The Birmingham age-herald., 1913-12-21
Will Be Given Use of Thou
sands of Miles of
Bell Lines
10000 COMPANIES
WILL BE AFFECTED
Every Company Allowed Right to
Make Use of Bell Lines in Every
Part of the Union-Unusual
Buzz of Speculation

today that scores of the independent
telephone companies In the United
States are gratified with the agree
ment the so-caIIed telephone trust has
made with the department of Justice,
which will give them the use of thou
by the Bell company.
The department, he said, hardly could
have expected any court to order the
Bell company to allow independents to
practically was no chance that the in
dependents could raise sufficient funds,
IL they had the desire. to build competing
long distance lines
To bring out competition in Interstate
business. it was pointed out, would have
required an outlay of millions of dollars,
and probably would have meant loss of
a severe falling off in the receipts of
the Bell and the independents that tried
to get long distance business.
According to figures laid before the At
torney General by N. c. Kingsbury, the
vice president of the American Tee-
phone and Telegraph company, who con-
Quoted the negotiations which led to the
agreement of last night, there are more
than 10000 Independent telephone COM
panies in the country. The opening of
the Bell lines to all these companies,
under the simple and inexpensive plan,
it is declared. will mean that every one
of these companies has the right to make
use of the Bell lines in every part of
the union.
Step Far in Future
There was talk today at the department
OF justice Of action by the Bell company
TO allow subscribers OF ind epender 6 COM
panies Ia cities TO talk to Bell subscribers
through Bell exchanges and Bell lines.
but Mr.. McReyflolds said that this was
step that seemed to be far in the fu-
ture. So far as he knsw the independent
companies were well satisfied with the
American Telephone and Telegraph pro-
posal and its agreement to make no fur
ther extensions. and to give up it's hold
ings in instances where the department
or the interstate commerce commission
suggested such action.
Announcement of the agreement caused
an unusual buzz of speculation today. In
some quarters 1t was regarded an in
dication of the fight that some of the
conservative members of President Will
sons cabinet will make against govern
ment ownership of public utilities. 1t is
known that Mr.. McReynolds is strongly
opposed to government ownership. The
Attorney General is said to feel that
government ownership is likely to come
in the United States unless there can
be restoration of free competition in
public service, but he believes the agree
ment with the American Telephone and
Telegraph company is a long step toward
a return to competition in the telephone
and telegraph fields In his opinion the
Sherman law is a sufficiently strong
weapon to force any monopoly to come
to terms and he is convinced that clear
demonstration of its power will do much
to allay the growing sentiment for gov
ernment ownership.
All Data Collected
Postmaster General Burleson, it became
known today, now has before him all
data collected and put in concrete form
respecting the proposed government ac-
QUESTION of telegraph and telephone lines
but 1t is understood that it is not his
present purpose to submit the findings
of his experts to Congress unless they
are desired If Congress wishes to take
up the question, the Postmaster General
is prepared at an hours notice to sub
nit data on the subject.
In the summary of Mr. Burlsons an
nual report supplied to the newspapers.
under the caption, Postal Telegraphs and
Telephones" appeared this paragraph:
'In June last a committee was appointed
to make an investigation of this subject
TO determine the preliminary steps neces-
sary for the government to take toward
the acquisition of the telegraph lines In
the country in accordance with section
5267 of the revised statutes. This com
mittee is now engaged in preparing its
preliminary report, and if the findings JUS
tify such action proper recommendation
will be made by the department at a later
date"
AS the report finally was issued in per-
manent form, this paragraph was elimi-
mated and the following substituted:
"Since June last the department has
| been conducting a careful investigation
| to determine the desira ability and practi-
| cability of extending the government own
| ership and control of means of commune
cation, with a view to the. acquisition by
| the government of the telegraph and tele-
phone facilities to be operated as an adj
junct to the postal service The Post
master General is now engaged in re-
! viewing the data collected and later, If
| desired, will submit same to the appro-
! pirate committees of Congress for their
consideration"
Last Change Made
| The change of the paragraph was made
| at the last moment before the report was
| issued the data meantime having been
submitted to the Postmaster General in
| the form of a report. This report will be
| held by Mr.. Burleson, 1t is understood
without further expression upon his part
| There have been many compromises pc
| tween the department of justice and COM
| binations brought to court as offenders
| under the Sherman act. but 1t was ar
| opinion quite generally shared today that
other big corporations are apt to follow
| In the footsteps of the American Tele-
phone and telegraph company. Among
those who already have sought to settle
! their involved affairs out of court is .ht
| New York, New Haven and Hartford
| Railroad company and that case present.
| difficulties far gerater than presented by
| the Bell Telephone.
| The departments attitude toward rh'
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