The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-05-20
It Is Undoubtedly the Most I'M
portant One Affecting Teie-
phone Interests That Has
Been Made.
A STRIKING VICTORY
FOR CENTRAL UNION
United States Company Is
Badly Crippled by the Oecis-
ion as All Contracts Will Be
Made Void.
Especial Correspondent


Indianapolis, May .0.-Undoubtedly
the most important telephone decision
that has been handed down by the
courts in this part of the country in
many a day was that given by Judge
Taylor, of the Federal court at Cleve-
land, yesterday, when he gave the in
dependent telephone interests such a
hard bump. The decision practically
opens up the entire independent field
to the Bell telephone interests and
gives them a huge advantage in the
war that has been in progress for
years.
The United States Telephone COM
pany, an Ohio corporation, is the big
independent long distance company of
the middle west. 1t has connection
with about 400 Independent local COM
panies in Ohio, Indiana and adjacent
states. With all Of these companies
the United States company had ex-
elusive contracts-that is. the com
panies agree that they will not make
long distance connections with any
other company than the United States
company during a period of ninety
nine years.
Central Union Butts In.
pany, the Bell company doing bust
ness in Ohio, Indiana and Illinois, con-
cluded some time ago that 1t wished
to make connections with some of
these Independent companies. 1t
sought legal counsel and was given
an opinion to the effect that the ex-
elusive contracts which the indepen-
dents have with the United States
company were void because they were
in restraint of trade. So the Central
Union went ahead and made contracts
with the independent companies at
Richmond and Butler, Ind, and in sew
eral places in Ohio, to connect the in
dependent lines with its long distance
system. This, of course, was viola
ton Of the exclusive contracts on
the part of the Independents. and the
brought suit In Judge Taylor's court
for an Injunction to restrain the Cen.
trail Union from inducing any more
Of the independents to connect with
It's lines.
1t was set out in the complaint that
the Independents have been fighting
for their lives against the Bell com
pany, and that the latter has spent
millions of dollars in the effort to OBJ
tain q monopoly of the telephone bust
ness. A part Of the plan to obtain this
monopoly, the complaint charged, was
this scheme Of the Bell company to
induce Independents to break their
exclusive contracts was legal and just
because II. was intended to prevent the
Bell company from getting mono
poly of the telephone business. and
to enable the Independents to protect
themselvess.Y
Judge Taylor, however held that
the exclusive contracts were void.
He said they granted certain rights
and privileges to part of the people
and denied the same rights and privi-
leges to other persons similarly cir.
cumstanced. He dissolved the tenn
porary, restraining order. which he
granted when the suit was filed. and
refused to issue a permanent inSunc-
ton.
This means that the independent
companies that have exclusive con.
tracts with the United States Tele.
phone company are in a position to
disregard them and to make connec
tions with any company they may
wish to hook uD with. whether 1t be
the United States, the Bell or any
other. Telephone men here look up.
on it as the most serious situation
that has ever confronted the indepen.
dent companies. Just what will be
done to meet it is not yet known. It
| is believed, however that many of the
independents will connect with the
Bell company and that sooner or later
that company will monopolize the en-
tire telephone business OF the coun-
try.