The Birmingham age-herald., 1913-12-20


entered several months ago to dissolve
the connection of the Bell company with
the Pacific Telephone and Telegraph
company, the west coast branch. This
suit will be pressed by the department to
determine how far the Sherman anti
trust act applies to telephone companies.
Presidents Letter
President Wilson's letter written to the
Attorney General today was one of the
most interesting documents made public
in connection with the settlement. 1t
reads:
Dear Mr.. Attorney General: Thank
you for letting me see the letter from
the American Telephone and Telegraph
company. 1t Is very gratifying that the
company should thus volunteer to adjust
it's business to the condition of competi-
ton.
II gain the impression more and more
from week-to-week that the business
men of the country are sincerely desirous
OF conforming with the law, and it Is
Is very gratifying indeed to have occa-
sion. as in this instance, to deal with
them in complete frankness and to be
able to show them that all that we desire
is an opportunity to cooperate with
them. So long as we are dealt with in
this spirit We can hep to build up the
business of the country upon sound and
permanent lines.
Cordially and sincerely yours,
WOODROW WILSON"
Mr.. McReynolds in accepting the Amer
ican Telephone and Telegrap's offer,
wrote to N. C. Kingsberry, vice pres
ident of the company as follows
Permit me to acknowledge with ex-
pressions of appreciation, your letter of
December 10. outlining the course of ac-
tion which the telephone companies COM
posing the Bell system obligate them
selves to follow in the future
Your frank negotiations in respect of
those matters compel the belief that what
you propose will be carried out In good
faith; and 1t seems to me clear that such
action on your part will establish condi-
tions under which there will be full op-
portunity throughout the country for
competition in the transmission of intel
ligence by wire.
Desires to Cooperate
May l take this occasion to say that
the administration earnestly desires to
cooperate with and to promote all busi-
ness conducted in harmony with law, and
that, without abating the insistence that
the statutes must be obeyed, it will al
ways welcome opportunity In the bringing
about whatever adjustments are neces-
sary for the re1establishment of lawful
conditions without litigation
The announcement of the agreement for
a reorganization came tonight at the con-
clusion Of several months of negotiation
in which the attorney general and Mr..
Todd and Mr.. Kingsbury, Theodore n
Vail, president of the American Tele-
phone and Telegraph company, and other
parties on both sides conferred. Mr.
McReynolds took up the question early in
his administration of the department of
Justice. and officials OF the telephone
company showed a willingness from the
first to anything in reason to satisfy the
governments lawyers.
AS point by point in a tentative scheme
was worked out Mr.. Kingsbury carried
1t to New York, submitted 1t to the di-
rectors of the American Telephone and
Telegraph and to other companies in
terested, and in every instance obtained
the approval of the department and Of
f.cials of the companies concerned. There
never was a serious hitch in the plans
and Mr.. McReynolds clearly indicated to
the telephone people as not only his desire
to avoid litigation, but his aversion to any
scheme for government ownership.
The plan finally was submitted to the
Attorney General with the statement that