The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-20
Will Dispose of It's Hold
ings in Western
Union.
COMPETITION is
TO BE RESTORED
Reorganization Scheme Proposed
by Company Is Accepted by
Government and Taken as
Indication That big Busi-
ness" Will Conform to
Antitrust Law.

Washington, December 19.-Attor-
ncy-Gencral McRcynolds tonight
made public details of nm agreement
for reorganization of tho American
Telephone and TELEGRAPH COMPANY
the Telephone Trust'-which will
prevent litigation 10 dissolve that cor
poration under the antitrust act TN
der the agreement, competitive condt-
,ions v!ll bc restored in the telephone
rcrvicc OF the entire country and the
combine VIII dispose OF is holdings in
the Western Union Telegraph Com
pany.
The rcorIanization plan originated
with the company although ii fol-
lowed many reports that q suit might
he fled It is regarded by Department
OF Justice officials as the most strilt-
ing indication offered in decade that
Big Business has come to the
clusion tina, II IS better TO conform 10
the sherman lBw than fight t.
Approved by President.
The plan nc, not only tho approval
OF tho Acknowledgement and his chief
trust hustcr." G. .. Todd. and officials
Of tn. subsidiaries OF the combine. but
was heartily approved by President
Wilson. In q letter 10 Mr.. McRcy-
nolds. the President expressed his ad-
mirntion for the attitude Of the com
pauy, and his conviction that such con
meant building up Of business on
sound ana permanent lines.
Coming on the heels OF the an
nouncencnt that PoStma ster- General
Burleson is seriously Interested In gov
crnmcnt ownership Of telephone lines,
tho action Of the Department Of Jus
tcc cook on an added Significance. and
some officials went so far as TO ex-
press the opinion that IL indicates that
legislation 10 acquire the couutry's
telephone business would not be
pressed by the administration st the
present session
Provisions of Agreement
In bricS the agreement provides that:
The american Telephone and Tele-
graph Company VIII dispose promptly
OF it's holdings in the Western Union
Telegraph Company SO that each
concern shall bc under distinct man
ascment and entirely independent OF
one another
The company viii not hereafter ac-
quire control OF other telephone com
panics. and where control OF telephone
companies has been acquired. but no
actual physical union has been cf-
fccted. the American Company viii
submit the course IL Is TO pursue 10
the Interstate Commerce Commission
and TO the Department OF Justice
"Th" company VIII promptly make
arrangements by which all other tele-
phone companies in the United states
shall have access to its toll lines"
Victory for Governments
Department officials tonight de-
clarcd that the plan gave the govern
inent more than it could have hoped
10 obtain in court. Oilcials were par
ticularly pleased with the agreement
by which the Bell Company gives long
distance service To subscribers OF other
companies. Ofhcials die not deny that
they never htt hoped TO gain such a
point by suit under the antitrust act
The agreement VIII not affect the
suit entered several months ago TO dts
solve the connection OF the Bell Com
pany with the Pacific Telephone and
Telegraph Company. the West Coast
branch. This suit Will be pressed by
the department TO determine how far
the sherman antitrust act applies to
telephone companies.
Letter To Att0rncy-GcncraI
President Wilson's letter to the At
torncy-Gencral to-day was one of the
most interesting documents made pub
lie In connection with the settlement
1t reads:
My Dear MIR. Attorney-General:
THANK you for letting mo SEQ the
letter from the American Telephone
and Telegraph Company. 1t is very
gratifying that the company should
thus volunteer TO readjust Its business
TO the conditions of competition.
more from week to week that the busi-
ness men OF the country are sincerely
desirous OF conforming with the law
and 1t Is very gratifying, indeed to
have occasion, as in this Instance to
deal with them I'm complete frankness
and to be able to show them that all
we desire is an opportunity to CO.
operate with them. SO long ns we are
dealt with in this spirit we can help
to build up the business of the coun-
try upon sound and permanent lines
CORDIALLY and sincerely yours
"WOODROW WILSON"
Compan.'s Offer Accepted.
Mr.. McReynolds, in accepting the
American Telephone and Telcgraph's
offer wrote to y. c. Kingsbury, vice
president OF the company. as follows:
Permit mo TO acknowledge. with
expressions OF appreciation, your let
ter of December 10. outlining the course
of action which the telephone com
paLics composing the Bell system OBJ
lGate themselves to follow in the fu-
ture.
Your frank negotiations in respect
OF these matters compel the belief that
what YOU propose will be carried out
in good faith and IT seems to me clear
that such action on your part will es-
tablish conditions under which there
will be full opportunity throughout
the country for competition In the
transmission of intelligence by wire
'May | take this occasion to say
that the administration earnestly de-
sires to cooperate with and to pro-
mote all business conducted in harmony
with law; and that, without abating
the insistence that the statutes must be
obcyed, 1t will always welcome oppor-
tunity to aid In bringing about what