Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-03-22
MERCHANTS SURE
PHONE RATES WILL
Be REDUCED SOON
Question Is Whether Trust viii
Act Before Utilities Board
Starts Quiz.
NEW BILL PROVIDES REAL
WEAPON AGAINST MONOPOLY
---
Measure Would Prevent Wreck.
ing of Independent
Companies.

\ Newark business men are more in-
3 terested than ever in the telephone
I fight. The question hat is ~agitating
them mostly now is whether the tele-
phone trust will reduce the excessive
rates or hold off till the new public
4 Utilities commission. which the EVE
4 MING STAR forced the Republican
leaders into creating, takes up the fight,
Al readjustment of the rate schedule
Is sure 70 come. Local merchants Will
/ not tolerate the imposition of the op-
rressive trust.
The merchants here are also deeply
I Interested in the bill introduced in the
Il Senate last night by Senator Osborne,
which, If enacted, would require the
New York Telephone Company TO buy
the stock of the minority stockholders
Of the Newark Telephone Company.
n who were muieted out of about $4,000,
when the trust obtained control of the
socalled Independent company and
} Wrecked 1t by blocking it's Progress as
I a telephone competitor.
I The bill is an antitrust measure.
adopting the language of that drafted
by President Taft for national legisla-
4 ton, and urged upon Congress. Mr..
Osborne has spent much time in prepa-
ration OF his bill and been in communi-
cation with national officials.
The bill is general in it's application
l. would prevent the wrecking of small
corporations in carrying out a trust
propaganda Under it a telephone or
telegraph company could only be alb
sorbed by the purchase of it's entire cap
ital stock. It is the practise of the tel
ephone trust to get a bare majority OF
the capital stock of rivals it desires to
eliminate. Thus. forty-nine per cent.
OF those who invested in what was a
good business proposition II them
selves with worthless paper on their
bands.
II q corporation objects to buying the
remainder OF the stock of another cor
poration in which it controls a major
ity, the Osborne bill gives the alterna-
tive of selling the stock it holds. 1t is
a case of buying all or getting rid OF
what is held.
Provisions of Bill.
The bill reads:
l. No telegraph or telephone corpora
tion organized under the laws oI this
State, or organized under tbs laws ii
any other state, o. OF the United States,
and authorized 10 dc business liz this
State, shall hereafter acquire, purchase
or hold, either directly or indirectly,
any interest of whatsoever sind in the
capital stock, or purchase or lease n
right of way. lines, conduits, wires,
l1oIes or ether appliances, or other prop
erty of any nature, of any corporation
mich completes with such first named
corporation respecting business or Is
Engaged in carrying on Il like business;
and any corporation which acquires,
purchases or holds any interest in cap
itai stock. or which purchases or leases
telegraph or telephone company,
its lines. conduits, wires, poles or other
appliances, contrary to this act, or
holds or retains any interest in
capital stock or in a corporation here
acquired III VOCATION of this act,
shall forfeit to the State the sum of 81 500
for each day or part of a day during
which it holds or retains such interest
unlawfully acquired, to be recovered in
an action Of debt to he brought in the
name of the attorney-general; pro-
svided, however, that nothing in this
act contained shall operate to prevent
any such corporation which at the date
of passage of this act owns not less
than one-half of the entire issued and
outstanding capital stock of any other
corporation from acquiring any of the
remainder of such stock. nor to pre-
vent any such corporation which IS
now operating under lease, made for
not less thar twenty years. of any
other such corporation from renewing
such lease or acquiring the reversion-
sry ownership OF. tho lessor therein,