The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-09-19
Hearing of Bell Telephone Case
Was a Real Surprise.
Wire Corporation Claims 1t,
''Illegal Acts" Approved.
AUTHORITY GIVEN BY STATE
Money Interest in Other Com.
panies With p. U. C. Consent.
Commission May Seek to Show
Competition by Tolls.

There was a bit of comedy in the
state house today when the public
utilities commission swung into the
formal hearing of its trust busting
drive against the Southwestern Bell
Telephone company. The wire cor
poration had been cited to appear and
lied and unwarranted financial inter-
est in other companies. The Bell
company not only appeared by counsel
but dragged in a most disconcerting
reply to the effect that the utilities
commission had itself authorized most
of the acts of which it complains.
Some time ago the sensational in
formation was given to the public to
the effect that the utilities commission
had discovered that the Southwestern
Bell company was seeking to destroy
competition thru ownership of stocks,
bonds and various securities of other
wire companies 1t was charged that
all of this action was for the purpose
of destroying competition and owner
ship of the securities had been with
out knowledge, consent or approval OF
the commission.
Approved by Bell Company.
This morning attorneys for the Bell
company appeared before the COM
mission. They meekly passed over a
few sheets of typewriter paper whic4
constituted an answer. In brief this
answer was to the effect that the
utilities commission itself had author
lied all holdings where competition
existed and that all of the Bell com
pany securities had been reported. Not
only had they been reported in the
| last annual statement which the COM
pany filed with the commission, but
! they had been reported regularly eacf
year since 1914. --4s--.. -e-
In order to make the showing a hi
more clear and conclusive, attorney,
| for the telephone corporation quoted
| the docket numbers, chapters and
pages of books of the commission
where all of the information might bt
| found. During the next ten or fif
! teen minutes there was a free ant
| ployes who brought the books anC
records to Clyde M. Reed. chairman
of the commission; and Fred S. Jack
son, attorney.
After examination of one witness
the hearing was adjourned until thi!
| afternoon.
| Admit Their Securities.
All of the securities which the Bel
company was alleged to own was ad
tmitted in the answer. 1t includes th'
following: United Telephone com
| mon stock, s915.Ooo; Sabetha Tele
phone company, common stock, s26,
| 900; Kansas Telephone company, pre-
| ferred stock, $3.50, 900; bonds, S297,
600; Emporia Telephone company
common stock, s175,100; advances
| S1O1.49S; Southwest Long Distance
/ Telephone and Telegraph company
[ common stock, $10.500; Consolidated
Telephone company. bonds, $4,000.
THE amount. of this respondent
holdings of such securities December
1, 1921, and all previous years is cor
rectly set forth in respondents sew.
eral annual reports duly verified and
filed with this commission each year
| beginning in 1914" says the answer
| to the commissions charge. "Al
of said holdings are lawful" con-
tinues the answer. No one of said
companies is a competing company OF
within the purview of Sec. 81, Chap
23S, Laws of Kansas, 1911. The con
1 (C0ufipuc3 on 0oOa XIV