The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-21
various Bon telephone interest. had

various Boil telephone interests had
been consolidated
- Ever since that time tho telephone
{, combination has been undcr invcsti-
cation by the Department OF Justice.
s II has boon constantly aeSancd by
< Clarence II. Mackay. because OF the dis
(. advantage tho Postal Telegraph and
5, Cable Company wns placed in through
) its alleged lack OF the telephone facil-
/, !tics OF It's rival. the Western Union
independents Complain.
Z, Independent telephone interests. md
. ing IL arduous 20 compete with local
{ Sell companies. because trunk lines of
: tho combination wcro closed TO them
/, complained bitterly Members OF Con-
Z gross, from time TO time have pro-
: Partment OF Justice TO act on general
principles.
+ Finally. In tho ,ast few weeks, began
= movement for government ownership
,of telephone and telegraph lines Rep
; rcsentativo Lewis. OF Maryland. who
dorscd by Postmas ter Gcncral Burleson
lin his annual report just published,
recognized tho Importance OF the
+ through lines and proposed that they
tbo acquired by the government
|, In the course OF the fight carried
.or by the Postal Company. and the
independent telephone companies there
complaints 10 public service commits
,slons. the Interstate Commerce Com
mission and the Department OF Justice.
\ suit under the sherman law, charging
DISCRIMINATION against the independents
auu the Pacific Coast, IS now IL! tho
Fcdcral courts and hearings In. CON
uectiou with II have recently been
held IN this city.
4, Financial men said to-day that the
separation Of tho company into it's
parts would not be a great difficulty
because Of their distinct organization.
Tho dlGlculty would be. however. In do
fvisiue an equitable plan for distribu-
zion of the securities.
The Department OF Justice no longer
will permit distribution OF stock OF
the subsidiaries TO tho stockholders or
tho main company pro rata. as In tho
tobacco and standard oil cases. Tho
supreme Court In the Union Pacific dis
Solution Went on record against this.
An Economic Mistake.
l'ormer Attorney CT neral George w.
.NvicSershan, when he heard the news.
'>sid.
u can't cay am pleased, because
n think II viii ho an economic mis-
fake see no reason why telephone
stnd telegraph companies should not be
conducted rs one concern.
+ However. the action of the Wilson
administration in bringing about this
voluntary dissolution is nor II now pol
scy. When / was Attorney General there
wcro number OF such dissolutions
Drought about by the efforts OF Mr..
Taft and myself
MIR Wlchersahin said that, rs AT
,torney- C;cneral, complaints were made
10 him against tho American Telephone
.pd Telegraph Company and he turned
rhc case over to the Interstate Com
suerce Commission for Investigation.
The result of tho investigation I
dare say. he said, has brought
about the dissolution by consent"
jacob NJ Dickinson. counsel for the
government in the steel trust cases,
said that the news interested him ex-
vecdiugly. but that he could not give
an opinion on account Of his connco
lion with tho steel litigation
George O. Ward. vice president OF
tho Mackny companies, when told the
news, SAID:
This Is exactly what tho Postal
Telegraph and Cable Company haze been
contendng for for years. Wo have
.contcnded that thore was discr!mina-
,tion against US on the part OF tho
telephone company. and that this dis
elimination would continue as long as
thc interests remained united"