New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-20

vice TO subscribers OF other companies,
and did not deny that they never had
hoped to gain such point by suit UNI
der the antitrust act.
The agreement will not affect the
suit entered several months ago to dis
solve the connection Of the Bell com
pany with the Pacific Telephone and
Telegraph Company, the Coast branch.
This suit will be pressed by the de-
partment to determine how far the
Sherman antitrust act applies to teie-
phone companies.
Mr.. McReynolds, in accepting the
American Telephone and Telegraph
offer. wrote to n c. K;ngsbury. vice
president Of the company, as follows:
Permit me TO acknowledge with eX-
pressions Of appreciation your letter OF
December 10 outlining The course OF
action which the telephone companies
composing the Fell system obligate
themselves 10 follow In the future.
Competition Restored.
Your frank negotiations in respect
of these matters compel the belief that
what YOU propose will be carried out IN
good faith: and II seems to me cicd'
that such action on your part will es-
tabIish conditions under which there
will be fun opportunity throughout the
country for competition in the trans
mission of intelligence by wire.
May | take this occasion TO say tina,
the administration earnestly desires to
cooperate with and 10 promote all
business conducted in harmony with
law. and that, without abating the in
sistence that the statutes must be
Obeyed. it will always welcome oppor-
tunity to aid in bringing about what
ever adjustments are necessary for the
establishment Of lawful conditions
without litigation"
The announcement Of the agreement
for a reorganization came tonight at
the conclusion of several months of
negotiation. in which the Attorney Gen
eral and Mr.. Todd and Mr.. Kingsbury,
Theodore n. Vail, president of the
American Telephone and Telegraph.
and other parties on both sides con-
ferred.
Mr.. McReynolds took up the question
early in his administration of the De-
partment Of Justice. and officials Of the
telephone company showed willing
ness from the first to do anything in
reason TO satisfy the governments
lawyers.
Not a Hitch in Plan.
AS point by point in a tentative plan
was wor' ed out. Mr. Kingsbury carried
it to New York, submitted il TO the d.
rectors of the American Telephone and
Telegraph and TO other companies IN
terested, and in every instance OBJ
tanned the approval of the department
and of officials of the companies con-
cerned. There never was a serious
hitch in the plans, and Mr.. McReynolds
clearly indicated 10 the telephone off,
Gals not only his desire TO avoid liu-
CATION, hut his aversion TO any scheme
for government ownership.
The plan finally was submitted TO the
Attorney General with the statement
that the company wished to put its af-
fairs beyond fair criticism" Some Of
the details of the reorganization are yet
to be perfected. The department has
such confidence in the corporations de-
sire TO do the right thing, however. that
1t has left such matters to its officers
and any reasonable amount of time
asked for will be granted.
Although exact information as 10 he
extent OF Western Union stock held by
the Bell company was not available
here tonight, it was understood 10 he
about 80 per cent. Mr.. McReynolds
has no desire TO force the combination
TO clear its treasury Of this stock in a
week or a month or in any set time.
Independents to Use Lines.
From the point Of view Of a sub
scriber to an independent telephone
system one Of the most interesting
parts Of the agreement is that promis =
ing him use of the through lines Of the
Bell company. Under the agreement
an Independent company may obtain
connection with Bell toll lines by sup
plying standard trunk lines to connect
with the Bell toll boards, the Bell com
pany operating the entire toll circuit
when connections are made
Service will be given with Bell sub
scribers or subscribers Of other indie
pendent companies served by ex-
changes more than fifty miles distant
from the place where the call origi-
mates, Independent subscribers paying
in addition to the regular Bell toll
charge a connection charge of 10 cents
for each message. This charge will not
be made on business known as long
lines" business. and long lines business
will be accepted for less than fifty
miles as well as for a greater distance.
The authorized capital stock of the
was $500 600. 600. its bonded indebtet-
ness at that time about s105,000,000
From October. 1906, 10 April OF the
current year it has paid per cent an
nuslly. The Western Union had an
authorized capital of slO0,O0o,000, prac-
tically all of which has been issued
Late I'm 1911 the American Telephone