The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-01-25
PROBE PHONE TRUST.
WICkERSHAM ASKS COMMERCE
COMMISSION TO ACT.
Attorney General Thinks Regulation
by Board Is Better Than Application
OF sherman Law.

sum ot tne american Telephone and
Telegraph company and not by COM
pulsory competitive provisions OF the
Sherman antitrust law will be the
means of solving in large measure the
so-ealled telephone trust problem, ac-
cording to Attorney General Wicker
sham, who today announced he had
referred the question to the commits
sion for investigation.
This move terminates the investi-
CATION by the department. OF justice Of
the alleged $500. 600. 900 telephone
trust, against which independent tele-
phone companies have made charges
OF unfair treatment and Of the en-
ployment OF methods destructive OF
competition. The commission inves-
ugation will be far-reaching in effect
and out OF 1t Is expected to grow the
outline OF government policy with
respect to the telephone and tele-
graph. IL must be determined, ac-
cordlng to officials. whether in the in
terest and convenience of the public
the telephone and telegraph monopoly
under rigid regulation should be
tolerated by the federal government;
or whether the government should
take over utilities; or whether COM
petition should be enforced under the
Sherman antitrust law and monopoly
prohibited.
Chairman Lane OF the commission
formally announced tonight that in
response TO information submitted TO
IL ey the attorney general today the
interstate commerce commission will
make an investigation into the opera
tion, rates and practices of the va
rious telephone companies.
Pointing TO the complaints which
have been lodged with the govern
ment against the American Telephone
and Telegraph company generally
known as the Bell Telephone system,
the attorney general says in his COM
munication to the commission.
Many OF these questions. Il seems
to me. can not be appropriately deal.
with by the law department Of the
government, but should be made the
subject OF regulation after a careful
investigation OF the whole subject by
your honorable body The powers
vested in you by statute appear to me
to be- ample 20 enable you 10 make a
comprehensive and thorough investi-
CATION OF the matter. II may be that
as "a result OF such Investigation you
will conclude that additional legisla-
ton should be suggested to congress-
Quite a number OF States have enacted
laws vesting In public utilities COM
missions Or similar bodies Jurisdiction
which mad been executed. in some in
stances. ir respect to the acquisition
OF tho telephone lines Of one company
by another and with respect to the
Interchange OF business and facilities
between telegraph and telephone
lines.
state regulation. however. can not
be a satisfactory method OF ultimate
solution Of the question arising out Of
telephone operation.
Value OF telephone service de-
pends largely upon the facility Of con-
Meeting every individual telephone
user with any point upon any tele-
phone line In the United States"
Dealing with the powers OF the com
mission. Mr.. Wickersham points out
that the Interstate commerce act
makes telephone. telegraph and cable
companies engaged in interstate or
foreign business common carriers, re-
quires that all their rates shall be
just and reasonable and prohibits the
granting of undue or unreasonable
preference 20 any one. That section
Of the act requiring common carriers
TO file with the commission and keen
open 10 public inspection schedules
OF rates. fares and charges. the attor-
ney general adds. probably is not
broad enough TO extend To telephone
and telegraph companies
lie holds, however. that the act
confers upon the commission ample
power OF investigation on it's own int
tiatlve and ne points to the section
OF the law specifically authorizing the
commission TO fix just ami reasonable
rates and prohibit unjust and DIS
crimlnatory practices by telephone AMI
telegraph companies.
Under the provisions of ne stature
referred to-" says the attorney general.
"the commission Is therefore fully
empowered 90 make the most thor
ough invcsti cation into the rates and
Il l.