Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1913-12-27
SATURDAY, DECEMBER q, 1913.
pAoNE TRusT suRRENpERs.

the Bell Telephone monopoly, in which
II was shown that discrimination had
been practiced against this city. That
The World was right, Is shown by an
event which occurred yesterday.
Attorney-General McReynolds made
public details Of an agreement for re.
organization of the American Tele.
phone and Telegraph Company the
telephone trust"--whieh will pre-.
vent litigation to dissolve that corpor-
alton under the antitrust act, and un.
der which competitive conditions Will
he restored in the telephone service
of the entire country, and the com
bine will dispose of its holdings in
the Western Union Telegraph Com
pany.
The reorganization plan originated
with the company, although 1t followed
many reports that suit against II
might be filed. 1t was regarded by De
partment of Justice officials last night
as the most striking Indications offer
ed In a decade that "big business" has
come to the conclusion that it is be-
ter TO follow the Sherman law than
fight it. The plan met not only the
approval of the Attorney General ami
his chief trust buster" G. c. Todd,
and officials of the subsidiaries of the
combine, but was heartily approved By
President Wilson.
Coming on the heels of the an
nouncement that Postmaster General
Burles3n is seriously interested In
government ownership of telephone
lines, the action of the Department
OF Justice took on an added signifi-
canoe, and some officials went so far
as to express the opinion that it in
dicated that legislation to acquire the
country's telephone business would
not be pressed by the administration
at the present session
The agreement provides that-The
American Telephone and Telegraph
Company will dispose promptly of its
holdings in the Western Union Tele.
graph Company so that each concern
shall be under distinct management
and so that all shall be entirely indie
pendent.
The company will not hereafter ae-
Guire control of other telephone com
panies and where control Of such com
panies has been acquired, but no ac-
tual physical union has been effected,
the American Telephone & Telegraph.
ic Company will submit the course
it is 10 pursue to the Interstate Com
meree Compassion and to the Depart
ment of Justice.
The company will promptly make ar
rangements by which all other tele-
phone companies in the United States
shall have access TO its toll ines.
Department officials last night de
clared that the plan gave the govern
ment everything and more than IT
could have hoped to obtain in court
Ofcials we're particularly pleased
with the last part Of the agreement by
which the Bell company gives long
distance service TO subscribers of 9th
er companies, and did not deny that
they never had hoped to gain such a
point by suit under the antitrust act
The agreement viii 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 ta
partment to determine how far the
sherman antitrust act applies to teie-
phone companies
Tie above clearly indicates thai
The World was right. Il also shows
that a monopoly did exist and that
it was burdensome. 1t is also proof
that the Phone Trust feared Govern
ment ownership. It further proves
that all that is necessary to curt
trusts Is for the Government 10 lei
them know that they must desist from
their nefarious practices.
This surrender opens the way foi
further developments along the same
dimes. 1t proves that The sherman
Law is effective IT proves that the
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