The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1913-12-25
TELEPHONE TRUST
TO BE DISSOLVED

WaSiuISLOn, Ice. ZG.--ite greatest
antitrust victory of President Wilson'S
administration thus far-the voluntary
dissolution of the So-called telephone
trust; commanded the attention of all
administration officials today.
Next to the fact that all the features
against which the government was pre-
pairing an antitrust suit will be elm
mated with the consent and co-opera-
ton of big business" itself without
years OF court fighting, the principal
topic of discussion in administration
circles. was HI effect will the dis
solution have OF the movement for gov
eminent ownership? It has been ex-
pected In congress that such a plan
would be introduced as an administra-
ton measure.
Although the voluntary dissolution of
the so-called trust actually under way,
however, Attorney General McReynolds
and the Interstate Commerce commis-
sion today prepared to scan the details
of the proposed separation of the
American Telephone & Telegraph COM
pany from the Western Union and the
work of ~disentangling telephone affairs
throughout the country, which threat
ened federal action.
Won't Extend Monopoly.
Not only has the American Telephone
& Telegraph company agreed to give
up its control of the Western Union,
but it has agreed not to extend it's
monopoly of local companies in the
telephone field.
But the most important point to the
American people, officials declare, is
the telephone company's agreement to
extend the use of its toll ines to all
local companies. That concession,
which was admittedly more han Attor-
ney General McReynolds expected to
gain In a legal fight, opens long dis
tance facilities by telephone to many
communities which have long been
denied it. AS the work of separating
the two big companies goes on points
on which they may be in doubt will
he submitted to Attorney General Nc
Reynolds n the Interstate Commerce
commission for decision.
Administration supporters after in
formal conferences on the telephone
dissolution and going over so much OF
the plan as has been published were
of the opinion that the latest develop
ment would at least retard the move
rnent to present the government owner
shin question to congress. Some
thought the company's voluntary re-
adjustment to meet the views of the
department of Justice had created an
entirely new situation, which the gov
eminent ownership supporters would
have to consider before going further
Would Go Ahead With Plan.
Representative Lewis, of Maryland
author of the parcel post law and ac-
tive in the movement for government
ownership of telegraph and telephone
lines, introduced a resolution, how
ever, to direct the House postoffice
committee to go ahead and report 8
bill for government ownership of tele-
phone lines, to be operated by the post
office department.
In a statement accompanying his
resolution. Mr.. Lewis commended thai
the action of the Bell Telephone com.
pany to prevent litigation under The
antitrust law did not affect the legis'
lative situation at all.
1.-THE action of the Bell company
will not affect a single telephone o.
telegraph rate in the United State
and so the public necessities for leg
i~slative action to postalize these meth,
DDS Of communication, as they haV'
been in nearly all countries, are no
affected in the least" said he.
The Lewis resolution embodies a plal
by which the telephone lines would b
appraised by the Interstate Comrnerc
commission and the companies m1ghl
appeal to the United States circui
ourts on the awards. Pending litlga
ton, interest at the rate of q per cen
a year would he paid to the owners.
The government would issue 3 pc
cent bonds from time to time as tn
acquisition of properties demanded.
Change in Tactics.
The plan originated with the com
pany, although II followed many rs
ports that a suit against it might b
fled. IT was regarded by departmer
of Justice officials last night as tn
most striking indication offered in
decade that "big business has come t
the belief that it is better to follow til
Sherman law than fight it. The pla
met not only the approval of 1he atto1
ney general and his chief "tru:
buster G.. C. Todd. and officials of tt
subsidiaries Of the combine, but we
heartily approved by President Wi
- II a LETTER 10 MIR. McPeyu011S II