The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-02-11
DEPARTMENTS IN
TELEPHONE CASE
Independent Stockholders Be-
lieve Control Is Lost
TESTIMONY OF REMICK
One of the Attorneys for the INDIE
pendents Feels Certain Ameri-
can Company Has bought
Up Independents
TESTIMONY OF REMICK

New York, February 1o.-Counsel for
the minority stockholders in the ONO
and Indiana Independent Telephone com
panies control of which was recently sold
to interests yet to be officially identihed
said tonight that in the hearings held
here they were satisfied that they mad
already proved that the control mas
passed to the American Telephone and
Telegraph company
The hearings were adjourned until a
week from today because the western
LAWYERS insited on next examining Presl-
dent Vail of the American Telephone and
Telegraph company, and he cannot ap-
pear until then.
Before leaving for Cleveland tonight,
II. B. McGraw, one of the principal at
torneys for the minority stockholders who
are plaintiffs in the action, said:
Through Vice President Hall and w.
II. Remick, the banker who negotiated
the deal, we have already established
that the American Telephone aud Tele-
graph company loaned to Remick's firm,
r. L. Day & Co., without security, $3.50
ing interest in the indepedent companies
of Ohio and Indiana. They admit the
American company want the companies
and provided the money to make the pur-
chase They admit that the contracts not
only between the American company and
Remick's firm, but between Remick and
e. w. Golf and James S. Bradley, Jr., who
CHI IF stock sell We're
drawn in the American oompany's offices
and that Remicl1 was acting for the
American company.
"Further, we have shown that the
American company asked j. P. Morgan
& Co. to form a holding company for
thse Ohio and Indiana companies and
that when Morgan &, Co. took the hold
lngs over the American company released
Remick from the option, so that the
transfer could be made to Morgans firm.
I'VE believe this shows conclusively
that the American Telephone and Tele-
graph company, which owns the Cen
trail Union company in Ohio and In
diana, has quieted all competition there
Mr. Remick, who testified today that
his profit in the deal has been about
$50, eco" exclusive of the brokerage on the
u
ington, w. Va, sails for Europe next
Tuesday for a protracted vacation
Mr.. Remick admitted that after the
American Telephone and Telegraph COM
pany refused to purchase the stock from
r. l.. Day e. Co., the closest friendship
existed between the telephone company
and Day & Co.. the telephone company
even employing for Day for general man
ager for the Ohio and Indiana COM
panles w. H. Baker.
Remick incidentally brought out that
r. l.. Day & Co. sold their telephone
holdings to j. P. Morgan G. Co. on De-
cember s or 9.
Morgan & Co. did not want the Sc
curities of the Huntington CIV. Va Mu-
tual Telephone company, and Remick tes-
tilted that he had sold the control in that
company to a New Jersey senator,
whose name he could not remember. lie
said he would recall the name later.
Morgan & Co. gave Remici a check for
81 1870 900. and later paid 100000 more.
The American Telephone and Tele-
graph company had loaned r. i. Day &
Co s72s0o00 to purchase the securities,
and Renlick estimated roughly about that
sum had been received from Morgan &
Co
The stock then purchased later became
the property of the Southern Bell Tele-
phone company. which is owned entirely
by the American Telephone and Tele-
graph company.