Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-02-10
EXTORTION SI|RS
TRADE BOARD TO
JOIN PHONE WAR
Discrimination Shown Against
\ Newark Moves Members
to Action.
COMMITTEE TO ATTEND
& LEGISLATIVE HEARING
Alleged Attempt to Extend Mo-
nopoly Aired at Inquiry in
8 New York.

y At the joint hearing in the Senate
schamber Monday afternoon. when
2tommittees will consider resolutions
introduced to bring about an investi-
agation Of the extortionate rates
enlarged by the telephone monopoly in
Newark, the legislative committee of
the Board of Trade will be represented.
IL After a discussion of the local tele-
Sphone situation at the meeting of the
Board of Trade last night, at which
rates in Newark and other cities of its
size were compared, 1t was practically
decided that this powerful body would
Join the EVENING STAR in its cru
SADIE against %extortion. although no
final action was taken.
The matter of telephone abuses in
this city was laid before the Board of
Erade by Siegfried Leschziner. who
told of his personal experience with the
phone trust.
Tells of ExtOrtion.
& Il had a telephone in my office. with
an extension on my desk. for which l
paid $160 a year." he said. Il applied
for another telephone recently and was
told that for one business phone, with
IA limit of sixteen messages per day,
"a would have to pay $22S per year. l
;iwas amazed at the injustice of the
proposition and tried to persuade my
self that some mistake had been made.
After d vain protest to the New York
,STelephone Company L went to The Star
.lAnd obtained information about rates
land service in other cities. L decided to
do business without a phone and APP
spealed to the people, through the
zeolumns of The Star, to support me III
any fight for principle.
"All Of you have seen something of
the figures published showing how out
l%rageously Newarkers are treated l
thave here letters showing what COM
petition has lone in Seattle and in the
city of Trenton, where 1.-THE trust has
sbeen scared into reductions. These let
tiers, addressed to The Star, show that
the same telephone which
would charge me 1928 for a limited serv-
sice phone in Newark, charges $50 per
year for unlimited service in Trenton,
gless than fifty. miles distant. What's
Esthe answer?
m ~ ~ 40 ~ company
THAT gives good service, a real com
z petitcr. This rival company, the Inter-
Nstate,3 charges $50 a year for direct
wine, unlimited business service and
makes money -.
rs Probe Telephone Deal. 'a-
In addition to this concerted Jersey
attack the telephone trust is facing
Areal wal in New York city. The
xgaiaxy of lawyers from Cleveland,
Toledo, Indianapolis. ST.. Louis and
Sother cities who are there in the in
:terests of the minority stockholders
of the United States Telephone Com
pany, the Cuyahoga Telephone Com
spany and other supposedly %independ-
ent companies in the middle West, ex-
Srected today to prove hat r. l.. Day
e. Co, the New York bankers, sold the
control in those companies to interest:
4allied with the American T~elephon
and Telegraph Company.
They proved yesterday in the deposit
Btions taken for the Ohio Supreme Court
Mthat Day & Co. contracted to buy the
control for the giant company, but Of
41icers of the American company tes-
Gifted that they did not exercise their
option n that Day & Co. sold the
PLUM W SOillt OuC tlSt-llCS kneW llOi
to whom.
The Western lawyers expect to prove
8that Day a Co sold to j. p. Morgan &
shCo., and that Morgan & Co. are holding
,Ns.the shares for the American Company.
ssJn this connection J.. Plerpont Morgan
tis expected to be a most important wit
ness In a day o. two. He has consented
ito appear. and Fl. b. McGraw, of Cleve-
al nd uFbA lie ponApct;om tIo aya,ofpa
rStion, states that he will call him.
w. II. Remick, a member of the bank
ing firm of r. l.. Day d Co, who ne
gotiated the option OF more than 81 1000,
900 for the American Telephone and
Telegraph Company, testified today tina.
he had telephoned to f. H.. Golf. al
Cleveland, to have the minority stock
holders suit there delayed until he,
sRemick. could dispose of the majority
shares here. He admitted that advice
to get a delay in the Cleveland proceed
ing was given him by Chief Counsel
Leverett, of the American Telephone
and Telegraph Company.
Remiek incidentally brought out tina
n. L.. Day 81 Co.. sold their telephone
holdings to ]. p. Morgan & Co. or De
cember s or 3.
HSn iNtllllCh was dSktu NOW III
came to sell 10 Morgan e. Co. he sait
that H.. p. Dawson, of the Morgan
firm, and a director of the American
R~Telephone AMI Telegraph Company, tel
eephoned to him to come to his office.
Dawson made an offer for the securi
tiles. and Remick went to the American
Telephone and Telegraph Company AM
%obtained, he said, a release from thei
lKoption so that he could sell the Sc
curities. He then returned to Nor
s.gan's Office and the lea was com
Npleted.
Morgan e. Co. did not want tn,
securities of the Huntington CIV, Va.
Mutual Telephone Company. and Rem
lick testified that he had sold the con
stroll in that company to a New Jerse,
senator" whise name he cannot re
&member. He said he would recall tn
ffname later.
Morgan & Co. "a Remick a checl
sbfor 1880, 900 on the National Park Banl
asand he deposited it in the name of r
IL. Day eco.
y The. stock the. New Jersey senate
purchased later became the propert,
Of the Southern Bell Telephone Com