The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-12-26
TELEPHONE TRUST
is DISSOLVED
An Agreement Is Reached Which
Will Prevent Litigation
TRUST WILL DISPOSE OF WEST.
ERN UNION HOLDINGS,
Agreement Is Big Victory For the Ad-
MinfstratiOn-Big Business Will
Fellow the Sherman Law.


Fellow the Sherman Law.
Washington Dec. 2O.-The greatest
antitrust victory of President Will
sons administration thus far, the vol
untary dissolution of the so-called
telephone trust, commanded the atten-
tion OF all administration officials to-
day. Next to the fact that all the fea-
lures against which the government
was preparing the antitrust suit will
be eliminated with the consent and
cooperation OF big business" itself
without years of court fighting, the
principal topic of discussion was what
effect will the dissolution have on the
movement for government ownership.
1t has been generally expected in con-
gress that such plan would soon be
urged.
Washington, Dec. 20.-Attorney
General McReynolds made public last
night details of an agreement for re-
organization of the American Tele-
phone & Telegraph company, "the
telephone trust, which will prevent
litigation to dissolve that corporation
under the antitrust act, and under
which competitive conditions will be
restored In the telephone service of
the entire country and the combine
will dispose of its holdings in the
Western Union Telegraph company.
The reorganization plan originated
with the company, although 1t follow
ed many reports that a suit against
it might be filed. 1t was regarded by
department Of Justice officials as the
most striking indication offered in a
decade that "big business has come
to the conclusion that 1t is better to
follow the Sherman law than to fight
1t.
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 by
President Wilson. In letter to Mr..
McReynolds. the president expressed
his admiration for the attitude of the
telephone company and his conviction
that such conduct on the part of busi-
ness men meant building up of busi-
ness on sound and permanent lines.
Coming on the heels of the an
nouncement that Postmaster General
Burleson is interested in government
ownership of telephone lines, the ac-
tion of the department of justice took
an added Significance and some Off
cials went so far as to express the op-
inion that 1t indicated legislation to
acquire the country's telephone busi-
ness would not be pressed by the ad-
ministratiOn at the present session.
Tn hr{of tho
that:
"The American Telephone & Tele-
graph company will dispose promptly
CT its holdings to the Western Union
Telegraph company SO that each con-
Germ shall be under distinct manage
ment and SO that all shall be entirely
Independent
"The company will not acquire con-
troll of other telephone companies and
where control of telephone companies
has been acquired but no actual ply
steal union has been effected, the
American Telephone & Telegraph
company will submit the course it is
to pursue to the Interstate commerce
commission and to the department of
justice.
"The company will promptly make
arrangements by which all other teIe-
phone companies In the United States
shall have access to its toll lines"
Department officials declared that
the plan gave the government every
thing and more than It could have
hoped to obtain in court. Officials
were more than pleased with the last
part of the agreement. by which the
Bell company gives long distance SER
vice to subscribers of other companies
and did not deny that they never had
hoped to gain such point by suit un-
der the antitrust act.
The agreement will not affect the
suit entered several months ago to
dissolve the connection of the Bell
company with the Pacific Telephone
g. Telegraph company. the coast
branch. This suit will be pressed by
the department to determine bow far
the Sherman antitrust act applies to
telephone companies.
President Wilson's letter, written to
the attorney general Friday. was one
LOT the most interesting documents
made public In connection with the
settlement. 1t reads:
Thank you for letting me see the
letter from the American Telephone
& Telegraph company 1t is 9ratifv-
ing that the company should thus vol
unteer to adjust it's business to the
conditions OF competition.
II .rcin the impression more and
more from week to week that the bus
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