Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-10
MORGAN GOT STOCK
Paid Seven Million Dollars for
Telephone Control.
BANKER TO BE WITNESS
Western Lawyers Outline Things
They Expect to Prove.
SAY SHARES GO TO TRUST
Officers Of American Company De-
clare They Did Not Exercise Their
Option From Day & Co.

NEW YORK, February 1o.-The galaxy
of lawyers from Cleveland Toledo IN
dianapolis, ST. Louis and other cities which
is here in the interests of the minority
stockholders Of the United States Tele-
phone Company. the Cuyahoga Telephone
Company and other supposedly indepen-
dent companies in the middle West' ex-
pected today to prove that r. l.. Day d
Co, the New York bankers. sold the con-
troll In these companies to interests allied
with the American Telephone and Iele-
graph Company.
They proved yesterday, in the deposi-
tons taken for the Ohio courts, that Day
& Co contracted to buy the control Tor
the giant company, but officers OF the
American company testified that they did
not exercise their option and that Day
Co sold the stock to some one else
they know MOTTO whom.
Sold to Morgan & Co.
The western lawyers expect to prove
that Day & CO. sold to J. p. Morgan &
Co. and that Morgan & CO. are holding
the shares for the American company.
In this connection J. Pierpont Morgan is
expected to be a most important witness
in a day or two. He has consented to APP
pear. and II. IS. McGraw of Cleveland,
who is conducting the examination, states
that he will call him.
W. H. Remck, a member of the bank
ing firm of X. l.. Day q Co.. VINO ne
gotiated the option of more than seven
million dollars for the American Tele-
phone and Telegraph Company, testified
today that he had telephoned to +. II.
Golf. at Cleveland. to have the minority
stockholders suit. there delayed until he
(Remick) could dispose of the majority
to get a delay in the Cleveland pro-
ceedings was given him by Chief Counsel
Leverett of the American Telephone and
Telegraph Company.
Mr. Remick repeated the arrangements
and contracts by which r. L. Day &
Co. acquired the controlling interests
from +. H. Golf and James S. Bradley.
jr. for the American Telephone and Tele-
graph Company, and of how the tele
phone company refused to exercise its
option.
Refused to Purchase Stock.
Mr.. Remick admitted that after the
American Telephone and Telegraph Com
pany refused to purchase the stock from
r. l.. Day & Co. the closest friendship
existed between the telephone company
and Day & Co.. the telephone company
even employing for Day & Co. a gen.
eral manager for the Ohio and Indiana
companies, w. II. Baker.
Remck incidentally brought out that
r. l.. Day & Co. sold their telephone
holdings to j. p. Morgan & Co. December
s or ..
When Remick was asked how he came
to sell to Morgan & Co. he said that H
r. Dawson Of the Morgan Arm, and a
director of the American Telephone and
Telegraph Company, telephoned to him
to come to his office
Released From Option.
Dawson made an offer for the secure
ties. and Remick went to the American
Telephone and Telegraph Company and
obtained, he said. a release from their
option SO that he could sell the securities.
He then returned to Morgan's Office and
the deal was completed.
Morgan & Co. did not want the securi
ties of the Huntington CIV. Va) Mutual
Telephone Company, and Remick testified
that he had sold the control in that COM
pany to New Jersey senator" whose
name he could not remember. He said
he would recall the name later.
Morgan & Co. gave Remick a check for
81. 1905 on the National Park Bank and
he deposited it In the name of r. L. Day
& Co.
The stock the New Jersey senator pur-
chased later became the property of the
Southern Bell Telephone Company, which
is owned entirely by the American Tele-
phone and Telegraph Company.