Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-12-20
BELL COMPANY
DIVORCES
W.U.
TELEPHONE TRUST VOLUNTARILY
RELINQUISAES CONTROL OF The
WESTERN UNION TELEGRAPH Co.
AND WILL NOT EXTEND ITS TELE-
PHONE MONOPOLY.
FEDERAL OWNERSHIP OF
TELEPHONE URGED

| Washington D. G., Dec. 20.-The
greatest antitrust victory OF Presi
dent Wilson's administration thus fal
the voluntary dissolution Of the so
called telephone trust--commanded
the attention of all administration of
fcials today.
Next to the fact that all the fea
| lures against which the government
was preparing an antitrust suit, VIII
be eliminated with the consent and co
operation of big business itself
without years of court fighting, the
principal topic of discussion in admin
istration circles, was what effect the
dissolution will have on the move
ment for government owenrship. 1t
has not been generally expected in
congress that such plan would soon
be urged as administration measure
With the voluntary dissolution OF
the so.called trust actually under way
| however, Attorney General Mickey
nolds and the interstate commerce
commission today prepared to scan
the details of the separation of the
American Telephone and Telegraph
company from the Western Union, and
the work Of dissolving telephone af
fairs throughout the country which
| threatened federal action.
Not only has the American Tele
phone and Telegraph company agreed
| to give up it's control of the Western
Union, but it has agreed not to eX'
tend its monopoly of local companies
in the telephone field.
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 resolution to direct
the house postoffice committee to go
ahead and report, a bill for govern
ment ownership4f telephone lines, to
be operated by the postoflice depart
ment.
In statement accompanying his
resolution, Mr. Lewis contended that
the action of the Bell Telephone com
pany to prevent litigation under the
antitrust law, did not affect the leg
islative situation at all.
'The action of the Bell company will
not reduce single telephone or tele-
graph rate in the United States, and
so the public necessities for legisla
tive action to postalize these methods
CT communication AS they have been
in nearly all other countries, are not
affected in the least" said he.
The Lewis resolution embodies 4
plan by which the telephone lines
would be appraised by the interstate
commerce commission and the COM
panies might appeal to the United
States circuit courts on the awards.
Pending litigation, interest at the rate
of four per cent a year would be paid
to the owners.
The government would issue three
per cent bonds from time to time as
the acquisition of properties demand
ed.
President Vail Talks.
New York, Dec. 20.--Referring to
the relations between the American
Telephone and Telegraph company
and the Western Union, r. N. Vail, !
president of both said today in part:
mo such thing as dissolution has
occurred, for the reason that no such
hing as merger ever occurred in |
he past. The relations between the ,
American Telephone and Telegraph |
ompany and the Western Union have
lever been in the nature of mer-
ger. The development of the mutual
has been of complimentary
character. or an extension of each OF
he others facilities.
Care has always been taken that
othing be done which would affect
,hatever competition might be consid-
red to exist.
"If real merger were made and
me given to complete the merger,
ONE economies and additional new
ervices of advantage to the public
be introduced. Whatever has
ecn done already, it is believed, will
e allowed to stand, it is probable
lat some additional cooperative '
ork may yet be accomplished. I
"There is no setback in this separa
on. to the material interests of either '
,mpany, but on the contrary, nov i
,at there is some understanding OF ,
hat can be done and what cannot be I
)ne, greater progress along the lines
afined can be expected. +,
"The attorney general has been very r
,nsiderate of the material interests {
the companies SO far as consistent
ith his public duty and his attitude v
as clearly reflected by the president, t
e think the problem has been work t
out to the best interest of the pub t
, and the companies" 4
To the foregoing, Vice President t
ingsbury of the American Telephone v
Id Telegraph company, added that t
plan for the disposal of the COM t
nys holdings in the Western Union A
ID yet been considered. D
(Continfpd on mage eight