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'-yS?n?v!?y'''ViirvyiryVV'ir? n. ii n t't v w I'VV Telephone president summit PLEADS IGNORANGL How a billion-dollar national phone trust is behind the grab of the, little Automatic phone system of" Chicago was brought out todaybef ore council gas-oil committee. B. F. Sunny, the $75,000 a year president of the Chicago Telephone Co., testified, Stephen Foster, attor new for the committee, put the screws to Sunny, Foster knows the inside. He is attorney for companies fighting against being strangled by the Bell monopoly. By hard dragging and many keen questions, Foster got from Stumy these facts: Patent rights worth big money will go to the American Telephone & Telegraph Co. (the Bell monopoly) if the city permits the Automatic sys tem to be sold to the BelL Nobody at the Chicago Telephone Co., not even Sunny himself, is sure the Automatic system will be used if the Chicago Telephone Co. gets it Chances are it will be scrapped. Sunny, the Bell crowd, ani every body in on it, are pfenning to add the $6,300,000 sale price to the Chicago Telephone Co. capitalxatibn. This would shoot- phase rates higher than now. The aiaapog thing of tie day was the bum ulhtnory of Sunny. There was surprise or laughter on nearly every face in the room when Sunny coony said he didn't know anything about the proposed sale of the auto matic to the Bel monopoly except as he had heard .ft talked about among A. T. & T, officers and among Illinois Tunnel Co. officers. Foster Mr. Sunny, yoa were vice president of the American Telephone fe Telegraph Co. and- a director in 1913, when this contract was writ ten? Sunny Yes. Foster Tou are also president of the Wisconsia Telephone Co., the EfMriff"1 Telephone Co. and the Cleveland Telephone Co., are you :ot? 'Sauny-lM.' Tea. " Foster Yet you were not consult ed in the making of this -contract and know nothing about it until A. T. & T. officers in New York and officers of the Automatic compway in Chicago told you about it? Sunny I did not assist in writing the contract and I know nothing ex cept what I learned by, reading it Foster You don't know why the A. T. &. T. wants' to pay $6,300,000 for this property, whieh you say may be scrapped? You don't know what consideration, is expected by the A. T. & T.? Sunny I know nething besides the statements made in the contract Foster Now, Mr. Sunny, the Bell system has 8,000,000 phones in itself and owns companies having 5,000, 000 other phones. These are all man ual and not automatic. It's a proper ty with $1,000,000,000 of capital in it Now you-say the Bell system is ready to install any new superior phone. Would the Bell company scrap its billion dollar investment in the man ual phone in order to demonstrate the superiority of the automatic? Sunny Well, I think the answer to that is that if the automatic te more successful the Bell would adopt it as the standard. Foster What would the Chicago Telephone Co, do with the automatic Systran in Chicago if permitted to buy it for $6,30,000 as proposed? Sunny I can't say. first we would investigate its uses. That would take about six months. Then we would deckle what to do with it Foster -What would your company do about the $,300,000 purchase pries? i Sunny WwonW pt the $6,300, 000 on our books aad add it to our capital account the same as- other expenses or property. o o OF COURSE "Bill, wot' s a centenarian?" "Dinged if I know but they must be a sickly lot they're always dyiaV' G