The Washington herald., 1913-12-20

obligate themselves to follow in the
future.
''Your frank negotiations in respect Of
these matters compel the belief that what
you propose will be carried out In good
faith, and it seems to me clear that such
action. on your part will establish condi-
tions under which there will be full op-
portunity throughout the country for
competition in the transmission OF in
telligence by wire
MAY I take this occasion TO say that
the administration earnestly desires to
cooperate with and to promote all busi-
ness conducted in harmony with law; and
that, without abating the insistence that
the statutes must be obeyed. II will al
ways welcome opportunity 10 aid In
bringing about whatever adjustments are
necessary for the re-establishment of
lawful conditions without litigation.
VERY truly yours,
81. c. McREYNOLDS,
Attorney General"
Cloud Is Lifted.
The agreement reached yesterday be-
tween the Department of Justice and the
American Telephone and Telegraph Com
pany lifts the cloud which has been
hanging over the head of that concern
for more than a year, as the result OF
threatened proceedings under the Sher-
man law Under the agreement an
nounced yesterday the company rela-
tions with its many subsidiary Oncerns
are not disturbed and 1t will remain in
practically the same position that II oc-
cupied before acquiring 20 per cent
interest In the Western Union Telegraph
Company. The wisdom of that purchase
in 1909 has been questioned many times
by the American Telephone and Tele-
graph people. whose troubles have dated
from the time Of the establishing OF
this close connection between the two
big wire companies
The agreement reached at the Depart
ment Of Justice does not provide for
any definite way for the American Tele-
phone and Telegraph Company to dis
pose of its $50 1900 or so Of stock in the
Western Union Company, but II is known
that the Attorney General is prepared
to give ample time for the carrying
through Of this big transaction.
The American Telephone and Telegraph
Company and the Western Union, not
withstanding the large stock interest
held by the latter, have insisted that they
have been operated independently. But
the Postal Telegraph Company has re-
peatedIy alleged that unfair practices
were lnuulEed IN DN Ine ltltpHbIc COIu-
panies in the interest of obtaining busi-
ness for the telegraph company.
To Help Independent Companies.
The big advantage that the public will
derive from yesterdays agreement lies
in the consent of the American Tele-
phone and Telegraph Company to give
independent companies connection with
the Bell lies under certain limitations
This will do away with the inconveni-
ences that have frequently arisen through
competing telephone companies in the
same territory.
The agreement is highly satisfactory
to the American Telephone and Tele-
graph Company. and its officers and
representatives were greatly pleased
ton which President Wilson had sent
to the Attorney General.
The investigation OF the American
Telephone and Telegraph Company by
the Department of Justice was under
taken back in the Taft administration.
Attorney General Wickersham, after
considering all the evidence, finally re-
ferred the entire matter to the Inter-
state Commerce Commission for action
by it in regard to the regulation OF
rates, and for other recommendations
Mr.. Wickersham held that 1t was a
question whether or not a telephone
monopoly was more desirable than COM
petitive conditions. When the Demo-
cratic administration came in. however.
Mr.. McReynolds took up the case again.
with the result that a dissolution suit
has been avoided by yesterdays agree
ment.
The agreement entered into between
the Department of Justice and the
nv yIil
suit under the Sherman law which al
ready is pending against several OF the
Bell companies on the Pacific Coast.
The belief is expressed. though. that
this action also will be settled out of
court