South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-12-20
BILL FOR u. S. TO
TAKE OVER PHONE
SYSTEMS IN 1915

CONTINUED FROM PAGE ONE)
for recognition of the American Tel
ephone and Telegraph company
the Telephone trust"-which will
prevent litigation 10 dissolve that cor
poratiOn under the antitrust act, and
under which competitive conditions
will be restored in the telephone SER
vice Of the entire country and the
combine will dispose of its holdings in
the Western Union Telegraph COM
pany.
The reorganization plan originated
with the company, although il fol-
lowed many reports that suit against
ii might be filed. 1t was regarded by
department Of justice officials Fri
day night as the most striking indi-
cation offered in a decade that big
business has come to the conclus-
ion that 1T is better to follow the
Sherman law than fight ii.
The plan met not only the approx
al Of the attorney general and his
chief trust buster" G.. c. Todd and
officials Of the subsidiaries Of the
combine but was heartily approved
by Pres. Wilson.
President Is Pleased.
In letter TO Mr.. McReynolds the
president expressed his admiration for
the attitude OF the telephone company
and his conviction that such conduct
building up Of business on sound and
permanent lines
In brief the agreement provides
that:
The American Telephone & Tele-
graph company will dispose promptly
OF it's holdings I'm the Western Union
Telegraph Co., so that each concern
shall be under distinct management
and so that all shall be entirely indie
pendent.
To Submit Problems.
The company VIII not hereafter ac-
Quire control of other telephone COM
panies and where control Of telephone
companies has been acquired but no
actual physical union has been effect
ed, the American Telephone & Tele-
graph company will submit the course
IL is to pursue TO the interstate COM
merce commission and to the depart
ment of justice.
The company will promptly make
arrangements by which all other tel
ephone companies In the United
States shall have access TO the toll
lines.
Department officials Friday night
declared that the plan gave the gov
eminent everything and more than IL
could have hoped 10 gain in court.
From the point Of view of sub
scriber to an independent telephone
parts of the agreement is promising
him use of the through line of the
Bell company. Under the agreement
an Independent company may secure
connection with Bell toll lines by
supplying standard trunk lines to con-
meet with the Bell toll boards, the
Bell company operating the entire toll
circuits when connections are made.
Will Exchange Calls.
Service will be given with Bell
subscribers of other Independent COM
panies served by exchanges more than
so miles distant from the place where
the call originates. independent sub
scribers paying in addition to the
regular Bell toll charge a connection
charge OF ten cents for each message
This charge will not be made on bust.
ness known as long line business
and long line business Will be &C
cepted for less than SO miles as well
as for a greater distance.
The authorized capital stock OF the
Bell company Dec 81. 1912, was
$500, 900, coo, its bonded Indebtedness
at that time about Sos, goo. 600.
From Oct. 1906. to April of the cur
rent year IL has paid eight per cent
annually. The Western Union had an
authorized capital OF 500. 900. 900.
practically all Of which has been
issued. Late In 1911 the American
Telephone & Telegraph Co. held more
than $2s.000.000 OF this stock. The
Western Union has paid three per