The Birmingham age-herald., 1913-01-21
Wickersham to Rely Upon
Investigation of Tele-
phone Commission
HAS AMPLE POWER TO
MAKE INVESTIGATION
This Move Terminates Investigation
by Department of Justice of
Alleged $500, 100000
Telephone Trust

| Washington. January 20-Regulation
| by the. Interstate commerce commls-
sion of the American Telephone and
Telegraph company and not by the
compulsory competitive provisions Of
the sherman antitrust law will De
the means Of solving, in large meas
ures the so-called telephone trust
problem, according to Attorney General
Wickersham, who today announced he
had referred the whole question to the
commission for Investigation and ac-
ton.
This move terminates the investf-
cation by the department of justice of
the alleged $500. 900 900 telephone trust.
against which Independent telephone
companies have made charges of un-
fair treatment and OF the employment
of methods destructive of competition.
The commissions Investigation VIII be
far reaching in effect and out of II
Is expected to grow the outline of Il
governmental poll " with respect TO the
telephone and telegraph. II must be de-
termined, according to officials wheth-
er in the interest and convenience of
the public, the telephone or the tele-
graph monopoly under rigid regulation
should be tolerated by the federal gov
ernment, or whether the government
should take over utilities, or finally.
whether competition should be en-
forced under the Sherman antitrust
law and monopoly prohibited.
Commission to Take Action
Chairman Lane OF the interstate
commerce commission formally an
nounced tonight that 'in response 20
! Information submitted to II by the Al
torney General today. the interstate
fcommerce commission viii make an ia
vestigation into the operations. rates
and practices of the various telephone
companies
Pointing to the complaints whica
have been lodged with the government
against the Ameriesp Telephone and
Telegraph company, generally known
as the Belle telephone system. the Al
torney General says in his communica-
ton to the commission:
.Many of these questions. ii seems
to me, cannot be appropriately dealt
with by the law department of the
government, but should be made the
subject of regulation after careful
Investigation of the whole subject by
! your honora BILE body. The powers vest
| ed in you by statute apear to me to
be ample to enable you to make a COM
prehensive and thorough investigation
of the natter It may be that as Il
result of such investigation you will
conclude that additional legislation
should be suggested to Congress. Quite
number of states have enacted laws
vesting in public utilities commissions
or similar bodies Jurisdiction, which
has been executed in some instances
with respect to the acquisition of tel
ephone lines of one company by an
other and with respect 10 the inter-
| change of business and facilities be-
! tween telegraph and telephone lines
| State regulation, however cannot pc
satisfactory method of ultimate solu-
| tion of the questions arising out of
! telephone operation The value of
! telephone service depends largely upon
the facility of connecting every indi-
vidual telephone user with any point
upon any telephone line In the United
states but this should be attained un-
der conditions which secure to the pub
| lie the maximum Of convenience upon
the most reasonable terms consistent
with fair return upon the investment
| and under suitable supervision and
control by your honorable body
Telephones Common Carriers
| Dealing with the powers of the, COM
mission, Mr. Wickersham points out that
! the interstate commerce act makes trle-
| phone telegraph and cable companies.
| engaged in interstate or freight business,
| common carriers; requires that all their
rates shall be just and reasonable, ana
prohibits the granting of undue o. un-
| reasonable preference to any one Ihat
section of the act requiring common car
| riers to file with the commission, and
/ IN ptibtff inGupetinu. schedules
Of rates, fares and charges, the Attorney
| General adds, probably is not broad
| enough to extend to telephone and tele-
| graph companies He holds, however,
that the act confers upon the eoninis-
| sion ample power of investigation on It's
own initiative and he points to the see
| ton of the law specifically authorizing
| the committee to fix just and reasonable
rates and 70 prohibit unjust and dscrimi-
natory practices by telephone ana tele-
| graph companies.
"Under the provisions of the statute
| referred to-" continues the Attorney Cen
oral 'the commission is therefore, fuliy
empowered to make the most thorough
investigation into the rates and practices
Of telephone companies to determine what
are reasonable maximum rates To be
charged for communication from one
! state TO another, and the practice 10 be
observed in all of the dealings of the
telephone companies with the public and
! with other companies. No comprehensive
investigation in the organization. man
agement and conduct of telephone COM
panies has. so far. as I am aware, ever
been had by governmental agency. me
investigation of this department has dealt
only with certain suggested VIOLATIONS OF
the sherman antitrust act, but the whole
problem of the relation Of government 10
the transmission of intelligence by tele-
phone and telegram is one OF such far
reaching Importance and so affects ths
welfare of the entire community that Il
appears to me TO be subject which
should be thoroughly studied from the
standpoint of the public in order that
la governmental policy with respect to the
telephone and telegraph business may be
intelligently formulated and adopted The
Interstate commerce commission rs
clothed with the powers above referred
TO and the subject is one affecting such
general public interests that | venture
20 suggest that you undertake this work.
II these suggestions commend themselves.
to your honorable body. beg to add that
i all the information which has been cob
lected in this department bearing upon
(Continssd On Pags EigAtA