The Sentinel=record., 1913-12-20
TEL LEPHONE TRUST AGREES TO DISSOLVE AND RETURN TO
 COMPETITIVE CONDITIONS.
VICTORY FOR SHERMAN LAW
Telephone Trust Agrees to Joint Con. nection with Other Lines and Also to Keep Hands off the Telegraph Business Hereafter.

Washington, Dec. 19.-Attorney Gen. eral McReynolds tonight made public details of an agreement for reorgau- ization of the American Telephone and Telegraph Company, the Telephone trust" which will prevent litigation to dissolve that corporation under the antitrust act and under which com petitye 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.
 The reorganization plan originated with the company, although it followed many reports that a suit against it might be filed It was regarded by Department of Justice officials tonight as the most striking indication offered iii decade that "big husiness' has came to the conclusion that it is be- ter to conform to the Sherman law than fight it.
 The plan not only met the approval of the attorney general and his chief trust buster" c. C. Todd, and off, cials of the subsidiaries of the com bine but was heartily approved by President Wilson. In a letter to Mr- MoReynolds 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 a building up of busi ness on sound and permanent lines.
 Coming on the heels of thN an uouncement that Postmaster General Bureson is seriously interested in government ownership of telephone lines, the action of the Department of Justice took on an added significance and some officials went so far as 10 express the opinion that it indicated that legislation to acquire the conn- trys telephone business would not be pressed by the administration at the present session.
 In brief the agreement provides that:
 The American Telephone and Tele- graph Company will dispose promptly of it's holdings in the Western Union Telegraph Company So that each con cern shall be under distinct manag - ment and so that all shall be entirely independent
 The company will not hereafter ac- quire control of other telephone com panies and where control of telephone companies has been acquired but no actual physical union has been effect cd the American Telephone and Tell- graph Company will submit the course it is to pursue to the interstate com merce commission and to the Depart ment of Justice.
 The company will promptly make arrangements by which all other tel-- phone companies in the United States shall have access to it's toll lines
 Department officials tonight declar- ed that the plan give the government everything and more than 1t could have hoped to obtain in court. oIh- cals were particularly pleased ~i'h the last part of the agreement, pS which the Bell Company gives ioils distance service to subscribers of otn' CT companies The officials did not deny that they never had hoped to gain snch a point by suit under the antitrust act.
 The agreement will not aifect the suit entered several months ago Io dissolve the connection Of the pc" Company with the Pacific Telephone and Telegraph Company the west Coast branch. This suit will be press ed by the department, to deterh'l". how far the SheSman antitrust a0' applies to telephone companies
 President Wilson's letter written 'o the attorney general today, was on' of the most interesting documents made public in connection with 'no settlement. It reads:
 My dear Attorney General: lhanN you for letting me see the letter rom tho American Telephone and lele' graph Company It is very gratitylhs that the company should thus VoluH' teer to adjust its business to the co"- ditions of competition.
 "I gain the impression more anu more. from week to week, that the business men of the country are SIT cerely desirous of conforming with 'p, law, and it is very gratifying ihueeu 10 have occasion, as in this instance