hitch N these negotiations.
W Hsl. said. came when the Standard
oil decision was made public.
This decision. the witness declared,
made recesssrr The withdrawal Of his
lar7sur fror1 contract with the bank
77r- firm Of z. /. Dav & CO. which had
leuerf about s7nGae0o worth of the
s-o-k ot The Independent companies with
money Tent h-- the American Telephone
and Telegraph company. The inde-
pendent concerns involved in the deal
were the United States Telephone Com
rsnv u Ohio. the New Long Distance
q indiana. -h= CuvahoEa Of Cleveland,
the Home of columbus, the Home of
Toledo and the Horne Of Indianapolis
Tals arrarEamenr provided that Day 8,
c. should hold the stock until counsel
tc- III Baf interests could reach some
decision a= 20 how their company could
tast assume control
THIS was in the early Tart Of last Oc-
l.5sr T. was decided finally 40 organize
ataltrE company. Nj Hall said. which
Should nor be under the control Of the
Ame-tczr Telephone and Telegraph Com
PAN and 70 allow this company to take
ever the control Of the Western con-
Germs Bot then came the STANDARD Oil
decision. and r. I. Day & Co. having
q Opportunity TO dispose Of the stock,
the contract between II and the Bell in
terests vas discontinued by mutual con-
sent The bankers returned the loan Of
H.pHrn .,lth interest.
Nofs- & White another banking
iT-n. was -hen approached. said the wit
ness. blc j. declined u finance the trans
ac,.ou
Thea / took the matter up with j. Z.
Morgan q Co." Mr.. Hall said Early
II December I had q talk with H. P
Dawson. q member Of the firm. 1 eX-
Islned - MIN that We wanted 20 get
control ~ the Western concerns. bat had
teen advised 70 gain control through q
i-i1irg COMPANY and not directly After
'le Proposition hzd been in the hands Of
: ?. Morgan & Go. Tor several days Mr..
Dawson told me that his firm could have
fothins r. CO With it."
NJ Hal was asked if he knew that
M Dawson ~-as - director II the Amer
ian Telephone and Telegraph Company.
md replied hat he had not known il at
IN tine. uut had learned II since.
TIE witness insisted that the Bell in
lerez1s had nothing 10 DO with the actual
llfeae=e d little later Of the indepen-
rf.r -