The San Francisco call., 1913-07-25
ANTITRUST SUIT
IS FILED AGAINST
BELL TELEPHONE
Dissolution Action Brought
Against Merger by Order
of Attorney General
McReynolds
SAN FRANCISCO MEN
NAMED DEFENDANTS
Government Charges Mo-
nopoly With Violating
Sherman Law

PORTLAND, July 24.-Dissolution of
the alleged telephone monopoly on the
Pacific coast by the American Tele-
phone and Telegraph company-the so
called Bell Telephone trusts sought
by Attorney General McReynolds in
the civil antitrust suit filed here to-
day. The government charges the
giant corporation and it's subsidiaries
with absorbing independent telephone
companies to destroy competition and
create q monopoly in oregon, Wash
ington. Montana and Idaho. in viola
tion of the Sherman law.
This is the first attempt ever made
to apply the federal antitrust statute
TO the telephone situation. Telephone
companies have claimed that the tele-
phone. like the railroad. is a natural
monopoly and that single system
is conducive to the best interests or
the public The department of justice
contends that ii is question of pub
lie policy for congress TO determine.
WON'T HALT INVESTIGATION
1t is declared that the suit filed to-
day will not Interfere with the sweep
ing investigation proposed by the IN
terstate commerce commission into the
general telephone situation to deter
mine whether the Sherman law should
be invoked generally with the purpose
of enforcing competition or whether
monopoly should be permitted or en-
couraged under regulation similar TO
that OF railroads.
This step was taken in the west be-
there existed a peculiar situation de-
manding immediate attention to cure
evils said to have been brought about
by unfair practices and illegal COM
binations.
The attorney general asks the court
TO compel the Bell company to reiin-
Quish control of the Independent Tele-
phone company of Seattle, the Home
Telephone company of Puget sound, the
Northwestern Long Distance Telephone
company, the Interstate Consolidated
Telephone company and the Independ-
ent Long Distance Telephone company.
If necessary to accomplish the disso-
luton, the court is asked to appoint
receiver for the properties.
MUST SELL STOCK
Attorney General McReynolds' well
known views that the pro rata distri-
button of the stocks of the Standard
Oil and Tobacco trusts did not bring
about real dissolution of these COM
binations are strongly reflected In to-
days 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 in
dependents to persons not connected
with the Bell companies as stock hold-
ers or otherwise. He asks for restora-
ton as far as practicable, OF compeu-
tive conditions existing prior to the
Ia m
panies, their officers and agents. be en-
Joined from acquiring interest in or
control of the companies relinquished.
Aside from the American Telephone
and Telegraph with a capital of $685.
209,925 par value and assets of S924,-
26o,S1s the following corporations and
individuals are named as defendants:
DEFENDANTS NAMED
Atlantic and Pacific Telephone com
pany, Pacific Telephone and Telegraph
company, Sunset Telephone and Tele-
graph company. Pacific States Tele-
phone and Telegraph company, Noun
tain States Telephone and Telegraph
company, Northwestern Long Distance
Telephone company. Home Telephone
Company of Puget Sound, Independent
Insurance and Trust company, Inter-
state Consolidated Telephone company
Corporation Securities and Investment
company, Independent Long Distance
Telephone company. Washington Coun-
ty Telephone company. Granger Tele-
phone and Telegraph company, Nc
Telephone company, Lebanon Mutual
Telephone company: Theodore n. VAIL
Union N. Bethel, Edward J. Hail. n. c.
Kingsbury and H. 2. Thayer of New
York; William r. Driver and Charles
p. Ware of Massachusetts; B. Z. Sun
ny. Illinois; Henry T. Scott E. c. Brad
Drumm. Timothy Hopkins, w. H.
Crocker. William Mead and George ].
Petty of California; Edward b. Field
Edward Field Jr: and E. NJ Burgess of
Colorado; A. E. Adams and w. II. Fos-
ter of Ohio; S. G. Hughes. Forest Grove,
Ore, and John F. Davies and Thaddeus
> Lane of Washington.
The suit filed by United States At
torney Clarence l.. Reames was pre-
pared by Constantine J. Smyth, spe-
cial assistant to the attorney general
under the direction of Attorney General
McReyno1ds James A Fowler, assistant
to the attorney general, and G.. Carroll
Todd. special assistant
An immediate injunction or restrain
ing order is asked by the government
TO prevent any further steps in pend
Ing foreclosure suits to transfer the
physical properties of the Northwest
ern Long Distance Telephone company
to the Bell companies by reducing rates
below paying basis by giving free
service and by threats, it is alleged
have forced several independent COM
panleS forming links In the long dis
tance system of the Northwestern
company to violate their contracts for
connections with the Northwestern
company and to give their business
exclusively to the Bell concerns
Acquisition by Bell interests of the
Independent company of Seattle link
in the Northwestern system, il is added
destroyed competition in that city.
Plan Hyde Land Suits
PORTLAND, July 24.-According to
local federal land officials today, the
state of Oregon and the government
will unite in an effort to recover about
10000 acres of land alleged to have
been irregularly obtained few years
ago by +. A HYDE of San Francisco
and others. Suits will be filed in six
counties Saturday. The defendants in
the civil suits to be filed are F. A.
Hyde, Flora NJ. Sherman, Joost H
Schneider, Henry s. Morris. A. S. Bald
win, C. W. Clark and the c. W. Clark
company.
"NOTHING TO SUIT
Henry T. Scott of San Francisco,
former president and present chairman
of the board of directors of the Pacific