The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-25
Attorney General Says Talking
Facilities Monopolized.
Sues for Dissolution of So
Called Bell Telephone Trust.
STARTS SUIT IN PORTLAND
Pacific Coast Conditions Said
to Be Worse Than Elsewhere.
Many Illegal Practices Said to
Have Stifled Competition.

Portland. Ore. July 25.-Dissolution
of the alleged telephone monopoly on
the Pacific coast by the American
Telephone and Telegraph company-the
so-called Bell telephone trusts
sought by Attorney General McReyn-
olds in the civil antitrust suit filed
here.
The government charges the giant
corporation and it's subsidiaries with
absorbing independent telephone COM
panies to destroy competition and ere
ate a monopoly in oregon, Washing
ton, Montana and Idaho, in violation OF
the Sherman law.
This is the first attempt ever made
to apply the federal antitrust statutes
to the telephone situation Telephone
companies have claimed that the tele-
phone, like the railroad system, is a
natural monopoly and that single
system is conducive to the best inter-
ests of the public. The department OF
justice contends that is a question of
public policy for congress to de-
termine.
1t is declared that the suit filed will
not interfere with the sweeping in
vestigation proposed by the Interstate
commerce commission into the general
telephone situation to determine
whether the Sherman law should be
invoked generally with the purpose of
enforcing competition, or whether mon
opo1y should be permitted or encourag-
ed under regulations similar to that OF
railroads.
Compel Bell Company to Let Go.
This step was taken in the west be-
cause the attorney general believed
there existed a peculiar situation de-
manding Immediate attention to cure
evils said to have been brought about
by unfair practices and Illegal combi-
a Gk
court to compel the Bell companies to
relinquish control of the Independent
Telephone company, of Seattle; the
Home Telephone company, of Puget
Sound; the Northwestern Long Dis
lance Telephone company; the Inter
state Consolidated Telephone company;
the Independent Long Distance Tele-
phone company.
If necessary to accomplish the dis
solution the court is asked to appoint
a receiver for the properties.
Attorney General McReynolds' we'll
known views that the pro rata dis
tribution of the stocks of the Standard
Oil and tobacco trusts did not bring
about a real dissolution Of these COM
billions, are strongly rejected In
this suit in which he specifically re-
quests the court to require the alleged
telephone trust to dispose of the stocks,
bonds and physical properties of the
independents Ito persons not connect
ed with the Bell companies as stock
holders or otherwise He asks for
restoration as far as practicable of
competitive conditions existing prior
to the consultations and that the Bell
companies, their officers and agents be
enjoined from acquiring control in the
companies relinquished.
Independents Treated Unfairly.
Bell companies by reducing rates be- |
low a paying basis by giving free serv-
nd nv &c i oil Iax
forced several important companies, |
forming links in the long distance sys-
tenn of the Northwestern company, to |
violate their contracts for connections /
with the Northwestern company and to |
give their business exclusively to the
Bell concerns. In some places where |
public authorities required the restora-
ton of the connections thuse severed
the government declares all interstate |
messages were sent by the Bell COM |
panies over their own lines. except |
where the senders specifically request
ed that they be sent by the Northwest
ern. Even in the latter cases it Is
alleged the delivery of the messages TO
the Northwestern were delayed and |
frequently patrons of the Northwestern
were told that that company did not
serve certain points, which, in fact, it
did reach.
This concern, it is alleged, was &C
Quired at a foreclosure sale through a |
contract with William Mead. controll-
ing the majority of the stock of the
Home Mead, who organized a com
nittee, with himself the head. to
holders of 1871, 800 of the
bonds of the Home, s said to have
represented to the bondholders that |
the property was not worth the amount
of their bonds and that it would be
better for him not to bid in their be-
half at the foreclosure ;-ale.
It is alleged he contracted with The
Bell interests not to bid at the sale
on behalf of the boldholders and |
suffered the property to go % the COM
bination, receiving for his services 1t
IS declared. $4,000 and the conveyance
of certain property in Tacoma, valued |
at $4,000. to the National Securities
company, owned chiefly by himself
Mead. as treasurer of the Northwestern
company, is alleged to have entered
into an agreement with the Bell COM
pany to procure for them control of
at least two-thirds of the stocks and
bonds and the physical properties CT
the Northwestern.