The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-03-18
PHONE MONOPOLY
BIG ARGUMENT FOR
GOVT OWNERSHIP
Official of Independent Company in
Western New York Tells How
Trust Crushed Competition by
Aid of J. P. Morgan & Co.
Banks Were Influenced and Funds
Couldn't Be Obtained To Con-
tinue Fight.
BY w. c. SHEPHERD.


ROCHESTER,, N. Y, March Is
The citadel OF the independent tele-
phone system of the Uaited States has
gone Gathering down before the bat
tering OF the American Telephone a.
Telegraph Co., and the firm OF j. p.
Morgan. The monopolization OF the
telephone is at hand
The victory of the telephone trust
over the four independent companies
in the western part OF New York
means that. within a few months, a
majority OF the leading independent
telephone companies OF the country
will be absorbed by the trust.
| IL the trust can wiR--as II has--in
this, the independent stronghold OF
the country, it can win wherever else
IL pleases.
government ownership. There's no
other way.
Here in Rochester is situated the
Stromberg- Carlson Telephone Co.,
whihc has supplied Instruments To
the $4,000 Independent companies OF
the country. This company has no-
been bought out by the trust because
the laws OF New York prevented the
sale.
But the telephone companies here
abouts. in which members OF the
Stromberg Carlson company are i'm
terested, are all ready TO yield to the
American Telephone 4 Telegraph Co.
The deal will probably be closed
shortly. 1t will be followed by like
deals in every part of the land
Why did the Independents In this
district surrender? The public was on
their side. Once, i'm thousands OF
homes, the Bell subscribers took all
their phone receivers of at a fixed
time on certain day, as demonstra-
ton against the trust Why, with
such support as this, with more GUS
toners than the BELL and with better
service, did the independents SIR.
render to the trust?-J. Pierpont Nor.
gan & Co. That's the answer.
, | quote an official of the Stromberg-
!, Carlson Co.:
"The American Telephone & Tele-
graph Co., working alone, could not
have overcome the independents.
, They fought for years in vain. Then
Morgan appeared on the scene. That
was when he spent $S.000.000 for the
telephone companies In Ohio, intend
Ing to sell them to the trust, and then
discovered that an injunction was in
, existence which would prevent the
sale.
The name of Morgan worked like
magic. In some mysteriuos way banks
were influenced. They would not
lend money for the purchase OF inde-
pendent telephone stock nor would
. they advance money for the increase
OF the independent systems.
THE independent systems stopped
growing Here In Rochester, where
the Independents are strongest, citi-
zens pleaded in vain to have the in
dependent phones put in. The company
couldn't respond. II couldn't get the
money for enlarging its plant. The
citizens had to take the Bell phone.
because they couldn't get the other.
And then independent stockhold-
ers finally realized that when the
trust offered to buy their stock from
them as individuals, they had better
sell.
1T was the name OF Morgan that
did il all. And this influence IL do
ing the same thing In all other parts
of the United States.
Holders OF independent telephone
company stock fear the name OF Nor
gan. II will be only short time be-
fore the telephone system of the
country Is monopolized.
There are $4,000 independent tele-
phone companies in the United States,
including farmers lines. There are
at least 100 large metropolitan 'sys-
TENS. But many OF them are at this
moment prepared to sell out to the
trust.
This telephone movement Is the
broadest step that has ever been
taken in this country toward govern.
ment ownership"