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Newspaper Page Text
B. G. HUBBELL WARNS CHICAGO
AGAINST 'PHONE DEAL
Chicago was 'warned against al
lowing the Bell telephone trust to
gobble the automatic company by
B. G. Hubbell, president of the Fed
eral Telephone & Telegraph Com
pany, when he resumed .the stand in
the hearing of the government's suit
against the American Telephone &
"Chicago business should put up
an organized fight against such a
merger," said. Mr. Hubbell. "They
would be foolish to permit it. The
merger would destroy competition
here m Chicago and place your citi
zens at the mercy of the mighty
American Telephone & Telegraph
Company. Without competition the
company , would boost rates. The
merger would also do away with the
incentive to increase efficiency and
the entire service will suffer."
Mr. Hubbell gave further details of
the scheme fostered by the Morgan
firm and other Eastern capitalists to
gobble up the entire service of the
Hubbell charged that the Bell com
pany absorbed a number of independ
ent companies by secretly purchasing
them and then giving the impression
that they were competing companies.
"The Bell company is trying to
control all manufacturing of inde
pendent telephone and telegraph
equipment in an effort to raise prices
to an exorbitant level," said Mr. Hub
bell. The efforts of Attorneys Pillsbury
and Smith, representing the 'phone
trust, failed to shake his story of the
"Morally and economically, it is
wrong for one set of men to control
the transmission of thought of 90,
ODO.OOO people," Mr. Hubbell said,
while on the stand. "The same is
true with the railroads. I should seri
ously object to the government own
ing aE the telephones in the coun
try. But I ,would prefer the govern
ment to private individuals.
Hubbell then reviewed the testi-.
mony he gave the day previous con
cerning the details of the gigantic
merger of thirty independent com
panies by the Bell trust. The plans
for this merger were worked out,
Hubbell charged, by Theo. N. Vail
and H. P. Davison, representing the
J. Pierpont Morgan interests.
"When the Bell trust acquired an
independent company they allowed
the service to deteriorate in order to
discredit independents," was one of
Counsel for the trust asked Hub
bell why he came here to testify
against the Bell company.
"The Independent telephone offi
cials have pledged themselves to see
that the Interstate Commerce Com
mission and the government at
Washington have full knowledge of
the telephone situation," answered
Hubbell. "This is the first chance we
have had to tell what we know about
the workings of the Bell company at
an impartial hearing. Later Hubbell
said: "The Bell company admitted
that it was the severe competition of
the independents in certain parts of
the country that was behind their de
sire to merge thirty of the independ
Hannish jury completed today.
Court adjourned until Monday.
W. L. O'Connell, county treasurer,
denies accusation of Chicago Bureau
of Public Efficiency.
Madison, Wis. Mrs. Adolph
School, whose husband was scalded
to death in boiler which he was re
pairing in factory of U. S. Sugar Co.
two weeks ago, was awarded $3,000.
Washington. The. currency bill'
was returned to the senate by the
senate banking committee.
Danville, III. John C. Johnson,
head of White Horse Army Industrial
School, negro training institution,
served wrth. 14 wr -rants on 14
4,. Jt -