Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-12-20
TELEPHONE TRUST
D.SSOlVES ITSELF.
GOVERNMENT AGREES 10 PLAN
SUBMITTED by TELEPHONE
OFFICIALS,
Divorce WESTERN union
VIII Open Toll Lines for Universal
Use and Get Rid of All Stock
in Western Union.

WASHINGTON, Dec. l9.-Attorney
General McReynolds tonight made
public details Of an agreement for re-
organization of the American Tele
phone and Telegraph company, the
telephone trust" which will prevent
litigation to dissolve that corporatiin
under the antitrust act and under
which competitive conditions will be
restored in the telephone service of
the entire country and the combine
viii dispose Of its holdings In the
Western Union Telegraph company.
The reorganization plan originated
with the company, although IT follow
ed many reports that suit might
be filed 1t was regarded by depart
mcnt of Justice officials tonight as the
most striking indication offered IN
decade that big business had come
to the conclusion that it is better to
conform to the sherman law than to
night IT,"
The plan met not only the approv-
al Of the attorney general and his
chief trust buster" G c. Todd and
officials Of the subsidiary of the COM
binc. but was heartily approved by
President Wilson. In a letter to Mr.
McRcynOlds the president expressed
his admiration for the attitude Of the
telephone company, and his conviction
that such conduct on the part of the
business men meant a building up Of
business on sound and permanent
lines
STOPS Public ownership.
Coming on the heels of the an
nomcement that Postmaster General
Burleson is seriously interested in
government ownership Of telephone
lines, the action of the department Of
Justice took on an added significance,
aud some officials went 50 far as to
express the opinion that 1t indicated
that legislation to acquire the coun-
try's telephone business would not be
pressed by the administration as the
present session
In brief the agreement provides
that:
The American Telephone and Tele-
graph company will dispose promptly
of its holdings in the Western Union
Telegraph company, so that each con-
cern shall be under distinct manage
ment and so that all shall be entire
ly independent.
The company will not hereafter ac-
quire control Of other telephone COM
panies and where control of telephone
companies has been acquired, but no
actual physical union has been effect
ed the American Telephone and Tele-
graph company will submit the course
to be pursued to the interstate COM
merce commission and to the depart
ment Of justice.
The company will promptly make
arrangements by which all other tele-
phone companies in the United States
Khsll have access to its toll lines
Officials Are Pleased.
Department officials tonight de-
o,ared that the plan gave the govern
ment everything and more than II
could have hoped to obtain in court.
Officials were particularly pleased
by which the Bell company gives long
distance service to subscribers of 9TH
er companies. The officials did not
deny that they never had hoped to
gain such a point by suit under the
antitrust act
The agreement will not affect the
suit entered several months ago to
Lee. Of
company with the Pacific Telephone
and Telegraph company, the west
coast branch. This suit will he press
ed by the department to determine
how far the Sherman antitrust act
applies to telephone companies.
President Wilson's letter written to
the attorney general today was one of
the most interesting documents made
public in connection with the settle
ment. 1t reads:
Wilson's Letter.
My Dear Attorney General: Thank
you for letting me see the letter from
the American Telephone and Tele-
graph company. II is very gratifying
that the company should thus volun-
teer to adjust its business to the con-
ditions of competition.
II get the impression more ana
more from week to week that the
business men are sincerely deslrous OF
conforming with the law and II Is very
gratifying indeed to have occasion as
In this instance TO deal with them In
complete frankness and TO be able to
show them that all that we desire is
an opportunity to cooperate with
them. SO long as we are dealt with
In this spirit we can help to build up
the business Of the country upon
sound and permanent lines.
Cordially and sincerely yours.
WOODROW WILSON"
MIR. McReynolds in accepting the
American Telephone and Telegraph
comapny's offer. wrote to N. c. Kings
bury. Vice president Of the company.
as follows:
Permit me TO acknowledge with