The Sentinel=record., 1913-12-20

dI that we desire is an oDportunitv 10 cooperate with them. So long as we are dealt with in this spirit we can help to build up the business of 'lhe country upon sound and pe7ma. nent lines.
 cordially and sincerely yours.
 WOODROW WILSON"
 MT McReynolds in accepting the Aiherican Telephone and Telegraph Company's offer, wrote to N. c. Kings. oury vice president of the company as follows:
 Permit me to acknowledge with ex. pressions of appreciation your letter or December 19, outlining the course Tor action which the telephone comma nies composing the Bell system obi. gate themselves to follow in the flu, ture.
 Your frank negotiations in respect or these matters compel the belief hat what you propose will be carried out in good faith; and it seems to me clear that such action on your Dart will establish conditions under which there will be full opportunity through. out the country for competition in tha transmission of intelligence by wire.
 May l take this occasion to say that the administration earnestly de sires 10 cooperate with and to pro. mote all business conducted in har- mony with law; and that without aba'ing the insistence that the stat utes must be obeyed, it will always welcome opportunity to aid in bringing about whatever adjustments are nee essary for the re-establishment Of lawful conditions without litigation"
 The announcement of the agreement for a reorganization came tonight at the conclusion of several months Of negotiation in which the attorney gen eral and Mir. Todd and Mir. Kingsbury. Theodore N. Vail, president of the American Telephone and Telegraph Company. and other parties on both sides conferred. Mir McReynolds took mp the question early in his admins tration of the Department of Justice and officials of the telephone com pany showed a willingless from the first to do anything in reason to sat isfy the governments lawyers
 As point by point in tentative scheme was worked out, Mir Kings bury carried it to New York, submit ted it to the directors of the Ameri- can Telephone and Telegraph Com pany and 10 other companies interest ed and in every instance obtained the approyal of he department and of ot ficials of the companies concerned.
 There never was serious hitch in the plans and Mir McReynolds clearly indicated to the telephone officials not only his desire to avoid litigation, but his aversion to any scheme for gov ernment ownership.
 The plan finally was submitted to uhe attorney general with the state ment that the company wished ot put it's affairs beyond fair criticism
 Some of the details of the reorgani- 2ation are vet to be perfected. The department has such confidence in he corporation's desire to do the right thing. however, that it has left such matters to it's officers and any req sonable amount Of time asked for will be granted
 Although exact information as to the extent of Western Union stock held by the Bell Company was not avail able here tonight, it is understood ot 1e about 90 per cent MT McReynolds has no desire to force the combine to clear it's treasury of this stock in week or q month, or in any set period of time.
 From the point of view of a sub scrihe- to an independent telephone system. one of the most interesting parts of the agreement is that prom ising him use of .he through lines Of the Bell Company.
 Under the agreement an independ- ent company may secure connection with Bell toll lines by supplying standard trunk lines to connect win the Bell toll boards. the Bell Com many operating the entire toll circuit when connections are made.
 Service will be given with Bell SUD- ecribers or subscribers of other in- denendent companies served by eX- changes more than fifty miles distant from the place where the call orig mated. independent subscribers paying in addition to the regular Bell toll charge connection charge of ten cents for each message. This charge will not be made on business known as "1ong lines" business and long lires business will be accepted for less than fifty miles as well as for great CT distance.
 The authorized capital stock Of the Rell Company December 31, 1912 was s5oo GOO 000. and it's bonded indebted nese at That time was about $lO5,OOO'- ooO From october, 1906, to April or inc current year, it had paid per
 oruallv The Western Union