The Sentinel=record., 1913-01-21


 tute referred to-" continues the at. torney general, the commission therefore fully empowered to make the most thorough investigation into the rates and practices of the tele- phone companies to determine what are reasonable maximum rates to be charged for communication from one state to another and the practice 70 be observed in all of the dealings of the telephone companies to the pub lie and with other companies. No comprehensive investigation into the organization, management and con duct of telephone companies has, so far as l am aware. ever been had by governmental agency. The inyesti- gation of this department has dealt only with certain suggested viola tions of the sherman antitrust act, but the whole problem of the rela- tion of government to the transmits sion of intelligence by telephone and telegraph, is one of such far-reach- ing importance and so affects the welfare of the entire community that it appears to me to be subject which should be thoroughly studied from the standpoint of the public in order that a governmental policy with re- spect to telephone and telegraph business may be intelligently formu- lated and adopted The interstate commerce commission is clothed with the powers above referred to and the subject is one affecting such general public interests that l suggest you undertake this work. If these sug- gestions commend themselves to your honorable body, l beg to add that all of the information which has been collected in .nis department bearing upon the subject will be cheerfuly put at your disposal"
 Calling the commissions attention 10 the immensity of the subject, MT. Wickersham caid
 'Fhere are said to be come 10000 independent telephone companies representing investments aggregatine many millions of dollars, which to- gether operate somewhat more than 4,00O,000 telephones. No one of these companies represents capital or business comparable in size with that of the American company or any of it's principal subsidiaries. The American Telephone and Telegraph company either directly or through subsidiaries, whose stock it owns operates what Is known generally as the Bell Telephone system, which reaches upwards of 10000 places, dis tributed among practically all the states of the union, having some r. 50O,00O telephones in use and operat- ing the principal long distance lines between the states It has an invest ed capital of book value of nearly six hundred million dollars. It also is the owner of a large block of stock of the Wstern Union Telegraph com pany, through 1t practically controls the operations of the telegraph and cable lines of that corporation
 Outlining complaints of independ- ents against the American company, the attorney general says they charge the American has not contended it. self with the normal extension of its system, but has purchased com peting lines in such manner and in such circumstances ss would destroy competition; that it has refused to make connections between local lines not owned or controlled by it's own long distance lines; and has termi- mated contracts and arrangements for the interchange of business be- tween the lines 1t has acquired and lines Of independents.
 ! Complaint also is made, the attor ney general adds that in cases where American companies have assumed to make connection with independents. they have done so in such manner as, in effect, to prevent a satisfactory exchange of facilities of eommuni- cation. thereby intending to dis courage the patrons of the independ- ent companies and arrive them to the American companies. Further. ac- cording to the attorney general. it is charged that the American company has disseminated between the lines Of the Western Union Telegraph company. in which 1t owns an inte- rest. and those of the Postal Tele-