Albuquerque morning journal., 1913-12-20
Alleged Trust to Dissolve Vol
unfairly According toState-
ment of Attorney General
MCReyooIds,
LONG DISTANCE CALLS
GRANTED INDEPENDENTS
President Wilson Writes Con-
gratuIatoy Letter Agree
ment by Which COmpeti-
ton VIII Be Restored,


night details of uu agrecmcnt for roe
organization % The American Tcle-
phone q telegraph Co, the telephone
trust, which will prevenl litigation to
dissolve the corporation under the
antitrust act. and under which com
petitivo conditions viii ho restored in
the telephone service of the entire
country and the combine VIII dispose
OF lts holdings IN The Western Union
Telegraph company
The reorganization plan originated
with the company although IL fol-
lowed many reports that suit against
it might be filed. II was regarded hy
department of Justice officials tonight
as the most striking indication offered
I'm decade that "big business has
come TO the conclusion that il is bet
ter To follow the sherman law than
fight il.
The plan met not only the approval
Of the attorney general and his chief
trust buster G.. C. Todd. and off
cials of the subsidiaries of the COM
bine. but was heartily approved hy
President Wilson. IN letter 60 Mr.
McReynolds. thc president expressed
his admiration for the attitude of the
telephone company and his conviction
that such conduct on the part of husi-
ness men meant lriildina mp of busi-
ness on sound and permanent lines
Coming on the heels of the an-
nouncement that Postmaster General
Burleson Is seriously Interested in
government ownership of telephone
lines the action OF the department of
justice took an added significance and
some officials went so far as to eN-
press the opinion that ii indicated that
legislation To- acquire the country
telephone business would not he
pressed by the administration at the
present time. 1n brief the agreement
provides that:
The American Telephone e Tele-
graph componv viii dispose promptly
Of it's holdings in the Western Union
Telegraph company so that each con-
Germ shall be under distinct manage
ment and entirely independent
The company will not hereafter ac-
quire control Of other telephone COM
panies and where control Of telephone
companies has been acquired and no
actual physical union has been eff
fected, the American Telephone
Telegraph Co, will submit the course
1t is to pursue TO the Interstate Com
merce commission ana 10 the depart
ment OF justice.
The comp9uy Will promptly make
arrangements by which an other tele-
phone companies in the United states
shall have access to Its toll lines.
Department officials tonight de-
clared that the plan gave the govern
ment everything and more than 1t
could have hoped to obtain in court.
Officials are more than pleased with
the last part of the agreement by
which the Bell company gives long
distance service to subscribers Of
other companies and did not deny
that they never had hoped to gain
such a point by suit under the anti
trust act.
The agreement will not affect the
suit entered several months ago to
dissolve the connection Of the Bell
company with the Pacific Telephone
& Telegraph Co., the coast branch.
This suit viii be pressed by the de-
partment to determine how far the
sherman antitrust act applies to tele-
phone companies.
President Wilson's letter, written
to the attorney general today was
one Of the most inter ,sting documents
made public In connection with the
settlement. II reads.
THANK You for letting me see
the letter from the American
Telephone & Telegraph Co II
is very gratifying that the COM
pany should thus volunteer TO
adjust its business to the condi-
tions Of competition ! gain the
impression more and more from
week TO week, that the business
men Of the country are sincerely
DESTROYS Of conforming with the
law and it Is very gratifying i'm
deed to have OCCASION as in this
instance, to deal with them i'm
complete frankness and TO be able
to show them that all that we de-
sire is an opportunity to co-ope-
rate with them. So long as we
are dealt with in this spirit, we
can help to build up the business .
of the country on sound and per-
manent lines.
NCordially and sincerely yours,
WOODROW WILSON"
Mr.. McReynolds in accepting the
American Telephone & Telegraph Co.'s
offer, wrote to ~ G. Itingsbury, vice
president Of the company, as fol-
lows:
Permit me to acknowledge, with .
expressions Of appreciation. your let /
ter Of September 49, outlining the