The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1913-12-20

Government Will Reestablish Compe-
tition in the Telegraph and Tel
ephone Service


General NcReynolds has made pub
lie details for the reorganization Of
the American Telephone and Tele-
graph Co, which will prevent litiga-
ton to dissolve that corporation
under the antitrust act. and under
which competitive conditions will be
restored in the telephone service Of
the entire country and the combine
VIII dispense with its holdings in the
Western Union Telegraph Co.
The reorganization plan original
ed with the company, although it
followed many reports that a suit
against it might be filed. 1t is re-
garded by department of justice Off
Gals as the most striking example
offered in a decade that big bust
ness has come to the conclusion
that il is better to conform to the
Sherman law than fight it.
President Approves Plan
The plan met, not only the ap-
prevail Of the attorney general and
his Chief Trust Buster G. c. Todd,
and officials of the subsidiaries of
the combine, but was heartily ap-
proved by President Wilson.
In letter to Mr.. McReynolds, the
president expressed his admiration
for the attitude in which the tele-
phone company acted, and expressed
his conviction that such action meant
building up of business on sound
and permanent lines
Coming on the heels of the an
nOuncement that Postmaster Gen.
eral Burleson is seriously consider
ing government ownership of tele-
phone or telegraph lines, this action
took on additional Importance and
some of the officials believe it indi-
Gated that legislation to acquire the
country's telephone business would
not be pressed by the administration
at the present session.
In brief, the announcement pro-
vides that:
The American Telephone and Tel
egraph Co. will dispose promptly of
its holdings in the Western Union
Telegraph Co., so that each company
will be under distinct management
and also entirely independent
The company hereafter will not
acquire control of other telephone
companies and where control of the
telephone companies has been ac-
quired but no actual physical union
has been affected, the American Tel
ephone and Telegraph Co. will sub
NIT the course it is to pursue to the
Interstate Commerce Commission,
and to the department of justice.
The telephone company will make
arrangements by which all other tel
ephone companies in the United
States shall have access to its toll
lines
Department officials declare that
the plan gives the government ev-
erything, and more than it could
L.
F.! Officials are particularly pleased with
the last part of the agreement, in
which the Bell company gives long
| distance connections to all subscrib-
ers.
! President Wilson's letter, written
to the attorney general yesterday,
was one Of the most interesting docu-
ments made public in connection
with the settlement. 1t reads:
How President Views 1t
my Dear Mr.. Attorney General:
Thank you for letting me see the
| letter from the American Telephone
and Telegraph Co. 1t is very graft
flying that the company should thus
volunteer to adjust its business TO
competition.
4 gain the impression more and
more. from week to week, that the
! business men Of the country are sim
| cerely DESTROYS Of complying with
I the law and il is very gratifying in
deed, 10 have occasion. as in this in
stance. to deal with them in COM
pIete frankness. and 10 be able to
show them that all We desire is an
opportunity 10 cooperate with them.
! So long as We are dealt with in this
spirit. We car help to build up the
| business Of the country upon sound
and permanent lines.
CORDIALLY and sincerely yours,
Woodrow Wilson"