The Sentinel=record., 1913-01-21
INTERSTATE COMMERCE COM MISSION HAS POWER TO DEAL
 WITH BELL SYSTEM.
MAY SOLVE TRUST PROBLEM
Regulation Instead of Compulsory Competition Will be Used Against the $500, 100000 Corporation
 and Subsidiaries.

Washington, Ian. 20.-Regulation by the interstate commerce commits sion of the American Telephone and Telegraph company and not by the compulsory competitive provisions of the Sherman antitrust law, will be the means of solving in large mea- sure the so-caled telephone trust problem according to Attorney Gen eral Wickersham, who today announc- ed he had referred the whole ques- tion to the commission tor investi- gation.
 This move terminates the investi- gation by the department of the jus tice of the alleged $500, 100000 tele- phone trust against which jndepend- ent telephone companies have made charges of unfair treatment and of the employment of methods destruc- tive of competition. The commis- sion's investigation will be far-Teach ing in effect and out of it is expected to grow the outline of a government al policy with respect to the tele' phone and telegraph. It must be de- termined, according to officials, whe- ther, in the interest and convenience of the public. the telephone or tele- graph monopoly under rigid regula- tion should be tolerated by the fed eral government; or whether the government should take oye- such utilities: or finally, whether compe- tition should be enforced under the sherman antitrust law and monopoly prohibited.
 Chairman Lane of the interstate commerce commission, formally an nounced tonight that in response to information submitted to it by he attorney general today, the inter- state commerce commission will make an investigation in,J the operations of the various telephone companies.
 Pointing to the complaints which have been lodged with the govern ment against the American Telephone and Telegraph company, generally known as the Bell Telephone system, the attorney general says in his com munication to the commission:
 .dany of these questions, it seems to me, cannot be appropriately dealt with by the law department of the government, but should be made the subject of regulation after care fih investigation of the whole suo- iert by your honorable body The powers vested in you by statute ap- pear to me to be ample to enapie you to make comprehensive and thor ough investigation.
 It may be that you will conclude that additional legislation should be suggested to congress. Quite num- Der of states have enacted laws vest ing in public utilities commissions or similar bodies jurisdiction, which has been executed in some instances with respect to the acquisition of telephone lines of one company by another, and with respect to the ln- terchange of business and facilities between telegraph and telephone lines of one company by another, and with respect to the interchange of business and facilities between tele- graph and telephone lines. State regulation, however, cannot be a sat isfactory method of ultimate solution of the questions arising out of tele- phone operation.
 The value of telephone system de bends largely upon the facility oi connecting every individual tele- phone user with any point upon any telephone line in the United States :; but this should be attained under conditions which secure to the peo- pie the maximum of convenience upon the most reasonable terms con sistent with fair return upon the investment and under suitable super vision and control by your honorable body"
 Dealing with the powers of the commission, Mir. Wickersham points out that the interstate commerce act makes telephone, telegraph and cable companies engaged in interstate or foreign business, common carriers requires that all their rates shall be just and reasonable and prohibits the granting of undue or unreasonable preference to any one. Under that section of the act requiring common carriers to file with the commission and keep open to public inspection, schedules of rates, fares and charges, Lne attorney general duuS plODdpiy is not broad enough to tend to tine telephone and telegraph companies. He holds, however. that the act con fers upon the commission ample power of investigation on its own ini- tative and he points to the section Of the law specifically authorizing the commission to fix just and reason able rates and to prohibit unjust and discriminatory practices by~telephone and telegraph companies.
 Under the provisions of the sta