Arizona republican., 1913-12-20
America Telephone and Telegraph Company En- ters Agreement to Dispose of Holdings in Western Union Company
COMPETITION IS
 ALSO PERMITTED
Striking Instance in Decade Where Big Busi- ness" Concludes Better to Follow Sherman Anti Trust Law Than to Fight

WASHINGTON, Dec. 19. - Attor- ney General McReynolds made pub lie tonight the details of an agree ment for the reorganization of the American Telephone X Telegraph company. the telephone trust" which would prevent litigation to dissolve the corporation under the antitrust act and under which competitive con ditions would be restored in the tele- phone service of the entire country.
 The combine agrees to dispose of it's holdings in the Western Union Tele- graph company. The reorganization plan originated with the company. all though it followed many reports that suit against it might be filed. IL is regarded by the department of justice officials as the most striking instance in decade that big business has come to a conclusion it is better to follow the sherman antitrust law than to fight it.
 The plan has met not only with the approval of the attorney general, his chief trust buster" C. C. Todd, and officials Of subsidiaries of the com bine. but is heartily approved by President Wilson Tn a letter to Me Reynolds. the president expressed his admiration for the attitude of the telephone company and his conviction that such conduct on the part Of the business men meant the building up of the business on a sound, permanent lines.
 Coming on the heels of the an nouncement that Postmaster General Burleson is interested in the govern ment ownership of the telephone lines. the action of the department of jus tice took on added significance. and some officials went so far as to eX- press the opinion that it indicated legislation to acquire the cOmpany's telephone business would not he pressed by the administration al the present session.
 In brief the agreement provides that the American Telephone & Tele- graph company will dispose promptly of its holding in the Western Union Telegraph company so that each con cern will be under distinct manage ment. and so that all shall be en- tireIv independent. The company will not acquire control of other tele- phone companies, and where the con trol of telephone companies has been acquired, but no actual physical union has been effected the American com panY will submit the course it is to pursue toe the interstate commerce commission and to the department of justice. The company will promptly make arrangements by which all other telephone companies in the United States will have access to it's toll lines.
 Department officials tonight declared that the plan gave the government everything and more than it could have hoped to obtain in court The officials are more than pleased with the last part of the agreement by which the Bell company gives long distance ser vice to subscribers of other companies and did not deny that they never had hoped to gain such point by suit under the antitrust act.
 The agreement will not affect the suit entered several months ago to dis solve the connection of the Bell com pauv with the Pacific Telephone and Telegraph company, the coast branch. This suit will be pressed by the depart ment to determine how far the Sher- man anti trust act applies to a tele- phone company.