Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-21
Attorney General Says Scores
of Companies Are
Gratified.
CAN NOW USE BELL LINES
IN EVERY PART OF UNION
May Indicate Fight of Cabinet Con-
servatives Against Govern
ment Ownership.

Attorney General McReynolds told
friends yesterday that scores of fndepend-
ent telephone companies in the United
States are gratiied with the agreement
the so-called telephone trust has made
with the Department of Justice which will
give them the use of thousands of miles
of trunk lines operated by the Bell Com
pany.
The department, he said, hardly could
have expected any court to order the Bell
Company to allow Independents to make
use of Bell equipment. and there practi-
cally was no chance that the inde.send-
ents could raise sufficient funds if they
had the desire, to build competing long
distance lines.
To bring about competition in interstate
business, it was pointed out, would have
required an outlay of millions of dollars
and probably would have meant loss or a
severe falling off in the receipts of the
Bell and the Independents that tried to get
ng-distance business.
Great Number of Independents.
According to figures laid before the At
| torney General by n. G. Kingsbury, the
vice president of the American Telephone
and Telegraph Company. who conducted
the negotiations which led to the agree
ment announced Friday night, there are
more than 10000 independent telephone
companies in the country. The agree
ment, il is declared, will mean that every
one of these companies has the right to
make use of the Bell lines in every part
of the Union
There was talk yesterday at the Depart
ment of Justice of action by the Bell
Company to allow subscribers of indie
pendent companies in cities to talk to Bell
subscribers through Bell exchanges and
Bell lines.
Mr.. McReynolds said that this was a
step that seemed to be far in the future.
So far as he knew the independent COM
panies were we'll satisfied with the A. L.
and 7. proposal and its agreement to
make no further extensions and to give
up it's holdings in such instances as the
department or the interstate commerce
commission suggested such action.
Against Government 0wnership.
Announcement Of the agreement caused
an unusual buzz of speculation here
yesterday. In some quarters it was re-
garded as an indication of thefght that
some of the conservative members of
President Wilson's cabinet will make
against government ownership Of public
utilities. 1t Is known that Mr.. McReyn-
olds is strongly opposed to government
ownership.
The Attorney General is said to feel
that government ownership is likely to
come in the United States unless there
can be restoration of free competition
in public service, but he believes the
agreement with the American Telephone
and Telegraph Company is a long step
n
telephone and telegraph field. In his
opinion the Sherman law is sufficiently
strong weapon to force any monopoly
to come to terms and he is convinced
that a clear demonstration of it's power
will do much to allay the growing senti-
ment for government ownership.
Burleson Has All Data.
Postmaster General Burleson, it be-
came known yesterday, now has before
him all data collected and put in con-
crete form respecting the proposed gov
ernment acquisition of telegraph and
telephone lines, but it is understood that
1t is not his present purpose to submit
the findings of his experts to Congress
| unless they are desired. If Congress
wishes to take UP the question the Post
master General is prepared at an hours
notice to submit data on the subjects.
In the summary of Mr.. Burleson's an
nual report supplied to the newspapers,
under the caption postal telegraphs and
telephone" appeared this paragraph:
In June last q committee was ap-
pointed to make an investigation of this
subject to determine the preliminary
| steps necessary for the government to
| take toward the acquisition of the tele-
graph lines of the country in accordance
with section 5,267 of the revised statutes
| This committee is now engaged in pre-
pairing its preliminary report. and if
| the findings justify such action proper
| recommendation will be made by the
department at later date"
Final Form Of Report.
AS the report finally was issued In per-
| manent form, this paragraph was elimi-
mated and the following substituted:
| Since June last the department has
been conducting careful investigation
| TO determine the desirability and. practical
bility of extending the government own
ership and control of means of commune
| cation, with a view to the acquisition
| by the government of the telegraph and
| telephone facilities, to be operated as an
adjunct to the postal service. The Post
master General is now engaged in re-
viewing the data collected, and later, if
desired, will submit same to the appro-
pirate committees of Congress for their
| consideration"
| The cnange OF The paragraph was
made at the last moment before the re-
port was issued. the data meantime hav-
ing been submitted to the Postmaster
General in form of a report. This report
| will be held by Mr.. Burleson, it is un-
derstood, without further expression
upon his part.
Many Department Compromises
There have been many compromises
between the Department Of Justice and
combinations brought to court as Offend
ers under the Sherman act, but it was
an opinion quite generally shared yes
terday that other big corporations are
apt to follow in the footsteps of the A. T.
and T. Company. Among those who al
ready have sought to settle their involv-
ed affairs out of court is the New
York, New Hoven and Hartford Rail-
road Company. and that case presents
difficulties far greater than presented by
the Bell telephone case.
The departments attitude toward the
A. T. and T. Company is not to be
! taken IL ia asserted. as an iudica fion