Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1913-07-26
FIGHT ON PHONE
MONOPOLY BEGUN
Dissolution of Bell COmbind'
tiOR in West is Sought

antitrust suit filed here today.
The government charges the giant
corporation and its subsidiaries with
absorbing independent companies 10
destroy competition and create mo-
nopoly in Oregon, Washington, Mon
tana and Idaho in violation of the
Sherman law.
This is the first attempt ever made
t. apply the federal antitrust statute
to the telephone situation. Telephone
companies have claimed that the tele-
phone and the railroad is a natural
monopoly and that single system il
conducive to the best interests of the
public. The department of justice
contends that it is a question of public
policy fer corgrt SIS to determine.
Doesn't Interfere With Probe.
1t is declared that the suit filed to-
day will not interfere with the sweep
ing investigation proposed by the in
terstate commerce commission into
the general telephone situation to de-
termine whether the Sherman law
should be invoked generally with the
purpose of enforcing competition CT
whether monopoly should be permitted
or encouraged under regulations SINH
lar to that of railroads.
This step was taken in the west be-
cause the attorney general believed
there existed q peculiar situation de-
n anding iInme date attention to cure
evils said to have been brought about
by unfair practices and illegal combi-
nations.
The attorney general asks the court
to compel the Bell companies to re-
| linquish control of the Independents
company of Seattle; the Home Tela-
phone company, of Puget Sound; the
Northwestern Long Distance Tele-
phone company; the Interstate Consol-
idated Telephone company, and the In
dependent Long Distance Telephone
company. If necessary to accomplish
the dissolution, the court is asked to
appoint a receiver for the properties.
Suggests Plan of Dissolution.
Attorney &c: eral McReynolds' we'll
known views that the pro-rata distri-
button of the stocks of the Standard
Oil and tobacco trusts did not bring
about a real dissolution of those com
binations are strongly reflected in to
days suit in which he specifically re-
quests the court to require the alleged
trust to dispose of the stocks, bonds
and physical properties of the indie
pendents to persons mot connected
with the Bell companies as stockhold-
ers, or otherwise" He asks for the
restoration as far as practicable Of
competing conditions evisting prior to
the consultations and that the Bell
companies, their agents and officers,
be enjoined from acquiring interest in
or control of the companies relin-
quished.
Aside from the American Telephone
and Telephone company, with CAPT.
tai stock of 1898 ,2O9, 1926 par value, and
assets of $924,260,S1S, sixteen corpora
tons and twenty-five individuals, head
ed by Theodore n Vail, are named as
defendants. The suit filed by United
States Attorney Clarence L. Reams,
was prepared by Constantine ]. Smyth,
special assistant to the attorney gen.
eral, under the direction of Attorney
General McReynolds, Jas. A. Fowler,
assistant TO the attorney general, and
G. Carroll Todd, special assistant.
Immediate Injunction Asked.
An immediate injunction or restrain
ing order is asked by the government
to prevent any further steps in pend
ing foreclosure suits to transfer tie
physical properties of the Northwest
ern Long Distance Telephone compa-
ny to the Bell. Bell companies, by re
ducing rates below a paying basis, by
giving free service and by threats, /.
is alleged to have forced several indie