Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-02-24
70 BREAK MONOPOLY
Measure toRequire Exchange of
Business Between Telegraph q
and Telephone Systems
APPLIES ONLY IN THE STATE
While No Law Can Be Made Changing
Interstate Business It Is Believed
That lowa's Establishment of This
Policy Would Cause Other States to
Follow Suit Advantages offered,

Follow Suit Advantages offered,
Special to Times Republican,
Des Moines, Feb. 24-There will be
introduced in the Iowa legislature, If
the plans of those who are now Civ
ing consideration to the subject are
unchanged, a measure that will attract
attention thrueut the whole country,
one that it is believed will be accept
ed as a signal for one of the most inn
portant general movements against re-
straint of the use OF facilities for
commerce that has ever been started.
me bill has not yet been framed. but
the thing sought has been given much
consideration by members of the legis-
nature, and in the discussions it has.
been determined just about what is
desired. The Thought Is simple. 1t Is
that the state Of Iowa shall require an
exchange OF business between tele-
graph and telephone lines and systems
within the state, and forbid the FORM
0tion OF any combination or agreement
that will prevent this interchange OF
business over the wires of companies
ohkadning their rights from the public.
No attempt will be made to require any
exchange of business outside the state
or for long distance business. 1t will
require not only that business shall
be exchanged but that there shall be
an actual exchange of operation or that
telegraph companies shall be compel
led DO allow long distance telephone
companies to attach telephones direct
TO their wires used for telegra phing,
and vice versa. The bill Will probably
20 also the length OF forbidt!ng any
cusnpany having public charter in the
state OF Iowa from continuing 20 do
Business under any contract or agree
enent which divides the business or
territory or the character Of the service
setc.
The attention OF the members of
che legislature has been called to the
Hact that back Hwenty or twenty-five
years ago when 1t was discovered that
The telephones could be used for long
distances and the big telephone mon
Dpcay was established there was danger
threatened to the business of the tele-
graph company, and for a time DIT look
I'd Nike there would be war. but that q
contract was signed by the Bell Tele-
PHONE people and the Western Union
M0legsnpA Company, under which each
Dne aEyeed 20 keep out OF the territory
Of Me 0Ahsr. Several million dollars
Mas paid the telephone company by
the Acieetaph company under this
agreement. and then after payments |
had ceased for number OF years suit |
was brought TO recover many millions |
more under the contract. 1t was when I
this suit was tried that the fact of the
existence OF the contract was brought |
TO public notice. Now the claim is
made shat by reason OF this contract |
"a restraint OF trade and contrary to |
public policy there Is no exchange OF |
business between telephone and tele-
graph companies at this time. and rates |
for telegraph service are held Gnrea-
vonably high. But for this contract 1t |
would be possible to engage in tele- /
phoning and telegrirhing over all
wires in the country It is pointed out |
THAT II the state forbiiis this agreement |
Tor q division and monopoly then tele- |
phone lines will be connected up with
long distance wires and the rural and |
GARNER phones and THE mutuals and
Ill others will be in a position to ex-
change with the telegraph companies
and practically every local line in the
stale will become a long distance hne.
The claim ds also made that tele-
graphing and telephoning can be done
over the same wires at the same time
without interference; or in other words
that the connecting OF the wires with
telephones will not injure their use
fulnees for teleg1aphing at the same
time.
While the bin is intended to affect
only the business done in Iowa and
no law can he made that will cause
any change In the interstate business,
get 1t is contended that in case Iowa
establishes this policy other states will
follow. and even Il they do not. Iowa
will break up the monopoly and the
companies. particularly the big tele-
phone and telegraph companies, will
have to extend the Joint business to
other states at once. In behalf OF the
measure 1t win be urged also that UNI
der this system telephoning will be-
come so cheap that newspaper mes
sages and information will be trans
ndtted by phone instead of by tele-
graph and the publishing OF news
papers WIN be cheapened or the
amount OF news available to the pub.
lie VIII become that much larger.