The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-11-23
Claimed Union as Formed
Here Is Part of Plan to Get
Control of Telephone Busi-
ness Throughout Country.
COMPETITION WIPED OUT.
TRYING TO GET INDEPENDENTS
TO BREAK CONTRACTS WITH
OTHER COMPANIES.

OTHER COMPANIES.
Although press dispatches from
Cleveland, Ohio, assert the Richmond
Home Telephone company is involved
in the case decided in the federal
court In which the Bell Telephone
company was enjoined, Supt William
Bailey. of the local concern says his
company will not he affected in any
way
On the ground of a conspiracy to
create and maintain a monopoly and
in violation of state laws and the
Sherman antitrust law, United States
Judge Taylor of the federal court at
Cleveland Saturday granted an in
junction against the American Tele-
phone and Telegraph company (Bell
1ong.distance system) and the Central
Union Telephone company (Bell COM
pany operating in Ohio, Indiana and
Illinois) restraining them from inter-
fering with the business of the inde
pendent operating companies in those
and adjoining states.
The injunction was granted upon
the application of Clarence Brown,
general counsel and James s. Bailey,
Jr.. president of the United States
Telephone company, which is the in
dependent long-distance company op-
Grating in Ohio and adjoining states.
in suit brought by that company.
For the purpose of wiping out and
preventing competition the Central
Union and American companies are
declared to have been engaged and
are still engaged, in inducing indepen-
dent telephone companies to break
contracts providing for connections
with the United States, or Indepen-
dent Telephone company. BY one
means or another the Central Union
company and the American Telephone
and Telegraph company are declared
to have caused fourteen companies in
Ohio and two in Indiana to break their
contracts with the United States. or
Independent. telephone company.
The two Indiana lines named are the
Richmond Home Telephone company.
of Richmond, Ind. and the Butler
Telephone company of Butler, Ind.
The Injunction is a sweeping one.
The Central Union Telephone COM
pany and the American company and
their agents and employees. and all
persons aiding or abetting them, are
restrained from in any manner violat-
ing any Of the contracts between the
United States, or Independent, Tele-
phone company and other independent
companies. The Central Union and
the American company are also en-
Joined from delivering telephone mes
sages to or receiving telephone from,
any Of the Independent telephone
companies with which the United
States company has contracts.
Mr.. Bailey says his company and
the Central Union Tor BelD operate in
this city under working agreement
and have formed no combination in
restraint of competitions. Local at
torneys state that this SO called work
ing agreeme MT might be Interpreted
as being a restraint of competition,
however. because of its nature. Mr..
Bailey says the Home company has
not been notified that it is concerned
in the case at Cleveland and was not
made party to the defense. He holds
the opinion the situation as passed
upon by the Cleveland court applies
in Ohio only.
1t is alleged by Mr.. Bailey that the
agreement in this city between the
two companies did not prescribe that
the Central Union should abandon its
local lines This action followed the
alliance with the Home company, how
ever. and now the Central Union does
not offer any local service and to Sc
cure telephone accommodations a citi-
zen must be patron of the Home
company. MIR. Bailey said further it
was not agreed that the Home COM
pany should treat the long distance
patronage of the Central Union COM
pany as 1t now does, but that the
change has been made for the better
ment OF the service. He claims the
Central Union makes use of the Home
company's local lines for terminal pur-
poses. SO that when calls are received
from long distance the caller may be
accommodated by direct access to the
party wanted. In return for this,
when calls are made for long distance
points outside of the lines of the
Home company's lines. from the lat
ker's phones, the calls are transferred
10 the Central Union for service