The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-12-24

part will establish conditions under
which there will be full opportunity
throughout the country for compe-
tition in the transmission Of intelli-
gence by wire.
May / take this occasion to say
that the administration desires to CO.
operate with and to promote all bus
iness conducted in harmony with law,
and that, without abating the insist
ence that the statutes must be Obeyed,
it always will welcome opportunity to
aid in bringing about whatever al
justments are necessary fOI 1e-
establishment of lawful conditions
without litigation"
The announcement of the agree
ment for a reorganization came to-
night at the conclusion Of several
months of negotiations. Mr.. Mercy
nolds took up the question early in
his administration and officials Of the
telephone company from the first
showed a willingness to do anything
in reason to satisfy the government S
lawyers.
There never was serious hitch in
the plans. and Mr.. McReynolds clear
| ly indicated to the telephone officials
not only his desire to avoid litiga-
tion, but his aversion to any scheme
for government ownership.
The plan finally was submitted to
the attorney general with the state
ment that the company wished to
put it's affairs beyond fair criticism. -
Some of the details Of the reorganiza-
ton yet are to be perfected. The de-
partment has such confidence ir the
| corporations desire to do the right
thing, however, that it has left such
matters to it's officers.
Although exact information as to
the extent Of Western Union stock
held by the Bell company tonight was
not available, it was understood to
be about 80 per cent. Mr.. Mercy
nolds has no desire to force the COM
bine to clear it's treasury Of this stock
in any set period Of time.
| From the point of view of the sub
scrber to an independent telephone
system one of the most interesting
parts Of the agreement is that promis-
ing him use of the through lines of
the Bell company. Under the agree
ment an Independent company may
secure connection with Bell toll lines
| by supplying standard trunk lines tC
| connect with the Bell toll boards, the
Bell company opening the entire tolls
| circuit when connections are made.
Service will he given with Bell sub
scribers or other independent COM
panies served by exchange more thar
so miles distant from the place where
the call originates, Independent sub.
scribers paying in addition to regular
Bell tolls, a connection charge of II
cents for each message. This charge
will not be made on business known
as "long lines" business and long lines
business will be accepted for less
than SO miles as we'll as for q greater
distance.
The authorized capital stock of the
Bell company December 81, 1912, was
$500, 900, 900, it's bonded indebtedness.
at that time about $1O5, 900, 900. From
October, 1906, to April OF the current
year it had paid per cent annually
The Western Union has an authorized
capital of 100000, 1000, practically all
OF which has been issued. Late in
1911 the American Telephone and Tel
egraph company held more than $29,-
100000 of this stock The Western
Union has paid 3 per cent since Jan
uary, 1909.
Officials tonight do not believe that
either company will be affected great
ly by the announcement. They say
that telephone officials have explained
that the connection between the two
concerns never has been such that the
earnings Of one went To pay the div
idends of the other and the operating
expenses and overhead charges anC
all other accounts of each have been
quite distinct.
MIR McRcynolds has been told that
the American Telephone and Tele-
graph company, despite its stockhold-
ing in the Western Union. has trent
ed the Postal Telegraph company
with equal opportunity for use of
its facilities.