New-York tribune., 1913-07-25

ate attention, TO cure evils said to have
been brought about by unfair practices
and illegal combinations.
To-day's suit, which was fled by United
States Attorney Clarence l.. Reames, was
prepared by Constantine J. Smyth, spe-
cial assistant TO the Attorney General
under the direction Of Attorney General
McReynOlds; James A. Fowler, assistant
TO the Attorney General, and q. CarToll
Todd. special assistant
An immediate Injunction or restraining
order is asked by the government 10
prevent any further steps in pending
foreclosure suits to transfer the physical
properties of the Northwestern Long
Distance Telephone Company to the Bell
companies.
Forced to Violate Contracts.
1t is alleged that the Bell companies
by reducing rates below a paying basis
by giving free service and by threatS'
have forced several independent coih-
panies forming links in the long distance
system of the Northwestern company 10
violate their contracts for connexions
with the Northwestern company ana 10
give their business exclusively to the Beli
concerns In some places where public
authorities required the restoration Oh
the connections thus severed the soN-
ernment declares, all interstate messages
were sent by the Bell companies over
their own lines, except where the seHu-
ers specifically requested that they De
sent bv the Northwestern. Even in the
latter cases, II is alleged, the deliver!
of messages to the Northwestern was
DELAYED. and frequently patrons OF the
Northwestern were told that that conf
pany did not serve certain points which,
in fact, It did reach.
In encouraging independents to Vlolate
their contracts with the Northwestern IL
is charged, the Bell companies IN some
instances agreed to pay attorneys ices
and other expenses incurred through pos
sible litigation.
Acquisition by Bell interests OF the In
dependent Telephone Company OF Seattle
a link in the Northwestern system, II Is
added destroyed competition in that city
The stock and bonds Of this concern were
bought on October %. 1910, although, II
is alleged the transfer was kept from
the public until March ], 1912, when the
physical properties of the concern were
conveyed TO Bell interests.
The bill recites the sale to the Bell In
terests for $4,000 Of the Home Telephone
Company of Puget Sound, although the
company was appraised at s2,92I,lS2. THIS
concern. ii is alleged. was acquired at a
foreclosure sale through a contract with
William Mead, controlling the majority
of the stock OF the Home. Mead. who
organized committee, with himself at
the head, 10 represent holders of N,3l7-
! 800 Of the bonds of the Home company
| is said 10 have represented to the bond
| holders that the property was not worth
! the amount of their bonds, and that II
would be better for him not to bid In
| their behalf at the foreclosure sale. IL Is
| alleged that Mead contracted with the
Bell interests not to bid at the sale on
behalf of the bondholders and suffered
the property to go to the combination
receiving for his services, II is declared,
;3S 600 and the conveyance of certain
property I'm Tacoma, valued at S5,oe0, to
the National Securities Company, owned
chiefly by himself.
Control Of the Northwestern.
Mead. as treasurer Of the Northwest
ern company. is alleged 10 have entered
into an agreement with the Bell compa-
nies to procure for them control Of at
least two-thirds OF the stocks and bonds
and the physical properties of the North
western. To this end, and In order to
afford ground for foreclosure sale the
bill adds, Mead failed to pay the inter
est due in April and october, 1911, upon
the company's bonds, although he had
sufficient funds to do So. but instead OF
using them for that purpose he applied
them to the payment Of an alleged claim
OF his against the company. For his ser
vices in this regard the Bell companies
agreed TO pay him about $4,000. part OF
which was TO be withheld until they had
received title to the property OF the
Northwestern company through the fore
closure proceedings to be instituted In
consequence OF the default mentioned.
Two-thirds of the $4,000 capital stock
Of the Northwestern and all of its bonds.
valued at $4,000, have been sold to the
Bell interests, It is said, for 100000. The
Title Insurance and Trust Company, il
is added, has taken possession Of the
physical property OF the Northwestern
company and has commenced foreclosure
actions, "in order It Is alleged that
the acquisition by the Bell companies OF
the property OF the Northwestern might
have the appearance of judicial sane
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