New-York tribune., 1913-07-25
Government Brings Suit to
Destroy Bell Companies
Monopoly in Four North =
western States.
INDEPENDENTS SHUT OUT
American Company Accused oi
Acquiring or Closing Up Com
petitors, and Court Is
Asked to Compel 1t to
Restore Them.
From The Tribune BureauI


e,it was filed to-day in the Uniteu
states District Court at Portland Ore
against the American Telephone an"
Telegraph Company and several SUD-
salaries. charging them with having
nonopolized the means of telegraphlc
communication in and between Oresoh'
washington, Montana and Idaho
Attorney General McReynolds direct
Cd the institution of the action follow
ing an investigation of a large nuihoei
or complaints received by the Depart
nent of Justice. It is expected other
suits against the American Ielepho"e
and Telegraph Company will be started
as the result Of the investigation
The bill filed to-day sets forth that
,,n ~ 1907 the Bell companies had
nonopoly OF the telephone business
both long distance and local, in the lour
states but that the service was IN
ferior and unsatisfactory. Independent
,eIephone systems were established IN
n.orlv every section Of the territory
described because Of the poor service
Il is asserted, and in addition there
were three Independent long distance
svstems-the Northwestern company
with lines running through Oregon ana
washington; the Interstate Consoh-
dated Company, with lines runhihs
through Washington. Montana anu
n Idaho. and the Independent Long DIS
tsnce Company. with lines running
through Idaho and oregon.
Unfair Methods Alleged.
As a result Of the competition there
was improved service for several years
but II is alleged. the Bell companies
conspired to acquire or destroy th5
competing companies, and to this end
reduced rates below a paying basis at
some points, gave free service at oth-
4rs and threatened TO employ similar
tactics in still other places.
The claim is made that within year
after the war on the Independent com
NAMES had been declared the Bell COM
nanies had acquired the local indepen-
don't lines in Seattle, Tacoma and many
other places. and destroyed or obstruct-
sd the connections between them ana
the independent long distance lines IL
is also charged that at many points the
alleged trust induced the local concerns
4, rive them all the long distance busl-
ross IN the exclusion Of the independent
long distance companies, with the re-
a.llt that the latter corporations were
forced either to suspend or sell TO the
Bell companies.
The result of the attacks Of the al
lered trust. it is declared, is that prac-
tically all competition has been de-
stroyed and that the Bell companies
monopollze both the local and long dis
tance telephone business in the four
states.
The court is asked to declare illegal
the acts against which complaint is
made and to rule that the American
Telephone and Telegraph Company be
REQUIRED 10 dispose Of the stocks, bonds
and physical property of the competing
systems thus acquired to persons not
connected with the Bell companies, ss
stockholders or otherwise, thereby re-
storing competitive conditions.
Many Companies Involved.
In addition TO the American Tele-
phone and Telegraph Company, the de-
fendants named in the suit are the
Atlantic and Pacific Telephone Com
pany, the Pacific Telephone and Telc-
graph Company, the Sunset Telephone
and Telegraph Company, the Pacific
States Telephone and Telegraph Com
pany, the Mountain States Telephone
and Telegraph Company, the North
western Long Distance Telephone Com
pany, the Home Telephone Company,
of Puget Sound; the Independent Tele-
phone Company. of Seattle; the Title
Insurance and Trust Company the In
terstate Consolidated Telephone COM
pany the Corporation Securities and
Investment Company the Independent
Long Distance Telephone Company. the
Washington County Telephone Com
pany. the Granger Telephone and Tele-
graph Company, the McMinville Local
and Long Distance Telephone Com
pany, the Lebanon Mutual Telephone
Company. Theodore y. Vail Union n.
Bethel. William r. Driver Edward J.
Hall. y. c. Kinsbury, y. e. Sunny, II.
y. Thayer, Charles p. Ware. Henry T.
Scott, L. c. Bradley, F. w. Eaton, II
S. King, +. G. Drumm, Timothy Hop
kins. w. II. Crocker, Edward B. Field,
Edward Field, jr., E. NJ. Burgess, Will
lam Mead. A. f. Adams, w. II. Foster,
George ]. Petty, s. C. Hughes. John +.
Davies and Thaddeus s. Lane.
Portland, Ore, July 2i.-The govern
ment's suit against the telephone trust.
brought here to-day, is the first attempt
ever made TO apply the federal antitrust
statute TO the telephone situation. Tele-
phone companies have asserted that the
telephone. like the railroad. is a natural
monopoly, and that a single system Is
conducive TO the best interests of the
public.
1t is declared that the suit filed to-day
will not interfere with the sweeping IN
vestigation proposed by the Interstate
Commerce Commission into the general
telephone situation. to determine whether
the Sherman law should be invoked gen.
orally with the purpose Of enforcing COM
petition. or whether monopoly should be